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BUSINESS PLANNING& PROJECT

MANAGEMENT.TOPIC :PLANNING

MONISH BHUTANI

TYBBA31

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Introduction.O Planning is a systematic approach to any

task or problem in order to achieve the

desired results or goals in specific timeframe.

O In other words planning is the process bywhich one determines weather he shouldattempt the task, work out the most

effective way of reaching his target andprepare to overcome unexpected difficultieswith adequate resources.

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Defination.O Koontz and ODonnel : Planning is deciding

in advance what to do, how to do it, when to

do it and who is to do it. It bridges the gapfrom where we are going to where we wantto go.

O Terry : Planning is selecting and relating offacts and making and using assumptions

regarding the future in the visualization andformulation of proposed activities believednecessary to achieve desired results.

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Characteristics ofPlanning.O Planning is looking into the future.

O Planning involves predetermined lines of action.

O Planning discovers the best alternative out ofthe available many alternatives.

O Planning requires considerable time forimplementation.

O Planning objective is to achieve predeterminedobjectives in a better way.

Planning integrates various activities oforganisation.

O Planning is done for specific period.

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Objectives ofPlanning.O Reduce ambiguity : The future is uncertain. Planning provides an

awareness of such vagueness or ambiguity and allows facilitates toovercome such uncertainties.

O Builds better interpersonal relation : Planning can bring co-operation

and co-ordination among various section of the organisation. Theconflicts among different departments can be avoided by providinggreater clarity and through proper planning. It also avoids duplication ofwork.

O Cost effective : Since planning selects best alternatives among variousavailable alternatives , it leads to best utilisation of resources. Thus it iscost effective.

O Achieving the pre-determined goals : Planning activities are amid atachieving the objectives of the enterprise. The timely achievement of

objectives is possible only through effective planning.O Reduce competition : The existence of competition enables the

enterprise to get a chance for growth. It is highly impossible to avoidcompetition. However, planning could provide a better awareness andpreparedness to face competition.

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Types ofPlanning.O Plans commit individuals, departments, organisation,

and the resources of each to specific actions for thefuture. Effectively designed organisational goals fit

into a hierarchy so that the achievement of goals atlow levels permits the attainment of high-level goals.This process is called a means-ends chain becauselow-level goals lead to accomplishment of high-levelgoals. Hence there are three major types of plans.

1. Strategic plan.

2. Tactical plan.

3. Operational plan.

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Importance ofPlanning.O It helps to take stock of the current position.

O Planning helps to identify precisely what is to be achieved i.e. itacts like a roadmap for the future.

O It also enables to gather detailed and precise information onthe cost and other aspects such ass who, what, when,where, why and how are you achieving you target.

O It helps to assess the impact of ones plan on the organisationand the people within it, and on the outside world.

O It helps to evaluate whether the efforts, cost and implication ofachieving ones plan are worth the achievement.

O It helps to consider the controlling factors that enables the

plan to stay on track whether reporting, quality or cost control,etc.

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Advantages ofPlanning.O Planning helps the organisation to achieve the predetermined

goals or objectives.

O Planning reduces the efforts and large amount of time onactivities that are irrelevant to the success of the business.

O When we plan, we can take into account all the pros and consand focus in the critical issues.

O Planning helps to identify the amount the risk and prepare forovercoming changes.

O Planning ensures that at the critical stage sufficient andefficient resources are available on time.

O Planning helps to carry out the task in the most effective way.

O Planning results in economy in operations as it ensures properutilisation of resources.

O Planning helps to improve the competitive strength.

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Disadvantages ofPlanning.O Funds and resources are not available at the time of requirement.

O Dependencies consuming more time than predicted.

O Quality aspects of the product drastically impacting the profit margins.

O Constraints occurring due to non-evaluated risk factors.

O Costumes requirements and product specification.

O Planning is inflexible because of more details and widespread nature.

O Planning is fully based on forecast. If there is any defect in forecast, theplanning will lose its value.

O Planning proves to be very time consuming.

O Planning many a times can be costly.

O Planning does not provide any benefits to an organisation duringemergency period.

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Thank You.