Planning
Chapter 4
Very Short Answer Type
1. How does planning provide direction?
Ans: Planning provides direction by:
*Setting goals: It clarifies what you want to achieve, giving your actions a focused purpose.
*Creating a roadmap: It lays out the steps needed to reach your goals, guiding your decisions and activities.
*Anticipating challenges: It helps you identify potential obstacles and develop strategies to overcome them.
*Prioritizing tasks: It organizes your efforts, ensuring you focus on what's most important.
*Measuring progress: It allows you to track your progress and adapt your plan as needed.
2. A company wants to increase its market share from the present 10% to 25% to have a dominant position in themarket by the end of the next financial year. Ms Rajni, the sales manager has been asked to prepare a proposal that will outline the options available for achieving this objective. Her report included the following options - entering new markets, expanding the product range offered to customers, using sales promotion techniques such as giving rebates, discounts or increasing the budget for advertising activities. Which step of the planning process has been performed by Ms Rajni?
Ans: Ms Rajni has performed the exploration of options step in the planning process. She has identified various potential options (entering new markets, expanding product range, sales promotions, advertising) that could help the company achieve its objective of increasing market share. This step comes before selecting the best option and developing a detailed plan.
3. Why are rules considered to be plans?
Ans: Rules are considered plans for a few key reasons:
1. Set direction: Rules establish guidelines for behaviour and actions, similar to how a plan outlines steps to achieve a goal.
2. Guide decisions: Following rules helps individuals and organizations make consistent and efficient choices aligned with desired outcomes.
3. Anticipate outcomes: Rules often aim to prevent negative consequences or undesirable situations, just like a plan anticipates potential challenges and seeks to avoid them.
4. Prioritize actions: Some rules explicitly prioritize certain actions over others, similar to how a plan might allocate resources towards high-priority tasks.
5. Measure progress: Compliance with rules can serve as a basic indicator of progress towards desired outcomes, like a plan's benchmarks track its effectiveness.
4. Rama Stationery Mart has made a decision to make all the payments by e-transfers only. Identify the type of plan adopted by Rama Stationery Mart.
Ans: The type of plan adopted by Rama Stationery Mart is a policy.
A policy is a general statement that guides thinking or channels efforts in a particular direction. In this case, Rama Stationery Mart has adopted a policy of relying solely on e-transfers for payments, rather than a specific plan with detailed steps and actions. This policy establishes a standard operating procedure for financial transactions moving forward.
5. Can planning work in a changing environment? Give a reason to justify your answer.
Ans: Yes, planning can work in a changing environment, but with flexibility and adaptation. Here's why:
*Provides direction: Even if plans need adjustment, having a roadmap with goals and priorities helps navigate uncertain situations.
*Identifies vulnerabilities: Planning exposes potential obstacles early on, allowing for proactive countermeasures in a changing environment.
*Promotes agility: Building flexibility into plans enables quicker adjustments to unforeseen circumstances.
*Improves decision-making: Planning processes generate valuable data and insights to inform decisions in response to change.
*Strengthens resilience: Regularly re-evaluating and adapting plans builds organizational adaptability to survive unexpected events.
While perfect foresight is impossible, proactive planning with a flexible mindset can significantly improve performance and success in even the most dynamic environments.
Short Answer Type
1. What are the main aspects in the definition of planning?
Ans: The main aspects in the definition of planning can be summarized as the 5Ds:
1. Deciding goals: Defining what you want to achieve – your desired outcome or objectives.
2. Determining timeframe: Establishing the period within which you aim to reach your goals, be it short-term, long-term, or phased.
3. Developing options: Brainstorming and evaluating different ways to reach your goals, considering feasibility, resources, and potential risks.
4. Defining actions: Choosing the most effective course of action, allocating resources, and assigning tasks.
5. Doing and monitoring: Executing the plan, tracking progress, and making adjustments as needed to ensure your goals are met.
Beyond these core elements, successful planning also integrates:
*Resource considerations: Identifying and leveraging available resources (human, financial, etc.) to fulfill the plan.
