Q1.

Differentiate between:
A] Tactical planning & strategic planning.

Answer: The main objective of strategic planning is set, strategies are advised, policies are laid
down. Planning sets the direction in which business will grow. It keeps in view the moves of
competition, market factors, consumer preferences, etc. Whereas tactical plans are to support
strategic plans wherein some difficulty is faced in its implementation. Any changes in internal
organization and external environment have to be met through tactical plans.

Key differences between Tactics and Strategy:

1] Tactics are the properly organized actions that help to achieve actions that help to achieve a
certain end whereas the strategy is the integrated plan that ensures the achievement of
organization objectives.

2] Tactics involve lower risk as compared to strategy as tactics are preventive in nature while
strategy is competitive in nature.

3] Tactics are made for coping with the present situation. In contrast to strategy, they are made
for the future

4] Tactics frequently change with the changes in the market conditions, however the strategy
remains the same for a long period.

B] Standing plans & Ad- hoc plans.

Answer: Standing plans are meant to be used over and over again, they are permanent in
nature. These plans provide ready made answers to situations whereas Ad-hoc plans are
prepared for specific matters. These plans are prepared only when some need arises. Different
situations require different methods of tackling them. So an Ad-hoc plan for one situation cannot
be used in another situation.

Key differences between Standing plans & Ad- hoc plans:

1] The Ad- hoc plan aims at accomplishing the particular activities, projects or events, in an
effective manner. On the other hand, standing plans are used to bring uniformity and
consistency in actions and decisions.

2] The Ad-hoc plan is designed for a specific end or result, and when the result is achieved or
end is reached, the plan is dissolved. On the contrary, standing plans are prepared after a deep
discussion and analysis of the situation and input from a number of people, who deal with the
situation.

3] Single-use plans act as an approach or strategy developed to handle the situation or

problem. As against, standing plans act as a reference guide or a sketch for action.
4] The Ad-hoc plans are created for one-time usage. As against, standing plans are prepared
for repetitive usage.

Q2: Write the advantages & limitations of planning.

Answer: Advantages of Planning: Planning is one of the crucial functions of management. It's
basic to all other functions of management. There will not be proper organisation and direction
without proper planning. Planning is important for the following reasons:

● Attention on objectives : Planning helps in clearly laying down adjectives of the

organisation. The whole attention of management is given towards the achievement of
these objectives.

● Minimising Uncertainties: Planning certainly minimises future uncertainties by leasing

its decision on past experiences and present situation.
Better Utilisation of Resources: Another advantage of planning is the better utilisation of
resources of the business. All resources are put to best possible uses.

● Economy in Operations: The operations selected being letter among possible

alternatives, there is an economy in operation. The method of trial and error is avoided
and resources are not wasted in making choices.

● Better Coordination: The objective of the organisation being common. Planning will
lead to better coordination in the organisation which will ultimately lead to better results.

● Encourage Innovation and creativity: Planning helps innovative and creative thinking
among planners because they will think many new things while planning.

● Management by Exception Possible: Management by exception means that

management should not be involved in each and every activity. By the introduction of
Management by Exception, Managers are given more time for planning the activities
rather than wasting their time in directing day-to-day work.

● Facilitate Delegation: Under the planning process, delegation of powers of authority is

facilitated through the planning process.

Limitation of planning: Every coin has two faces. Similarly despite of many advantages
there are certain disadvantages of planning which are mentioned as under:

● Lack of Reliable Data: Planning is based on various facts and figures supplied
to the planners. If the data on which decisions are based are not reliable then
 decisions based on such information will also be unreliable.

● Time Consuming Process: Practical utility of planning is sometimes reduced by

the time factor. Under certain circumstances an urgent action is needed then one
can't wait for the planning process to complete.

● Expensive: Planning process is very expensive. The gathering of information

and testing of various courses of action involve a greater amount of money. The
utility derived from planning in no case should be less than expenditure incurred
on it.

● External Factors may reduce utility: Beside internal factors there are external
factors too which adversely affect planning. They may be economic, social,
political, technological or legal.

● Sudden Emergencies: In case certain emergencies arise then the need of the
hour is quick action and not advance planning. These situations may not be
anticipated in planning.

● Resistance to Change: Most people, generally don't like any change. Their
passive outlook to new Ideas becomes a limitation to planning.