Features of Strategic Planning 3. Business planning tends to be a top-down endeavor; in other words, managers articulate missions and goals, and employees are enlisted to pursue these aims. The procedure can be defined as the exact manner in which an activity has to be accomplished. Our Partner Program is intended to power your business through revolutionary growth and success. Risk is inherent in every business and failure to anticipate risk through strategic planning is almost sure to lead the business to failure unless otherwise proved by chance. Firms have financial benefits if they make strategic plans.
The teaching process becomes more difficult. How about a house without shingles or a roof. The managers set up very clearly the objectives of the company keeping in mind the goals of the company and the physical and financial resources of the company. Common forecast are made to find out the demand for a product, change in government or competitor policy, tax rate, etc. Single Use Plans : Single use plans are one time use plan. In new or odd situations teacher feels himself helpless. Difficulty in Change: Once a financial plan is prepared then it becomes difficult to change it.
Often there is a lack of co-ordination among different functions. Perhaps a Disneyana Club could help with that. External Limitations of Planning : Sometimes planning fails due to following limitations on which managers have no control. Selecting an alternative: The best alternative is selected but as such there is no mathematical formula to select the best alternative. Success of planning depends on accuracy of estimates. If to introduce then how, finding out customer for your products making changes in existing products etc.
It is necessary to have a business plan for credit. In planning assumptions and predictions regarding future are made by scanning the environment properly. Planning function of management is also recognized as a detailed programme concerning future courses of action. For example, there can be rule of no smoking in the organisation. Facilitates coordination — as it helps in Channelising and harmonizing the efforts of various departments 7. It is a kind of forecast made keeping in view existing plans and any past information about various policies.
Makes the activities meaningful — enables the individuals to contribute maximum towards achieving targets 3. So that everyone follows the same method and comparison with the past value of stock can be done, method for calculation of depreciation. More time is required to plan a lesson. Strategic planning is based on extensive environmental scanning. Hence, we can say that mere planning does not ensure success; rather efforts have to be made for it. Unfortunately, many of the disadvantages are because of inappropriate application often by poor consultants as opposed to inherent limitations.
However, business planning is not a panacea and can sometimes lead to an entirely new set of troubles. For example, Choice of advertising media, sales promotion techniques, channels of distribution, etc. Feel free to comment below. The sequence of steps to be followed by employees in different situations must be predetermined so that everyone follows same steps. In this way, diversity of alternatives cause many difficulties in the way of formulating planning. But in planned economy there is no such like mechanism of prices.
Advantages and disadvantages Pros: — popularity of formats. Vibrant businesses thrive in part because employees have the license and opportunity to offer creative input. The belief being that if the future does not unfold as anticipated then it may invalidate the strategy taken. For example, if the plan is made during the boom period and during its execution there is depression period then planners have to make changes according to the conditions prevailing. In socialist economies, there is no freedom of consumption; no freedom of choice; no freedom of choosing a profession; no freedom to fix the prices and no freedom to produce. Rules are spelt out to create the environment of discipline in the organisation.
And lower level managers make plans to support the overall objectives and to carry on day to day activities. Again, under the umbrel1a of public interest, the bureaucracy will also change its color and behavior. A project manager should give human resource experts the time to work on that. But it is not so in case of planning because such all problems have to be solved in advance. External FactorsExternal factors are very difficult to predict. A business plan is a guide that you can use to make money.