*Flexibility: Building in adaptability to adjust to unforeseen circumstances and optimize the plan in real-time.
*Communication: Effectively communicating the plan to all stakeholders to ensure alignment and engagement.
2. If planning involves working out details for the future, why does it not ensure success?
Ans: Planning, while offering a roadmap for success, doesn't guarantee it due to several factors:
1. Unforeseen circumstances: The future is inherently unpredictable. Events like market shifts, natural disasters, or technological advancements can disrupt even the most meticulously crafted plans.
2. Limited information: Our knowledge and understanding of the future are finite. Assumptions made during planning might turn out to be inaccurate, leading to deviations from the desired outcome.
3. Human factors: People involved in executing the plan may make mistakes, exhibit poor judgment, or lack motivation, which can derail its success.
4. Dynamic environment: The environment in which the plan operates is often dynamic and constantly evolving. A rigid plan might fail to adapt to these changes, hindering its effectiveness.
5. Overreliance on the plan: Sticking too rigidly to the plan without considering new information or opportunities can limit adaptability and miss out on potential benefits.
However, planning does significantly increase the chances of success by:
*Providing direction and focus: It clarifies goals, prioritizes tasks, and keeps efforts aligned towards achieving desired outcomes.
*Identifying potential challenges: Planning often uncovers potential obstacles, allowing for proactive risk mitigation and contingency planning.
*Facilitating better decision-making: With a plan in place, decisions can be made based on well-defined objectives and a consideration of possible consequences.
*Improving resource allocation: Planning optimizes resource utilization by aligning them with specific tasks and priorities.
*Enhancing communication and collaboration: A shared plan fosters better communication and collaboration among stakeholders, promoting cohesion and commitment.
While not a guarantee, planning remains a powerful tool for increasing the likelihood of success by providing a framework for action, adaptation, and informed decision-making in an uncertain future.
3. What kind of strategic decisions are taken by business organisations?
Ans: Strategic decisions taken by business organizations can be broadly categorized into these key areas:
1. Growth and Market Position:
*Entering new markets or product lines: Expanding reach and customer base.
*Mergers and acquisitions: Gaining market share, accessing new resources, or eliminating competition.
*Innovation and product development: Staying ahead of competition and adapting to changing customer needs.
*Branding and marketing strategies: Building brand awareness and reputation, attracting new customers.
2. Resource Allocation and Efficiency:
*Deciding on investment priorities: Allocating resources to various departments, projects, or technologies.
*Outsourcing or acquiring resources: Optimizing operational efficiency and cost management.
*Organizational structure and staffing: Designing a structure that supports efficient operations and aligns with strategy.
*Financial management and risk mitigation: Setting budgets, managing debt, and minimizing financial risks.
3. Competitive Advantage and Sustainability:
*Building and maintaining competitive advantage: Identifying unique strengths and leveraging them against competitors.
*Creating sustainable business practices: Balancing environmental, social, and economic considerations for long-term success.
*Adapting to technological and societal changes: Embracing new technologies and evolving customer preferences.
*Building strong relationships with stakeholders: Partnering with suppliers, communities, and investors for mutual benefit.
4. Planning reduces creativity. Critically comment.(Hint: both the points - Planning promotes innovative ideas and planning reduces creativity – will be given).
Ans: The statement "Planning reduces creativity" is a complex one with both pros and cons to consider:
Arguments in favor of Planning boosting creativity:
*Provides structure and focus: A plan establishes a framework within which creative ideas can be explored and developed. This can help prevent creative impulses from becoming scattered or unproductive.
*Encourages exploration: Planning often involves researching and brainstorming, exposing individuals to new information and perspectives that can spark creative inspiration.
*Facilitates iteration and refinement: By setting milestones and measuring progress, planning allows for continuous assessment and improvement of creative ideas. This iterative process can lead to more polished and impactful outcomes.
*Reduces risk and uncertainty: Having a plan can provide a sense of security and direction, allowing individuals to take bolder risks and explore more unconventional creative approaches.
Arguments against Planning hindering creativity:
*Imposes constraints and limitations: Rigidity in a plan can stifle improvisation and spontaneous bursts of creativity, potentially leading to formulaic or predictable outcomes.
