Planning process

The direct answer is A, Setting objectives and developing premises. These are the first two major steps in the planning process, and the order matters. First, the company decides what it wants to achieve; these desired results are objectives or targets. Next, it forms premises, meaning assumptions about future conditions such as market demand, competition, prices, or available finance. The question states exactly this order: targets first and future assumptions second. Option A therefore matches both the steps and their sequence. Option B, selecting alternatives and follow-up, belongs to later stages: a plan must be developed and chosen before it can be followed up. Option C, implementation and control, occurs after the plan has been selected and put into action; it is not the beginning. Option D, evaluation and selection, also comes later, when possible plans are compared and one is chosen. Thus A is correct. Memory cue: first decide “where to go,” then think about “what conditions may affect the journey.”

At the end the plan is checked and corrected. In exams remember follow up action as the final step.

Objectives state what an organisation wants to achieve. They give managers and employees a common destination and help them understand which activities deserve attention. Without clearly stated objectives, people may work hard but move in different directions, making coordination and evaluation difficult. Thus, setting objectives is the starting point for giving purpose to planning.

Option A is correct because objectives provide clear direction for organisational work. They help in selecting actions, allocating resources, and later checking whether the desired result was achieved. Final review is a later activity, while raw material and a bank loan are possible resources or financial arrangements, not the direct result of setting objectives. Hence the supplied answer is appropriate.

An estimate of future sales provides an assumption or forecast on which the plan is based. Such forecasts, assumptions and expected conditions are called planning premises; therefore, the relevant step is developing planning premises. Evaluating alternatives occurs later, after possible courses of action have been identified. Exam tip: Forecasts about sales, demand, cost or market conditions usually indicate planning premises.

Preparing a list of many ways means identifying alternatives. In exams connect many ways with identifying alternatives.

Cost and benefit comparison is done in evaluation. In exams write cost benefit comparison as evaluation.

The path chosen after evaluation is the selected alternative. In exams treat most suitable path as selection.

The correct answer is B, implementation of the plan. A plan becomes operational when managers communicate instructions, allocate duties, arrange resources and establish schedules for employees. Giving orders is therefore an action-oriented activity, not merely a decision about what should be done. Option A occurs earlier, when possible courses of action are compared on the basis of cost, benefit and feasibility. Option C concerns assumptions about future conditions such as demand, prices or technology. Option D is the initial step in which desired results are stated. Although orders must be consistent with the selected plan and should be properly communicated, their immediate purpose is to put that plan into practice. Hence B is the only suitable answer.

The correct answer is C, follow-up action. Planning does not end when a plan is selected or completed; management must compare actual performance with the planned objectives. This review may involve checking sales, costs, output, quality or any other relevant result. If a deviation is found, managers investigate its cause and make suitable corrections, revise assumptions or modify future action. Setting objectives is the opening step, identifying alternatives generates possible courses, and selecting alternatives chooses one course before implementation. None of those earlier steps checks completed performance. Follow-up therefore provides feedback and keeps planning a continuous process rather than a one-time paperwork exercise. That is why C is the best answer.

Objectives are set first and then premises are developed. In exams remember developing premises as the second step.

The correct answer is A, setting objectives. An objective is a specific result that an organisation wants to achieve within a stated period. “Increase customer satisfaction next year” expresses a desired future result and a time frame, so it gives direction to all later planning activities. Once this objective is fixed, managers can identify alternative methods, such as improving service or reducing response time, evaluate them, select a suitable approach and implement it. Option B concerns comparing those possible methods, not stating the desired result. Option C means carrying out the chosen plan, while option D means reviewing actual performance afterwards. The word “target” is a strong clue that the statement is an objective.

