what is the first step in business planning process mcq

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MCQ on Planning Class 12 Business Studies

MCQ on Planning Class 12 Business Studies includes Multiple choice questions on Introduction, Meaning, Importance, Features & Limitations of Planning and Planning Process. Answers to Planning Class 12 MCQ Business Studies CBSE are available after clicking on the answer.

Topic 1 – Introduction, Meaning, Importance, Features & Limitations of Planning

1. Planning involves which of the following : – a) What to do ? b) How to do ? c) Who will do it ? d) All of the above

Answer: (d) All of the above

2. Planning and “Going with the flow’ are : – a) Same b) Different

Answer: (b) Different

3. Planning means to bridge the gap between a) Present and future b) Past and future c) Past and present d) None of the above

Answer: (a) Present and future

4. Which of the following factor depict the importance of planning ? a) Unity of action b) Unity of direction to employees efforts c) Both a and b d) None of the above

Answer: (c) Both a and b

5. Planning : – a) Reduces the risk of uncertainty ; b) Reduces overlapping and wasteful activities c) Promotes innovative ideas d) All of the above

6. Planning : – a) Facilitates decision making b) Establishes standard for controlling c) Both a and b d) None of the above

7. Which of the following is a feature of planning : a) Planning is primary function of management b) Planning focuses on achieving objective c) Planning is pervasive d) All of the above

Answer: (d) All of the above

8. Which of the following is a feature of planning : a) Planning is continuous b) Planning is futuristic c) Planning is a mental exercise d) All of the above

9. Planning is primary function of management because : – a) It is done before doing anything ; b) Planning is looking forward c) Planning helps in setting up the base for other activities d) All of the above

10. Planning is pervasive means planning is required : – a) Somewhere b) Nowhere c) Everywhere d) All of the above

Answer: (c) Everywhere

12. Read the following statements of Assertion(A) and Reason(R) and choose the correct alternative:

Assertion(A) – Planning bridges the distance among from wherein we’re to wherein we need to go Reason(R) – Planning includes setting goals and generating appropriate sources of course to achieve those goals

(a) Both A and R are correct (b) A is correct R is incorrect (c) Both A and R are correct and R is the correct explanation of A (d) Both A and R are correct and R is not the correct explanation of A

Answer: (d) Both A and R are correct and R is not the correct explanation of A

13. Read the following statements of Assertion(A) and Reason(R) and choose the correct alternative:

Assertion(A) – Planning is the initial step in management. Reason(R) – Planning involves thinking before doing anything as certain objectives are identified and strategies are devised for its subsequent realization.

Answer: (c) Both A and R are correct and R is the correct explanation of A

14. Read the following statements of Assertion(A) and Reason(R) and choose the correct alternative:

Assertion(A) – Planning promotes revolutionary ideas Reason(R) – Planning presents the requirements towards which the real overall performance may be measured and evaluated

15. Read the following statements of Assertion(A) and Reason(R) and choose the correct alternative:

Assertion(A) – Uncertainty is reduced by planning. Reason(R) – Uncertain occurrences or changes can be anticipated and avoided with proper planning.

(a) Both A and R are correct (b) A is correct R is incorrect (c) Both A and R are correct and R is the correct explanation of R (d) Both A and R are correct and R is not the correct explanation of R

Answer: (c) Both A and R are correct and R is the correct explanation of R

16. Read the following statements of Assertion(A) and Reason(R) and choose the correct alternative:

Assertion(A) – Making decisions is an important component of planning. Reason(R) – when there is just one possibility left only then planning is required.

