Planning process

Lower result than target needs follow-up and corrective action. In exams, connect deviation with review.

Shared premises help branches plan on a common base. In exams, connect common assumptions with coordination.

Without customer understanding, alternatives may become weak. In exams, connect customer insight with quality of alternatives.

The relevant planning principle is that alternatives must be evaluated objectively in the light of present objectives and premises. Earlier success can provide useful evidence, but it does not prove that the same alternative remains suitable. Markets, technology, customer preferences, costs, competitors, regulations, and available resources may have changed. Option A is correct because the managers allowed past experience to replace a current comparison of feasibility, risk, cost, and strategic fit. Office arrangement and salary planning are not the identified steps in this situation. Final follow-up takes place after implementation and therefore cannot explain the original weakness in choosing the alternative.

Good objectives may consider broader responsibility along with profit. In exams, write balanced objectives.

Wrong economic premises disturb cost estimates. In exams, treat premises as the base for later planning.

Resources are a practical criterion of evaluation. In exams, connect feasibility with evaluation.

Without authority, the responsible person cannot act. In exams, write authority and responsibility under implementation.

A is correct. The follow-up shows that the plan itself was sound; the weakness was in communicating it clearly or coordinating its execution. Therefore, correction should improve communication channels, clarity of instructions, allocation of responsibility, and implementation coordination. Changing objectives or discarding planning premises would be inappropriate because the defect is not in the plan. Exam tip: choose corrective action according to the actual cause identified through follow-up.

New market data allows managers to recheck their assumptions, planning premises, and proposed course of action. Thus, it strengthens the continuous and revisable nature of planning. Ignoring planning premises is incorrect because fresh information is used to make those premises more realistic. Exam tip: Treat planning as a continuous process that is reviewed and revised when new information becomes available.

Premises and alternatives are necessary after objectives. In exams, identify the process order carefully.

Opportunity cost is the benefit forgone from the next best alternative when one option is chosen. Comparing alternatives on the basis of benefits, costs and forgone benefits is part of evaluating alternatives; the best alternative is selected after this evaluation. Identifying alternatives only means finding possible courses of action, not comparing their costs and benefits. Exam tip: Words such as ‘compare’, ‘cost’, ‘benefit’ or ‘risk’ usually point to evaluation of alternatives.

Follow-up compares actual performance with predetermined standards. If there is a standard only for market share, the business can check whether its share increased, but it cannot judge whether that increase was achieved with an adequate profit margin. Therefore, a sound comparison of profitability becomes difficult. Premises, generating alternatives, and implementation belong to other parts of planning. Exam tip: link follow-up with measurable performance standards for every important objective.

Scenario assumptions strengthen premises. In exams, understand best case and worst case as advanced premises.

Supplier reliability is linked with practical feasibility. In exams, include operational risk in evaluation.

Training and communication make implementation possible. In exams, remember derivative action plans.

Direct answer: Option A, reasons for success and clues for future improvement. Follow-up compares actual performance with the target and studies why the result occurred. A result above the target does not make review useless. The manager can identify successful decisions, effective assumptions, useful methods and conditions that should be repeated or improved in future plans. Option A is correct because both success and failure provide managerial learning. Option B is wrong because exceeding a target does not prove that the objective was always wrong; it may show strong performance. Option C is wrong because premises remain useful for understanding and forecasting future conditions. Option D is wrong because evaluation and review do not end forever; they continue in later cycles. The reasoning is: actual result is above target, investigate the causes, record useful learning, and apply it to future planning. Memory cue: follow-up is a learning tool, not merely a fault-finding exercise.

Without measurement method, follow-up will be weak. In exams, connect measurable objectives with feedback tools.

Competitor discount estimate is a future premise. In exams, remember premises after objectives.

Selection depends on proper evaluation. In exams, keep legal compliance as an evaluation criterion.

Departments need aligned direction in implementation. In exams, connect coordination with action stage.

Repeated deviation shows a deeper cause. In exams, connect follow-up with root cause correction.

Uncertainty does not end planning but demands stronger premises and alternatives. In exams, give a balanced answer.

Supplier input helps create practical options. In exams, connect stakeholder input with alternatives quality.

Cash timing is linked with financial feasibility and action readiness. In exams, include liquidity in practical planning.