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CBSE Guide Planning class 12 Notes Business Studies

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12 Business Studies notes Chapter 4 Planning

Download CBSE class 12th revision notes for chapter 4 Planning in PDF format for free. Download revision notes for Planning class 12 Notes and score high in exams. These are the Planning class 12 Notes prepared by team of expert teachers. The revision notes help you revise the whole chapter 4 in minutes. Revision notes in exam days is one of the best tips recommended by teachers during exam days.

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CBSE Class 12 Business Studies Revision Notes CHAPTER – 4 Planning class 12 Notes Business Studies

• Deciding in advance what to do& how to do it. It is one of the basic managerial functions.

• It involves 2 aspects: Setting of aims and objectives of the organization + Selecting and developing an appropriate course of action to achieve these objectives.

• Koontz and O‘Donnell – ―Planning is deciding in advance what to do, how to do, when to do, and who to do it. Planning bridges the gap from where we are to where we want to go. It makes it possible for things to occur which would not otherwise happen.

• Involves setting of objectives & developing an appropriate course of action to achieve these objectives

Importance of Planning

1. Planning provides directions: By stating in advance how the work is to be done planning provides direction for action. If there was no planning, employees would be working in different directions and the organization would not be able to achieve its goals efficiently.

2. Planning reduces the risk of uncertainity: Planning is an activity which enables a manager to look ahead, anticipate change, consider the impact of change and develop appropriate responses.

3. Planning reduces wasteful activities: Planning serves as the basis of coordinating the activities and efforts of different departments and individuals whereby useless and redundant activities are mentioned.

4. Planning promotes innovative ideas: Planning is the first function of management. Managers get the opportunity to develop new ideas and new ideas can take the shape of concrete plans.

5. Planning facilities decision making: Under planning targets are laid down. The manager has to evaluate each alternative and select the most viable option.

6. Planning establishes standards for controlling: Planning provides the standards against which the actual performance can be measured and evaluated. Control is blind without planning. Thus planning provides the basis for control.

Limitations of Planning

(A) Internal Limitations

1. Planning leads to rigidity: Planning discourages individual’s initiative &creativity. The managers do not make changes according to changing business environment. They stop taking or giving suggestions and new ideas. Thus detailed planning may create a rigid framework in the organization.

2. Planning may not work in dynamic environment: Planning is based on anticipation of future happenings and since future is uncertain and dynamic therefore, the future anticipations are not always true.

3. Planning involves huge costs: When plans are drawn up, huge cost is involved in their formulation.

4. Planning is time consuming: Sometimes plans to be drawn up take so much of time that there is not much time left for their implementation.

5. Planning does not guarantee success: The success of an enterprise is possible only when plans are properly drawn and implement. Sometimes managers depend on previously tried successful plans, but it is not always true that a plan which has worked before will work effectively again.

6. Planning reduces creativity: In planning, work is to be done as per pre-determined plans. It is decided in advance what is to be done, how it is to be done and who is going to do it. Moreover, planning is done by top management which leads to reduction of creativity of other levels of management.

(B) External Limitations

They are those limitations of planning which arises due to external factors over which an organization has no control.

1 . Changes in Government policies way leads to failure of planning.

2. Natural calamities such as flood, earthquake etc. also adversely affect the success of planning.

3. Changes in the strategies of competitors also leads to failure of planning many times.

4. Regular technological changes may affect planning.

5. Changes in the Economic and Social Conditions also reduces the effectiveness of planning.

Planning Process

1. Setting Objectives: – Objectives specify what the organization wants to achieve. – Objectives can be set for the entire org. & stated to each dept. within the org. very clearly, to determine how all depts. would contribute towards overall objectives. -Then these have to percolate down to all employees at all levels so that they understand how their actions contribute to achieving objectives. – E.g. Objective could be to achieve sales, expansion of business etc.

2. Developing Premises: – Plans are made on the basis of some assumptions. – These assumptions, which provide the basis for planning, are called premises. – All managers involved in planning should be familiar w/ them, cuz plans are expected to operate & reach their destination subject to these. They can be: • Internal premises: Cost of products, capital, machinery, profitability etc. • External premises: Changes in technology, population growth, competition, govt. policies etc

3. Identifying Alternative Courses Of Action: – After setting the objectives, managers make a list of alternatives through which the org. can achieve its objectives as there can be many ways to achieve the objectives & managers must know all of them. – E.g. Sales could be increased through any of the following ways: • By enhancing advertising expenditure • Appointing salesmen for door-to-door sales • By offering discounts • By adding more product lines.

4. Evaluating Alternative Courses Of Action – Positive & negative aspects of each &every proposal need to be evaluated to determine their feasibility and consequences in the light of each objective to be achieved. – E.g. In financial plans, risk-return trade-off are imp. Riskier the investment, higher the returns it is likely to give. To evaluate such proposals, detailed calc. of earnings, taxes, earnings per share etc. should be done.

5. Selecting The Best Alternative – Real point of decision-making→ Best plan has to be adopted and implemented. – The ideal plan = most feasible, profitable and with least negative consequences. – Most plans may not be subjected to mathematical analysis. In such cases, subjectivity & manager‘s experience, judgment and intuition are important to select the most viable alternative. – Sometimes a combination of plans may be selected instead of one best course.

6. Implementing The Plan – Concerned with putting the plan into action. – For implementing the plans, managers start organizing & assembling resources for it. – E.g. If there is a plan to ↑ production, then more labour, more machinery will be reqd. This step would also involve organizing for more labour and purchase of machinery.

7. Follow Up Action – This involves monitoring the plans and ensuring that activities are performed according to the schedule. – Whenever there are deviations from plans, immediate action has to be taken to bring implementation according to the plan or make changes in the plan.

TYPES OF PLAN

A Plan is a specific action proposed to help the organization achieve its objectives. It is a document that outlines how goals are going to be met. The importance of developing plans is evident from the fact that there may be more than one means of reaching a particular goal. So with the help of logical plans, objectives of an organization could be achieved easily.

SINGLE USE PLAN

A Single use plan in a business refers to plan developed for a one-time project or event that has one specific objective. It applies to activities that do not reoccur or repeat. It is specifically designed to achieve a particular goal. Such plan is developed to meet the needs of a unique situation. The length of a single use plan differs greatly depending on the project in question, as a single event plan may only last one day while a single project may last one week or months. For example, an outline for an advertising campaign. After the campaign runs its course, the short term plan will lose its relevance except as a guide for creating future plans.

Types of Single Use Plan

1. Programme: A programme is a single use plan containing detailed statements about project outlining the objectives, policies, procedures, rules, tasks, physical and human resources required to implement any course of action.

2. Budget : A budget is a statement of expected result expressed in numerical terms for a definite period of time in the future.

STANDING PLANS

Standing plans are used over and over again because they focus on organizational situations that occur repeatedly. They are usually made once and retain their value over a period of years while undergoing revisions and updates. That is why they are also called repeated use plans. For example, Businessman plans to establish a new business Entrepreneur drafts business plan before opening the doors to their business, and they can use their plan to guide their efforts for years into the future.

Types of Standing Plans

1. Objectives: Objectives are defined as ends for the achievement of which an organization goes on working. They may be designed as the desired future position that the management would like to reach. The first and foremost step of the planning process is setting organizational objectives. Examples increasing sales by 10%, Getting 20% return on Investment etc. Objectives should be clear and achievable.

2. Strategy: Strategies refer to those plans which an organization prepares to face various situations, threats and opportunities. When the managers of an organization prepare a new strategy for the business it is called internal strategy and when some strategies are prepared to respond to the strategies of the competitors, then such strategies are called external strategies. Examples, selection of the medium of advertisement, selection of the channel of distribution etc.

3. Policy: Policies refers to the general guidelines which brings uniformity in decision-making for achievement of organizational objectives. They provide directions to the managers of an organization. They are flexible as they may be changed as per requirement. Example, selling goods on cash basis only, reserving some post for women in the organization.

4 . Procedure : Procedures are those plans which determine the sequential steps to carry out some work/activity. They indicate which work is to be done in which sequence/way. They help in the performance of work. Procedures are guides to action. Example: Process adopted in the Selection of Employees.

5. Rule : Rules are specific statement that tell what is to be done and whatnot to be done in a specified situation. They help in indicating which points are to be kept in mind while performing task/work. Rules are rigid which ensure discipline in the organization. Example : ‘No smoking in the office premises’. Violation of rules may invite penalty.

6. Method: Methods are standardized ways or manners in which a particular task has to be performed. There may be many ways/method of completing a task but that method/way must be selected by which work can be done early at the minimum possible cost. Methods are flexible. Example, various methods of training are adopted by an organization to train its employees like apprenticeship training, vestibule training etc.

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  • Introduction, Meaning, Importance, Features and Limitations of Planning

Just like management is a never-ending activity, so is planning. In fact business planning, it is one of the primary functions of management . It sets up the stage for all further functions of management like organizing, directing etc. Let us understand the concept of planning.

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We already know what planning is, it is the deciding of what is to be done in advance. It is the groundwork for all future plans of the organization . Planning bridges the gap between where the organization currently find itself and where it wishes to be.

So in essence business planning comprises of setting objectives for the organization and developing a plan of action to achieve these objectives. Once the objectives are set, the managers and workers can have a clear vision of what to work towards.

Managers are a very important part of the function of business planning. Planning requires innovation, creativity and multi-tasking from the managers. And planning is a function that managers of all levels must perform, i.e upper, middle and lower management .

Browse more Topics under Planning

  • Planning Process
  • Types of Plan

Importance of Business Planning

Planning is an important function of management, it tells the manager where the organization should be headed. It also helps the organization reduce uncertainty. Let us take a look at some important functions of planning.

1] Planning provides a sense of Direction

Planning means coming up with a predetermined action plan for the organization. It actually states in advance what and how the work is to be done. This helps provide the workers and the managers with a sense of direction , a guidance in a way. Without planning their actions would be uncoordinated and unorganized.

2] Planning reduces Uncertainty

Planning not only sets objectives but also anticipates any future changes in the industry or the organization. So it allows the managers to prepare for these changes, and allow them to deal with the uncertainties. Planning takes into consideration past events and trends and prepares the managers to deal with any uncertain events.

3] Planning reduces Wastefulness

The detailed plans made keep in mind the needs of all the departments. This ensures that all the departments are on the same page about the plan and that all their activities are coordinated. There is clarity in thought which leads to clarity in action. All work is carried out without interruptions or waste of time or resources ,

4] Planning invokes Innovation

Planning actually involves a lot of innovation on the part of the managers . Being the first function of management it is a very difficult activity. It encourages the manager to broaden their horizons and forces them to think differently. So the managers have to be creative, perceptive and innovative.

5] Makes Decision=Making Easier

In business planning the goals of the organization have been set, an action plan developed and even predictions have been made for future events. This makes it easier for all managers across all levels to make decisions with some ease. The decision-making process also becomes faster.

6] Establishes Standards

Once the business planning is done, the managers now have set goals and standards. This provides the manager’s standards against which they can measure actual performances. This will help the organization measure if the goals have been met or not. So planning is a prerequisite to controlling.

Limitations of Planning

While business planning is important and a requisite for every organization, it does have some limitations. Let us take a look at some limitations of business planning.

1] Rigidity

Once the planning function is complete and the action plan is set, then the manager tends to only follow the plan. The manager may not be in a position to change the plan according to circumstances. Or the manager may be unwilling to change the plan. This sort of rigidity is not ideal for an organization.

2] Not ideal in Dynamic Conditions

In an economic environment rarely anything is stagnant or static. Economic, political, environmental, legal conditions keep changing. In such a dynamic environment it becomes challenging to predict future changes. And if a manager cannot forecast accurately, the plan may fail.

3] Planning can also reduce creativity

While making a plan takes creativity after that managers blindly follow the plan. They do not change the plan according to the dynamic nature of the business. Sometimes they do not even make the appropriate suggestions to upper management. The work becomes routine.

4] Planning is Expensive

Planning is a cost-consuming process. Since it is an intellectual and creative process, specialized professionals must be hired for the job. Also, it involves a lot of research and facts collection and number crunching. At certain times the cost of the planning process can outweigh its benefits.

5] Not Completely Accurate

When planning we have to forecast the future and predict certain upcoming events in the organization and the industry. So, of course, there cannot be hundred per cent certainty in such cases. So it can be said that business planning lacks accuracy

Solved Question for You

Q: Which of the following can be referred to planning?

  • Departmentation
  • Government policy
  • Forecasting
  • All of the above

Ans: The correct option is C. Planning is forecasting as it is deciding what to do in advance. Planning is futuristic as it never relates to the past. So planning bridges the gap between where the company is and where it wishes to go.

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One response to “Introduction, Meaning, Importance, Features and Limitations of Planning”

You made a good point that I should be wary of dynamic situations when dealing with business planning. Nevertheless, I still think that having a good business plan is essential for the game development company that I’m planning to start in the future. Perhaps hiring a business planning consultant would be a good way to have a good footing from the very beginning of the venture.

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  • Chapter 4: Planning

Revision Notes For Class 12 Business Studies Chapter 4 Planning

Planning is the chapter that teaches students the importance of business planning. These are the concepts covered in this chapter for the purpose of revision – meaning and definition of planning, importance of planning – planning provides directions, it reduces the risk uncertainty, helps in promotion of innovative ideas, features of planning – it focuses on achieving objective, planning is pervasive and continuous, it is futuristic, decision making plays a vital role in planning, limitations of planning, planning process, types of plans. These are a few important pointers that the students can revise.

Frequently asked Questions on CBSE Class 12 Business Studies Notes Chapter 4: Planning

What are the types of planning.

1. Operational Planning2. Strategic Planning3. Tactical Planning4. Contingency Planning

What is the importance of planning?

Planning provides the directions to the efforts of employees. Planning makes clear what employees have to do, how to do, etc. By stating in advance how work has to be done, planning provides direction for action.

What is ‘Decision making’?

Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

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Planning Class 12 Notes CBSE Business Studies Chapter 4: Full Explanation

Planning Class 12 Notes CBSE Business Studies Chapter 4: Full Explanation

Planning Class 12 Notes CBSE Business Studies Chapter 4: Full Explanation, Revision Notes for CBSE Class 12 Business Studies Chapter 4 – Free PDF Download, class 12 bst chapter 4 notes, class 12 business studies chapter 4 notes pdf, planning process class 12

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planning process Class 12 | Planning Class 12 Notes

Key points of the lesson-  Planning is the primary function of management. Management work starts with planning. Planning is the process of thinking before doing work. In fact, planning is a mental process based on facts under which human and material resources are organized and coordinated so that the set goals can be achieved in the best possible way. 

Planning is planning tomorrow’s work today. Planning has great importance in business management. Planning guides the businessman at every step, alerts him about future difficulties and dangers and makes it easier to overcome them. There are various elements or components of planning. Such as goals, objectives, policies, procedures, methods, budget, programs, strategies etc.

