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Subjects

Business Studies

Planning process

This Class 12 Business Studies topic explains how organisations turn goals into practical courses of action through a systematic planning process. Students learn to set clear objectives, develop planning premises, identify alternative courses of action, evaluate those alternatives, select the most suitable plan, implement it, and follow up to assess results. The topic also shows how planning supports coordination, reduces uncertainty, improves decision-making, and guides the effective use of organisational resources.

Expert · Level 1 · 25 questions

Practice questions

01A company set a goal to reduce complaints next year, but did not create any basis for measurement. What is the biggest weakness in the planning process?

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02If managers choose advertising budget and distribution channel before setting objectives, what is the mistake in sequence?

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03An exporter made estimates about next year's demand, exchange rate and import rules. Which step of the planning process is this?

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04When many managers make different future assumptions, what is necessary for effective planning?

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05If a company sticks to only one strategy and does not think of another route, which step is weak?

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06A retailer searched three routes such as online sale, franchise model and pop-up store. This is a high-level example of which step?

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07If an alternative gives high immediate profit but may harm brand image, what should be checked in evaluation?

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08If one of two alternatives is risky but gives long-term growth, in which step should the manager do deep analysis?

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09After evaluation, a company selected a mix of two strategies instead of one single option. In which step is this possible?

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10If managers select a plan based on personal preference despite an evaluation report, what problem exists in the planning process?

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11Converting the selected strategy into budget, schedule and responsibility chart indicates which step?

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12If responsibility is not clear during plan implementation, what implementation risk will arise first?

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13After implementing a plan, comparison of actual cost and budgeted cost will happen in which step?

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14If follow-up shows that the original demand assumption was wrong, what is the correct managerial response?

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15A company set objectives, developed premises, identified alternatives and evaluated them. What should be the next step?

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16If a manager starts reviewing results before converting the selected alternative into action, what is the sequence error?

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17In which step is communicating assumptions across the organisation most useful?

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18If the objective is very ambitious and resources are very limited, at which stage should this mismatch be identified?

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19If market share, profit and service quality are balanced while setting objectives, why is this better?

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20If the actual result is better than the target, why is follow-up still necessary?

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21When a planning team first creates scenarios such as demand may be high, normal and low, this is an advanced use of which step?

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22If a company does not include competitor reaction in premises, which later step will be most affected?

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23If management does not check ethical impact while selecting the best alternative, which planning step became weak?

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24If derivative plans such as budget and programme are not prepared for the selected plan, what problem will occur?

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25If feedback from follow-up is used in the next planning cycle, which nature of planning is shown?

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