Q1. What is planning?
Ans. Planning means looking a head for thinking before doing.
For Example: Mr. A established his own business; he has to think how much capital is invested while establishing it.
Q2. Explain the elements of Planning?
Ans. There are two elements of Planning:-
1. Strategic Planning
2. Operational Planning
Strategic Planning :- It refers to the Planning which covers a long period of time usually five to10 years or even longer. It is also known as long range planning or perspective planning.
For Example: The Plan of Delhi metro by the government may take more than 5 to 10 years.
Operational Planning : There plans are also called short range planning or tactical. It covers a period of 1 year.
For Example:- When a businessmen ready to sell his goods by Indirect selling methods Such as advertising, direct marketing, personal selling etc. tools are employed to promote the sales is called tactical.
Q 3. Distinguish between operational planning and strategic planning?
Ans. Following are Basis required for distinguish between operation planning strategic planning:
Basic Operational Planning Strategic Planning
I. Decisions Decisions are taken by Decisions are taken
Middle level or lower by top level mgt.
II Information It Provides present It Provides future
III Organization Stable Flexible
IV Risk Low High
V Objective Current Profits Potential Profit
VI Examples Supervisor, marketing Board of Director,
Manager Chief executive
Q 3. How will you formulate a Plan?
Ans. Following are the steps required for formulating a Plan:-
1. Establishing objectives.
2. Assess environment
3. Resource Audit
4. Establish alternative
5. Choice of best alternative.
Q 4. Explain Planning Framework?
Ans. Planning framework refers to the assumptions which can never be cent percent accurate.
For Example: Supposed you have planned to establish a new factory but due to earthquake, your plan immediately fails is called planning framework.
Q5. Explain Business environment?
Ans. It may be defined as all the factors or forces which are beyond the control of business organization.
For Example: Businessmen can control in its internal environment such as price of the product, promotion of the product but can not control external environment such as government policies changes in the preference & tastes of customers etc.
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