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‘Whether the plan is small or big, certain steps have to be taken to make it logical and practical. This is also called planning process. To complete this process, various management scholars have described various stages or steps of planning. Despite the utmost importance of planning, some scholars consider it a ‘waste of time and money’.

They protest against it by saying ‘or ‘rainy hail’. He says that business plans are prepared in the background of uncertain and unstable circumstances, when their very basis is uncertain, then how can it be believed that the things determined by the planning will always be 100% true. The basic reason for this opposition is the various difficulties and limitations arising in planning. 

Still, despite the limitations or difficulties of planning, planning has special importance in the field of business management because it helps in achieving the goals and objectives set on the basis of planning.

very short answer questions 

Q. 1. What do you understand by planning?  (What do you mean by planning.) 

Ans. Planning is the process of thinking before doing work. In other words, planning is planning tomorrow’s work today. In fact, to achieve the set goals and objectives, what is to be done in the future, why it is to be done, who is to be done, when it is to be done, how it is to be done and with what means it is to be done, etc. are determined in advance. Doing this is called planning.

Q.  _ 2. Write the definition of planning given by Krantz and O’Donnell. (Give the definition of Planning given by Koontz and O’Donnel.)

Ans. According to Koontz and O’Donnell, planning is an intellectual process, conscious determination of the course of action, decisions have to be based on objectives, facts and pre-considered estimates.

Q. 3. Give a good definition of planning. (Give a good definition of Planning.)

Ans. Giving a good definition of planning, it can be said that planning is making decisions and determination regarding future activities to select the best one from alternative activities to achieve the set goals.

Q.4. Explain the various features of planning. (Discuss the features of planning.)

Ans. Various features of planning are as follows –

1. Having defined objectives and goals, 2. Making forecasts, 3. Unity, 4. Selection of the best among various alternative actions, 5. Ubiquity of planning, 6. Planning is a free and flexible process, 7. Interdependence, 8. Primary work, 9. Intellectual and human training, 10. Other characteristics like guidance, efficiency.

Q.5. What is the nature of planning? (What is the nature of planning?)

Ans. Nature of planning – (i) Planning is an intellectual activity (ii) Planning is done for a future (Planning is a fute activity) (iii) The aim of planning is to increase efficiency (Main aim of planning) is increase efficiency)

Q.6. “What is the need for planning? (Explain=”Planning is the basis of control.)

Ans. Planning is needed for the following three tasks-

(i) To take advantage of business opportunities. (ii) To solve practical problems.

(iii) To face business challenges.

Q.7  . “Planning is the basis of control.” Please clarify. Why planning is needed

Ans. Planning is an intellectual process by which managers arrange business resources for business objectives. To achieve these objectives, it is also determined what work the person has to do and how it is to be done so that the person can contribute actively as per his ability. In this way, planning can be called the basis of control.

Q.8. “Planning is a continuous process.” explain . (“Planning is a continuous process.” Comments.)

Ans. Planning is a process that continues continuously from the beginning to the end of a business. A new plan is always made for a certain period. This type of planning

Progress continues continuously, there is no end to it. In this, after the implementation of one scheme, the second scheme, then the third scheme etc. continues.

Q.9. Explain “Planning makes decisions and coordination easier”. (Explain – “Planning is useful in decision making and coordination.”)

Ans. Planning simplifies decision making and coordination in the following ways:

Coordination – Every work given through planning is completed as per the schedule and mutual coordination is also maintained between different parts of the organization. Control – Control all the activities taking place in the business through planning.

And whatever is required is made available at the appropriate time.

Q. 10. How many stages of planning are there? (How many stages of planning are there?) Or, write briefly about the stages in planning. (Give briefly the steps in planning.)

Ans. There are following seven stages of planning-

1. Setting goals. 2. To study different options. 3. Evaluating various options. 4. Selecting the best course of action. 5. To prepare necessary sub-plan. 6. To determine the limits of planning. 7. To follow up the planning.

Q.11. “Planning reduces expenditure”. explain . (Explain “Planning reduces expenses “)

Ans. Without planning, business objectives are based on speculation, which creates many types of money, doubts and chaos. Therefore, it is necessary to have a separate planning department in every organization, whose main objective is to direct the efforts of production activities towards business objectives and to reduce costs. 

Q. 12. What is meant by permanent planning? (What do you mean by stable planning?)

Ans. Permanent planning means those plans which are used again and again, that is, those plans which do not require frequent changes and which are made many times in permanent form. The duration of these plans is long. These plans are prepared by high level management.

Q. 13. What do you understand by objective? (What do you mean by objectives)

Ans. The goals set to take any organization, its departments and sub-departments in one direction are called objectives. All the work of the organization is done only to achieve these objectives. 

Q.14. What do you understand by budget? (What do you understand by Budget)

Ans. Budget means making forecast. Budgets provide prior estimates of expenses for the future. Once the budget is prepared, the expenses can be controlled and regulated. The budget sets limits on tasks. 

Q. 15. What is meant by rule? (What do you mean by rule?)

Ans. Rules describe the conditions for performing work. Rule means a plan according to which work is done in a particular situation. Rules guide necessary actions and are selected by options like other plans.

Q. 16. What do you understand by the programme? (What do you mean by Programme)  

Ans. Those plans which are made to fulfill a particular objective are called programmes. This is related to a particular scheme and it also ends automatically as soon as the scheme is completed.

Q.17. Define policy and what are the types of policies? (Define Policy and how many types of policies are there?)

Ans. The policies of any business unit are the basis for achieving its set objectives. Policies contribute significantly to the achievement of goals and provide guidelines to employees in the organization. Policies are determined after determining the objectives of any organization. Policies are now of types-

(i) Written and oral policies

(ii) Managerial policies

(iii) Described policies

(iv) Operational policies. Explain the meaning.

Q. 18. (Explain the meaning of strategy)  

Ans: The present era is the era of competition. To achieve success in this era of competition, one has to prepare well thought out plans so that the business does not have to face any kind of inconvenience. These are also called practical plans.

Q. 19. Planning is an intellectual activity, explain. (Planning is an intellectual process. Explain) 

Ans. According to Kull and O’Donnell, “Planning is an intellectual activity, the conscious determination of a sequence of actions, the foundation of decisions based on facts and objectives and thoughtful estimates.”

Thus, under planning, to achieve pre-determined goals, the best choice has to be made from various alternative policies and programs and methods of working, for which knowledge, experience and thinking are required.

Q. 20. Explain the meaning of goal and objective. (Explain the meaning of Object and Goal.)

Ans. Planning sets goals for the organization. After this planning makes plans according to the goals. Plans focus on objectives. Plans can predict the actions that will be necessary to achieve the ultimate objective.

Q. 21. Explain the methods or types of planning, elements or components or areas of planning. (Explain the Methods or Kinds of Planning, Elements or Components or Scope of Planning.)

Ans. The following are included under planning – 1. Determining the goals and objectives of the organization (Objectives) 2. Determining policies (Policies) 3. Determining working methods (Procedures) 4. Making rules (Rules) 5. Budget Making Budget 6. Making Strategy 7. Preparing Programs 8. Making Forecasts.

Q. 22. Explain the importance of planning in management. (Explain the importance of Planning in Management.)

Ans. Today a businessman has to take the help of planning from beginning to end. To achieve the set objectives, proper coordination among policies, procedures and programs is possible only through planning. 

Miller says, “Any work without planning will be mere speculation and will only give rise to doubt.” Planning is a weapon through which any businessman can shape the most beautiful statue of the future. 

Yes. D.H. Cole (GDH Cole) has said that, “Any work without a plan will be like a stone and an arrow, which will only give rise to doubt, confusion and chaos.” According to Terry, “Planning is the foundation stone of successful functioning of an organization.” 

Q. 23. Tell the ways to overcome the limitations of planning. (Explain the measures to overcome limitations.)

Ans. Measures to overcome limitations of planning – Following are some measures to overcome the limitations of planning –

1. Planning should be balanced and flexible. 

2. Planning should be prepared on reliable data. 

3. Planning information should be given to all concerned parties. 

4. For the success of planning, cooperation of employees of all departments should be taken. 

5. Planning should be initiated by top level managers. 

6. While planning, current and future problems should be kept in mind.

SHORT ANSWER TYPE QUESTIONS

Q. 1. What do you understand by planning? (What do you mean by Planning?) 

Ans. Meaning of Planning – Planning means determining future actions in the present. What needs to be done in the future to achieve the set goals? Planning is the prior determination of how it is to be done and by whom. From this point of view, planning is an intellectual activity. For which creative thought and imagination is necessary. Planning in management means selecting the best among the available alternative methods, policies and programs to achieve the set goals.

Planning – 

1. What to do in future? (What to do in future?) 2. How to do it? 3. When to do it? (When to do it ?) 4. By whom is it to be done? (By whom to do it ?) 5. Who will be responsible? (Who will be responsible?)

Q. 2. Define planning. (Define Planning.) 

Ans. Following are the definitions of planning given by various scholars:

1. According to Koontz and O’Donnell, “Planning is the prior determination of what is to be done, how it is to be done, when it is to be done and who is to do it.”

2. According to Allen, “Planning is a cage designed to catch the future.”

3. J. O. According to McKinsey, “Planning is a clear evidence of management thinking.” 

4. According to Henry Fayol, “The plan of action is interpreted from these results. What we have to achieve is the form of work we have to adopt and the methods we have to use.”

5. According to Caste and Rosenzweig, “Planning is a set of pre-determined activities.”

Q. 3. What are the main elements of planning? (What are the main elements of Planning.)

Ans. The elements of planning are called by many names like components of planning, method of planning, scope of planning etc. Following are the main elements of business planning-

1 year (Forecasts), 2. (Policies), 3 points (Procedure), 4, (Objectives of targets), 5. Rules, (Budget, 7. Programme), 8. Strategies. 

Q.4  . Describe the various stages of the planning process. (Describe the steps of Planning

Or. Describe the planning process. (Describe the process of Planning.)

Ans. The following roles should be played in the planning process-

1. Analysis of Problem

2. Clear determination of objectives 

3. Collection of all necessary informations 

4. Analysis and classification of information 5. Determining basic concepts and limitations of Planning 

6. Considering various alternatives

7. Evaluation of various alternatives

8. Determining the order and time of proposed plan 

9. Making subsidiary plans

10. Evaluation of the results of Planning

11. Control over Planning. 

Q.5. Write five characteristics of planning.  (Write any five characteristics of Planning.)  

Ans. The following are the main characteristics of a good plan:

1. Forecasting — Planning should be based on reliable forecasts.

2. Well defined objectives: For an effective planning, it is necessary to have definite objectives.

3. Planning should be simple – For effective planning, it is necessary that it should be so simple that every employee of the organization can understand it easily.

4. Flexible and Continuity – For effective planning, it is necessary that it be flexible and continuous.

5. Planning should be Practical: For effective planning, it is necessary that it should be such that it can be implemented.

Q.6. Mention any four objectives of the scheme. (Explain any four objects of the Planning.)

Ans. Following are the main objectives of the scheme-

1. To visualize the results by forecasting for the future.

2. To bring economy in managerial activities.

3. To give information about the goals of the enterprise and try to achieve them.

4. To predict the risks and possibilities of the organization.

5. To maintain a balance between objectives, programmes, policies and methods.

6. Establishing definite goals.

7. To make best use of available resources.

8. To achieve economic economy.

Q.7. Mention four qualities of an ideal plan. (Write four characteristics of an ideal Planning.)

Ans. Following are the four main qualities of an ideal plan:

1. Well defined objectives – Every plan should be completely definite, concise, clear and precise.

2. It should be simple: An ideal plan should be such that the common man can understand it easily.

3. Practical (Practicable) An ideal plan should be such that it is possible to implement.

4. Balanced: An ideal plan should be balanced in the use of means to achieve the goals.

Q.8. Explain the usefulness of planning. (Describe the utility of Plamming.) Or, describe the importance of Planning.

Ans. Planning is the main function of management, hence it is an essential component of management. In the absence of planning, the work of the organization cannot be carried out successfully. 

In the present time, due to large scale production and technological changes, increasing complexities in business, change in consumer interest, variety control, economic, social and political changes and the feeling of maximum production at minimum cost, etc., there is a greater need for planning. Today a business has to take the help of planning from beginning to end. 

Achievement of the set objectives is possible only through proper coordinated planning in policies, procedures and programs.

Q.9  . What do you mean by policies? (What do you mean by Policies?) 

Ans. The policies of a business entity are the means to achieve its stated objectives. Therefore, after determining the objectives, it is necessary to determine policies.

According to Koontz and O’Donnell, “Policies limit the area on which decisions have to be taken. It also ensures that the decision will be helpful in achieving the objectives.”

Policies tell us how to do a particular task. Policies are also a form of planning. Policies determine the path to goals. goals by route determination

gets practical form. The general policies of the business should be clearly determined. Policies guide every employee.

Q.  _ 10. Explain five benefits of planning. (Mention five advantages of Planning.) 

1. Planning focuses everyone’s attention towards predetermined goals.

2. Through this, cost expenditure is reduced.

3. It helps in the development of the enterprise.

4. It makes the organization effective.

5. This increases the morale of the employees.

Q. 11. Write five limitations of planning. (Give five limitations of Planning.) Or, tell five disadvantages of planning. (Give five disadvantages of Planning.)

Ans. 1. Expenditures on planning increase cost expenses.

2. If changes are made in planning, obstacles arise.

3. Biased decisions are taken in planning. 4. Planning is not possible during times of crisis.

5. Planning is a very costly process. A lot of time, labor and money is wasted in preparing it.

Q. 12. Write the types of schemes. (Give the types of Planning.) 

Ans. 1. Plans on the basis of duration (i) Short term planning (ii) Long term planning

2. Plans at the level of management (1) High level plans (ii) Middle level plans (iii) Low level plans.

3. Plans based on use— (i) Plans for permanent or frequent use (ii) Plans for special or one-time use.

4. Plans on the basis of nature (1) Strategy or defense plans (ii) Plans related to operation.

5. Plans on the basis of comprehensiveness (1) Company level plans (ii) Departmental plans.

Q. 13. What do you understand by objective? (What do you mean by Objectives}

Ans. Every business activity has a goal only when it is reached is the objective. Planning not only achieves business goals but also provides organization, coordination, control, etc. of business activities. Without goals objectives cannot be achieved. Goal is also the path through which one reaches the final stage. Through goals we get to know what to do.

In Allen’s words, ‘Objectives are the goals that guide the actions of the company and its constituents.’

Q.14. Explain five characteristics of objectives. (Mention five characteristics of objectives.)

Ans. 1. To decide the order of objectives on the basis of priority.

2. Objectives are the foundation of plans and determination of objectives is the first step in the planning process.

3. Different actions are taken from time to time according to different circumstances to achieve the objectives.

4. The importance of achieving the objectives should be kept in mind.

5. By fixing the objectives, the correct situation continues to be studied and if necessary, necessary amendments can also be made.

