Planning in Business Studies: Meaning, Process, Importance & Types
Complete Class 12 guide to planning, features, importance, process and types of plans.
By AccounTantra Team
Meaning of Planning
Planning means deciding in advance what to do, how to do it, when to do it and who should do it. It gives an organisation direction before action begins.
Features
Planning is goal-oriented, future-oriented, continuous, pervasive and based on decision-making.
Importance
It provides direction, reduces uncertainty, avoids overlapping activities, promotes innovation and creates standards for later control.
Planning Process
The process includes setting objectives, developing premises, identifying alternatives, evaluating alternatives, selecting the best option, implementation and follow-up.
Types of Plans
Objectives, strategies, policies, procedures, methods, rules, programmes and budgets are important types of plans.
Practical Example
A business targeting 20% online sales growth can set the target, study market conditions, compare advertising options, prepare a budget, assign responsibility and review results.
Exam Tip
Case-study clues about objectives, alternatives, uncertainty, decision-making and follow-up usually point toward planning.
Quick Revision
Planning decides in advance and connects business goals with people, money, time and resources.
FAQs
### Is planning continuous? Yes. Business conditions and objectives change, so plans must be reviewed. ### Does planning remove risk? No. It helps anticipate and prepare for uncertainty.