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The objectives of an organisation are pre- planned. (b) What is the plan to be performed to exploit such opportunities or such problems? The preparation of a secondary plan is necessary to expedite the achievement of the basic plan. The different steps involved in process planning are: 1. Project Planning Process Step #15: Create process improvement plan. Ingenuity and imagination as well as experience are required to ascertain a number of possible alternative courses of action available in a given situation. Such analysis further helps in identifying organisational strength in all vital areas. Having sought alternative courses, the fifth step is to evaluate them in the light of the premises and goals and to select the best course or courses of action. Prediction of general economic conditions. Planning determines the future course of action for utilising various resources in a best possible way. It can be otherwise called as Resource audit. The shortcomings of planning can be identified through a follow-up action and rectified then and there. Planning premise is planning assumptions – the expected environmental and internal conditions. Koontz and O’Donnell list the following steps in the process (see figure 5.1): During this stage, managers create a foundation from which they will deve­lop their plans. Therefore, establishment of organizational or overall objectives is the first step in planning. The product planning process begins with an idea. Selecting the most appropriate alternative involves choos­ing the plan. Planning Premises 4. Every alternative course has its merits and demerits. (e) The economic policies of the government. Again forecasting is important in premising. (iv) If yes how? It is an intellectual exercise and a conscious determination of courses of action. This portion of the planning process should include a detailed overview of … 4 Basic Steps in the Business Planning Process Ultimately, the definition of business planning can be seen in the business planning process. The very fact of achievement of goals is required to be evaluated, by seeing whether these goals are accomplished. Now it's time to create a strategic plan to successfully reach your goals. But, every organisation has to prepare the plan according to the changing trends in the external environment. They indicate the end result the company wishes to achieve. Planning is a process, which embraces a number of steps to be taken. The objectives are the end products and all energies are diverted to achieve these goals. Such sources are located as well as identified and required information is gathered from them. Hence, establishing the objectives is an important step in the process of planning. Therefore, it requires a serious thought on numerous factors necessary to be considered in making plans. Page5 Who does what? Therefore determination of objectives of business starts the planning process. Some factors should be taken into account. A good planner must consider combination of all possible limitations and make provision for them. All information relating to operations of the business should be collected in detail. After determining the organization’s objectives, we fix up the departmental objectives and then the objectives of sections of the department. It is of great importance that there is a constant review of plans so as to ensure success in the uncertain future. If there is clarify about the objectives, we can plan for the future. Future in form at in is nothing but logical anticipation of near as well as distant future. This will help in the thorough analysis of the alternatives so developed. Establishing Objectives 3. Following steps are taken in planning process: 1. Planning is not possible without definite objective. Assumptions denote the expected environment in the future and are known as planning premises. The planner should study all the alternatives and then a final selection should be made. Management, Functions, Planning, Planning Process. The purpose of evaluating the alternatives courses of action is to select the most suitable course of action, which will achieve organisational objectives. Because the future events are complex, premises must be limited to assumptions that are critical to a plan. Forecasts will generally be made for the following: (a) The expectation of demand for the products. Important premises include- (a) forecasts, (b) basic policies and (c) existing company plans. Planning determines the future course of action for utilising various resources in a best possible way. For instance a basic marketing plan may result in other derivative plans such as the advertising plan, recruiting personnel plan, training plan etc. The trend of economic situation should also be visualized. At this stage, it is seen as to what extent a particular alternative course can help in the attainment of the objectives of the organisation. The plan becomes a reality when it is put into operation. Planning Process comprises of: Setting Objectives, Developing Premises, Identifying alternative courses of action, Selecting an alternative, Implementing the plan and Follow-up action. Important derivative plans used in business include policies, procedures programmes, projects, methods, budget, rules etc. By this, the management can notice short comings in time and can also take immediate suitable corrective actions. 8. These alternative courses of action will then be evaluated either by judgement alone or with the help of quantitative techniques and staff assistance. Following a career planning process will enable you to discover your professional strengths. 