Q. 15. Write the names of single-use schemes. (Write down the names of single use plans.)  

Ans. Single-use plans include those plans which are made as per the need of a particular situation and are used only in those special circumstances. Therefore, its special use is done only in those special circumstances. Therefore it is called single use scheme.

Single use Plans –

2. Budget 3. Projects 

Q. 16. Write the names of continuous use schemes. (Write down the names of repeated use plans.)

Ans. Such plans which are made for repeated use are called continuous use plans. The main objective of making these plans is to make the manager so that he can take right decisions in all situations and do the right work.

Repeated use Plans —— 1. Objectives 2. Policies, 3. Procedures, 4. Rules, 5. Strategy.

Q. 17. Explain five characteristics of a good policy. (Point out five characteristics of Good Policy)

Ans. 1. Clarity —— Policies should be clear and definite so that they can be easily understood by all the people.

2. Flexible – Every policy should be stable yet flexible, that is, adequate amendments should be made in the policies as per the time and circumstances.

3. Contribution of Objectives: While making a policy, special attention should be paid to the objectives because policies are the means to achieve the objectives. 4. Consent: A good policy should also have the quality that it should be made only after mutual discussion between managers and employees. 

5. Review: Whatever policies are made, keep checking them from time to time. And if necessary, changes should also be made in them.

Q. 18. Classify the policies. (Classify the Policies.)

Ans. 1. Written or Oral Policies

2. Managerial Policies 3. Functional Policies

4. Organization based Policies.

Q.  _ 19. Write any four benefits of policies. (Write any four advantages of Policies.)

Ans. 1. Decision Limitation Policies determine the limits of decisions to be taken by each officer and warn him not to take any decision which is beyond his authority.

2. Saving of time and labor – When policies are predetermined, there is no unnecessary delay in taking decisions for carrying out any work and thus labor and time are saved.

3. Guidance-After determining the policies, the lower level managers keep getting guidance from the higher level managers. 

4. Convenience in delegating authority – As a result of determination of policies, it becomes easier to delegate authority to lower level employees and higher officials can trust them more. 

Q. 20. Explain morchabandi. (Discuss Strategy.)

Ans. The purpose of barricade is to prepare such a plan keeping in mind the competing businesses so that the business does not have to face inconvenience. These are also called practical plans. If such tricks are ignored then one has to face inconvenience in business. 

Betrayal happens only because of mutual competition created by planning. Sometimes there may be internal conflicts, such as which methods are best for the objectives of the enterprise. This cannot be accomplished through plans. This will require a work ethic or strategy. 

Q. 21. What are working methods? (What are the Procedures?)

Ans. Laws are made according to the policies. It is only through this that the working system becomes practical. Once the working method of the organization is fixed, the need for control and direction reduces. The methods of any organization are decided according to its needs and circumstances. 

As circumstances change, methods should change. Thus, working method means interpretation of policy. Emphasis is laid on working in the work method. The work to be done under the work given is divided into three parts.

1. What special needs to be done?

2. What time is it to be done?

3. Which work is to be done by whom?

Q.22. Describe the importance and necessity of formulating objectives. (Explain the importance and need for objective determination.)

Ans. Importance and Need Objectives

1. Helpful in Coordination – Every objective should be clear and precise so that necessary coordination can be made in all small and big plans.

2. Best Utilization of Resources: Maximum production can be done at minimum cost in those business units where work is done according to specific objectives.

3. Increase in Efficiency: Good objective setting increases management efficiency.

4. As per Organizational Objectives: The organization becomes as per the objectives of the organization. If the main and secondary objectives of the organization are different.

5. Control on Progress of Work: Objective setting is necessary to control everyone’s activities in every area. 

Q.23  . What do you understand by the programme? 

Ans. The plans which are made to fulfill a particular objective are called programmes. Like if Maruti Udyog Ltd. If we increase our target from 4000 cars per month to 16,000 cars per month, then a special plan will have to be made for this, which will be called a program. This calf will end with achieving this goal.

According to Kunton and O’Donnell, “Program is a combination of procedures, policies, rules, instructions and elements necessary for the proper functioning of the action group.”

Generally supported by capital and implemented budgets.” 

Q. 24. What do you understand by rules? (What do you mean by Rules?)

Ans. Rules describe the conditions for performing work. It is made clear here. How to complete that specific task in a specific situation. Rules are plans that guide required actions and have to be selected among other options like other plans. Rule means a certain action must be taken in a certain situation. Needed For example, we have to send the acknowledgment to the customer on the same day we receive the order for purchase of goods, this is the rule of our organization. 

Q. 25. What are projects called? (What are the Projects?) 

Ans. We divide a program into different departments and each of them has a separate existence. The independent department of the program is called project. For example, a separate plan for a program to increase sales (Sales Promotion) is made. In this project, a complete analysis of the program to increase sales is done. 

Q. 26. What is called Pajat? (What is the Budget?)

Ans, Budgets are estimates of expenses for the future. Expenses after the budget is made. !Can be controlled and regulated. Budget is an estimate of future requirements. It is imposed by individuals and given an explanation 81 to achieve a certain objective in a certain time.

In this way the budget decides the limits of the works. Budgets are plans for the future. After the budget is prepared, the limits of activities of various departments become fixed. Like sales budget, cash budget, science budget etc. 

Q. 27. What is forecast? (What is forecasting?)

Ans. Making predictions about the future is called forecasting. Planning is forecast for the future, hence whether planning is short term or long term, it is based on forecast only. But forecasting and planning are not the same. Substantial difference between these two. 

In forecasting, the future has to be kept in mind, whereas in planning, decisions have to be taken for the future by keeping a balance between the future and the present. Here it should also be kept in mind that planning should be based on reliable forecast. 

Q. 28. What is decision making? (What is decision making?)

Ans. Managers have to perform various tasks. Choosing which of these various tasks will be the best and will yield the best results is called decision making. No manager can be a successful manager without decision. 

Terry has even said that the life of managers is decision making. Then later he has said that if managers are to be identified then their decision making ability will have to be taken into account, because their universal intention is decision making.

Q. 29. Explain the benefits of budget. (Mention the advantages of Budget.)  

Ans. Making a budget has the following benefits:

1. Budget increases the efficiency of business.

2. Coordination is established among various departments of the business unit through budget. 

3. Responsibilities of various officers and employees are determined through the budget.

4. Various unnecessary expenses are stopped by the budget.

5. Budget is helpful in controlling business activities due to which the work of the organization runs smoothly.

Q.30. Explain the features of budget. (Mention the Characteristics of Budget.)

Ans. Following are the characteristics of budget-

1. Quantitative Expression of Targets and Efforts: In this, presenting the goals and the efforts and expenses to be made by various departments to achieve them in definite and numerical language.

2. Organ of Planning and Control: Budget is not only a part of the planning of the business unit but also an important part of managerial control.

There is money also. Because only by comparing the actual progress with the budget, the manager decides the real responsibility and plans for its improvement are made.

Q.31. How many types of budget are there? (What are the types of Budget?)

Ans. Generally there are two types of budgets –

1. Capital Budget, 

2. Revenue Budget. 

1. Capital Budget – This is a long-term budget in which plans are made to improve production activity and production capacity.

2. Revenue Budget – It is related to a short term plan in which short term plans related to income and expenditure are made. Like the plan related to production, sales and investments for the next year.

Q.32  . Explain the features of the programme. (Mention the Characteristics of Programme.)

Ans. An ideal program has the following characteristics-

1. Coordination among various programs – Even though the objectives of all the programs are different, for their success there must be coordination among various departmental programs. 

2. Definite objective – The objective of every program should be pre-determined, that is, the work continues only until the definite objective is achieved. 

3. Programs should be concrete – Programs are made with some objective in mind. Therefore, the plan made through the program should be solid and firm.

4. Plans should be based on basic policy All programs should be compatible with the policies of the business so that the common goal can be easily achieved.

Q.33. How many types of programs are there? (What are the types of Programmes) 

Ans  . Programs can be of the following types-

1. Short Term Programme: These types of programs are made to achieve social objectives.

2. Long Term Programme: This type of programs are made for the expansion of culture. For example, an enterprise wants to increase its production from 1000 units per year to 10,000 units per year and accomplish this by setting up a new plant. 

3. Limited Programme: If any improvement etc. is to be made in any department of the business, then a limited program plan can be made for it. 4. Wide Program – If a program is made with the aim of improving and organizing the economic condition of the entire business, then this type of program is called a wide program.

Q.34. Explain the difference between policies and laws. (Distinguish between Policies and Procedures.) 

Q.35, Explain the characteristics of the procedure. Mention characteristics of Procedure.)

Ans. 1. Division of Procedure – In the procedure, it is clear into which stages a specific action will be divided and how each stage will be completed, when and by whom.

2. Relating to various departments – A procedure is related to all those departments of the organization on which a particular task has an impact. For example, if an order comes from a customer, it impacts the production, transportation, sales, finance, accounting departments, etc.

3. Scope of Procedure – The scope of procedure is wide because all the employees have to follow the prescribed procedure in their respective works.

4. Under the sequence procedure, an order is given to do any work, which is mandatory to follow.

Q.36. Explain the difference between permanent and single plans. (Distinguish between Standing and Single Plan.)

Q.37. Explain the difference between budget and programme.

Q.  _ 38. Explain the difference between objectives and policies. (Distinguish between Objectives and Policies.)

Ans. Difference between objectives and policies-

Q.39. Distinguish between Projects and Programmes.

Ans. Difference between projects and programs-

Q. 40. Differentiate between rules and procedure. (Difference between Rules and Procedure.)

Ans. Difference between rules and procedure-

Q. 41. Explain the difference between policy and rule. (Difference between Policy and Rule.)

Ans. Difference between policy and rule-

LONG ANSWER TYPE QUESTIONS

Q. 1. What is planning? What are the basic characteristics of planning? (What is Planning? What are the basic features or Planning?) Or, give the definition of planning. Describe the effective features of planning.  (Give the definition of Planning. Discuss the effective features of Planning.)  

Ans. Meaning of Planning: Planning means determining future events in the present. To achieve the set goals, planning is the pre-determination of what is to be done in the future, how it is to be done and by whom. From this point of view, planning is an intellectual activity for which creative thought and imagination is necessary. Planning in management means selecting the best among the available alternative ideas, policies and programs to achieve the set goals.

Planning- 

1. What to do in future? (What to do in future?)

2. How to do? (How to do it?) 3. When to do it? (When to do it?)

4. By whom is it to be done? (By whom to do it?)

5. Who will be responsible? (Who will be responsible?)

Definitions of Planning – Following are the definitions given by various scholars –

1. According to Koontz and Joe Donnell, “What to do, how to do it, when to do it.

And planning is the prior determination of who is to do it.” Planning is deciding in advance what to do, how to do it, when to do it and who is to do it.” – Koontz and O’Donnell)

2. According to Allen, “Planning is a cage made to catch the future.” (“A plan is trap to capture the future.”-Allen)

3. J. O. According to Mc Kinsey, “Planning is the tangible evidence of the thinking of the management J.0. Mc Kinsey.”

4. According to Henry Fayol, “Plan of work refers to the results we have to achieve, the design of work we have to adopt and the methods we have to use.” (“Planning is deciding the best alternative among other to perform different managerial operations in order to achieve the predetermined goals.”-Henry Fayol) 

5. According to Fast and Rosendreweg, “Planning is a set of predetermined activities (“A plan is determined course of action.” -Kast and Resenzweig) Characteristics of Effective Planning – Major characteristics of effective planning The following are the characteristics-

1. Forecasting Forecasting is the first step towards planning. Forecasting means predicting future events and risks that may affect our organization. Forecasts are based on true facts and on the basis of these, business conditions are ascertained and plans are made. In fact, planning is called intelligently coping with an uncertain future.

2. Well defined objectives: For effective planning, it is necessary to have definite objectives. These objectives should be completely clear and coordinated.

3. Planning should be simple. For effective planning, it is necessary that it should be so simple that every employee of the organization can easily understand it. In this context, Davis has said that, “In all the works of human sector, comprehensive, Where organized action is required, planning simplicity is considered a virtue.” Therefore, it is necessary to have the quality of simplicity for etc planning.

4. For planning to be practical, it is necessary that it should be such that it can be implemented. effective planning

5. Choice: One characteristic of planning is that it involves selection of the best actions from alternative actions.

6. It should be Balanced: Effective planning should be balanced. There should be complete balance in the use of means to achieve each goal. Apart from this, balance between short term and long term planning is also necessary.

7. Economical – The main feature of planning is that it can meet the forecast targets at minimum cost.

8. Time Element in Planning – While planning, full care should be taken to determine the time and planning should be completed within this stipulated time only. 

9. Pervasiveness – Pervasiveness is required in every area of ​​life. Therefore, it is necessary to have ubiquity in planning. Planning is done to fulfill the goals of every level of officer starting from higher authority.

10. Flexibility and Continuity: For effective planning, it is necessary that it should be flexible and continuous. If the events predicted in the planning do not occur, then the planning should be changed at minimum cost according to the changed events.

Q. 2. Explain the qualities of a good plan. (Enumerate the qualities of a good plan.) Or, What are the characteristics of a good plan? (What are the features of a good plan?)

Ans. A good and effective plan should have the following qualities-

1. Simplicity —— The plan should be simple which the employees can easily understand. The plan can be implemented successfully only when the concerned officers and employees understand it properly.

2. Economy plan should be according to the financial condition of the organization. According to Kuntran and O’Donnell, the expenditure incurred on the scheme should never exceed the benefits derived from the scheme.

3. Comprehensiveness – Planning should be done for all aspects and levels of the organization so that the work going on with different departments can be balanced, development and collective efforts can be coordinated.

4. Stability: A plan should establish stability. If changes are made in the plan from time to time, it will become difficult to achieve the predetermined objective.

5. Practical: An ideal plan should be such that it is possible to implement.

6. Balanced – An ideal plan should be balanced in the use of means to achieve the goals.

7. Well defined Objectives – Every plan should be completely definite, concise, clear and precise. 

8. Elastics An effective or ideal plan should be elastic so that fundamental changes in the plan can be easily made when necessary.

9. Co-ordinative and Balancing: The efficiency of planning depends on the fact that it coordinates the physical and human resources of the organization to achieve the collective objective and at the same time brings balanced development of various departments.

*10. Regular Review (Regular Feed back) Under effective planning, there is a need to regularly review the ongoing progress of the plan. Deviations should be detected and corrective action should be taken.

Q. 3. Describe the nature of planning. (Discuss the Nature of Planning.)

Ans. The following elements are studied under the nature of planning. 

1. A continuous process – Planning is a process which continues continuously from the beginning to the end of the business. In this, one scheme is followed by another scheme, then the third scheme is followed by the fourth scheme and so on.