Answer: (b) A is correct R is incorrect

17. Read the following statement given below and choose the correct alternative

Statement 1 : Planning is the most challenging activity for the management as it guides all future actions. Statement2 : Sometimes the costs incurred for the planning may not justify the benefits derived from the plans

(a) Both are correct (b) Both are incorrect (c) Statement 1 is correct and statement 2 is incorrect (d) Statement 1 is incorrect and statement 2 is correct

Answer: (a) Both are correct

18. Rahul establishes a modest outlet in his neighbourhood to give his freelance services to businesses after getting a diploma in animation and filmmaking. To begin, he has opted to market his gaming and computer programming services. He can lessen the risk of confusion and avoid overlapping and unnecessary tasks by planning ahead of time what to accomplish and how to do it. However, owing to unforeseen factors such as network troubles and others, his planning does not always work, which has a negative impact on her customers. In light of the preceding scenario answer the given questions:

Which function of management is Rahul utilizing in the above case-

(a) Organising (b) Directing (c) Staffing (d) planning

Answer: (d) planning

Which feature of planning does the above case highlight-

(a) Planning does not guarantee success (b) Planning reduces creativity (c) Planning leads to rigidity (d) Planning involves huge costs

Answer: (a) Planning does not guarantee success

20. “Teser Automobiles” was a vehicle and motorbike manufacturer with a dominance on the market. The company was doing extremely well, constantly exceeding its goal of a 13 percent rise in sales across the board. Encouraged by the positive track record, the company’s managing director set a big dream of a 25% growth in sales for the next year. In the same year, two new competitors entered the market, and the company was unable to reach its goal. From this case, identify the limitation of function of management because of which Teser Automobiles was not able to achieve their target-

(a) It reduces creativity (b) It may not work in a dynamic environment (c) It does not guarantee success (d) Both a and b

Answer: (b) It may not work in a dynamic environment

MCQ on Planning Class 12 Business Studies – Topic 2 – Planning Process

Q1. Which of the following is not a step of planning process? a) Evaluating alternative courses b) Implementing the plan c) Developing Premises d) Controlling

Answer: (d)Controlling

Answer: (b)Setting Objective

Q3. “The manager is required to make certain assumptions about the future”. Which step of planning process is mentioned in this statement? a) Evaluating alternative courses b) Setting Objective b) Developing Premises c) Implementing the plan

Answer: (c)Developing Premises

Q4. “The positive and negative aspects of each proposal need to be evaluated in the light of the objective to be achieved.” Which step of planning process is mentioned in this statement? a) Evaluating alternative courses b) Identifying alternative courses of action c) Selecting an alternative d) Implementing the plan

Answer: (a)Evaluating alternative courses

Q5. After setting objective and developing premises what is the next step in planning process? a) Evaluating alternative courses b) Identifying alternative courses of action c) Selecting an alternative d) Implementing the plan

Answer: (b)Identifying alternative courses of action

Answer: (d)Implementing the plan

Q7. “The manager will have to apply permutations and combinations and select the best possible course of action.” Which step of planning process is mentioned in this statement? a) Evaluating alternative courses b) Identifying alternative courses of action c) Selecting an alternative d) Implementing the plan

Answer: (c)Selecting an alternative

Q8. Which of the following is the last step in the planning process? a) Evaluating alternative courses b) Identifying alternative courses of action c) Follow-up action d) Implementing the plan

Answer: (c)Follow-up action

Evaluating alternative courses
Identifying alternative courses of action
Follow-up action
Setting Objectives
Implementing the plan
Developing Premises
Selecting an alternative

a) 4,6,2,1,7,5,3 b) 3,6,7,1,2,5,4 c) 1,5,2,4,7,6,3 d) 4,1,5,6,7,2,3

Answer: (a)4,6,2,1,7,5,3

Q10. What is the next step after selecting the alternative in planning process? a) Evaluating alternative courses b) Identifying alternative courses of action c) Selecting an alternative d) Implementing the plan

11. What are the remaining steps that the organisation is likely to follow- (a) Selecting the best alternative (b) Follow-up plan (c) Evaluating the alternative course (d) All of the above

12. Read the following statement given below and choose the correct alternative Statement 1 : Assumptions are the base material upon which plans are to be drawn and these assumptions are called Planning premises. Statement2 : After Developing premises the next step in the planning process is Evaluating the alternative courses of action.