4. Present and future opportunities must be found so that planning may be undertaken for them. i. Resource audit means an analysis of the strength and weaknesses of an organisation. In the light of the above analysis the possible alternative courses of action will have to be ascertained and examined. Forecasting will reveal those areas where control is lacking. After having decided the chief plan and the subsidiary plans, they are to be implemented. Strategic Planning Process  Strategic management is process of the regular and continuous planning, leading and analysis of all the necessary actions that help an organization to meet its goals and objectives. Strategy is a framework of plans or methods that help and organisation to achievement of the main objective. Establishing Objectives 3. Adjustments and Follow Up of Plan. The second step in planning is to establish planning premises, i.e., certain assumptions about the future on the basis of which the plan will be intimately formulated. Once upper-level managers have selected the basic long-term goals and the planning premises, the next task is to decide the period of the plan. v. What would be the tax policy and economic policy of the Government? Our product planning methodology uses six steps to guide you through the entire process. The following are the major steps in the planning process: Step # 1. After determination of organizational goals, the next step is establishing planning premises, that is, the conditions under which planning activities will be undertaken. In fact secondary plans are meant for the implementation of principal plan. Therefore, the management may decide to select two or more alternatives and combine them to have most feasible plan. The timing is fixed for introduction of plans. It is necessary to clearly ascertain the areas … In this sense, these constitute the planning premises. A forecast means the assumption of future events. One of such alternative is adopted and the other is kept in reserve. Managers use these premises to evaluate future events, and to develop ‘action statements’ and alternative course of action. The objectives should be for the enterprise as a whole and then they must be broken down into departmental and sectional objectives. (2) Collecting and Analysing Information: The next step is to gather adequate information and data relating to the planning to be done and to analyse it to find out the cause-effect relationship between the various factors. Working from the top … For example, if an aviation company decides to buy aeroplanes, then it also prepares subsidiary plans like manpower supply, training, purchasing of ancillary etc. Strategic Planning Steps . The planning must consider the likely behaviour of these factors. Planning process is concerned with making current decisions to allocate our resource in such a manner that we can achieve future objectives. Flexible plans can adapt with changes in the environment. 1. The main steps that are taken in planning process are as follows: Establishing the objectives is the first step in planning. There is no readymade planning to be followed by all companies. (ii) Is an entirely new plan necessary or is it sufficient to modify the existing plan? For instance, technical know-how may be secured by engaging a foreign technician or by training staff abroad. Planning not only gives direction, but becomes a powerful instrument of control also. But gap analysis quite often tends to show that some changes in strategy are required. They must monitor and maintain their plans. After a careful analysis of different alternatives, the best one is selected. Collection, Classification and Processing of Information: Only relevant information facilities the planning. The main plan should be supported by a number of derivative plans. (c) To work along with the major plan to reach the same objective. 5. The steps are: 1. It is difficult to separate budgeting from planning process. With this, the plan can be considered to have been adopted. Some may be less desirable or efficient than others; still another may better suit the firm’s immediate goals. (b) External Premises – Rate of interest, rate of taxes, etc. For every plan there are a number of alternatives and hence, all possible alternatives to work out a plan for achieving the desired objectives should be found out for their evaluation. Hence, the management should find alternative ways and examine them in the light of planning premises. Forecasting generates planning premises which are three types – (i) Beyond control (Population explosion and price level) (ii) Partially controllable (efficiency of work force) (iii) Fully controllable (development plan for future) qualitative and quantitative methods are used to make these forecasts. And difficult meet the individual needs of a basic plan, subsidiary plans helps! Planned action is taken if there is always some logic in selecting a particular time range for planning if. In imple­mentation, subordinates should be set in key areas of operations relevant... Clarify about the environment and opportunities as well as distant future be in. For various factors such as profitability, plant capacity, available manpower, communication effectiveness and the need for:... Organisational strength in all vital areas and political conditions, international situation other... Department-Wise objectives are the means to achieve process because alternatives have so variables! 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