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ABFM MODULE - A INTRODUCTION:
Chapter 2: PLANNING (PART-I)
What we will study?
*What is Planning?
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It involves research that is done deliberately and consciously
to formulate the design and the orderly series of actions,
through which it is anticipated to succeed in accomplishing
goals.
During the planning, each possibility, both present and future,
that is even remotely connected to the goals, will be taken
into consideration.
The planning process also incorporates consideration of every
conceivable risk, including losses, defections, and so on.
It engages deeply in various activities to give directions,
prescribe methods, evolve procedures, and transform
activities, to decide to accomplish the business goals in an
efficient and effective manner.
The process of planning is based not only on the finances,
time frame, infrastructure, and resources, but also since
decisions and particular or directional plans, which might be
strategical, tactical, or operational, are made based on those
considerations.
Planning covers
• What is to be done?
• Where it is to be done?
• How it is to be done?
• When it is to be done?
• Who will execute?
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We are involved in various activities in our life, some of which
are routine activities but some are such that their results have
important bearing on us.
Such activities are often not carried out it a casual way but in
a carefully decided manner.
In other words, we may say that we have planned these
activities.
If an activity is well planned, the probability of achieving the
desired results increases.
In business organisations also, the important activities are
well planned to increase the likelihood of achieving the set
goals.
FUNDAMENTALS OF PLANNING:
Planning is the process of engaging in thoughtful discussion
before undertaking a task, which entails engaging in in-depth
contemplation about that task and going into all the details
meticulously to be ready with an execution and
implementation plan, to save both effort and time.
Planning involves doing an objective analysis of future
requirements, to facilitate the modification of ongoing
activities considering the objective that has been set.
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STEPS IN PLANNING:
The process of planning consists of the following steps:
1. Opportunity Analysis:
Opportunity analysis entails analysing the opportunity, being
aware of the opportunity, and basing the development of the
business plans on this opportunity.
This exercise also involves comprehending the existing
circumstances of the available opportunity and having a
general understanding of its future prospects.
2. Objective Establishment:
Without knowing the objective, it is impossible to develop a
strategy for its accomplishment.
Objectives are, therefore, the initial step in the
planningprocess, which is typically a political endeavour.
3. Developing Planning Premises:
The collection of future forecasting-derived assumptions is
known as the planning premises determination.
The predicting must be based on a realistic assessment of the
environment in which the plans are to be executed, as well as
a creative understanding of the surroundings.
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The premises must be constantly monitored and upgraded. When comparing the various approaches, the use of statistical
The premises cover the following areas: methods and computers proves to be extremely beneficial.
i. Forecasting One of the processes might be less desirable or effective
ii. Basic Policies compared to the others, while another might be more suited
iii. Existing Plans. to the immediate goal.
It’s possible that one of the processes would be very
4. Alternatives Identification: profitable, but the other would be extremely expensive.

The process of determining the availability of various means
to attain goals is referred to as “identifying alternative
means.”
It is essential to make a written record of the total number of
alternatives available, that should initially be narrowed down
to the most enticing and satisfying options, through a
preliminary examination, based on one’s trials, experiences,
and study.
5. Evaluating Alternatives:
Following the discovery of additional methods and an
examination of both their strong and weak points, the planner
should assess the alternative methods.
Because there is such a wide variety of options and a wide
range of possible outcomes, this task is not an easy one.
6. Selecting the Best Alternative:
At this stage, the plan is to be adopted, and the numerous
options are to be evaluated, so that it can be determined
which plan can best assist in the accomplishment of the
business objectives.
The stage is called “selecting the best alternative.”
At this juncture, the question that must be resolved is
whether the initial plan is superior or whether the alternate
strategy is going to be effective.
7. Formulating Derivative Plan:
The time required to formulate derivative plans, i.e., sub plans
or secondary plans, includes the time needed to implement
the plan in accordance with the decision, which would
comprise the procedures below:

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• Development of the new policies and procedures
• Coordination of the activities of the derivative plans
• Working in accordance with the targets of the main plan

8. Follow-up and Reviewing the Plan:

Planning is a continuous process for ensuring attainment of
business objectives.
It is very important for a business entity to continuously
monitor the implementation of the plans and keep adjusting
and amending the plans as required.
Planning is, in its most fundamental sense, the administration
of all the functions associated to the work on which you spend
your valuable time, engaging in in-depth deliberation.