A

MICRO PROJECT REPORT

ON

“The role of planning and forecasting in business organisation”

Ruturaj Adinath Patil 321

Rohan Rajaram Jadhav 325
Yash Mohan Powar 327

UNDER THE GUIDANCE OF

Mr. T.C. Mestri

DEPARTMENT OF MECHANICAL ENGINEERING

Academic Year: 2020-21

 Certificate
This is to certify that the Micro project work entitled
“The role of planning and forecasting in business organisation”

Ruturaj Adinath Patil 321

Rohan Rajaram Jadhav 325
Yash Mohan Powar 327

In fulfillment for the

Diploma in Mechanical Engineering
Maharashtra State Board of Technical Education
During the academic year 2019-20 under the guidance of

Project Guide H.O.D

Mr.T.C.Mestri Mr.P.M.Patil

Mr. V. V. Giri
Principal

DEPARTMENT OF MECHANICAL ENGINEERING

 ACKNOWLEDGEMENT

During the selection of topic entitled as “The role of planning and forecasting in
business organisation’’, the help we received from our professors, family, and friends is
invaluable and we are forever indebted to them.
We would first like to express our gratitude to our Principal Prof.V.V.Giri Our HOD
Mr.P.M.Patil and our Project Guide Mr.T.C.Mestri for their immense support, suggestion,
encouragement and interest in our micro project work. Without their invaluable suggestions our
project selection would be incomplete.
Last but not least, we would like to thank our friends, parents and group members for their
belief and patience in our endeavor.

Ruturaj Adinath Patil 321

Rohan Rajaram Jadhav 325
Yash Mohan Powar 327

Date:-
Place:- Atigre
Acedemic Year 2020-2021
 ABSTRACT

The role of planning and forecasting in business organization is a topic chosen from the business
administration and management field.
The research was conducted mainly to examine the positive and negatives effect of not making
good use of planning and forecasting in the business administration of an organization. For
effective research on this topic The ROLE ORGANISATION PLANNING AND
FORECASTING IN BUSINESS ORGANISATION both primary and secondary data were used
to elicit  information from sample  studied, the primary source of data were responses from the
personnel interview, while secondary source from text books on business management and
administration periodicals. 
 Introduction
Planning and forecasting are two sides of a coin that an organization that wants to be successful
must imbibe. There are needed in the achievement of an organizational goals and objectives.
Planning is the process that involves going through the current activities of an organization,
checking lapses that occurred in the previous year and setting measures to avoid them in
subsequent years.It involves mapping out the goals an organization wants to achieve in a year,
ways to achieve such goals and the necessary resources to achieve them. It is the first step a
manager must take in deciding what to do and how to go about it.
Planning takes an organization to where it wants to be in the nearest future. In planning, the past
and present state of an organization is considered in other to bounce back better and stronger.
Forecasting involves looking into the future by noting the available resources, making an
estimate of the resources required and considering if more hands will be needed in achieving the
organization’s goals (Needle, 1999: p178).
Forecasting is carried out when an organization wants to look into what the future would be like;
in order to put necessary measures in place. An organization can be effective if it can predict its
environment, identify problems and solve them (Steiner, 1979).
Planning and forecasting are vital tools needed in an organization for performing management
functions and in decision making to ensure all departments of the organization functions well.
Planning and forecasting walk hand in hand, as forecasting helps unify and coordinate plans.
1.1   Objectives of the Study
The major objective of this research is to discover the role of planning and forecasting in
business organization.

Other specific objectives include;

1. To determine if planning and forecasting should be the duty of just the managers.
2. To determine if planning and forecasting boosts business organizations.
3. To discover if a business organization can strive without planning and forecasting.
4. To determine if there is a relationship between planning/forecasting in business
organizations and Gross Domestic Product.

1.2   Significance of the Study/ Justification of the study

This study is meant to bring to the knowledge of the management of business organizations that
planning and forecasting is needful in the overall success of an organization.