The direct answer is B, Developing premises. A premise is a planning assumption about a future internal or external condition. Competition is an external market condition. If the company assumes that competition will increase, it is estimating a future situation and using that estimate while preparing its plan. The reasoning is: competition has not yet increased in the statement; the company expects a change in the future; that expectation may affect prices, sales, advertising, and strategy; therefore it is a planning premise. Option A, Implementing the plan, means carrying out decisions already made, not predicting market competition. Option B is correct because it covers assumptions and forecasts used in planning. Option C, Selecting alternatives, means choosing one plan from several possible plans; no such choice is described. Option D, Follow-up action, means checking progress after implementation and correcting deviations; it is later than making the assumption. Exam cue: assumptions about demand, competition, government policy, prices, or finance are planning premises.

Advertising and personal selling are different alternatives. In exams treat more than one method as alternatives.

The direct answer is D, evaluating alternatives. After objectives are set and possible alternatives are identified, managers compare them before choosing one. Feasibility asks whether an alternative can really be carried out with the available money, time, skills and other resources. Therefore, checking feasibility is a part of evaluation. Option D is correct because evaluation compares the advantages, disadvantages, risks and practicality of each alternative. Option A is wrong because setting objectives only states the desired result, such as increasing sales. Option B is wrong because developing premises means estimating future conditions, not comparing choices. Option C is wrong because implementation begins after an alternative has been selected and concerns putting it into action. Exam cue: words such as feasible, practical, cost, risk and comparison usually point to evaluating alternatives.

Adopting one method from three is selection. In exams understand least risky chosen as selecting alternative.

The correct answer is B, implementing the plan. A schedule translates a general decision into assigned activities, deadlines and responsibilities, allowing employees to begin coordinated work. It is therefore part of execution after management has selected a course of action. Evaluating alternatives happens before selection and asks which possible plan is most suitable. Developing premises involves forecasting or assuming future conditions, such as demand, prices or availability of resources. Follow-up action takes place after implementation, when actual performance is compared with the intended result and corrections are made. A schedule may later be used for monitoring, but giving it to employees so that work can begin is primarily implementation. Thus B is the precise answer.

The correct answer is C, follow-up action. The manager first compares actual expenses with the planned target and notices an unfavourable deviation. Corrective action then follows: the manager may identify the cause, control unnecessary spending, revise resource use or alter the next stage of the plan. This feedback makes planning continuous and helps the organisation move closer to its objective. Setting objectives states the desired expense or result, selecting alternatives chooses one possible course before execution, and developing premises makes assumptions about future conditions. None of these steps involves correcting an actual cost overrun after work has begun. Therefore the sequence of checking performance and correcting deviation clearly belongs to follow-up action, making C correct.

Premises are developed first and then alternatives are searched. In exams remember alternatives after premises.

The direct answer is B, Developing premises. A new law expected to apply next year is a future external condition. Planning premises are assumptions or forecasts about such conditions, including government policy, legal rules, economic changes, technology, demand, or competition. The reasoning is: the law is not yet being applied; the company expects it to apply in the future; the expected legal change may affect costs, procedures, products, or decisions; therefore the company must use it as a premise while planning. Option A, Setting objectives, means deciding desired results, such as a sales target; it does not mean anticipating a law. Option B is correct because it refers to forming assumptions about future conditions. Option C, Implementing the plan, means carrying out an approved plan, while the question only describes an assumption made during planning. Option D, Follow-up action, means reviewing performance after implementation and taking corrective measures. It cannot be the step described here. Memory cue: expected changes in law or policy are external premises, not objectives or implementation.

Outsourcing and own production are two alternatives. In exams write possible courses as identifying alternatives.

Checking positive and negative sides is evaluation. In exams treat merits and demerits as evaluation.

After evaluating the available alternatives, choosing the most suitable one is the step of ‘selecting an alternative’. Since online selling is being finalised here, option A is correct. Developing planning premises involves making assumptions about future conditions, whereas follow-up action occurs after implementation. Exam tip: the phrase ‘choosing the best option after evaluation’ points to selection of an alternative.

A plan is put into practice by assigning responsibility. In exams treat responsibility assignment as implementation.

Taking progress reports is the work of follow up. In exams treat regular reports after plan as follow up.

Reducing complaints within six months is a clear objective. In exams treat a time bound target as an objective.