2. Planning is an intellectual process – Planning is an intellectual process because in it the best working methods are selected after a lot of thinking so that maximum production can be possible at minimum cost. Here it should also be kept in mind that sufficient knowledge, experience, training and foresight is required for intellectual work.

Is necessary. Heyenes and Massie have said, “Planning is an intellectual activity for which creative thinking and imagination are necessary.”

3. Planning is the basis of managerial efficiency – Planning is a good basis for measuring the efficiency of managers. If the plan makes possible maximum production at minimum cost then it is considered better.

4. Planning is the basis of managerial functions – Planning is all the focal points of management. In its absence, the manager’s work can neither be started nor completed.

5. Pervasiveness In an organization, whether it is small or big, people are needed at every level.

6. Planning Contributes to objectives (Planning Contributes to objectives) Effective planning not only establishes methods, policies to fulfill the set objectives or facts but also makes every effort to implement them. Billy E. Goctz has said, “Plans alone do not make numbers successful but plans can focus attention towards purpose. Activities are very important for the success of the organization, which every organization must do, but without plans, activities are useless.

Q.4. Why does management do planning? (Wire management plans)

Or. What is the need of planning for business? (Why is planning necessary for Business?)

Or, Why is planning management considered an essential task? (Why planning is considered necessary function of management?)

Or, discuss the importance of planning in management. (Discuss importance of Planning in Management.)

Or Throw light on the importance of Planning.

Ans. Need, Importance and Advantages of Planning – Planning is the main function of management, hence it is an essential component of management. In the absence of planning, the work of the organization cannot be carried out successfully. In the present time, due to large-scale production and technological changes, increasing complexities in business, changes in consumer interest, variety control, economic, social and political changes and the feeling of more production at minimum cost, etc., there is even greater need for planning.

Today a businessman has to take the help of planning from beginning to end. Achievement of the set objectives is possible only through proper coordination and planning among policies, procedures and programs. Miller says, “Any work without planning will be mere speculation and will only give rise to doubt.” Planning is a weapon by which

Any businessman can shape the most beautiful statue of the future. Yes. D.H. Cole (GDH Cole) has said, “Any work without a plan will be like a stone and arrow, which will give rise to doubt, confusion and chaos.”

According to Terry, “Planning is the foundation of successful work.” Planning is the beginning and end of all managerial activities. Planning is present in all managerial activities.

And achieving the maximum goal of the organization is based on efficient planning. The importance of planning is due to the following reasons:

1. Helpful in achieving business objectives: Planning is done keeping in mind the business objectives. In this way, efficient planning helps in quick and successful achievement of the goals of the organization. 2. Planning enables one to face future uncertainties.

nables to face funeral uncertainties) Planning anticipates any future uncertainties. It alerts us to it and we should face it, rather we should try to remove the shortcomings, some of the solutions for this are as follows:

1. Planning should be well balanced and flexible. The purpose of planning is to reduce future risks. Therefore, planning should be balanced and flexible so that it can be changed at any time as per the need.

2. Planning must start at the top. The basic objectives, which give rise to other objectives, should be completely clear and should be determined by top level managers. When top managers observe the actions or procedures of subordinates, they do their work with dedication and enthusiasm.

3. Planning must not be left to chance (Planning must not be left 10 chance) — While planning, one should keep in mind the current problems as well as future problems. Appropriate work environment should be created by the employer so that the employees can work more efficiently and successfully. 

4. Planning should be simple – Planning should be easy or simple so that even an ordinary employee can understand it and he does not have to face any kind of difficulty.

5. No consideration of conservation: There should not be the ideology of traditional conservatism in planning but new ideas should be included.

6. According to Need: Planning should be according to the needs of the people who are to be given the responsibility to complete it. 

7. Co-operation and Co-ordination – To make planning successful, cooperation of employees of all departments should be obtained and planning should be co-ordinating among all departments.

8. Other suggestions: Planning should be prepared on the basis of reliable information. In planning, special attention should be paid to front-line and planning information should be given to all the concerned persons so that the concerned person can work properly. 

Q.5. Write the various steps of planning process. (Write the various steps of Planning Procedures.) Or, explain the planning process or technique. (Explain the process or technique of Planning in Management.) 

Ans. Steps involved in Planning

Various scholars like Mary Cushing Niles, George R. George R. Terry, Richard T. Case and Koontz and O’Donnell have included different points. The main ones among these are as follows-

1. Establishment of Objectives: First of all the planning process is started by determining the objectives. After that the objectives of the departments and sub-departments should be determined. By determining the objectives, the management comes to know whether there is a need for new planning to fulfill the objectives and if so, how much improvement will have to be done in the old plan.

2. Analysis and Classification of Information: By classifying and analyzing the information received, it should be known to what extent it is related to planning or not.

3. Obtaining Complete Information about the activities involved: After determining the objectives, necessary complete information should also be obtained about the activities related to planning. Knowledge of the activities of competitive organizations, old records and research etc. can be helpful in obtaining complete information.

4. Determination of Planning Base: The basis of planning is related to uncertain future circumstances whose estimation is essential for the success of planning. Like what will be the demand for the commodity in the future, what will be the market situation, what will be the nature of prices, condition of capital market, what will be the rate of taxes and what will be the government policy and tax policy.

5. Determining Alternative Procedures – There is not just one method to complete any task but there are many methods. Therefore, the best method should be searched and determined.

6. Evaluation of Alternative Procedures – Evaluation should be done after determining the alternative procedure. Adequate care should be taken while evaluating and many things should be kept in mind. Every working method is beneficial to the organization from some point of view. One procedure is more beneficial to the organization. But to implement it, a large amount of capital and risk may have to be incurred whereas some working method is less profitable. It requires less capital and less risk. Thus, evaluation should be done keeping in mind the interest of the organization.

7. Selection of the best procedures: Among the alternative procedures for planning, the best procedure is the one which achieves maximum profit at minimum cost. Sometimes for planning, a single method is not useful but a mixture of several methods is chosen, then in such a case, instead of choosing any one method, one has to choose all the methods.

8. Formulation of derivative plans: After the formulation of a main plan, there is a need to make many subsidiary plans to implement it properly. These subsidiary plans are a part of the basic plan so that the basic plan can be completed easily.

9. Testing co-operation in execution of (Plan) To achieve the predetermined objectives, cooperation should be obtained from every person at that time in the execution of the plan. For this, every person concerned should Information about the planning should be given, their opinion should be taken, thus the planning should be implemented after getting the cooperation of all the employees.

10. Follow up the Plan: The desired results should be known in the planning process. If the pre-determined objectives are not achieved, the reasons for the same should be found out and improvements in planning should be made as necessary.

Q.6. What do you understand by objectives? What is their importance? (What are objectives? What are its importance?)

Ans. Definition of Objectives – Every business activity has a goal to reach which is the objective. According to Allen, “Objectives are goals that are set to move the company and its various departments in one direction.”

(Objectives are goals established to guide the efforts of the company and each of its components.”-Allen)

Objectives are the target points of the organization’s plan. These are considered part of the plan because the entire process of planning is followed in determining them. For example, if an organization aims to increase its sales by 25%, then it has to collect appropriate information for planning, analyze and determine the best option.

Characteristics of objectives: The objectives of a business unit should have the following characteristics: 

1. To decide the order of objectives on the basis of priority.

2. A business unit has many objectives. Therefore, the importance of those various objectives should be kept in mind. Therefore, the main objective should be achieved first and the subsidiary objectives should be achieved later.

3. Variety of objectives: A business unit has many objectives, to achieve which different tasks are done from time to time according to different circumstances. That is, the objectives of each field are different, to achieve which appropriate work should be done as per requirement.

4. Determination of Objectives: The first objective of any plan is to determine the objective of the work that is being planned because without the objective it is impossible to determine procedures, rules and business practices.

5. Evaluation of objectives – By doing this, the managers will remain aware of the correct status regarding the progress of the work and if necessary, necessary amendments can also be made.

6. Objective Analysis: Whether the objectives are short term or long term, they should be decided at the same time. Different departments of each department of the organization

There are different objectives, yet these objectives are complementary, helpful or essential parts of the organization. Importance and necessity of determining objectives

(Importance and need of objectives determination) The following study can throw light on the importance of objectives determination in this way –

1. Facility of co-ordination: The objectives of the business unit should be clear and definite so that necessary coordination can be made in all small and big plans.

2. Addition in Efficiency: By setting good objectives, efficiency in management develops.

3. Organization According to Objectives – In organizations where main and subsidiary objectives are made separately, the organization of that organization automatically becomes in accordance with these objectives.

4. Check on work in progress: Objective setting is helpful in controlling the activities of the organization in every area.

5. Best use of Resources – Maximum production can be achieved at minimum cost in organizations where work is done with a specific objective. 

Q.7. Explain the different types of schemes. Why is it necessary to determine business objectives? (Mention the types of Plans. Why is it necessary to determine the objectives of business?)

Ans. Schemes can be of the following types-

1. On the basis of time

2. On the basis of Level

3. On the basis of use

4. On the basis of nature

5. On the basis of Comprehensiveness 

1. Planning According to period – Plans are made keeping time in mind. These plans are also of two types – (a) Short Period Plan, such plans are one day, weekly (15 days), monthly, quarterly, half yearly plans. Here, more attention is given to the contemporary problems.

(b) Long Term Plan: Here the plans have long duration like planning for 5 years, 10 years. Planning for a period of five years or more is called long-term planning.

2. Planning on the basis of the level of Manage (ment) These plans are also of many types – (a) Top Management Plan – These plans are made by high level officials. Like manager or managing director, in this the objectives, policy, budget etc. of the organization have to be prepared.

(b) Middle level Management Plan – This plan is also made by the managers, through this it is possible to fulfill the objectives and goals of the organization.

(c) Lower level Management Plan – These plans are made by the supervisor, their main objective is to determine the tasks to be done by the employees of the organization.

3. Plans on the basis of Use: These plans are also of two types –

(a) Standing or Repeated Use Plans – The special thing about this type of plans is that it includes those things

Are those which are used repeatedly like objectives, policies, procedures, rules and barricades (b) Special or Single Use Plans: These plans

Plans are made to solve a particular situation. As soon as that situation ends, the plan also ends. In fact, such plans are subsidiary plans of a bigger plan. Once used, it has no value, such as programmes, budgets and projects. 

4. Plans on the Basis of Nature

On the basis of nature it can also be divided into two parts. (a) Strategic Plans – These plans affect important aspects of the organization and are related to the grammar policy of the organization. (b) Operational Plans – These plans are made to implement the strategic plans of the organization.

5. Plans on the basis of Comprehensiveness. On the basis of comprehensiveness, there are two types of plans – (a) Company level plans (Corporate Plans). These are long term plans for the development and expansion of the company. .

(b) Departmental Plans: Short-term plans are made by different departments to meet their current needs.

“Need to determine the Objectives – The objectives of any business organization should be definite and clearly defined because the policies, procedures and rules of the business all depend on the objectives of the business. In fact, clearly explaining the objectives and goals is the biggest success of management. That is why it is said that, “Effective means management by objectives (MBO). Determining objectives for any organization, whether commercial or non-commercial, is necessary due to the following reasons:

1. Facility of Co-ordination – The objectives of the business unit should be clear and definite so that necessary coordination can be made in all small and big plans. 

2. Addition in Efficiency – Good objective setting improves efficiency in management.

3. Organization according to Objectives – Organizations in which main and subsidiary objectives are made separately. The organization of that organization automatically becomes in accordance with its objectives.

4. Check on Work-in-Progress: Objective setting is helpful in controlling the number of activities in every area.

5. Best Use of Resources: In organizations where work is done with definite objectives, maximum production can be achieved at minimum cost. 

Q.8. What are permanent plans? How is it different from single utility schemes? (What is meant by Standing Plan? How it is differ from Single Use Plan?)

Ans. Standing Plans—Plans which are made permanently in a business organization. These plans which are made for repeated use are called plans. The main objective of making these plans is to enable the manager to take right decisions in all directions and do appropriate work. For example, those plans which include the objectives, policies, procedures, etc. of the organization.

If things like rules, work policy or strategy etc. are visible, it indicates permanent and recurring useful plans.

1. Objectives – Every business activity has a goal, reaching which is the objective, only business goals are not reached through planning. Rather, organization, coordination, control etc. of business activities is provided. Objectives cannot be achieved without goals.

2. Policies Policies tell us how to do a particular task. Policies are also a form of planning. Policies determine the path to goals. The goals are given a practical shape by determining the path.

3. Procedures: Laws are made as per the policies. It is only through this that the working system becomes practical. Once the functioning of the organization is finalized, the need for control and direction reduces. The procedures of an organization are decided according to its needs and circumstances.

4. Method (Methods): Method of work is a pre-determined way of completing the work, keeping in mind the objectives, available facilities and the total amount of time, money and efforts.

5. Rules Rules describe the conditions for performing work. It is even explained how to complete that specific task in a specific situation. Rules are plans that guide necessary actions.

Single use Plan – As its name suggests, it includes those plans which are made as per the need of a particular situation and are used only in those special circumstances. Therefore it is called a special use or single use scheme. generally

These plans are made for one-time use. The main forms of single utility schemes are – 1. Programme: The schemes which are made to fulfill a particular objective are called programmes.

2. Budget—Budgets are predictions of expenses for the future. Once the budget is prepared, expenses can be controlled and regularized. Budget is an estimate of future requirements.

3. Projects —— We divide a program into different departments and each of them has a separate existence. The independent department of the program is called project. 

Difference between permanent and standalone plans

(Difference between Standing and Single Plan)

Standing Plans

Single Plan

These plans were made for the long term

1. These plans range from one month to 12 months only.

This scheme is used again and again.

2. This scheme can be used only in special circumstances

Is brought.

The basis of long-term plans of the organization

3. Single plan based on permanent plan only

Depends on the broader objective.

it occurs. 4. These plans are for a specific purpose

Their purpose is broad and long term.

It happens and then it ends.

Continues for the duration.

Q.10. What are policies? Explain the characteristics, advantages and limitations of policies. (What are Policies? Mention the characteristics, merits and limitations of policies.) Or, write a note on the policies. (Write a short note on policies.)

Ans. Policies: The policies of a business unit are the means to achieve its set objectives. Therefore, after determining the objectives, it is necessary to determine policies. According to Koontz and O’Donnell, “Policies limit the area on which decisions have to be taken and also ensure that the decision will be helpful in achieving the objectives.” 

(“Policies delimit area within which a decision into be made and assure that decision will be consist and contributory to objectives.”) Policies tell us how to do certain things. Policies are also in accordance with the plan. As explained earlier, policies determine the path to goals.

The goals are given a practical shape by determining the path. The business should clearly determine its general policies. Policies guide every employee.