This study will be of immense benefit to other researchers who intend to know more on this
topic and can also be used by non-researchers to build more on their work. This study
contributes to knowledge and could serve as a bench mark or guide for other work or study.
1.3   Scope/Limitations of the Study
This study isbroad since it is studying on the role of planning and forecasting in business
organizations generally.

Limitations of study

1.         Financial constraint- Insufficient fund tends to impede the efficiency of the

researcher in sourcing for the relevant materials, literature or information and in the
process of data collection (internet, questionnaire and interview).
2.         Time constraint- The researcher will simultaneously engage in this study with other
academic work. This consequently will cut down on the time devoted for the research
work.

1.4   Definition of Terms

Plan: Is a detailed proposal for achieving something or a decision about what one is going to do.
Planning is the process of making plans for something.

Forecasting: Forecasting is the process of making predictions of the future based on past and
present data and most commonly by analysis of trends. A commonplace example might be
estimation of some variable of interest at some specified future date. Prediction is a similar, but
more general term.
1.5 DESCRIPTION OF THE STRATEGIC PLANNING PROCESS

Formal strategic planning calls for an explicit written process for

determining the firm's long-range objectives, the generation of alternative
strategies for achieving these objectives, the evaluation of these strategies, and a
systematic procedure for monitoring results. Each of these steps of the planning
process should be accompanied by an explicit procedure for gaining commitment.
This process is summarized in Figure 2-2. The arrows suggest the best order in
which to proceed. The need for commitment is relevant for all phases. The
specification of objectives should be done befo re the generation of strategies
which, in turn, should be completed before the evaluation. The monitoring step is
last. The dotted line indicates that, to some extent, the process is iterative. For
example, the evaluation may call for going back to the generation of new
strategies, or monitoring may require a new evaluation of strategies.
The various steps of the planning process are described below along with
some formal techniques that can be used to make each step explicit.
(Although commitment is the first step, it is easiest to discuss this last.)
This discussion is prescriptive; it suggests how planning should be done.
Numerous accounts are available of how formal strategic planning is
done (for example, see Wood, 1980, and the extensive review of the
descriptive research by Hofer, 1976).
1.6 THE FORECASTING METHODS
Forecasting methods, as defined here, are explicit
procedures for translating information about the environment and
the company's proposed strategy into statements about future
results. What would be the results if the environment were
favorable and we did A? What if it were unfavorable and we did
A? What if it were unfavorable and we did B?

Before discussing how the forecasting methods can be used

in strategic planning, a general description is provided here on the
various methods that can be used in forecasting.
A number of schemes exist for classifying forecasting methods
(see, for example, Chisholm and Whitaker, 1971; Chambers,
Mullick, and Smith, 1974). These schemes are based upon the
type of data used, the type of people doing the forecasting, or the
degree of sophistication of the methods used to analyze data. The
scheme used below is based upon the methods used to analyze the
data.

Research on methods for analyzing data has historically

been organized along three continuums: subjective versus
objective, naive versus causal, and linear versus classification
methods. The discussion below considers the fictitious end points
of each continuum.
 Conclusion
By using forecasts from the preceding steps, calculations
can then be made of the forecasted costs and benefits of each
strategy for each of the major stakeholders. For example, profit
and loss statements could be prepared for the stockholders,
environmental impacts could be summarized for the local
community, and the effects of product usage could be
summarized from the consumer's point of view.

The forecasts should examine not only the expected results

for a given strategy, but also the uncertainty. What are the most
favorable and least favorable results that might occur?
Furthermore, they should describe how the strategy performs in
different environments. These forecasts of results provide the
basis for selecting among the various strategies. How do they
each perform against the original objectives? If none of the
strategies is acceptable, it is useful to go back to the planning
process for the generation of additional strategies.
 Reference

 https://marketing.wharton.upenn.edu/wp-content/uploads/2016/12/
Strategic-Planning.pdf

 https://nairaproject.com/projects/2624.html

 https://afribary.com/works/the-role-of-planning-and-forecasting-in-
business-organization#:~:text=The%20planning%20and%20forecasting
%20is,of%20success%20in%20any%20business.