02. Planning
01. Planning is the process of engaging in thoughtful discussion before undertaking a task, which entails engaging in in-depth contemplation about that task and going into all the details meticulously to be ready with an execution and implementation plan, to save both effort and time.
02 Planning involves doing an objective analysis of future requirements, to facilitate the modification of ongoing activities considering the objective that has been set.
03. Planning involves research that is done deliberately and consciously to formulate the design and the orderly series of actions, through which it is anticipated to succeed in accomplishing goals.
04. During the planning, each possibility, both present and future, that is even remotely connected to the, will be taken into consideration.
05. The planning process incorporates consideration of every conceivable risk, including losses, defections, and so on.
06. Planning process engages deeply in various activities to give directions, prescribe methods, evolve procedures, and transform activities, to decide to accomplish the business goals in an efficient and effective manner.
07. The process of planning is based not only on the finances, time frame, infrastructure, and resources, but also since decisions and particular or directional plans, which might be strategical, tactical, or operational, are made based on those considerations.
08. Planning covers
a) What is to be done?
b) Where it is to be done?
c) How it is to be done?
d) When it is to be done?
e) Who will execute?
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02. Planning
01. Planning is the process of engaging in thoughtful discussion before undertaking a task, which entails engaging in in-depth contemplation about that task and going into all the details meticulously to be ready with an execution and implementation plan, to save both effort and time.
02 Planning involves doing an objective analysis of future requirements, to facilitate the modification of ongoing activities considering the objective that has been set.
03. Planning involves research that is done deliberately and consciously to formulate the design and the orderly series of actions, through which it is anticipated to succeed in accomplishing goals.
04. During the planning, each possibility, both present and future, that is even remotely connected to the, will be taken into consideration.
05. The planning process incorporates consideration of every conceivable risk, including losses, defections, and so on.
06. Planning process engages deeply in various activities to give directions, prescribe methods, evolve procedures, and transform activities, to decide to accomplish the business goals in an efficient and effective manner.
07. The process of planning is based not only on the finances, time frame, infrastructure, and resources, but also since decisions and particular or directional plans, which might be strategical, tactical, or operational, are made based on those considerations.
08. Planning covers
a) What is to be done?
b) Where it is to be done?
c) How it is to be done?
d) When it is to be done?
e) Who will execute?
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09. The process of planning consists of the following steps:
a) Opportunity Analysis:
b) Objective Establishment:
c) Developing Planning Premises:
10. Opportunity Analysis entails analysing the opportunity, being aware of the opportunity, and basing the development of the business plans on this opportunity.
11. Opportunity Analysis exercise involves comprehending the existing circumstances of the available opportunity and having a general understanding of its future prospects.
12. Without knowing the objective, it is impossible to develop a strategy for its accomplishment. Objectives are, therefore, the initial step in the planning process, which is typically a political endeavour.
13. The collection of future forecasting-derived assumptions is known as the planning premises determination.
14. The process of determining the availability of various means to attain goals is referred to as “identifying alternative means.”
15. Following the discovery of additional methods and an examination of both their strong and weak points, the planner should assess the alternative methods.
16. In the stage “selecting the best alternative.” the question that must be resolved is whether the initial plan is superior or whether the alternate strategy is going to be effective.
17. Derivative plans refer to sub plans or secondary plans.
18. Planning is a continuous process for ensuring attainment of business objectives.
19. Planning is a process of fixing objectives and finding ways of accomplishing them
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20. The following points highlight the importance of planning:
1) Helps Goal Creation
2) Provides Direction
3) Tackles Uncertainty
4) Discards overlapping and wasteful activities
5) Promotes Innovative Ideas
6) Decision Making Facilitation
7) Controlling
21. A SMART goal is a carefully planned, clear and trackable objective.
22. SMART is an acronym that stands for Specific, Measurable, Achievable, Realistic, and Timely.
23 The main advantages of planning are as follows:
i. Coordination of Various Activities:
ii. Optimisation of Resources:
iii. Inspirations and Responsibilities:
iv. Establishment of Execution Principles:
24. Some of disadvantages of planning are as under:
i. Forestalls Activity:
ii. Lack of Concern:
iii. Forestalls Adaptability:
iv. Hinders Innovativeness:
25. Death by Planning is “high-level procrastination”,
26. Death by Planning is when an individual or a team spends so much time in the planning phase that they run out of time to execute the plan/project.
27. During the planning process, goals are formed from the organisation’s mission and vision.
28. The phrase “management by objective” (MBO) was coined by Peter F. Ducker and first appeared in his book “The Practice of Management,” which was published in 1954.
29. Management by Objectives is the term given to the process that is used for goal planning and the establishment of clear parameters for those goals (MBO).
30. The MBO technique, in its most fundamental form, refers to a procedure that involves the management and the employees working together to jointly establish, record, and then monitor the goals for a particular period of time.
31. MBO process includes the following
Establish goals and desired outcomes for each subordinate in a conference between the management and the concerned subordinate.
Set performance standards.
Assess performance achieved against goals set for the employee through frequent performance review meetings between the manager and the subordinate.
Identify reasons for shortfall and give feed-back for improvement.
Establish new goals and new strategies for the coming year.
32. Planning is the central idea behind the ‘Management by Objectives’ and it implies that an Organisation and the people, who make up that Organisation, aren’t just responding to incidents and issues; rather, they are being pro-active and are taking preventative measures.