Answer: (c) Statement 1 is correct and statement 2 is incorrect

(a) Follow-up action (b) Implementing the plan (c) Selecting an alternative (d) Identifying the alternative courses of action

Answer: (a) Follow-up action

14. Which of the following steps is not a part of the planning process-

(a) Setting objectives (b) Developing premises (c) Viewing physical facilities and actions (d) Follow-up action

Answer: (c) Viewing physical facilities and actions

15. Following the implementation of the “Goods and Services Tax, “business professionals began analysing and anticipating its effects on various sectors and industries. Naman, the managing partner, went to a few conferences to get a better understanding of the problem. He wanted to use these forecasts and conjectures to help him make future business decisions with less insecurity. Identify the step followed by Naman from the planning process in the above case-

(a) Identifying various courses of action (b) Developing premises (c) Setting objectives (d) Follow-up plan

Answer: (b) Developing premises

Business Studies Class 12 MCQs – Term 1

Nature and Significance of Management MCQs
Principles of Management MCQs
MCQ on Business Environment
MCQ on Planning
MCQ on Organising
Marketing Management MCQs

Frequently Asked Questions on MCQ on Planning Class 12 Business Studies

1. Are these MCQ’s on Planning Class 12 Business Studies are based on 2021-22 CBSE Syllabus ?

Yes . There are 35 MCQ’s on this Chapter in this blog.

2. Are you giving all the chapters of Business Studies Class 12 which are given in CBSE syllabus for 2021-22 ?

Yes, we have provide total of 400+ MCQ from all chapters

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Important MCQs of Planning chapter Business Studies Class 12

September 17, 2021
MCQS , 12th Business Studies (CBSE) , Planning

Looking for Important MCQs of Planning chapter of Business Studies with answers and explanations of Class 12 CBSE, ISC, and other state Boards.

We have compiled very important Multiple Choice Questions with answers of Planning chapter of BST class 12

Multiple Choice Questions of Planning chapter of BST Class 12

To get success in business all managers need to work hard in thinking about future, in making business prediction and achieving targets.

The above line describe one of the concept, name that

a) Planning b) Coordination c) Management d) None of the above

Ans – a)

Planners are suppose to be highly intellectual as they hae to analyse evironment to make predictions regarding future, compare various alternatives and select the best. It is related to which feature of planning

a) Planning involve decision making b) Planning is forward looking c) Planning is a mental exercise d) Planning is primary function of management

Ans – c)

Due to planning changes in Business environment do not come as shock and surpise. This is related to which importance of planning.

a) Planning facilitate decision making b) Planning promotes innovative idea c) Planning reduces the risk of uncertainities d) Planning provides direction

Which limitation is highlighted here once plan decided the future course of action, and manager may not be in a position to change it:

a) Planning may not work in dynamic environment b) Creates Rigidity c) Reduces Creativity d) Time Consuming

Ans – b)

In which step of planning process the best and most feasible plan will be choosen to be implemented

a) Selecting an alternative b) Developing Premises c) Evaluating alternative course of action d) Setting up objective

In which step of planning process pros and cons of each alternative is examined.

a) Selecting an alternative premises b) Developing Premises c) Evaluating alternatives course of action d) Setting up Objective

Mansi, after completing her course in fashion designing planned to start designer boutique. She had to address issues like her target customers, channels of distributions to be used, Pricing policy etc. The type of plan Mansi need to develop to get a blue print of the business venture is

a) Policy b) Programme c) Strategy d) Objective

‘Pace Ltd’. is an enterprise selling T.V sets, they have decided to buy LED screen only from vendors using Japanese technique of manufacturing. This is related to which type of Plan

a) Objective b) Policy c) Strategy d) Rule

Planning is the

a) Primary/First function of manager b) Last function of manager c) Both a) and b) d) None of the above

Making assumptions for future is called

a) Making derivative plans b) Making policy c) Setting planning premises d) All of the above

The composite plan which involves setting up of long term objective finding course of action and allocation of resources is called

a) Policy b) Strategy c) Programme d) Procedure

The plan which includes objective, policy, procedure and rule is called

a) strategy b) Budget c) Programme d) All of the above

Standardised way in which a task has to be performed is called

a) Policy b) Procedure c) Strategy d) Method

Ans – d)