Examples of policies are as follows-

1. Sale of goods only in cash.

2. Buying raw materials locally.

3. Only 20% discount should be given on cash sale of goods.

4. Higher posts should be filled only with existing employees etc.

Characteristics of Policies: The following characteristics are found in an ideal business policy-

1. Policies determine decision limits – Policies determine the limits of authority of various subordinate officers within which they take decisions.

2. Policies are always ongoing decisions and instructions – Policies always give the same decisions and instructions in different similar circumstances. Therefore, once the policy is set, the policies are always operational instructions.

3. Difference between policy and rule – The difference between policy and rule is as follows – Policy and decision are instructions which are made on the basis of a certain principle. Due to this, the work area of ​​managers gets limited. But a rule is a legal order that must be implemented in a certain situation. For not implementing this, the concerned officer may also be punished.

4. Difference between policies and objectives: Although policy and objectives are used in the same sense, there is a lot of difference between them from the technical point of view. Objective means to reach the real goals of the organization and policies are the means by which we can reach our destination. 

Merits of Policies: Following are the benefits of policy making-

1. Saving of time and labor – When policies are predetermined, there is no unnecessary delay in taking decisions for doing any work and thus labor and time are saved.

2. Rules of subordinate employees- Subordinate officers in every department work on the basis of the policies laid down by that department. Thus, these policies act as guidance in their daily work.

3. Decision Limitation Policies determine the decision limits to be taken by each officer and warn him not to take any decision that is beyond his authority.

4. Convenience in delegating authority – After the policies are determined, the task of delegating to senior officers becomes easier because the prescribed policies limit the scope of work of each officer.

Limitations of Policies – There are some limitations of policies –

1. Problem not being solved immediately – There are different policies to do every work, but sometimes some problems appear which cannot be solved by the prescribed policies.

2. Policies are not the solution to all problems—policies are made in the beginning while they are implemented in the future. Due to changes in political government policy over time, these policies are unable to solve various problems. Thus, no policy, no matter how intelligently made, is a solution to every problem.

3. Policies cannot be a substitute for human decision – Although policies guide the managers, they can never be considered a substitute for human decision.

Q. 10. What do you understand by procedure? What are its features? (What do you mean by Procedure? What are its characteristics?)

Ans. Procedure: Method means a system by which certain tasks are taken in a certain order. In the procedure, the work is outlined for the purpose of guidance. Procedure is considered an essential part of planning. The procedures in any business organization are decided according to its circumstances. Procedures guide us in reaching the goal.

Characteristics of Procedure-

1. Method: Emphasis is laid on the method by which work will be done at different levels. Procedures restrict the rights of managers because the method of doing the work is already determined. 2. Departmental Relations: The procedure related to the organization

Happens from different departments. The same procedure will affect many departments and all these departments will complete the work according to their specific procedure.

3. Flexible – Initially a permanent procedure should be created. So that it does not have to be changed from time to time, but the procedure should have the quality of flexibility so that it can be amended as much as possible according to the circumstances.

4. Review and Modernization – In today’s era, new inventions are made every day in which old procedures may become obsolete. To maintain its stability in the market and to face the competition,

Use of procedures is necessary, hence it is necessary to review the procedure from time to time and if necessary, it should be updated. 

5. Helpful in Accomplishment of Objectives: While determining the procedure, full care should be taken that the procedure should be such that various objectives of the organization can be achieved as quickly as possible.

Q. 11. Describe the importance of planning. (Discuss the importance of Planning.)

Ans. Planning is the first and most important function of management. It is needed at every managerial level. In the absence of planning, all the problems of any business organization

Activities will become meaningless. Due to increase in the size and complexity of organizations, the importance of planning has increased even more. Planning has also become an important function because today business has to survive in an environment which is uncertain and constantly changing. Anticipating uncertain future events in the absence of planning.

“No, it is definitely difficult. The importance or benefits of employment in a business organization is clear from the following facts-

1. Planning Provides Direction: In the planning process the objectives of the organization are defined in simple and clear words. As a result of this, all the employees get a direction towards which everyone’s efforts work. And go. In this way, planning plays an important role in achieving the main objectives of the organization.

For example, suppose a company sets its sales target under planning. Now all other departments like purchasing, production, service department, finance etc. will set their own objectives with reference to the sales target. 

In this way the attention of all managers will be focused towards achieving their respective objectives. When everyone fulfills their respective objectives then it will be certain that the sales target will be achieved. Therefore, in the absence of objectives the organization becomes crippled and the objectives are determined only under planning.

2. Planning reduces Risks of Uncertainty – Planning is always done about the future and the future is uncertain. No one can tell clearly what is going to happen next. The business environment is constantly changing. Sometimes there is a change in the interest of the consumers and sometimes by planning the methods of production, efforts are made to plan various activities in the best possible way by forecasting possible changes in the future. In this way, planning reduces the risks arising from future uncertainties.

For example, before setting sales targets, a market survey can be done to find out how many new companies are going to enter the competition. Keeping this fact in mind, possible crisis can be avoided by planning future actions. 

3. Planning reduces overlapping and wasteful activities. Under planning, future actions are determined to achieve the objective. As a result, it becomes clear as to when, where, what and why is required. This eliminates chaos and confusion. 

In such a situation, coordination is established among various activities and departments, which eliminates the possibility that any necessary activity is not completed and wasteful activities continue to happen. As a result, wastage moves towards zero, efficiency increases and costs

Comes to its lowest level. For example, if it is certain that so much money will be required in a particular month, the finance manager will make timely arrangements. In the absence of this information, the amount of money that month may be more or less than required. Both situations are undesirable. If it is less, the work will not be completed and if it is more, unnecessary cash will be lying there and there will be loss of interest.

4. Planning Develops Latest Ideas (Planning Promotes Innovative Ideas) —— As it is clear that in planning the best is selected from various options. To do any work, various options do not automatically come to the manager but he has to search for them. In this effort, new ideas emerge and they are studied in depth to further improve them. In this way, planning infuses the power of thinking among the managers and ultimately promotes innovation and creativity.

For example, a company wants to expand its business. As soon as this idea comes, the flow of planning will start in the mind of the concerned manager. He will think something like this-

(i) Should some more varieties of the same product be produced?

(ii) Should retail sales be done along with wholesale sales?

(iii) Should we open branches at other places only for our old products? 

(iv) Should any new product be brought into the market?

In this way many ideas will emerge one after the other? By doing this, it will become a habit of the manager and he will think of doing something new and creative all the time. This is a pleasant situation for the company which arises through planning.

5. Planning Facilitates Decision Making – Decision making means the process of taking decisions. Under this, options are searched and a better option is selected. But before exploring options, it is necessary to determine the objectives. Objectives are determined under planning. That is why it can be said that planning is helpful in elections. In other words, decision making is not possible in the absence of planning.

6. Planning establishes standards for controlling – Planning facilitates the control work of management, hence it is considered the basis of control. By determining the objectives of the organization through planning, all the departments and people working in numbers are told what and how they have to do. Standards are fixed regarding their work, time, cost etc. After completion of the control work, deviations are detected by comparing the actual work with the certified work. When vital deviation occurs

That is, if the work is not completed as desired, the concerned person is held responsible. For example, a worker is scheduled to do 10 units of work in a day (a matter of planning). That’s actually 8 units of work. Thus a negative deviation of 2 units occurs. He will be held responsible for this. (Singing of actual work, informing about deviations and holding the worker responsible comes under invitation). Thus, control is not possible in the absence of planning. 

Q. 1. Explain the ubiquity of planning. (Explain the Universality of Planning.)

Ans. The scope of planning is wide. Every work requires planning. Be it a wrestling arena or a playground, a hospital or a chemist’s shop, a small business or a mixing factory, an educational field or a God’s temple, planning is required at all places.

Q.2  . Planning is a primary function, explain. (Planning is a primary and basic function. Explain.)

Ans. Primary and basic Function – The specialty of planning is that it is a primary function of management which is done before other management related functions. Only after this work is done, other tasks of management (organization, direction, control, coordination, etc.) begin. The usefulness of other functions of management depends on planning.

Q.  _ 3. Planning is the main function of management. Explain. (Planning is a primary function of Management.)  

Ans. Planning is a primary function of management. Planning is given primary place in all managerial functions. Although all the tasks of management are important in their own place and it is difficult to make them bigger or smaller. But still planning is considered more important in these. 

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Table of Contents

What is a business plan, the advantages of having a business plan, the types of business plans, the key elements of a business plan, best business plan software, common challenges of writing a business plan, become an expert business planner, business planning: it’s importance, types and key elements.

Business Planning: It’s Importance, Types and Key Elements

Every year, thousands of new businesses see the light of the day. One look at the  World Bank's Entrepreneurship Survey and database  shows the mind-boggling rate of new business registrations. However, sadly, only a tiny percentage of them have a chance of survival.   

According to the Bureau of Labor Statistics, about 20% of small businesses fail in their first year, about 50% in their fifth year.

Research from the University of Tennessee found that 44% of businesses fail within the first three years. Among those that operate within specific sectors, like information (which includes most tech firms), 63% shut shop within three years.

Several  other statistics  expose the abysmal rates of business failure. But why are so many businesses bound to fail? Most studies mention "lack of business planning" as one of the reasons.

This isn’t surprising at all. 

Running a business without a plan is like riding a motorcycle up a craggy cliff blindfolded. Yet, way too many firms ( a whopping 67%)  don't have a formal business plan in place. 

It doesn't matter if you're a startup with a great idea or a business with an excellent product. You can only go so far without a roadmap — a business plan. Only, a business plan is so much more than just a roadmap. A solid plan allows a business to weather market challenges and pivot quickly in the face of crisis, like the one global businesses are struggling with right now, in the post-pandemic world.  

But before you can go ahead and develop a great business plan, you need to know the basics. In this article, we'll discuss the fundamentals of business planning to help you plan effectively for 2021.  

Now before we begin with the details of business planning, let us understand what it is.

No two businesses have an identical business plan, even if they operate within the same industry. So one business plan can look entirely different from another one. Still, for the sake of simplicity, a business plan can be defined as a guide for a company to operate and achieve its goals.  

More specifically, it's a document in writing that outlines the goals, objectives, and purpose of a business while laying out the blueprint for its day-to-day operations and key functions such as marketing, finance, and expansion.

A good business plan can be a game-changer for startups that are looking to raise funds to grow and scale. It convinces prospective investors that the venture will be profitable and provides a realistic outlook on how much profit is on the cards and by when it will be attained. 

However, it's not only new businesses that greatly benefit from a business plan. Well-established companies and large conglomerates also need to tweak their business plans to adapt to new business environments and unpredictable market changes. 

Before getting into learning more about business planning, let us learn the advantages of having one.

Since a detailed business plan offers a birds-eye view of the entire framework of an establishment, it has several benefits that make it an important part of any organization. Here are few ways a business plan can offer significant competitive edge.

  • Sets objectives and benchmarks: Proper planning helps a business set realistic objectives and assign stipulated time for those goals to be met. This results in long-term profitability. It also lets a company set benchmarks and Key Performance Indicators (KPIs) necessary to reach its goals. 
  • Maximizes resource allocation: A good business plan helps to effectively organize and allocate the company’s resources. It provides an understanding of the result of actions, such as, opening new offices, recruiting fresh staff, change in production, and so on. It also helps the business estimate the financial impact of such actions.
  • Enhances viability: A plan greatly contributes towards turning concepts into reality. Though business plans vary from company to company, the blueprints of successful companies often serve as an excellent guide for nascent-stage start-ups and new entrepreneurs. It also helps existing firms to market, advertise, and promote new products and services into the market.
  • Aids in decision making: Running a business involves a lot of decision making: where to pitch, where to locate, what to sell, what to charge — the list goes on. A well thought-out business plan provides an organization the ability to anticipate the curveballs that the future could throw at them. It allows them to come up with answers and solutions to these issues well in advance.
  • Fix past mistakes: When businesses create plans keeping in mind the flaws and failures of the past and what worked for them and what didn’t, it can help them save time, money, and resources. Such plans that reflects the lessons learnt from the past offers businesses an opportunity to avoid future pitfalls.
  • Attracts investors: A business plan gives investors an in-depth idea about the objectives, structure, and validity of a firm. It helps to secure their confidence and encourages them to invest. 

Now let's look at the various types involved in business planning.

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Business plans are formulated according to the needs of a business. It can be a simple one-page document or an elaborate 40-page affair, or anything in between. While there’s no rule set in stone as to what exactly a business plan can or can’t contain, there are a few common types of business plan that nearly all businesses in existence use.  

Here’s an overview of a few fundamental types of business plans. 

  • Start-up plan: As the name suggests, this is a documentation of the plans, structure, and objections of a new business establishments. It describes the products and services that are to be produced by the firm, the staff management, and market analysis of their production. Often, a detailed finance spreadsheet is also attached to this document for investors to determine the viability of the new business set-up.
  • Feasibility plan: A feasibility plan evaluates the prospective customers of the products or services that are to be produced by a company. It also estimates the possibility of a profit or a loss of a venture. It helps to forecast how well a product will sell at the market, the duration it will require to yield results, and the profit margin that it will secure on investments. 
  • Expansion Plan: This kind of plan is primarily framed when a company decided to expand in terms of production or structure. It lays down the fundamental steps and guidelines with regards to internal or external growth. It helps the firm to analyze the activities like resource allocation for increased production, financial investments, employment of extra staff, and much more.
  • Operations Plan: An operational plan is also called an annual plan. This details the day-to-day activities and strategies that a business needs to follow in order to materialize its targets. It outlines the roles and responsibilities of the managing body, the various departments, and the company’s employees for the holistic success of the firm.
  • Strategic Plan: This document caters to the internal strategies of the company and is a part of the foundational grounds of the establishments. It can be accurately drafted with the help of a SWOT analysis through which the strengths, weaknesses, opportunities, and threats can be categorized and evaluated so that to develop means for optimizing profits.

There is some preliminary work that’s required before you actually sit down to write a plan for your business. Knowing what goes into a business plan is one of them. 

Here are the key elements of a good business plan:

  • Executive Summary: An executive summary gives a clear picture of the strategies and goals of your business right at the outset. Though its value is often understated, it can be extremely helpful in creating the readers’ first impression of your business. As such, it could define the opinions of customers and investors from the get-go.  
  • Business Description: A thorough business description removes room for any ambiguity from your processes. An excellent business description will explain the size and structure of the firm as well as its position in the market. It also describes the kind of products and services that the company offers. It even states as to whether the company is old and established or new and aspiring. Most importantly, it highlights the USP of the products or services as compared to your competitors in the market.
  • Market Analysis: A systematic market analysis helps to determine the current position of a business and analyzes its scope for future expansions. This can help in evaluating investments, promotions, marketing, and distribution of products. In-depth market understanding also helps a business combat competition and make plans for long-term success.
  • Operations and Management: Much like a statement of purpose, this allows an enterprise to explain its uniqueness to its readers and customers. It showcases the ways in which the firm can deliver greater and superior products at cheaper rates and in relatively less time. 
  • Financial Plan: This is the most important element of a business plan and is primarily addressed to investors and sponsors. It requires a firm to reveal its financial policies and market analysis. At times, a 5-year financial report is also required to be included to show past performances and profits. The financial plan draws out the current business strategies, future projections, and the total estimated worth of the firm.

