NCERT Class 12 Business Studies Planning

Planning

Introduction

You have just read about the plans of Gas Authority of India Limited (GAIL), It is one of our leading public sector companies. The plans discussed by the Chairperson, GAIL are real plans of the company and how they would like to go about achieving their objectives. Of course, these are broad statements given by the company and they have to be broken down into steps for implementation. This is an example of a company in the public sector with a nationwide reach striving to be one of the top companies in India. Further more, every organisation whetherit is government-owned, a privately owned business or a company in the private sector requires planning. The government makes five year plans for the country, a small businesshas it’s own plans, while other companies have big plans, sales plans, production plans. All of them have some plans.

All business firms would like to be successful, increase their sales and earn profits. All managers dream of these and strive to achieve their goals. But to turn these dreams into reality managers need to work hard in thinking about the future, in making business predictions and achieving targets. Dreams can be turned into reality only if business managers think in advance on what to do and how to do it. This is the essence of planning.

Meaning

Planning is deciding in advance what to do and how to do. It is one of the basic managerial functions. Before doing something, the manager mustformulate an idea of how to work on a particular task. Thus, planning is closely connected with creativity and innovation. But the manager would first have to set objectives, only then will a manager know where he has to go. Planning seeks to bridge the gap between where we are and where we want to go. Planning is what managers at all levels do. It requires taking decisions since it involves making a choice from alternative courses of action. Planning, thus, involves setting objectives and developing appropriate courses of action to achieve these objectives.Objectives provide direction

Importance of Planning

You must have seen in films and advertisements how executives draw up plans and make powerfulpresentations in boardrooms. Dothose plans actually work? Doesit improve efficiency? After all why should we plan? These are numerous questions to which we would like tofind solutions. Planning is certainlyimportant as it tells us where to go, it provides direction and reduces the risk of uncertainty by preparing forecasts.

Exercies

Short Answer Type

1. What are the main points in the definition of planning.

2. How does planning provide direction?

3. Do you think planning can work in a changing environment?

4. If planning involves working out details for the future, why does it not ensure success?

5. Why are rules considered to be plans?

6. What kind of strategic decisions are taken by business organisations. 

Long Answer Type

1. Why is it that organisations are not always able to accomplish all their objectives?

2. What are the main features to be considered by the management while planning?

3. What are the steps taken by management in the planning process?

4. Is planning actually worth the huge costs involved? Explain.

Questions

1. Prepare a model business plan for C Ltd. to meet the existing  challenge. You need not be very specific about quantitativeparameters. You may specify which type of plan you are preparing.

2. Identify the limitations of such plans.

3. How will you seek to remove these limitations?

Please refer to attached file for NCERT Class 12 Business Studies Planning