The sequence of steps or actions to be taken to enforce a policy and attain pre- determined objective is called

a) Objective b) Policy c) Procedure d) Strategy

Organiations own customised way of handling problems or taking decisions is called

a) Strategy b) Policy c) Budget d) Rule

End Results towards which all the activities are directed is called

a) Policy b) Strategy c) Objective d) Programme

Controlling device from which deviations can be taken care of is

a) Procedure b) Strategy c) Policy d) Budget

Planning is performed at

a) Top Level b) Middle Level c) Supervising Level d) All level

Planning is

a) Routine Activity b) Mental excercise c) None of the above d) All of the abovej

After implementation of plan

a) Planning ends b) New plan is made c) Follow up is done d) None of the above

Standing Plan

a) Stands as an example for other planner b) Recurring plans c) Discarded after use d) All of the above

Single Use pLan

a) Used only once b) Used for one single department c) Used by single individual d) All of the above

Planning establish base or standard for

a) Organising b) Staffing c) Directing d) Controlling

A company is manufacturing garments. The manager wants to increase profits by purchasing new high speed machines or increasing the sale price or using waste materials in manufacturing stuffed toys. He decided that ‘using waste material’ is the best solution for him. Identify the concept of management involved.

a) Directing b) Coordination c) Planning d) Organising

Rahim wanted to start with a stationery app to help students of schools and colleges to provide stationery to them. He felt that students were not able to get the needed stationery easily and hence wanted to provide the stationery directly to students in the school. He list out the various ways of setting up this business and finally selected the best way to set up this business is by developing an app. Suggest what should be the next step of him:

a) Developing premises b) Identifying the alternative course of action c) Implementation of plan d) Follow up action

What are certain assumptions about the future on the basis of which the plan will be ultimately formulated?

a) Method premises b) Planning premises c) Esteem needs d) Management premises

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The Business Planning Process: 6 Steps To Creating a New Plan

The Business Planning Process 6 Steps to Create a New Plan

In this article, we will define and explain the basic business planning process to help your business move in the right direction.

What is Business Planning?

Business planning is the process whereby an organization’s leaders figure out the best roadmap for growth and document their plan for success.

The business planning process includes diagnosing the company’s internal strengths and weaknesses, improving its efficiency, working out how it will compete against rival firms in the future, and setting milestones for progress so they can be measured.

The process includes writing a new business plan. What is a business plan? It is a written document that provides an outline and resources needed to achieve success. Whether you are writing your plan from scratch, from a simple business plan template , or working with an experienced business plan consultant or writer, business planning for startups, small businesses, and existing companies is the same.

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The business plan process includes 6 steps as follows:

Do Your Research
Calculate Your Financial Forecast
Draft Your Plan
Revise & Proofread
Nail the Business Plan Presentation

We’ve provided more detail for each of these key business plan steps below.

1. Do Your Research

Conduct detailed research into the industry, target market, existing customer base, competitors, and costs of the business begins the process. Consider each new step a new project that requires project planning and execution. You may ask yourself the following questions:

What are your business goals?
What is the current state of your business?
What are the current industry trends?
What is your competition doing?

There are a variety of resources needed, ranging from databases and articles to direct interviews with other entrepreneurs, potential customers, or industry experts. The information gathered during this process should be documented and organized carefully, including the source as there is a need to cite sources within your business plan.

You may also want to complete a SWOT Analysis for your own business to identify your strengths, weaknesses, opportunities, and potential risks as this will help you develop your strategies to highlight your competitive advantage.

2. Strategize

Now, you will use the research to determine the best strategy for your business. You may choose to develop new strategies or refine existing strategies that have demonstrated success in the industry. Pulling the best practices of the industry provides a foundation, but then you should expand on the different activities that focus on your competitive advantage.

This step of the planning process may include formulating a vision for the company’s future, which can be done by conducting intensive customer interviews and understanding their motivations for purchasing goods and services of interest. Dig deeper into decisions on an appropriate marketing plan, operational processes to execute your plan, and human resources required for the first five years of the company’s life.

3. Calculate Your Financial Forecast

All of the activities you choose for your strategy come at some cost and, hopefully, lead to some revenues. Sketch out the financial situation by looking at whether you can expect revenues to cover all costs and leave room for profit in the long run.

