Explain any four steps of Planning Process.

1. Answer – Set objectives: state clearly what is to be achieved, preferably in measurable terms and within a time period.
2. Develop premises: establish shared assumptions about demand, prices, technology, policies and other future conditions.
3. Identify alternatives: list possible ways of achieving the objective, including innovative combinations.
4. Evaluate alternatives: compare costs, benefits, risks, feasibility and consistency with objectives.
5. Select an alternative: choose the most suitable course; sometimes a combination of alternatives is appropriate.
6. Implement the plan: arrange people, funds and resources, assign responsibilities and put the decision into action.
7. Follow up: monitor progress, compare actual results with the plan and make necessary adjustments.

Example: a firm targeting higher sales may compare a new outlet, online selling and dealer expansion before selecting, implementing and reviewing its chosen approach.