33. Employees are allowed to define measurable personal goals in accordance with the corporate goal, to fulfil the criteria of ‘Management by Objectives’.
34. The five steps that make up the management by objectives technique are as follows:
a) The first thing to do is either establish or alter the organisational goals for the whole company. The company’s mission and vision should serve as the basis for developing this comprehensive overview.
b) The second step is to communicate to employees the goals and priorities of the organisation.
c) The third step is to encourage participation from the staff members in the process of setting individual goals.
d) The monitoring of the progress made by the staff members is the focus of the fourth step.
e) The fifth step is to evaluate and then reward the progress that employees have made.
35. “Environmental Analysis” refers to the process of examining all of the factors, both internal and external, that have an impact on the performance of the organisation. This can be done both systematically and qualitatively.
36. Environmental Analysis Steps
a) Identifying
b) Scanning
c) Analysing
d) Forecasting
37. PESTLE Analysis is a method for evaluating the business environment and the potential impact that it could have on the performance of the organisation.
38. The acronym PESTLE refers to the following six internal factors that can have an impact on company - a) Political ; b) Economic; c) Social ; d) Technological; e) Legal, and f) Environmental.
39. PESTEL analysis involves three steps:
a) Identify the relevance of each of the PESTEL factors to the firm
b) Identify and categorize the information for each factor
c) Analyze the data and draw conclusions
40. Advantages of PESTLE analysis:
a) Cost effectiveness
b) Easy framework
c) Deep understanding
d) Development alertness
e) Opportunities exploitation
41. An internal environment analysis is a tool that allows for a comprehensive review of all aspects of a company’s operations, internal guidance, and mission. This review is done in order to identify opportunities and threats.
42. This internal analysis, which is initiated by the management of the company, is an attempt to identify the areas of risk and opportunity in the business.
43. Internal analysis reveals both the organization’s strengths and its weaknesses in these areas.
44. Internal Analysis tools
a) GAP Analysis
b) Strategy Evaluation
c) SWOT Analysis
45. GAP Analysis is a tool for conducting assessments that gives organisations the ability to analyse and identify internal weaknesses as well as performance deficiencies.
46. The process of analysing the outcomes brought about by the execution of a strategic plan is referred to as Strategy Evaluation.
47. In the process of carrying out the Strategy Evaluation, it is very useful and helpful to check that everybody understands the business strategy and works well with it.
48. The process of planning begins with the establishment of objectives, which is a crucial step.
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49. The planning principles that serve as the basis for the activity of planning are referred to as premises.
50. Planning is always for the future that cannot be foretold.
51. The term “forecast” refers to making a prediction about the future, either about what will happen or about what will not happen; this prediction will not always be true but will sometimes provide accurate outcomes.
52. The main criteria for evaluating alternatives are:
a) Cost, Profitability, Break-even Point
b) Market, Sales potential, Competitive reaction
c) Ability to meet corporate objectives
d) Strengths and weaknesses
e) Timing
f) Intuition about success
53. Contingency plans can be defined as alternative plans that can be put into effect if certain key events do not occur as expected.
54. The contingency plans are referred to as “Plan B” because they always work as an alternative course of action if things do not go as planned.
55. A contingency plan is defined as an action of designing to assist the company in responding to an event that may or may not occur.
56. The term “contingency planning” refers to more than preparing for major catastrophes and natural disasters. It can also put you in a position where you are susceptible to more prevalent concerns, such as the loss of data, staff, clients, or commercial relationships.
57. Contingency planning is a response to risk faced by an organisation; however, in certain circumstances, it may be safer or more cost-effective to deal with it in other ways and to avoid risk, such as by investing in new equipment or to share the risk by purchasing an insurance policy. Alternatively, one can choose not to formally plan for certain low priorities risk but to manage the risk when it does occur.
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58. Contingency Planning begins with the identification of both beneficial and unfavourable events that could possibly derail a strategy or strategies.
59. Contingency Planning involves the following:
a) Specifying trigger points.
b) Estimating when contingent events are likely to occur.
c) Assessing the impact of each contingent event.
d) Estimating the potential benefit or harm of each contingent event.
e) Developing alternate plans.
f) Being sure that the contingency plans are compatible with current strategy and that they are financially feasible.
60. The process of predicting or estimating the future based on the evidence from the past and the present is referred to as forecasting.
61. Types of Forecasts
1. Long Term Forecasts
2. Medium Term Forecasts
3. Short Term Forecasts
62. Forecasting for the long term typically covers a period of time ranging from three to five years.
63. The term “short term forecasting” refers to planning that is done for a period that is relatively brief, with the planning period being less than one year and the duration ranging from one to six months.
64. Forecasting process and its elements
a) Identifying and Developing the Structure:
b) Estimating future Course of Business:
c) Analysis of Deviations in previous forecasts:
65. Actual selection of one course of action, from among several alternatives, is called decision-making.
66. Decision-making is a rational process and, to have a high degree of effectiveness, should be based on systematic analysis of all the relevant facts and not based on just intuition.
67. Decision making plays an important role in enhancing the efficiency of the organisation as decisions relating to future course of action, are taken in advance.
68. Decision making by groups, generally, results in the following advantages:
a) Thorough evaluation:
b) Implement of decisions is easier:
c) Enhanced team spirit:
69. Disadvantages of Group Decisions
a) Time consuming and costly:
b) Disagreements and indecisions:
70 The planning process sets the foundation for (a) Controlling.
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