STEPS IN PLANNING

1-MBA

THE PLANNING PROCESS

Perception Of Opportunities Establishing Sequence Of activities Identification of alternatives

Establishing objectives Formulation of Supporting plans

Planning premises
Choice of Alternative plans

Evaluation Of alternatives

PERCEPTION OF OPPORTUNITIES

It is not strictly a planning process, awareness. A clear picture of all the possible opportunities available-strength & weakness. A vision of what it expects to gain. Crisply feasibility is completely analyzed.

ESTABLISHING OBJECTIVES

Pin points the key result areas It specifies the results expected Indicates the end points of what is to be done. Where the primary emphasis is to be placed? What is to be accomplished by various types of plans? It gives direction.

PLANNING PREMISES

Conditions under which planning action is undertaken. It is planning assumptions- the expected external & internal conditions External Premises- total factors in task environment- political, social, technological, competitor plan, Govt policies., etc., Internal factors-org. policies, resources available, ability to withstand.,

IDENTIFICATION OF ALTERNATIVES

What are alternatives? If too many alternatives are there in evaluation it can be reduced by means of setting preliminary & secondary criteria's For Ex., If Infy has decided on preliminary criteria of investment as Rs. 40 crores no consideration of projects unmatching this criteria

EVALUATION OF ALTERNATIVES

Analyzing the feasibility of alternatives. How each alternative contributes to the orgn.. Objectives in the light of its resources and constraints. For Ex., 1. Highly profitable- high risk with long gestation period. 2. Less profitable with low risk

CHOICE OF ALTERNATIVES

The most fit one is selected here. 2 alternatives equally good- what to do? Have an alternative course of action uncertain. Planner- contingency plan.

FORMULATION OF SUPPORTING PLANS

After formulating the basic plan, various plans are derived so as to support the main plan. Derivative plans are like buying equipments, buying raw materials, recruiting and training personnel, developing new product etc.,

ESTABLISHING SEQUENCE OF ACTIVITIES

Determination of sequence of activities so that plans can be put into action Who will do what? At what time? Budgets are prepared to give more concentrate meaning for implementation.