PLANNING

PREMISES AND
FORECASTING
PLANNING PREMISES
Planning premises means
systemic and logical estimate
for the future factors affecting
planning.
According to Dr. G. R. Terry,
“Planning premises are the
assumptions providing a
background against which the
estimated events affecting the
planning will take place.”
 External and Internal

Tangible and intangible

Classification of Controllable, semi controllable and

planning uncontrollable
premises

Constant and variable

Foreseeable and unforeseeable

 FORECASTING
Forecasting is a systematic
guessing of the future course of
events with the help of analysis of
past and present events.
According to Webster, “A
forecast is a prediction and
its purpose is to calculate
and predict some future
event or condition.”
 FEATURES
Concerned with future events.
Necessary for planning process.
Guessing of future events.
The impact of future events has to be
considered in the planning process.
 PROCESS
Thorough preparation
of foundation

Estimation of future

Collection of results

Comparison of results

Refining the forecast

FORECASTING TECHNIQUES
 Similarity events methods
 Jury of executive option

 Survey Method

 Sales Person’s opinion

 Business Barometers

 Expectation of consumer

 Time series analysis

 Delphi Method

 Extrapolation

 Regression analysis

 Input and output analysis

 Econometric models