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Date Submitted: 04/01/2011 10:01 PM
Various Steps of Planning
July 20, 2010 No Comment
Q.2. Describe in detail the various steps of Planning.
Planning Process
The process of planning involves the following steps:
1. Analyzing Environment
At the outset, the internal and external environment is analyzed in order to identify company’s strengths and weaknesses (in internal environment) and opportunities and threats (existing int the external environment). This is also known as SWOT (strengths, weaknesses, opportunities and threats) analysis.
2. Establishing Objectives Or Goals
In the light of the environmental scanning (study), clear or probable opportunities that can be availed are identified. In order to avail them, objectives or goals are clearly defined in specific term along with priorities in all the key areas of operations. Major problems associated with such objectives are also identified and defines, so that there may be special emphasis on their planned solutions.
3. Seeking Necessary Information
All relevant facts and data are collected from internal and external sources. For example, availability of supplies, physical and human resources of the company, finances at disposal, relevant government policy, general economic conditions and relevant specific market situation. Then such investigated and collected information and factors are analyzed. Such information analysis is used in two ways – first, to make necessary modifications in objectives or goals and secondly to take help from them in premising (considering) assumptions.
4. Premising Or Establishing the Planning Premises
In order to develop consistent and coordinated plans, it is necessary that planning is based upon carefully considered assumptions and predictions. Such assumptions and predictions are known as planning premises. The assumptions under which plans are supposed to operate should be clearly brought out. Such presumptions and forecasts are prepared for various areas, such as sales, prices, wages, taxes, changes in...