The importance of business planning is it simplifies the planning of your company's finances to present this information to a bank or investors. Here are the best business plan software providers available right now:

  • Business Sorter

The importance of business planning cannot be emphasized enough, but it can be challenging to write a business plan. Here are a few issues to consider before you start your business planning:

  • Create a business plan to determine your company's direction, obtain financing, and attract investors.
  • Identifying financial, demographic, and achievable goals is a common challenge when writing a business plan.
  • Some entrepreneurs struggle to write a business plan that is concise, interesting, and informative enough to demonstrate the viability of their business idea.
  • You can streamline your business planning process by conducting research, speaking with experts and peers, and working with a business consultant.

Whether you’re running your own business or in-charge of ensuring strategic performance and growth for your employer or clients, knowing the ins and outs of business planning can set you up for success. 

Be it the launch of a new and exciting product or an expansion of operations, business planning is the necessity of all large and small companies. Which is why the need for professionals with superior business planning skills will never die out. In fact, their demand is on the rise with global firms putting emphasis on business analysis and planning to cope with cut-throat competition and market uncertainties.

While some are natural-born planners, most people have to work to develop this important skill. Plus, business planning requires you to understand the fundamentals of business management and be familiar with business analysis techniques . It also requires you to have a working knowledge of data visualization, project management, and monitoring tools commonly used by businesses today.   

Simpliearn’s Executive Certificate Program in General Management will help you develop and hone the required skills to become an extraordinary business planner. This comprehensive general management program by IIM Indore can serve as a career catalyst, equipping professionals with a competitive edge in the ever-evolving business environment.

What Is Meant by Business Planning?

Business planning is developing a company's mission or goals and defining the strategies you will use to achieve those goals or tasks. The process can be extensive, encompassing all aspects of the operation, or it can be concrete, focusing on specific functions within the overall corporate structure.

What Are the 4 Types of Business Plans?

The following are the four types of business plans:

Operational Planning

This type of planning typically describes the company's day-to-day operations. Single-use plans are developed for events and activities that occur only once (such as a single marketing campaign). Ongoing plans include problem-solving policies, rules for specific regulations, and procedures for a step-by-step process for achieving particular goals.

Strategic Planning

Strategic plans are all about why things must occur. A high-level overview of the entire business is included in strategic planning. It is the organization's foundation and will dictate long-term decisions.

Tactical Planning

Tactical plans are about what will happen. Strategic planning is aided by tactical planning. It outlines the tactics the organization intends to employ to achieve the goals outlined in the strategic plan.

Contingency Planning

When something unexpected occurs or something needs to be changed, contingency plans are created. In situations where a change is required, contingency planning can be beneficial.

What Are the 7 Steps of a Business Plan?

The following are the seven steps required for a business plan:

Conduct Research

If your company is to run a viable business plan and attract investors, your information must be of the highest quality.

Have a Goal

The goal must be unambiguous. You will waste your time if you don't know why you're writing a business plan. Knowing also implies having a target audience for when the plan is expected to get completed.

Create a Company Profile

Some refer to it as a company profile, while others refer to it as a snapshot. It's designed to be mentally quick and digestible because it needs to stick in the reader's mind quickly since more information is provided later in the plan.

Describe the Company in Detail

Explain the company's current situation, both good and bad. Details should also include patents, licenses, copyrights, and unique strengths that no one else has.

Create a marketing plan ahead of time.

A strategic marketing plan is required because it outlines how your product or service will be communicated, delivered, and sold to customers.

Be Willing to Change Your Plan for the Sake of Your Audience

Another standard error is that people only write one business plan. Startups have several versions, just as candidates have numerous resumes for various potential employers.

Incorporate Your Motivation

Your motivation must be a compelling reason for people to believe your company will succeed in all circumstances. A mission should drive a business, not just selling, to make money. That mission is defined by your motivation as specified in your business plan.

What Are the Basic Steps in Business Planning?

These are the basic steps in business planning:

Summary and Objectives

Briefly describe your company, its objectives, and your plan to keep it running.

Services and Products

Add specifics to your detailed description of the product or service you intend to offer. Where, why, and how much you plan to sell your product or service and any special offers.

Conduct research on your industry and the ideal customers to whom you want to sell. Identify the issues you want to solve for your customers.

Operations are the process of running your business, including the people, skills, and experience required to make it successful.

How are you going to reach your target audience? How you intend to sell to them may include positioning, pricing, promotion, and distribution.

Consider funding costs, operating expenses, and projected income. Include your financial objectives and a breakdown of what it takes to make your company profitable. With proper business planning through the help of support, system, and mentorship, it is easy to start a business.

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Planning Class 12 Notes Business Studies Chapter 4 - CBSE

What are planning .

Planning is deciding in advance what to do and how to do. Planning is closely connected with creativity and innovation. Planning involves setting objectives and developing appropriate course of actions to achieve these objectives.

Types Of Plans

Single use plans.

A single-use plan is developed for a one-time event and they are not likely to be repeated in future. The duration of this type of plan depends upon the type of the project.

Standing Plans

Other plans.

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Commerce Aspirant » Business Studies Class 12 » Planning Process Class 12 Notes Business Studies

Planning Process Class 12 Notes Business Studies

Business Studies Class 12 Notes Chapter 4 Process of Planning

Planning Process Class 12 explains the steps involved while planning as without planning any organization wouldn’t be able to survive. All the steps are given below you can click on the relevant point to get a detailed explanation.

Setting objectives

  • Developing premises
  • Identifying alternative courses of action

Evaluating alternative courses of action

  • Selecting an alternative

Implement the plan

  • Follow up action

Explanation of Planning Process

Planning means to think in advance about the major decisions such as what to do, how to do, who will do it and how it will be done.

Planning involves major brainstorming and thus helps in bridging the gap between the present position and the target position. Plans should be made very carefully because without a proper plan, decisions cannot be made and it becomes difficult to take any further steps. Organizing, staffing, directing and controlling also depend on planning.

Plans should be properly made by properly analyzing everything. it has logical steps to make a simple, achievable, logical, measurable and rational plan. These steps are as under:

Planning-Process

Planning Process Class 12 

First thing that comes in Planning Process Class 12 is setting objectives. Every organization has certain objectives which are to be achieved through different organizational activities. There are certain primary objectives. Keeping those objectives in mind, different departments and divisions have certain secondary objectives which are under the broad framework of the organization. Objectives clearly state what the goal of an organization is.

Objectives are set up for giving direction to the organization. When objectives are stated properly it becomes easy for the employees to unite their actions at a focal point. Objectives should be specific, measurable, actionable, achievable, reasonable, rational, and time-bound.

For example, A bicycle manufacturing company want to increase its sales by 10% this year. This is a primary objective set up by the company. Further, the departments can have different objectives such as getting new technology for faster production or better production to increase demand for bicycles etc.

Developing Premises

Plans are always made for the future. We do not have accurate information about the future. We are not sure about the happening which may happen in future. That is why; plans are made based on certain assumptions. These assumptions are called the premises for the plan. These premises are set based on facts, forecasts, past plans, basic policies etc.

The forecasting involves the following:

  • Assumptions of future events
  • Analyzing the trends
  • Systematic investigation

Every person or manager who is involved in the planning should follow the same assumption to avoid chaos and bring orderliness. Everyone should be in agreement with the premises set up by the organization.

For example, the bicycle manufacturing company has the objective of increasing its sales by 10 % this year then it must take into consideration the following assumptions:

  • Change in government policies, whether they will be favourable or unfavourable.
  • Increase or decrease in the competition of the product.

Identifying alternative courses of action under Planning Process Class 12 

After setting up the objectives and developing the premises for the same, the next step in Planning Process Class 12 is to identify the alternative course of action. There are various ways in which a task can be performed. These steps are called the course of action. An organization needs to find out all the possible courses of action. It is very rare when there are no alternative courses of action.

An organization should come up with these alternatives through brainstorming, research, experiences, ideas from various people or stakeholders, and experimentation.

For example, the bicycle manufacturing company which wants to increase its sale by 10%, can reduce the prices, provide better services, increase the promotion of the bicycles etc.

After identifying various alternative courses of action, it is now time to evaluate these various courses of action. This evaluation is done on the basis of the positive and negative aspects of these actions. The pros of the proposal taken should be higher than its cons and should be in alignment with the objectives of the organization.

There are many different ways to evaluate these alternatives to find out their viability and feasibility. These methods include:

  • Careful considerations of various aspects
  • Marginal analysis
  • Cost-effectiveness analysis
  • Risk- return on investment calculation

For example, the bicycle manufacturing company has identified various courses of action and then evaluates these courses of action, such as:

Reducing the prices:  Reduction in the prices of the product will attract various customers but it will become difficult for the company to cover the costs.

Increase the promotional activity: Increasing the investment in the promotion will further increase the cost of the product.

Providing better after-sales services: providing better after-sales services will help the organization in retaining customers and get better mouth publicity.

Selecting an alternative under Planning Process Class 12

After a proper analysis of all the courses of action, in Planning Process Class 12, it is now time to select and implement the best alternative course of action. The best course of action would be the most feasible, most viable, most profitable and with the least negative possible results. Managers may select the best alternative based on their judgement, forecasting, facts, and experiences.

Not always a single plan will work, sometimes a combination of various alternatives have to be selected for better results.

Now the plan is ready to be implemented. The plan now needs action. The next steps in Planning Process Class 12 need to be taken such as organizing, staffing, directing and controlling. For proper implementation and to get the best results, it is important to align the objectives of various departments and divisions with the main objective of the firm. Effective implementation is only possible with proper coordination.

For example: if the company wants to increase the manufacturing of the product then the next step will be to appoint the staff and the workers required for production and purchase the machinery for the same.

Follow up action under Planning Process Class 12 

Just implementation is not enough checking up on whether it is properly implemented or not is also very important. This is sometimes also called controlling because it involves looking back and comparing the results with the standard results and then taking corrective actions. Feedback is the essence of planning as it helps in making changes to the plans and making future plans.

Planning Process Class 12 is the intellectual process which involves mental exercise and various logical steps are to be taken for proper implementation and achieving the objectives. It is the first function of management and should be performed very carefully because making a mistake while planning leads to chaos in the organization and other steps will suffer.

  • Introduction, Meaning, Importance, Features & Limitations of Planning
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Business Studies Class 12 Notes - Free PDF Download

Class 12 Business Studies is an interesting subject comprising lots of concepts and problem diagrams. Students can only enjoy Class 12 Business studies if they understand the complex terms and basic concepts in easy language. To help students perform well in the Class 12 Business studies exam and give them better clarity of all the crucial concepts of this subject, nothing can be better than well-explained Class 12 Business Studies Notes.

Business Studies class 12 notes are prepared by the subject experts who have experience of over 20+ years and sound knowledge of the latest CBSE syllabus as well as the Class 12 board exam pattern. Business Studies Class 12 Notes will provide the students with a complete overview of all the chapters with the broad coverage of crucial topics from each chapter that has high marks weightage in the exam for the better performance of students.

Detailed Overview of Class 12 Business Studies Revision Notes

Download cbse class 12 business studies revision notes 2023-24 pdf.

Also, check Class 12 Business Studies Notes for other chapters:

CBSE Class 12 Notes for Business Studies Followed By NCERT Guidelines

Evision notes of business studies class 12 - free pdf download.

Class 12 Business Studies Notes are available to access both online and offline in PDF format on our official website and app for free. Our team prepares these notes strictly as per the latest syllabus of CBSE and follows the current examination pattern. The teachers we have here are highly experienced who have prepared these notes, significantly based on concepts followed by CBSE from the past several years. Class 12th business studies notes provide you with a very smooth understanding of the subject and will clear all your concepts in one go.

Well-explained in an easy to understand language with solved problems, graphical representation, and practical examples, class 12th business studies notes help students understand the crucial concepts of Class 12 business studies conveniently. Students can refer these notes to quickly brush up the important topics from each chapter of Class 12 Business Studies in a strategic manner just before the exam without any panic. Also, Class 12 Business Studies Notes help students understand which topics are critical from an exam point of view and thus require their more attention.

CBSE Class 12 Business Studies Weightage 2023-24

Revision notes of business studies class 12- chapter-wise.

Business studies is a fundamental concept as it teaches you the theories you will need to put into practice if you want to run any business successfully. You have to focus on these concepts because these will be useful even if you interact with any business organisation in the future. The subject concentrates on principles and concepts that elaborate on the science of management and its significance. They also focus on different business environments as well as functions like planning and organisation.

Class 12 Business Studies Notes explains the chapter-wise crucial concepts in a lucid and straightforward manner to help students understand all these concepts thoroughly. All these concepts are important from Class 12 board exam point of view as many questions appear in the exam from these concepts and by revising these concepts, students can score good marks in Class 12 Business Studies exam.

CBSE Class 12 Study Materials

Overview of revision notes cbse class 12 business studies.

CBSE Class 12 Business studies is a very important branch of the syllabus that deals with different concepts related to the management and effectiveness of a business. There are 12 chapters included in the syllabus of Class 12 Business studies. All these chapters are divided into two books called Principles and Functions of Management and Business, Finance, and Marketing. Students will get familiarized with concepts such as Management, Planning, Organizing, Staffing, Controlling, and Directing a Business. The syllabus also covers other important topics such as Financial Management, Financial Markets, Consumer Protection, Marketing, and much more. To complete their syllabus, students will need Class 12 Business Studies Notes provided by Vedantu.

The learned subject matter experts at Vedantu have created well-researched and verified Revision notes for the students.

With these Class 12th business studies notes, students will be able to dominate their syllabus and secure good grades in their examinations. By getting detailed insights into the chapters through the notes, students will be able to learn the subject and master the concepts easily. With Business Studies Notes for Class 12 PDF , students have the chance to cement their knowledge about business topics and concepts in the best way. These notes have been prepared according to CBSE guidelines and thus students can actually gain a lot of important benefits if they manage to download the revision notes for this subject in Class 12.

Benefits of Class 12 Business Studies Notes PDF Download

The Class 12 Business studies notes will explain each and every single concept of the chapters in acute detail. Students can study the revision notes to gain proper insights into the chapter and achieve a proper conceptual foundation in the subject of business studies.

The learned experts at Vedantu have designed these notes according to the requirements of the students. So, they don’t have to look for other resources to complete their study materials. The links to all the chapters and the revision notes have been provided right here.

Students can use the revision notes to clarify any particular doubts that they are having about a certain chapter or a topic. For instance, if you have doubts about the first chapter, you can download Class 12 Business Studies Chapter 1 Notes  PDF and rectify any errors and clear doubts.