*Focuses on predetermined goals: Overemphasis on achieving specific goals set in the plan can overshadow the value of unexpected discoveries or tangential creative breakthroughs.
*Discourages experimentation and risk-taking: A strong focus on sticking to the plan can discourage venturing outside established boundaries and exploring uncharted creative territories.
*Limited adaptability to change: Unexpected circumstances or new insights may not be easily incorporated into a rigid plan, hindering the emergence of new creative solutions.
Therefore, a nuanced perspective is crucial. Planning can both promote and hinder creativity depending on how it is implemented and interpreted.
Effective planning can foster creativity by:
*Balancing structure with flexibility: Allowing for adjustments and exploration within the overall framework.
*Encouraging collaboration and diverse perspectives: Bringing together different backgrounds and viewpoints to enrich the creative process.
*Celebrating experimentation and failure: Creating a safe environment for taking risks and learning from mistakes.
*Continuously assessing and adapting: Recognizing that the best plans are dynamic and evolve over time.
5. In an attempt to cope with Reliance Jio’s onslaught in 2018, market leader Bharti Airtel has refreshed its ` 149 prepaid plan to offer 2 GB of 3G/4G data per day, twice the amount it offered earlier. Name the type of plan is highlighted in the given example. ? State its three dimensions also.
Ans: The type of plan highlighted in the example is a reactive or competitive marketing plan.
Here are its three dimensions:
1. Strategic Focus:
*Focus on competitor: The plan is primarily driven by the response to Bharti Airtel's competitor, Reliance Jio. Its aim is to retain existing customers and possibly attract some of Jio's customers by offering a similar or better proposition.
*Short-term focus: The plan seems to be a quick response to a specific competitive threat, suggesting a shorter time horizon for evaluation and potential adjustments.
2. Marketing Mix:
*Product: The core strategy revolves around increasing the data allowance in the existing ` 149 prepaid plan to match or exceed Jio's offering.
*Price: Maintaining the same price while significantly improving the data benefit makes the plan more attractive in terms of value for money.
*Place: The plan is likely available through all of Bharti Airtel's existing channels, including physical stores, online platforms, and mobile recharge applications.
*Promotion: Implementing awareness campaigns to highlight the improved data offering and its competitive advantage over Jio would be crucial for the plan's success.
3. Implementation and Control:
*Quick implementation: The plan's rapid launch suggests responsiveness and agility in reacting to the competitive landscape.
*Monitoring and adaptation: Regularly tracking customer response, competitor actions, and market trends would be essential for adjusting the plan and ensuring its effectiveness over time.
6. State the type of plan and state whether they are Single use or Standing plan:
a. A type of plan which serves as a controlling device as well.(budget)
b. A plan based on research and analysis and is concerned with physical and technical tasks. (Method)
Long Answer Type
1. Why is it that organisations are not always able to accomplish all their objectives?
Ans: There are several reasons why organizations, despite their best efforts, may not always achieve all their objectives. Here are some key factors:
Internal factors:
*Unrealistic goals: Setting overly ambitious or poorly defined goals can lead to disappointment and failure. Objectives should be SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) to increase the chances of success.
*Poor planning and execution: Inadequate planning, lack of resource allocation, and ineffective execution can hinder progress towards goals. A clear roadmap with defined tasks, responsibilities, and timelines is crucial.
*Limited resources: Insufficient financial, human, or technological resources can limit an organization's ability to achieve its goals. Careful resource allocation and seeking external support if needed are crucial.
*Lack of communication and collaboration: Poor communication and collaboration within teams and departments can lead to misunderstandings, duplication of efforts, and missed opportunities. Effective communication and fostering a collaborative environment are essential.
*Resistance to change: Organizational inertia and resistance to change can impede progress and adaptation to new circumstances. Promoting a culture of continuous improvement and adaptability is critical.
External factors:
*Unforeseen circumstances: Market fluctuations, economic downturns, natural disasters, or sudden policy changes can present unexpected challenges and derail plans. Building resilience and contingency plans for potential disruptions are important.
