Planning process

An objective is most useful for control when it is measurable and linked with a suitable indicator, time frame or standard. Without a method of measurement, managers cannot reliably compare actual performance with the intended result. Option A is correct because follow-up, evaluation and corrective control will become difficult. The absence of measurement does not make success automatic, remove the need for alternatives or reduce cost to zero; those options are logically unrelated. For example, a sales objective should specify a measurable quantity and period so that later results can be assessed and corrective action can be taken when performance falls short.

In planning, evaluation means examining alternatives for their benefits, costs, risks and suitability to objectives. Selection follows evaluation and means adopting the most suitable alternative. Option D is close, but comparison and feasibility assessment are mainly part of evaluation; selection is the final choice. Exam tip: link ‘comparison’ with evaluation and ‘final choice’ with selection.

The correct answer is A because planning is a systematic process that connects a desired result with future-oriented decisions and action. First, management sets objectives; without a clear objective, alternatives cannot be judged. It then develops premises or assumptions about future conditions, identifies possible courses of action, evaluates their benefits, costs and risks, and selects the most suitable alternative. The selected plan is implemented by assigning duties and providing instructions. Finally, actual performance is followed up and corrective action is taken when necessary. Option B ignores analysis and review, option C confuses planning with budgeting, and option D is not a management step. Thus A presents the complete logical sequence.

When response differs, follow-up and correction are necessary. In exams, link feedback with the final step of the planning process.

The direct answer is A, Setting objectives. A target is a specific result that the company wants to achieve. Here, the company has decided to increase sales by 20 percent during the next year. This is measurable because it uses a percentage, and it is time-related because the period is next year. The reasoning is: the company first states the desired result—20 percent sales growth; this desired result becomes an objective; later, managers will decide strategies, resources, and actions to achieve it. Option A is correct. Option B, Evaluating alternatives, means comparing possible methods for reaching the target, such as advertising, lower prices, or new distribution; the question does not mention comparison. Option C, Following up the plan, means checking progress after the plan has been implemented; it is not the act of fixing the target. Option D, Implementing the plan, means putting selected actions into operation, whereas merely setting a sales target occurs before implementation. Exam cue: words such as target, aim, desired result, or percentage goal usually indicate setting objectives.

Estimation of future demand is a planning premise. In exams, connect demand forecast with premises.

Different routes are called alternatives. In exams, remember courses of action as alternatives.

Comparison is the main part of evaluation. In exams, treat cost-time-risk as evaluation criteria.

After evaluation, the final option is selected. In exams, connect feasible option with selection.

Assigning work converts the plan into action. In exams, connect responsibility allocation with implementation.

The correct answer is follow-up action because this step checks whether implementation has produced the expected results. Managers compare actual performance with predetermined targets, identify any deviation, and investigate its causes. If production is below the target, corrective action may then be suggested. Identifying alternatives belongs to an earlier stage, when possible courses of action are listed. Setting objectives establishes what is to be achieved, while selecting the best alternative chooses one course before implementation. Therefore, comparison after implementation is a review or follow-up activity within the planning process.

Objectives provide the destination and criteria for planning. Without a clearly stated objective, managers cannot judge whether an alternative will contribute to the desired result. They may generate many possible actions, but they will lack a reliable direction for comparing or selecting them. Option B is incorrect because no alternative becomes successful automatically. Option C reverses the normal sequence, since follow-up occurs after implementation. Option D is unrelated: the need for a budget depends on the plan and resources, not on the absence of objectives. Thus, unclear direction is the central problem.

These are assumptions related to the future external environment. In exams, keep external factors under premises.

Comparing suitability of two plans is evaluation. In exams, identify suitability comparison as evaluation.

When results are low, follow-up and corrective action are necessary. In exams, write review when a gap is shown.

Clear and measurable goals help in review. In exams, connect measurable objectives with follow-up.

In implementation, the selected option becomes a practical plan. In exams, connect budgets and programmes with implementation.

Estimating possible obstacles is part of premises. In exams, connect obstacles with future assumptions.

After setting an objective, the planning process requires identifying alternative courses of action to achieve it. Customer-service training and an improved helpline can address the causes of customer complaints, so this is a valid alternative. Destroying records or stopping complaint registration merely hides the problem; it does not reduce complaints. Exam tip: An alternative course of action must genuinely help achieve the stated objective.

In evaluation, quality and risk are also checked along with cost. In exams, treat evaluation as broad analysis.

The plan adopted is the selected alternative. In exams, take feasible and low risk as selection clues.

Follow-up helps keep the plan in the right direction. In exams, connect it with monitoring and control.

The direct answer is B, developing premises. The usual planning sequence is: setting objectives, developing premises, identifying alternative courses, evaluating them, selecting the best alternative, implementing the plan, and following up. Here the company has already decided the objective—entering the market. The next step is to make assumptions about relevant future conditions, such as demand, competition, prices and regulations. Option B is correct because premises provide the background for developing suitable alternatives. Option A comes later, after alternatives have been identified and compared. Option C comes near the end, after a plan has been selected. Option D is also later because implementation follows selection and follow-up checks progress after implementation. Memory cue: after “where do we want to go?” comes “what conditions will we face?”—that is premises.

Sales estimate is the base of production planning. In exams, write premises as planning foundation.

The correct step is evaluating alternatives. Direct selling and a distributor network are two possible courses of action, so managers must compare them against relevant criteria such as expected reach, cost, speed, control, and suitability for the target. This comparison helps reveal the strengths and limitations of each option before a final choice is made. Option B does not describe a planning step at all. Options C and D would weaken control and direction rather than support decision-making. Selecting an alternative follows evaluation; the question specifically asks where the comparison occurs.