Students can definitely rely on the revision notes to completely their syllabus in time for the exams. They don’t have to go through the elongated process of reading the entire textbook to learn about the chapters. Just going through the revision notes will help students complete all the chapters on time.

Students will be able to guess the CBSE exam pattern from the revision notes as these study materials have been crafted according to CBSE guidelines . Students can find out the topics that are most important and most likely to appear in the examinations. This will help them get prepared beforehand.

Chapter-Wise Division of Crucial Topics Covered in Revision Notes of Business Studies Class 12: 

Chapter 1 - nature and significance of management.

Definition of Management.

Effectiveness v. Efficiency.

Characteristics of Management.

Management Objectives.

Importance of Management.

Chapter 2 - Principles of Management

Nature of Business Management.

Significance of Principles of Management.

Principles of Scientific Management.

Fayol’s Principle of Management.

Chapter 3 - Business Environment

Meaning 

Features 

Dimensions 

Chapter 4 - Planning

Importance 

Types 

Planning Process

Chapter 5 - Organising

Introduction 

Organisational Structure

Delegation 

Importance of Delegation

Chapter 6 - Staffing

Recruitment

Sources of Recruitment

Chapter 7 - Directing

Characteristics

Elements of Directing

Chapter 8 - Controlling

Limitations

Relationship between Planning and Controlling.

Chapter 9 - Financial Management

Financial Management.

Financial Decisions.

Factors Affecting Financial Decisions.

Factors Affecting Capital Budgeting Decisions.

Factors Affecting Dividend Decision.

Financial Planning.

Capital Structure.

Debt v. Equity.

Chapter 10 - Financial Markets

Functions. 

Capital v. Money Market.

Chapter 11 - Marketing

Marketing and Selling 

Functions of Marketing

Chapter 12 - Consumer Protection

Legal Protection

Consumer Rights

Chapter 13 - Entrepreneurship Development

Concept 

Roles and Functions of Entrepreneurship.

3 Revision Techniques to Use NCERT Class 12 Business Studies Notes PDF

Revise, Rest, and Repeat: Studies indicate that a brief nap of approximately 20 to 30 minutes enhances memory retention. Therefore, incorporating regular cycles of revision, rest, and repetition aids in boosting memory and recall abilities. Utilize this revision strategy while utilizing the NCERT Class 12 Business Studies Notes PDF .

Pomodoro Technique: An Effective Method for Distracted Learners: The Pomodoro technique offers an effective approach to revision, particularly beneficial for students struggling with sustaining focus on a task for extended periods. By utilizing this technique, students can effectively utilize the NCERT Class 12 Business Studies Notes PDF to comprehensively revise the entire syllabus.

Blurting: A Novel Approach to Revision: In addition to the aforementioned methods, blurting emerges as a noteworthy revision technique. This method involves vocalizing Business Studies notes aloud, as verbalizing aids in retention. Following this, assess your comprehension by jotting down recollections obtained during your Class 12 Business Studies revision sessions.

Subject-wise Solutions for Class 12

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Download Revision Notes for Business Studies Class 12

When it comes to preparing for exams, students need to be prepared by completing their syllabus. Download Quick Revision Notes for Business Studies Class 12 from Vedantu and you will have all the assistance to complete the syllabus and retain information about the chapters.

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FAQs on CBSE Class 12 Business Studies Notes

1. Can You Give me the Details of the Portion of Business Studies Class 12?

Class 12 Business Studies is divided majorly into two portions.

The 1st Portion Consists:

Principles and Functions of Management - Nature and Significance of Management, Principles of Management, Business Environment, Planning Organizing, Staffing, Directing and Controlling. 

The 2nd Part Consists:

Business Finance and Marketing. 

2. Where can I get Free Revision Notes of Business Studies Class 12 Online?

Students can download well-explained and reliable Class 12 Business Studies Revision notes online for free from the official website of Vedantu and its app. These notes are prepared by the subject experts as per the latest CBSE syllabus and hence wholly trustworthy and reliable. Students can always access these notes freely whenever required.

3. Is it necessary to use Class 12 Business Studies notes?

Refer to Vedantu's Class 12 Business Studies Notes to ace your exam preparation. With the help of these notes, you will be able to revise all important topics of the syllabus in less time. These notes are prepared on the latest syllabus, exam pattern and marking scheme to fetch you more marks in the exam. They are fully authentic as they are prepared by the best Business Studies teachers in India. By studying from these notes, you will see a lot of progress in your exam preparation. 

4. What are the chapters in Business Studies Class 12?

The syllabus of Class 12 Business Studies comprises 12 chapters that are divided into two books - Principles and Functions of Management, and Business Finance and Marketing. 

There are eight chapters in the first book. These are as follows - 

Chapter 1: Nature & Significance of Management

Chapter 2: Principles of Management

Chapter 3: Business Environment

Chapter 4: Planning

Chapter 5: Organising

Chapter 6: Staffing

Chapter 7: Directing

Chapter 8: Controlling

The second book consists of the following four chapters - 

Chapter 9: Financial Management 

Chapter 10: Financial Markets 

Chapter 11: Marketing

Chapter 12: Consumer Protection

5. How do you make a BST note?

Business Studies notes are really important to simplify your exam preparation journey. You can prepare handwritten notes for BST. First, thoroughly read all the chapters from your NCERT BST textbook. While preparing notes, make sure that they are well-structured, crisp and short. Divide your notes into two sections - the theory section and the numerical section. Prepare the most important bullet points in simple words from every theory topic and write down statistics from the case studies. Revise these notes multiple times to strengthen your conceptual understanding. 

6. How to download CBSE Class 12th Business Studies Quick Revision Notes?

You can easily download Class 12 Business Studies Quick Revision Notes by visiting the page CBSE Class 12 Business Studies Revision Notes on the Vedantu website. You can select the chapter and then proceed to download the PDF of its Revision Notes. These notes will help you ace Business Studies by providing the best quality study material from an examination point of view. They are 100% authentic notes, error-free and comprehensive. By downloading these notes, and regularly revising them, you will be able to learn the Business Studies concepts with a crystal-clear understanding. All these PDFs are available at free of cost on the Vedantu app as well.

7. Can you please provide a detailed Stepwise Study Plan to ace Business Studies Class 12?

First of all, study each chapter from the standard NCERT textbook to obtain conceptual clarity and to cover all basics. Then, solve every question given in the back exercises of each chapter. Refer to Vedantu's Revision Notes for Class 12 Business Studies CBSE Class 12 Business Studies Revision Notes. Prepare short notes to summarize all the main topics. Analyze the tables and charts given in the NCERT for better understanding. Practice as many previous year questions and sample papers as you can, and most importantly, revise all topics multiple times. 

8. How can class 12 business studies chapter 1 notes pdf help me prepare for exams?

Class 12 business studies chapter 1 notes pdf can help you prepare for exams by providing a structured overview of the topics covered in the chapter. They serve as a handy revision tool, enabling you to quickly review key points and concepts before exams.

9. Are there any tips for effectively using class 12 business studies chapter 2 notes?

To effectively use class 12 business studies chapter 2 notes, consider the following tips:

Review the notes regularly to reinforce your understanding of the principles of management.

Use mnemonic devices or visualization techniques to memorize key principles and their applications.

Apply the principles learned in the notes to real-life business scenarios to deepen your understanding.

Discuss concepts with peers or teachers to gain additional insights and perspectives.

Revision Notes for Class 12

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Key Notes: Planning | Business Studies (BST) Class 12 - Commerce PDF Download

Planning can be defined as “thinking in advance what is to be done, when it is to be done, how it is to be done and by whom it should be done.” According to Fayol, “Planning is chalking out plan of action, i.e., the result envisaged in the line of action to be followed, the stages to go through the methods to use.”

Importance of Planning

Features of planning, limitations of planning, planning process, types of plans, top courses for commerce, extra questions, key notes: planning | business studies (bst) class 12 - commerce, important questions, study material, video lectures, mock tests for examination, past year papers, previous year questions with solutions, viva questions, semester notes, shortcuts and tricks, objective type questions, practice quizzes, sample paper.

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NCERT Notes for Class 12 business studies Chapter 4 PLANNING

Class 12 business studies chapter 4 planning.

NCERT Notes for Class 12 business studies Chapter 4 PLANNING, (business studies) exam are Students are taught thru NCERT books in some state board and CBSE Schools.  As the chapter involves an end, there is an exercise provided to assist students to prepare for evaluation.  Students need to clear up those exercises very well because the questions inside the very last asked from those.

Sometimes, students get stuck inside the exercises and are not able to clear up all of the questions.  To assist students, solve all of the questions, and maintain their studies without a doubt, we have provided step-by-step NCERT Notes for the students for all classes.  These answers will similarly help students in scoring better marks with the assist of properly illustrated Notes as a way to similarly assist the students and answer the questions right.

Every organisation whether it is government-owned, a privately owned, small business or large business requires planning. The government makes five- year plans for the country, a small business has its own plans, while other companies have big plans, sales plans, production plans etc. All of them have some plans. Dreams can be turned into reality only if business managers think in advance on what to do and how to do it.

Meaning of Planning

Planning is the first function of management. Planning can be defined as “thinking in advance what is to be done, when it is to be done, how it is to be done and by whom it should be done”. Planning is the process of thinking before doing. Planning bridges the gap between where we are standing today and where we want to reach.

Planning involves setting up of objectives and developing appropriate courses of action to achieve these objectives. It is concerned with both ends and means i.e., what is to be done and how it is to be done.

Features of Planning

Planning focus on achieving objectives.

Every organization has to fulfil certain objectives. Planning involves setting up of objectives and developing appropriate courses of action to achieve these objectives. Planning has no meaning unless it contributes to the achievement of predetermined organizational goals.

Planning is a primary function of management

Planning is the primary or basic function of management. All other managerial functions are performed within the frame work of plans drawn. Planning provides the basis of all other managerial functions.

Planning is pervasive

Planning is required at all levels of management. It is not an exclusive function of top management or of any particular department. But the scope of planning differs at different levels and among different departments. For example, the top management undertakes planning for the organisation as a whole. Middle management does the departmental planning. At the lowest level, day-to-day operational planning is done by supervisors.

Planning is continuous

Planning is a never ending or continuous process. Plans are prepared for a specific period of time, may be for a month, a quarter, or a year. At the end of that period there is need for a new plan to be drawn on the basis of new requirements and future conditions. Hence, planning is a continuous process.

Example-If the plan is made during boom period and during its execution there is depression period then planners have to make changes according to the conditions prevailing.

Planning is futuristic (Forward-looking)

Planning essentially involves looking ahead and preparing for the future. Planning is thinking in advance what is to be done, when it is to be done, where it is to be done, and who is to be done. In other words, planning relates to future.

Planning is a mental exercise

Planning is a mental exercise involving creative thinking and imagination. Planning is not guesswork but involves logical and systematic thinking. Thinking for planning must be orderly and based on the analysis of facts and forecasts.

Planning involves decision making

Planning essentially involves choice from among various alternatives. The need for planning arises only when alternatives are available. In actual practice, planning presupposes the existence of alternatives and choosing the most appropriate one.

Importance/Advantages of Planning

It is difficult to manage operations without formal planning. It is important for an organisation to move towards achieving goals. The major benefits of planning are given below:

Planning provides directions

Planning involves setting up of objectives and developing appropriate courses of action to achieve these objectives. By stating in advance how work is to be done planning provides direction for action. Due to planning, employees know in advance in which direction they have to work. If there were no planning, employees would be working in different directions and organization would not be able to achieve its desired goal.

Planning reduces the risks of uncertainty

Business organizations have to face many uncertainties and unexpected situations every day. Planning enables these enterprises to predict future events and prepare to face unexpected events. With the help of planning, manager can identify potential dangers and take steps to overcome them.Thus, planning helps to reduce risk and uncertainty.

Planning reduces overlapping and wasteful activities

Planning serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals. It helps in avoiding confusion and misunderstanding. Since planning ensures clarity in thought and action, work is carried on smoothly without interruptions. Useless and redundant (out of work) activities are minimised or eliminated.

Planning promotes innovative ideas

Planning requires high thinking and it is an intellectual process. So, there is a great scope of finding better ideas, better methods and procedures to perform a particular job.

Planning facilitates decision making

Planning helps the management to take various decisions. As in planning goals are set in advance and predictions are made for future. These predictions and goals help the manager to take fast decisions.

Planning establishes standards for controlling

Through planning management decides the standard of performance in advance. With the help of these standards, comparison can be made with the actual. If there is any deviation with the standard, proper steps can be taken to correct it. Therefore, we can say that planning is a prerequisite for controlling. Therefore, planning provides the basis of control.

Planning improves efficiency

Planning results in systematic and smooth functioning of the company because planning is concerned with the predetermined course of action. The predetermination of action avoids confusion and clashes and wastage of scarce resources.

Limitations of planning

We have often seen in our daily life that things do not always go according to plan. Unforeseen events and changes, rise in costs and prices, environmental changes, government interventions, legal regulations, all affect our business

plans. Plans then need to be modified. The major limitations of planning are given below:

Planning leads to rigidity

In an organistion a well-defined plan is drawn up with specific goal to be achieved with a specific time period. These plans decide the future course of action to be followed. Once a well-defined plan is drawn, managers may not be able to change it. The business environment change rapidly but mangers is committed to execute the predefined plan. It may not bring positive result to the business

Planning may not work in a dynamic environment

The business environment is dynamic as it keeps on changing. The environment consists of a number of dimensions, economic, political, physical, legal and social dimensions. These factors are beyond the control of a business. Since, planning cannot foresee everthing, and there may be obstacles to effective planning. Under the conditions of rapid changes, the plans become outdated and irrelevant even before they are implemented.

Planning reduces creativity

Planning is an activity which is done by the top management. Usually the rest of the members are blind followers of the plan. Employees only carry out orders. Employees do not even attempt to formulate plans. Thus, much of the initiative or creativity inherent in them gets lost or reduced.

Planning involves huge costs

Planning is an expensive process. Collection, analysis, and evaluation of the different information, facts and alternatives involve a lot of expenses. Sometimes, costs incurred may not justify the benefits derived from the plans.

Planning is a time-consuming process

Planning process is a time-consuming process because it take long time to evaluate the alternatives and select the best one. Lot of time is needed to develop planning premises. Whenever there is a need for prompt and immediate decision then we have to avoid planning.

Planning does not guarantee success

The success of an enterprise is possible only when plans are properly drawn up and implemented. Managers have a tendency to rely on previously tried and tested successful plans.But, It is not always true that a plan which has worked before, will work effectively again.

Planning process

Planning means deciding in advance what is to be done, when it is to be done, how it is to be done etc. It is a process of decision making. It involves certain logical steps. They are as follows.

  • Setting Objectives

The first and foremost step is setting objectives. Objectives are the end- results which manager’s wish to achieve. Objective must be specific and clear. Objectives may be set for the entire organisation and each department or unit within the organisation. They give direction to all departments. If the end result (objective) is clear it becomes easier to work towards the goal.

