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It is exactly the point at which decisions are made. With this, the plan can be considered to have been adopted. Selecting the Best CourseĪfter having evaluated the various alternatives, the most suitable alternative is selected. Computer based mathematical plans and techniques can also be utilized to identify best course of action. Usually, alternative plans are evaluated against factors such as cost, risks, benefits, organizational facilities, etc. Many other factors such are uncertain future trend, problems faced financially, future uncertainties renders the evaluation process, complex and difficult. Each alternative should be closely studied to determine its suitability. Various factors such as profitability, investment requirements, etc., of such alternatives should be weighed against each other. Evaluation involves the study of performance of various actions. The planner should study all the alternatives, consider the strong and weak points of them and finally select the most promising ones.Īlternative courses so selected should be evaluated in the light of premises and goals. Determining Alternative Coursesĭetermining alternative courses is the third step in the planning process. Hence, the success of the planning depends very much upon the forecasts. Planning will be reliable when the forecast methods are accurate. Forecasting will reveal those areas where control is lacking. Then the manager proceeds to make a study of his company’s share of the market. Keeping the general economic conditions in mind, a study of the industry is made. Prediction of market conditions for a specific product or service dealt with by the enterprise.Prediction of general economic conditions.There are two types of forecasting namely, Thus, forecasting is an important step in planning. Planning involves looking into the future which necessitates the enterprise to know, how future conditions will affect its activities. Premises include actual forecast data, policies and plans of the enterprise. That is, managers should be able to restate the objectives of the firm in definite and clear terms that will motivate examination and evaluation of performance against targeted performance in the plan. The objectives fixed must clearly indicate what is to be achieved, where action should take place, who is to perform it, how it is to be undertaken and when it is to be accomplished. Plan must make sure that every activity undertaken contributes to the achievement of objectives. Objectives should clearly define as to what is to be achieved by policies, procedures, rules, strategies, budgets and programmes. Plans should reflect the enterprise’s objectives. Hence, establishing the objectives is an important step in the process of planning. Plans are prepared with a view to achieve certain goals. Establishing Objectives:Įstablishing the objectives is the first step in planning. The main steps that are taken in planning process are as follows: 1. |
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