Today we are going to discuss the new chapter of business studies CBSE class 12 that is Business Planning. With videos, Notes, Case Studies and more
Also, we are going to give you study notes, video lectures, and also PDF of handly lecture notes. Firstly, I want to share with you what are all the topics which we are going to cover in this article. Also, you can watch all the chapters videos on my YouTube channel by clicking here.
In this chapter, we will cover following topics:
- What is planning?
- Features/Nature/ Characteristics of planning
- Importance of Planning
- Limitations of Planning
- Process of planning
- Types of plans
What is Planning?
“Planning is thinking in advance what to do, how to do, by whom and when, it bridges the gap between where we are and where we want to reach.”
- Top-level consumes more time in planning than other functions
- Thinking is the essence of planning
- The main points in definition of planning are- “what to do, how to do, by whom and when.”
- The most crucial step of planning is “setting objectives.”
Features/Nature/ Characteristics of planning
1_Planning focusses on achieving objectives.
2_Planning is primary function of management.
3_Planning is pervasive.
4_Planning is futuristic.
5_Planning includes decision making.
6_Planning is continuous process.
7_Planning is mental exercise.
Importance of Planning
1_Planning provides direction which means targets and goals are given to all departments and employees in advance.
2_Planning reduces the risk of uncertainty which means good plans can reduce future risk.
3_Planning reduces overlapping and wasteful activities which means it ensures no confusion and wastage in the future.
4_Planning promotes innovative ideas which means it focuses managers to think differently in a unique and improved way.
5_Planning includes decision making which means it helps in selecting best from alternative planning.
6_Planning establishes standard for controlling.Therefore it helps in maintaining performance.
Limitations of Planning
1_ Planning leads to rigidity. Therefore once the plan is formed by top management, it is very difficult to change because the plan is already conveyed to the whole team (departments and employees).
2_Planning may not work in a dynamic environment. Therefore plan may fail due to fats and continuous changes in the external environment. It is very difficult to monitor future changes.
3_It reduces the creativity of subordinates. Therefore employees become blind followers because they could not change plans as the plan is already decided by top management.
4_Planning involves huge costs because it needs to hire planning experts, facts, data and figures, data analysis, professional meetings, and board room meetings.
5_Planning is time-consuming because planning takes so much time that there is no time for its implementation (especially in annual plans).
6_Planning doesn’t guarantee success. It means once the plan worked again ( that is there is no such guarantee that previously tried and tested plans will lead to success in each and every situation or in the future.
7_Planning has lack of accuracy which means its not always 100% correct.
Process of planning
- Physical and financial resources
- It is communicated to employees
- Assumption regarding future.
- Reaction of action to different factors
3_Identification alternative course of actions:
- Identifying what are options available
For eg, Plan A : (Offering discount)
Plan B: (Expenditure on advertisement)
Plan C: (Door to door facility)
4_Evaluating alternative courses:
5_Selecting an alternative in which there’s maximum profit and minimum loss.
6_Implementing the plan: Hence,
7_Follow up action:
- Implented correctly or not.
- changed ( if needed)
Types of Plans
So, Guys, we have finally over with this chapter planning class 12
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