*Competitive landscape: Intense competition can make it difficult to achieve market share or desired outcomes. Understanding competitor strategies and developing differentiated offerings are crucial.
*Technological advancements: Rapid technological changes can render existing strategies obsolete and require significant investment and adaptation to stay competitive. Embracing innovation and technological advancements is key.
*Sociocultural shifts: Changing consumer preferences, evolving social norms, and environmental concerns can require adjustments to products, services, and marketing strategies. Maintaining awareness of cultural shifts and adapting accordingly is essential.
2. What are the steps taken by management in the planning process?
Ans: Management takes several key steps in the planning process, though the specific order and depth may vary depending on the organization and the scope of the plan being developed. Here's a general outline:
1. Setting goals and objectives:
*Define what you want to achieve in the short- and long-term. Goals should be clear, specific, and measurable.
*Break down overall goals into smaller, actionable objectives for different departments or teams.
2. Situation analysis:
*Assess the internal and external environment.
*Evaluate strengths, weaknesses, opportunities, and threats (SWOT analysis).
*Analyze market trends, competitor actions, and potential risks.
3. Develop strategic options:
*Brainstorm and generate multiple potential courses of action to achieve your goals.
*Consider feasibility, resources required, potential benefits and drawbacks of each option.
4. Evaluate and select options:
*Analyze each option based on defined criteria (cost, risk, potential return, alignment with goals).
*Conduct cost-benefit analysis or use decision-making tools.
*Choose the option that best meets your objectives and resources.
5. Develop a detailed plan:
*Break down the chosen option into specific tasks, activities, and milestones.
*Assign responsibilities, set deadlines, and allocate resources.
*Create budgets, action plans, and timelines for each phase of the plan.
6. Implementation and monitoring:
*Communicate the plan to all stakeholders involved.
*Put the plan into action and track progress towards milestones.
*Monitor performance, identify problems, and make adjustments as needed.
*Measure the success of the plan against set goals and objectives.
7. Evaluation and adaptation:
*Regularly assess the effectiveness of the plan.
*Gather feedback from stakeholders and analyze results.
*Adapt the plan based on new information, changing circumstances, or lessons learned.
3. An auto company C Ltd. is facing a problem of declining market share due to increased competition from other new andexisting players in the market. Its competitors are introducing lower priced models for mass consumers who are price sensitive. C Ltd. realized that it needs to take steps immediately to improve its market standing in the future. For quality conscious consumers, C Limited plans to introduce new models with added features and new technological advancements. The company has formed a team with representatives from allthe levels of management. This team will brainstorm and will determine the steps that will be adopted by the organisation for implementing the above strategy. Explain the features of Planning highlighted in the situation given below.(Hint: Planning is pervasive, Planning is futuristic and Planning is a mental exercise).
Ans: Features of Planning highlighted in the C Ltd. scenario:
1. Planning is pervasive:
.The situation showcases planning at various levels of the organization:
*Strategic level: C Ltd. recognizes the competitive threat and decides to address it by offering both affordable and advanced models.
*Operational level: The company forms a team with representatives from all management levels, indicating planning across departments.
*Project level: The team will brainstorm and determine specific steps for each aspect of the strategy.
2. Planning is futuristic:
*C Ltd. is not simply reacting to current challenges but proactively planning for a future where it wants to improve its market standing.
*The development of new models with improved features and technology is aimed at securing future success, anticipating changing consumer preferences.
3. Planning is a mental exercise:
*The formation of a brainstorming team highlights the mental aspect of planning.
*The team will engage in critical thinking, analyzing options, and strategizing the best course of action to achieve their goals.
Additionally, the scenario also illustrates other important aspects of planning:
*Goal-oriented: C Ltd. has clear goals of regaining market share and catering to different consumer segments.
*Flexible: The company is open to adapting its strategy through brainstorming and considering new information.
*Involves decision-making: The team will evaluate options and make informed decisions about implementing the strategy.
*Requires resource allocation: C Ltd. will need to allocate resources for developing new models, marketing, and operational changes.
Question And Answer Type By: Himashree Bora.