Begin to insert your financial assumptions and startup costs into a financial model which can produce a first-year cash flow statement for you, giving you the best sense of the cash you will need on hand to fund your early operations.

A full set of financial statements provides the details about the company’s operations and performance, including its expenses and profits by accounting period (quarterly or year-to-date). Financial statements also provide a snapshot of the company’s current financial position, including its assets and liabilities.

This is one of the most valued aspects of any business plan as it provides a straightforward summary of what a company does with its money, or how it grows from initial investment to become profitable.

4. Draft Your Plan

With financials more or less settled and a strategy decided, it is time to draft through the narrative of each component of your business plan . With the background work you have completed, the drafting itself should be a relatively painless process.

If you have trouble writing convincing prose, this is a time to seek the help of an experienced business plan writer who can put together the plan from this point.

5. Revise & Proofread

Revisit the entire plan to look for any ideas or wording that may be confusing, redundant, or irrelevant to the points you are making within the plan. You may want to work with other management team members in your business who are familiar with the company’s operations or marketing plan in order to fine-tune the plan.

Finally, proofread thoroughly for spelling, grammar, and formatting, enlisting the help of others to act as additional sets of eyes. You may begin to experience burnout from working on the plan for so long and have a need to set it aside for a bit to look at it again with fresh eyes.

6. Nail the Business Plan Presentation

The presentation of the business plan should succinctly highlight the key points outlined above and include additional material that would be helpful to potential investors such as financial information, resumes of key employees, or samples of marketing materials. It can also be beneficial to provide a report on past sales or financial performance and what the business has done to bring it back into positive territory.

Business Planning Process Conclusion

Every entrepreneur dreams of the day their business becomes wildly successful.

But what does that really mean? How do you know whether your idea is worth pursuing?

And how do you stay motivated when things are not going as planned? The answers to these questions can be found in your business plan. This document helps entrepreneurs make better decisions and avoid common pitfalls along the way.

Business plans are dynamic documents that can be revised and presented to different audiences throughout the course of a company’s life. For example, a business may have one plan for its initial investment proposal, another which focuses more on milestones and objectives for the first several years in existence, and yet one more which is used specifically when raising funds.

Business plans are a critical first step for any company looking to attract investors or receive grant money, as they allow a new organization to better convey its potential and business goals to those able to provide financial resources.

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Planning MCQ | Class 12 | Business Studies | Chapter-4

Planning mcq chapter 4.

Below are some of the very important NCERT Planning MCQ Class 12 Business Studies Chapter 4 with Answers. These Planning MCQ have been prepared by expert teachers and subject experts based on the latest syllabus and pattern of term 1 and term 2. We have given these Planning MCQ Class 12 Business Studies Questions with Answers to help students understand the concept.

MCQ Questions for Class 12 Business Studies Chapter 4 are very important for the latest CBSE term 1 and term 2 pattern. These MCQs are very important for students who want to score high in CBSE Board.

We have put together these NCERT Questions Planning MCQ for Class 12 Business Studies Chapter 4 with Answers for the practice on a regular basis to score high in exams. Refer to these MCQs Questions with Answers here along with a detailed explanation.

1. Which of the following statements is false with respect to planning?

(a) it is one of the basic managerial functions (b) planning is closely connected with creativity and innovation (c) it requires taking decision (d) none of the above

2. Which of the following is a feature of planning?

(a) provide direction (b) reduces the risk of uncertainty (c) focuses on achieving objectives (d) all of the above

3. “It is that function of management which is considered as the base of all other functions.” Identify the function of management stated in the above lines.

(a) planning (b) controlling (c) organising (d) staffing

4. “It involves application of higher order thinking skills and intellectual faculties, involving fission and foresightedness to decide the things to be done in the future.”

Which feature of planning is stated in the above line?

(a) planning is futuristic (b) planning is pervasive (c) planning is a mental exercise (d) none of the above

5. “Planning is required in all organisations at all level and all departments.”