Developing premises

Planning is concerned with the future which is uncertain and every planner is using assumptions about future. These assumptions are called premises. Premises are the base on which plans are made.Forcast is the technique of gathering information. Forecast can be made about the demand for a product, change in government policy, tax rate, competition etc. Accurate assumptions/ premises become essential for successful plans.

Identifying various alternative courses of action

Once objectives are set and assumptions are made, then the next step is to act upon them. There are alternative ways to achieve the stated objectives. All the alternative courses of action should be identified.

For example: In order to achieve the organizational objective of ‘increasing profits’, the alternatives ways may be:

  • Increasing selling price
  • Purchasing new technology machines
  • Increase the efficiency of workers by giving proper training

Evaluating alternative courses of action

In this stage, management will evaluate the merits and demerits of various alternatives in the light of various objectives of the business and planning premises. Alternatives are evaluated in the light of its risk, return, feasibility etc.

Selecting an alternative

After analyzing the merits and demerits, the most appropriate alternative is selected. This is the real point of decision making. The best plan is to be adopted and implemented. It would be the most feasible, profitable, and with least negative consequences.

Example: Selecting ’Purchasing new technology machine’ as the best solution

for increasing profits.

Implementing the plan

Implementing is the stage at which the best selected alternative is put into action. Implementing the plan means putting the plan into action so as to achieve the objective of the business.

For example: The business already decided to buy new machinery as part of its goal of maximizing profit. At this stage the company takes steps to acquire that machinery.

Planning is a continuous process so manager’s job does not get over simply putting the plan into action. To see whether plans are being implemented and activities are performed according to schedule is also part of the planning process. During follow up many adjustments are made in the plan. Monitoring the plans is equally important to ensure that objectives are achieved.

  • Developing Premises
  • Identifying Alternative courses of Action
  • Evaluating Alternative Courses
  • Selecting an Alternative
  • Implementing the Plan
  • Follow-up Action

Types of plans

Fig: Planning Process

An organization has to prepare a plan before making any decision related to business operation, or undertaking any project. Plans can be classified into several types based on the use and length of the planning period. Certain plans have short term horizon (prospects) and helps to achieve organizational goalsTwo types of plans in business are designed and implemented depending on the size, scope and nature of the plan being written: standing plans and single-use plans

Standing Plan

A standing plan is a business plan that is intended to be used many times. It is designed to guide managerial decisions and actions that tend to be recurring. It is used over a long period , sometimes indefinitely, and is altered as circumstances change. Standing plans include objectives, strategy, policy, procedure, method and rules. Standing plans define actions to take in certain situations or actions that must be completed to accomplish a particular goal.

Examples of standing plans include policies for employee interaction, emergency operations procedures in the event of a companywide disaster, instructions (rules) for reporting internal issues in the company and regulations regarding what is allowable and what is prohibited in the business.

Single-use Plan

A single-use plan, otherwise known as a specific plan, is used for nonrecurring, one-time situations in business. A single-use plan is meant to solve one particular problem and then be discarded. The single-use plan becomes obsolete after its intended and specific use. The length of a single- use plan differs depending on the project as a single event plan may only last one day (organising an event or a seminar or conference) while a single project may last weeks or months (An advertising campaign for a new product launch).

planning business studies notes

Types of Standing Plans

Objectives are the ends toward which activity is aimed. It is the desired future position that the management would like to reach. Objectives are prerequisite for planning. Objectives are expressed in quantitative or measurable terms. Objectives are result oriented not activity oriented.

  • An organization may have an objective of increasing sales by 10%
  • Reduction in quality rejects from existing 5% to 2%.
  • Crossing 30,000 crore marks in sales 2020
  • An organization may have an objective of increasing its profit by 10%

A business strategy can be defined as the combination of all the decisions taken and actions performed by the business to accomplish the business goals. It is a comprehensive (complete) plan for accomplishing organisation’s objectives. A business objective without a strategy is just a dream.

Example: Objective is to increase company’s profit by 10%.To achieve this objective, company can adopt strategies like create and launch new products or models, introduce new distribution channels like online sale, select new advertisement media like internet marketing, implement new sales promotion techniques etc.

Policies are the general guidelines for conducting an action. It ensures uniformity in decision making for achievement of predetermined objectives. Policies define boundaries within which decisions can be made. Policy is a standing plan.

The management of Union Bank of India decided to promote employees on the basis of merit only. (Example for policy)

Recruitment Policy (Hiring only university-trained engineers)

Sales Policy (Selling product only on cash basis or only wholesale) Mobile phone policy (Allow in working hours or not)

Payment will be provided for overtime work only if it is allowed by the management.

Procedure is a series of steps, taken together, to achieve a desired result. They are specified in a chronological order. It describes the exact manner in which the work is to be performed. Procedure is necessary to speed up the performance. Procedures are rigid; there is no possibility for deviation. Procedure is a standing plan.

Example -Methods of selecting employees, placement of order, Procedure for selection of employees, procedure to produce a product

A method is the prescribed way in which a task has to be performed considering the objectives. It deals with the best way to perform a particular task. Selection of proper method saves time, money and effort and increases efficiency. Methods are helpful in the simplification, standardization and systematization of work. Method is a standing plan. Example: For the valuation of stock, the organization must decide in advance what method has to be adopted (LIFO or FIFO), different payment options in online purchase etc.

Rules are specific statements that inform what is to be done and what is not to be done.They do not allow any deviations/ flexibility. Rules are made for the purpose of creating discipline in the organization. Rules is a standing plan.

Example: No smoking, no admission without permission, 0using mobile phone during office hours is prohibited

Types of single use plans

Programmes are detailed statements about a project. Programme may be taken as a combination of policies, procedures, rules, tasks, human and physical resources required, budgets etc. The same programme may not be used for achieving other goals.

Example:Programmes for construction of shopping mall,programmes for opening a new department in our business.

Budget is a projection designed to define the anticipated costs and results in numerical terms of single project. Budget is a recorded plan of action expressed in quantitative terms. It may be expressed in time, money or physical units.

It is an instrument of both planning and controlling. Budget preparation involves forecasting; therefore, it comes under planning. Budget is a control device because budget helps to compare actual figures with budgeted figure and take corrective action if necessary.

Example-Cash budget, sales budget

Types of plans in a nut shell

Standing Plan – to deal with situations that can occur again and again

  • Objectives – Objectives are the ends toward which activity is aimed.
  • Strategy – It is the combination of all the decisions taken and actions performed by the business to accomplish the business goals.
  • Policy – Policies are the general guidelines for conducting an action.
  • Procedure – Procedure is a series of steps, taken together, to achieve a desired result.
  • Method – A method is the prescribed way in which a task has to be performed considering the objectives.
  • Rule – Rules are specific statements that inform what is to be done and what is not to be done.

Single Use Plan – It is one-time plan specifically designed to achieve a particular goal.

  • Programme – Programmes are detailed statements about a project, includes combination of policies, procedures, rules, tasks, budgets etc.
  • Budget – Budget is a projection designed to define the anticipated costs and results in numerical terms of single project.

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Planning Class 12 Notes PDF (Handwritten & Short Notes)

Students who have opted commerce stream, need to understand better and score well in questions regarding the chapter Planning. Class 12 students can smoothly perform better with the help of Planning Class 12 notes. Accordingly students can also understand other chapters of Class 12 Business Studies in a better way. 

Students can also practise some sort of questions from the Planning Class 12 notes. Practising Planning questions on a regular basis can help students to increase their accuracy level. Accordingly, students can also improve their inner confidence in attempting questions of the chapter Planning. Inner confidence is a must for all students to decrease the level of stress while giving the Class 12 Business Studies board exam. Therefore, here we provide the Planning Class 12 Notes in PDF file format.

Planning Notes Class 12 PDF

The Planning notes Class 12 PDF are one of the important study materials while preparing for the chapter. Students generally refer to the notes after completing the chapter Planning. Class 12 notes is a collection of short summaries of sub-topics, topics and key points. With the help of these summaries, students can remember the important points on their fingertips. 

How to Download the Planning Notes Class 12 in PDF?

All students studying in Class 12, need to have easy and free access to the Planning notes Class 12 in PDF. Steps to download the Class 12 Business Studies Notes are:

  • Open the Selfstudys website on any of the electronic devices. 
  • Bring the arrow towards NCERT Books & Solutions which can be seen in the navigation bar. 
  • Drop-up menu will appear, select NCERT notes from the list.

Planning Class 12 Notes, Planning Class 12 Notes PDF, Download Planning Class 12 Notes, Planning Handwritten Notes for Class 12, Planning Notes for Class 12, How to Download Class 12 Notes on Planning

  • A new page will appear, select Class 12th from the list of classes.

Planning Class 12 Notes, Planning Class 12 Notes PDF, Download Planning Class 12 Notes, Planning Handwritten Notes for Class 12, Planning Notes for Class 12, How to Download Class 12 Notes on Planning

  • Now select Business Studies from the list of subjects.

Planning Class 12 Notes, Planning Class 12 Notes PDF, Download Planning Class 12 Notes, Planning Handwritten Notes for Class 12, Planning Notes for Class 12, How to Download Class 12 Notes on Planning

  • Again a new page will appear, now select Planning from the list of chapters. 

Features of the Planning Notes Class 12

Features of Planning notes Class 12 are considered to be an important and noticeable part. Those important features of Class 12 Business Studies notes are: 

  • Number of the Unit is Given: Inside the Class 12 Planning notes, the number of the unit is given. Accordingly students can easily identify the chapter name with the help of unit number of Class 12 Business Studies. 
  • All Concepts are Completed: In the Class 12 Planning notes, all the concepts are completed. Students can get a brief knowledge about the chapter Planning. 
  • Questions are Given: On the last page of the Class 12 Business Studies notes, different questions regarding the chapter Planning are given to practise. Accordingly students can also improve their comprehensive skill for the chapter Planning. 
  • Chapter Name is Included: The chapter name of Planning is mentioned inside the Class 12 Planning notes. Through the notes, students can get a brief idea about the chapter Planning. 
  •  Provided in a Simple Language: The Planning Class 12 notes are provided in a simpler language. Through this, students can easily understand all complex topics in a simpler manner. 
  • For CBSE Board And State Boards: It is generally created for students studying in Class 12; thus, CBSE board as well as state board students can use the Planning Class 12 Notes as it is suitable for them.

Benefits of Planning Notes Class 12

The Planning notes Class 12 has been associated with many benefits which includes helps to pay attention, helps in remembering the topics, etc. Through these students can easily score well in Class 12 Business Studies board exam papers. 

  • Helps in Paying Attention: Class 12 Planning notes can help students to pay attention and to stay alert throughout the preparation. Accordingly, Class 12 students can easily discover and cover different types of topics and concepts in a creative way. 
  • Helps in Revising the Topics: With the help of Planning notes Class 12, students can smoothly revise all the topics. According to which, students can boost their preparation for the chapter The Planning and can perform well. 
  • Can Attract Many Students as Eye-Catching Format of Notes is Given: The Class 12 notes of the chapter Planning in the PDF have an eye-catching format. This format can attract many Class 12 students to complete the chapter The Planning. 
  •  Can Increase Comprehensive Skill: The Class 12 notes of the chapter The Planning can aid students to increase their comprehensive skill. According to these skills, students can easily score well in the questions of the chapter The Planning. 
  • Helps Students to be Active During the Preparation: It is a must for all students to remain active and alert while preparing for the chapter The Planning. Students can be active and alert with the help of Class 12 Planning notes. Accordingly students can cover and revise each and every concept included in the Business Studies chapter The Planning. 
  • All Topics Are Covered: Inside the Class 12 Planning notes, all topics are covered in a perfect manner so that students can easily complete the whole chapter. 

Strategy Tips to Cover the Chapter Planning  

It is a must for Class 12 students to follow some strategy tips to cover The Planning. Important strategy tips are: 

  • Finish off the Chapter: First and foremost tip is to finish off the chapter The Planning in a proper and accurate way. 
  • Routine Practise of Questions: After completing the chapter Planning, students need to have a routine practice of questions. Regular practice can help students to improve their accuracy level in attempting questions. 
  • Jot Down The Mistakes: While analysing the questions, students can get to know their flaws. After identification, it is very important that students jot down their mistakes. Through this step, students can easily remove their earlier mistakes while attempting Planning questions. 
  • Try to Study During the Day: Many students prefer studying during the night but it is good to study during the day. As students would have a higher ability to concentrate in the chapter The Planning. There are many benefits other than this, those are: natural daylight is better than artificial light, both friends and teachers are contactable to clear doubts. 
  • Remain Focused: Throughout the preparation of the chapter Planning, students are advised to remain focused. Accordingly, students can cover various topics whether it is easy, moderate, or difficult. 
  • Revise Within a Day: After starting the revision process of Class 12 Planning it is very important to complete the revision within a day otherwise the extension in revision will not aid much value in the preparation.
  • Take Constant Breaks: It is a must to take constant breaks while preparing for the chapter Planning. As students can lose their track of preparation if proper short breaks are not taken.  
  • Try to Remain Calm: Class 12 students need to remain calm while preparing for the chapter Planning in order to try to remove their exam stress and anxiety. 

Why Is It Important To Go Through The Planning Class 12 Notes? 

It is a must to go through the Planning Class 12 notes as it is considered as important study material. In this Class 12 Business Studies notes, topics and concepts are explained in a brief manner. Through this study material, students can understand all Planning topics in an effective manner. These notes can be generally used during the last minute revision that help students memorise all topics of Planning easily and help them solve questions in a better way. 

What Are Class 12 Planning Notes and Why Is It Popular? 

The Class 12 Planning notes are short and compressed content which includes all topics and concepts brief in an organised manner, better presentation and easier explanations. These notes help students to improve their grip for the chapter Planning. Strong foundation for the chapter Planning can help students to improve their score and because of these reasons the revision notes of Class 12 Planning is popular among students.

Is Planning Class 12 Notes Relevant to Exam Preparation?

Yes, the Planning Class 12 notes are very much relevant during the preparation. The Class 12 Accountancy content is very accurate and contains relevant topics for students to study. Accordingly, students don’t need to search for various important topics here and there. Accordingly, students can easily study relevant content of the Class 12 Business Studies chapter Planning if they refer to the NCERT Class 12 Business Studies Notes. 

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COMMENTS

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  2. Planning class 12 Notes Business Studies

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  20. Business Studies Class 12 Revision Notes Chapter 4 Planning

    1. Planning Planning can be defined as "thinking in advance what is to be done, when it is to be done, how it is to be done and by whom it should be done." According to Fayol, "Planning is chalking out plan of action, i.e., the result envisaged in the line of action to be followed, the stages to go through the methods to use." 2.

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  22. Planning Class 12 Notes PDF (Handwritten & Short Notes)

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