Planning process

The core idea is that an organisation first decides what it wants to achieve and where it wants to go. These desired results are called objectives. They provide a clear direction for managers and employees before the organisation chooses among alternatives or starts implementation. Without objectives, later planning steps would lack a clear purpose and standard for judging success.

Option C is correct because setting objectives is the stage that establishes the organisation’s direction. Evaluating alternatives happens after the desired result is known, implementation puts the chosen plan into action, and follow-up checks progress afterward. Thus, the clue about knowing the direction should be connected with objectives, not with a later operational step.

The direct answer is D, Developing premises. In planning, a premise is an assumption about a future condition that may affect the plan. Here, the business assumes that the bank loan will arrive on time. The reasoning is: first, the loan is not yet received; second, its timely receipt is expected in the future; third, the plan is prepared on the basis of this expectation. Therefore, it is a planning premise. Option A, Setting objectives, means deciding what the organisation wants to achieve, such as earning a profit or increasing sales; it does not describe a loan assumption. Option B, Evaluating alternatives, means comparing different possible plans after they have been identified. No comparison is mentioned here. Option C, Implementing the plan, means putting an approved plan into action through people and resources. The loan assumption comes before implementation. Option D is correct because it describes the future conditions and assumptions used while preparing a plan. Remember: words such as assume, expect, forecast, or suppose usually point to developing premises.

The governing concept is identifying alternative courses of action. After objectives and planning premises are established, managers should list the different feasible ways of achieving the desired result. In this case, local sourcing, foreign sourcing and online purchasing are separate supply routes. The company is still generating possible choices; it has not yet compared their cost, quality, reliability or risk and has not made a final decision. Therefore option A is correct. Option B concerns the desired result, option C means carrying out a selected decision, and option D means monitoring performance after implementation. Identifying alternatives broadens the decision base before evaluation.

Comparing alternatives by profit and risk is evaluation. In exams treat risk profit comparison as evaluation.

Choosing one plan after comparison is selection. In exams write after comparison chosen plan as selection.

The plan is executed by arranging resources. In exams connect arranging resources with implementation.

Finding a weakness and correcting it is follow up action. In exams write correction after implementation as follow up.

Planning starts with objectives and ends with follow up. In exams remember the full sequence for sequence questions.

Feasibility of alternatives is checked by looking at resources. In exams connect feasibility with evaluation.

Stating that production must reach 5000 units specifies a measurable target; therefore, it represents the step of setting objectives in the planning process. Developing premises involves making assumptions about future conditions, not fixing the target itself. Exam tip: An expected result stated in numbers, time limits, or achievements usually indicates an objective.

An estimate about customer income is a premise. In exams treat income assumption as developing premises.

In the planning process, managers first decide what they want to achieve and then think of different possible ways to reach that target. Advertising, offering a discount, and giving free samples are three separate courses of action. At this point, the company is listing or identifying possible alternatives; it has not yet compared them or selected the best one.

Evaluation would come later, when managers judge each option using factors such as cost, expected response, time, and feasibility. Implementation would mean putting the chosen method into practice, while follow-up would check the results after action. Since the situation only describes thinking of several possible methods, the correct step is option B, identifying alternative courses of action.

The governing concept is evaluating alternatives. At this stage, managers compare possible courses of action against relevant criteria such as cost, expected sales, reach, quality, risk and suitability for the objective. Free samples and advertising are two promotional alternatives. Asking which is better requires a comparison of their likely benefits and costs; it is not merely a list of options and it is not the final monitoring of an implemented plan. Therefore option C is correct. Setting objectives would specify the promotional target, while developing premises would forecast conditions such as customer response or budget limits. Follow-up would occur later, after one method had been selected and used.

The direct answer is D, Selecting an alternative. Planning usually moves through objectives, premises, possible alternatives, evaluation, and selection. In this case, the free sample plan has already been examined, and then it is finalised. The reasoning is: first, a possible plan exists; second, it is evaluated; third, the organisation chooses and approves it; therefore, the step is selecting an alternative. Option A, Developing premises, means making assumptions about future conditions such as demand, prices, or finance. That has already happened earlier and is not what finalising means. Option B, Setting objectives, means deciding the desired result, such as increasing sales; it is not the approval of one plan. Option C, Implementing the plan, means carrying out the selected plan. Finalising comes before actual execution, so it is not implementation. Option D is correct because finalising one evaluated plan means choosing it from among alternatives. Exam cue: evaluated and then finalised usually means selected.

The direct answer is A, Implementing the plan. In the planning process, deciding what should be done is not enough; the decision must be converted into action. A budget provides money and other resources, while a schedule tells people when each activity must be completed. Thus, releasing the budget and giving the timetable are practical execution steps. Option A is correct because both actions support the actual implementation of the selected plan. Option B, identifying alternatives, means listing different possible courses of action before one is chosen; it does not mean releasing funds. Option C, developing premises, means making assumptions about future conditions such as demand or costs. Option D, setting objectives, means deciding the desired results. Remember: resources, responsibilities and deadlines usually indicate implementation.

Follow-up action involves reviewing actual results after implementation, identifying the causes of weak performance, and taking corrective steps where needed. Therefore, the correct answer is follow-up action. Identifying and selecting alternatives are earlier stages of preparing a plan, not stages of reviewing its results. Exam tip: Words such as review, corrective action, checking results, or finding reasons after implementation usually indicate follow-up action.

Planning premises are assumptions about future conditions. In exams remember premises as assumptions.

Preparing a list of possible ways is identifying alternatives. In exams call possible ways list identifying alternatives.

The governing concept is selecting an alternative after alternatives have been evaluated. The manager has already compared two choices and found that their expected profits are equal. Risk then becomes a deciding criterion. Choosing the alternative with lower risk is the final decision among the available courses of action, so option B is correct. Developing premises would mean making assumptions about future conditions before comparison. Setting objectives would mean defining the desired result, not choosing a method for reaching it. Follow-up action would involve monitoring the selected plan after implementation. The example therefore tests the movement from evaluation to final selection in the planning process.

Communicating the plan to start work is part of implementation. In exams treat communicate plan for action as implementation.

Corrective steps are part of follow up action. In exams connect corrective action with follow up.

Alternatives are evaluated first and then selected. In exams remember evaluation before selection.

Finding means to achieve a target is identifying alternatives. In exams connect means to achieve target with alternatives.

Arranging resources is connected with implementing the plan. In exams treat arranging money material people as implementation.

The governing concept is follow-up action, the final step in the planning process. After a plan has been selected and implemented, managers compare actual progress with the expected results and check whether activities are proceeding according to schedule. If deviations appear, corrective measures may be taken or the plan may be adjusted. Therefore option D is correct because monitoring progress is the central purpose of follow-up. Setting objectives occurs at the beginning, identifying alternatives occurs before selection, and developing premises concerns assumptions about future conditions. None of those stages involves checking actual performance after implementation. Follow-up keeps planning connected with control and improvement.