Explain the following steps in the process of planning :
(i) Setting objectives
(ii) Developing premises
(iii) Identifying alternative courses of action [CBSE]
- Answer – Set objectives: state clearly what is to be achieved, preferably in measurable terms and within a time period.
- Develop premises: establish shared assumptions about demand, prices, technology, policies and other future conditions.
- Identify alternatives: list possible ways of achieving the objective, including innovative combinations.
- Evaluate alternatives: compare costs, benefits, risks, feasibility and consistency with objectives.
- Select an alternative: choose the most suitable course; sometimes a combination of alternatives is appropriate.
- Implement the plan: arrange people, funds and resources, assign responsibilities and put the decision into action.
- 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.