Limitations of planning

Correct answer: B. Planning may limit alternatives

The governing concept is rigidity in planning, which can restrict managerial alternatives. A plan should provide direction, but it should not prevent reasonable adaptation when circumstances change. If the name of one seller is fixed and managers cannot consider a new supplier who may offer better price, quality or delivery, the plan has become excessively rigid. Option B is correct because it states that planning may limit alternatives. Option A is a possible aim rather than a limitation, while options C and D are unrelated descriptions of taxation and recruitment. Periodic review and conditional provisions can reduce this problem.

Correct answer: C. Planning is based on an uncertain future

Past demand does not guarantee the future fully. In exams connect past demand with uncertain future.

Correct answer: D. Planning may be costly

The correct answer is that planning may be costly. Collecting information, hiring experts, forecasting and conducting meetings can make the planning process expensive. If this cost exceeds the expected benefit, planning is not economically worthwhile. ‘Time-consuming process’ is a close distractor, but the question specifically refers to monetary cost. Exam tip: link this limitation with a cost-benefit comparison.

Correct answer: A. Planning is affected by changing customer habits

Changing customer habits are a change in market environment. In exams treat home delivery demand as dynamic environment.

Correct answer: B. Planning may reduce initiative

Not choosing a better sequence by personal judgement reduces initiative. In exams connect employee judgement blocked with initiative loss.

Correct answer: C. Planning cannot accurately estimate all future events

Every sudden event cannot be known in advance. In exams connect pandemic with uncertainty and external force.

Correct answer: D. Planning does not give full safety in a dynamic environment

Fashion can change quickly so the plan may become weak. In exams write fashion change as dynamic environment.

Correct answer: A. Planning may reduce creativity

Giving importance only to compliance can reduce improvement suggestions. In exams treat improvement not rewarded as creativity loss.

Correct answer: B. Planning is affected by economic changes

Interest rate is an external economic factor. In exams write interest rate change as external economic change.

Correct answer: C. The new app was not downloaded even after planning

A plan was made for the app but market response was not good. In exams write market failure after plan as no guarantee.

Correct answer: D. Planning may be rigid toward individual needs

The same plan can ignore different needs. In exams treat same plan for different needs as rigidity.

Correct answer: A. The sales estimates of the plan may become wrong

Fake products can affect demand and price. In exams connect unexpected market entry with uncertainty.

Correct answer: B. There is rigidity in planning

Not changing the plan even when the situation changes is rigidity. In exams connect no change allowed with rigidity.

Correct answer: C. Because a plan based on wrong information may not succeed

Wrong identification of customer segment weakens the plan. In exams connect wrong segment with faulty assumptions.

Correct answer: D. Planning may become slow and lose opportunity

Delay in implementation can lose market opportunity. In exams write implementation delay as time limitation.

Correct answer: B. Planning may reduce flexibility

Excessive dependence on a fixed schedule and pre-decided activities may prevent an organisation from changing quickly to meet a new opportunity, such as a sudden large order. Hence, this limitation of planning is reduced flexibility. Planning does not eliminate future uncertainties; it only helps in preparing for them. Exam tip: If a question shows difficulty in changing a plan or using a sudden opportunity, choose reduced flexibility.

Correct answer: C. Planning cannot fully know sudden future events

A viral event is sudden and cannot be fully fixed in advance. In exams connect sudden traffic change with uncertainty.

Correct answer: D. Planning can be time-consuming

The governing concept is that planning requires information, analysis, consultation and approval before a decision can be made. If an expert report arrives after the useful decision window, the organisation loses the opportunity to act on that information. Therefore, the planning procedure has consumed excessive time and becomes a limitation rather than a benefit. Option D is correct because it directly describes the delay. Options A and B are benefits or functions of planning, not disadvantages, while option C concerns employee motivation and is unrelated to the late report. The example does not mean that expert advice is useless; it shows that delayed advice can reduce the practical value of planning.

Correct answer: A. Planning is based on estimates and estimates may be wrong

Estimates are based on the future and can be wrong. In exams connect estimated versus actual with uncertainty.

Correct answer: B. Planning may limit initiative

Not using local knowledge reduces independent decision making. In exams treat local judgement blocked as initiative loss.

Correct answer: C. Planning may be affected by external legal forces

The governing concept is that plans are prepared within an external environment that managers cannot fully control. A court order is a legal intervention from outside the organisation. It can prohibit an activity, impose a condition or require an existing project to stop, even when the original plan was carefully prepared. Option C is correct because it identifies the external legal force that changes or invalidates the plan. Option A is about wage administration, option B concerns finance and asset creation, and option D incorrectly equates planning with market research. The example does not prove that planning is meaningless; it shows that legal developments can limit its implementation.

Correct answer: D. Planning cannot fully control external dependence

Dependence on a supplier is not fully under company control. In exams treat supplier delay as external limitation.

Correct answer: A. Planning always makes success certain

The direct answer is option A: planning always makes success certain is the wrong claim. Planning is important because it sets objectives, studies conditions and selects actions, but it cannot control every internal or external event. The reasoning is: a plan is prepared; managers implement it; unexpected competition, policy changes, supply problems or demand changes may occur; therefore the result is not guaranteed. Option A is wrong as a statement about planning because the words “always” and “certain” are absolute and unrealistic. Option B is correct: research, forecasting and expert advice can make planning costly. Option C is correct: fixed plans may reduce flexibility and create rigidity. Option D is correct: excessive rules or fixed procedures may reduce employee creativity. Thus only A contains the wrong claim. Exam cue: be careful with absolute words such as always, never and certain.

Correct answer: B. Planning cannot completely remove every risk

Planning can reduce risk but not remove it completely. In exams connect sudden cyber attack with uncertain external risk.

Correct answer: B. Planning may reduce flexibility

A fixed budget can stop the use of a new opportunity. In exams connect fixed budget and missed opportunity with rigidity.