Planning process

The correct answer is A. Objectives are the starting point of the planning process, and good objectives should be clear, realistic and sufficiently challenging. If a target is set too easily, employees and managers may not be encouraged to use resources efficiently, improve productivity or stretch performance. The organisation may achieve the target without meaningful progress, so the target will provide weak motivation and a poor basis for evaluating performance. Easy objectives do not make all assumptions correct, remove the need to consider alternatives, or prepare a budget automatically. Thus, the likely later problem is that organisational performance will not be challenging.

Future condition of interest and loans are planning premises. In exams, connect finance assumptions with premises.

Good planning searches for many alternatives. In exams, treat one strategy as weak alternatives stage.

The correct answer is A, evaluating alternatives. During this step, managers examine each possible plan against relevant criteria such as expected benefit, cost, risk, time, feasibility and available resources. Comparing the cost of an advertising plan with the benefit it is expected to produce is a direct evaluation. If the cost exceeds the likely benefit, the plan may be rejected before implementation. Removing objectives is not a normal stage of this decision, because objectives guide the evaluation. Implementation means putting a selected plan into action, and follow-up means reviewing results after implementation. Therefore, rejecting the advertising plan on a cost-benefit basis occurs during evaluation.

Sometimes the selected alternative is a combination of options. In exams, accept combination selection.

Communication helps implement the plan properly. In exams, write communication as an implementation condition.

Measuring customer satisfaction after a plan has been implemented reviews actual outcomes and identifies whether corrective action is needed. Therefore, it strengthens the follow-up action step. Setting objectives is done before planning begins, whereas follow-up evaluates the progress and effectiveness of an implemented plan. Exam tip: words such as feedback, review, monitoring, or correction after implementation usually indicate follow-up action.

In follow-up, results are checked against objectives. In exams, treat objectives as review standards.

Timeline and budget make the action stage possible. In exams, connect practical details with implementation.

In the evaluation of alternatives step, each option is compared for cost, benefits, feasibility and consistency with the company’s policies. Therefore, checking whether an option fits the policy is done at this stage. Identifying alternatives only lists possible courses of action; it does not compare their suitability. Exam tip: words such as “suitability” or “consistency with policy” usually indicate evaluation of alternatives.

Evaluation includes image and risk along with profit. In exams, do not forget non-financial factors.

If employees do not know the target, implementation will be weak. In exams, write communication gap as implementation issue.

Follow-up shows both good and bad results. In exams, do not limit review only to finding mistakes.

Planning premises are assumptions about future conditions, such as demand, costs, government policy and available resources. The more realistic these assumptions are, the more practical and reliable the plan becomes; therefore, its foundation is stronger. Objectives are still necessary because they give direction to planning. Exam tip: Remember premises as the ‘foundation’ of a plan in the planning process.

The correct answer is B, identifying alternatives. At this stage of planning, managers list the different courses of action that could help achieve the objective. Several possible launch dates represent separate alternatives because each date may affect demand, production readiness, promotion, staffing and expected sales differently. The company has not yet selected a date, implemented the launch or reviewed actual results; it is still generating possible choices. Final plan review and actual-performance comparison occur later, after a plan has been selected and action has begun. Stopping work is not a recognised step in the planning process. Hence, considering several dates is identification of alternatives.

Checking factors before choosing a date is evaluation. In exams, connect comparison factors with evaluation.

Fixing the most suitable date from possible launch dates is the step of selecting the best alternative. Developing premises involves forecasting future conditions, whereas follow-up action concerns checking progress after the plan is implemented. Exam tip: Words such as “most suitable” or “final choice” usually indicate the selection step.

Assigning work to teams converts plan into action. In exams, connect task allocation with implementation.

Finding delay and correcting it is follow-up. In exams, connect delay after implementation with review.

After follow-up, correction and new planning can happen. In exams, do not treat planning as a one-time activity.

After setting objectives, estimating future conditions such as demand, cost, availability of resources, and government policies is called developing premises. These assumptions provide the basis for identifying and evaluating alternatives. Evaluating alternatives is a later step, while implementation begins after the plan has been prepared. Exam tip: In the planning process, remember that developing premises follows setting objectives.

Employee impact is also part of evaluation. In exams, treat human impact as an evaluation factor.

Team-date-task clarity strengthens implementation. In exams, take who what when as an implementation clue.

Direct answer: Option A, making necessary changes in the plan. Follow-up is not merely a formality; it provides feedback about whether assumptions and actions were suitable. If the original premises are found to be wrong, the manager should review the plan and modify the parts affected by those premises. The reasoning is: follow-up reveals a mismatch, the manager studies the cause, changes unsuitable assumptions or activities, and prepares a more suitable plan or corrective action. Option A is correct because planning is flexible and can be revised in response to new information. Option B is wrong because wrong premises do not automatically mean that every objective must be removed. Option C is wrong because refusing correction defeats the purpose of follow-up. Option D is wrong because the need for planning does not end; changed conditions may make planning even more necessary. Exam cue: follow-up, feedback and wrong assumptions commonly lead to revision or corrective action.

After a clear objective, different alternatives are also needed. In exams, treat alternatives as a necessary middle step.