___________ feature of planning is stated in the above statement.

(a) planning is futuristic (b) planning is pervasive (c) planning is mental exercise (d) none of the above

6. Nikita, a proofreader in Jai Publications, has been given a target of reading at least 50 pages per day. She has a habit of doing things differently. While doing her work and idea struck her that a summary of a chapter in the form of a map where all the concepts related to the chapter would be interlinked, should be given in starting of each chapter. It will give students just of the chapter as well as provide a competitive edge over the other publishers.

But instead of appreciating her idea, her boss scolded her and asked to complete the work as per prescribed format. Out of the following, identify the limitation of planning stated in the above paragraph.

(a) planning reduces creativity (b) planning involves huge cost (c) planning is a time-consuming process (d) planning does not work in dynamic environment

7. Relo Ltd. wants to increase their market share by 4.5 % in next 2 years. It spent a lot of money to hire specialised people for framing their plans like collecting important facts about environment, who took lot of time to frame plans for the company. The competition has started increasing and it is not able to beat its competitors. It is because it has already spent a huge amount the plan field and companies offer the huge loss.

Identify the limitation of planning stated in the given case.

(a) planning involves huge cost (b) planning may not work in the dynamic environment (c) planning is a time-consuming process (d) all of the above

8. Which of the following statements is true regarding planning?

(a) once plans are made to decide the future in course of action, the management may not be in a position to change them. (b) planning is a one-time process (c) planning is required only at top level of management as plans are made by top level of management (d) planning always leads to success

9. Match the following.

(a) (ii), (iii), (i) (b) (iii), (ii), (i) (c) (ii), (i), (iii) (d) (iii), (i), (ii)

10. Planning is decided in advance, what to do and how to do it. The first step of planning process is

(a) setting objectives (b) follow-up (c) implementation of plan (d) developing premises

11. Which of the following steps in the process of planning stage that the manager is required to make certain assumptions about the future?

(a) setting objectives (b) developing premises (c) evaluating alternative course of action (d) implementation of plan

12. __________ are the anticipated in parliament in which plants are expected to operate.

(a) planning (b) premises (c) forecasting objective (d) none of the above

13. To see whether plans are being implemented and activities are being performed according to the schedule, is a step of planning process. Identify the step.

(a) Selecting the best alternative (b) Implementing the plan (c) Follow up action (d) Evaluating alternative courses of action

14. _________ step is a process of planning is considered as the ‘real point of decision making’.

(a) setting objectives (b) selecting an alternative (c) implementation of plan (d) developing premises

15. While ‘selecting an alternative’ under the planning process, which of the following are considered?

(a) combination of plants may be selected instead of one best course (b) subjectivity and managers experience or judgement plays a role (c) the most feasible profitable plan with least negative consequences is chosen (d) all of the above

16. Which of the following is true with respect to the step ‘developing premises’ under the planning process?

(a) base material for assumption can be put in the form of forecasts, existing plans or any past information about policies (b) only a few managers are required to be familiar with and use the same assumptions (c) as a need not necessarily be same for all (d) all of the above

17. Match the following.

(a) (iii), (ii), (i) (b) (ii), (i), (iii) (c) (ii), (iii), (i) (d) (iii), (i), (ii)

Click Below To Learn Business Studies Term 1 Syllabus Chapter-Wise MCQs

Chapter 1: Nature and Significance of Management MCQ
Chapter 2: Principles of Management MCQ
Chapter 3: Business Environment MCQ
Chapter 4: Planning MCQ
Chapter 5: Organising MCQ
Chapter 11: Marketing MCQ

MCQ Answers

Planning lays down the base for other functions of management. Planning involves setting targets and predicting future conditions, thus helping in taking rational decisions.

Planning reduces uncertainty, risk and confusion in operation. Planning begins with the determination of objectives and is directed towards their achievement.

Planning precedes all other managerial functions and provides the very basis for organising, staffing, directing and controlling. Planning is deciding in advance what to do and how to do. It is one of the basic managerial function. Before doing something the manager must formulate an idea of how to work on a particular task. Thus, planning is closely connected with creativity and innovation.

Planning requires application of the mind involving foresight, intelligent imagination and sound judgement. It is basically an intellectual activity of thinking rather than doing, because planning determines the action to be taken.

Planning is required at all levels of management as well as in all department of organisation. It is not an exclusive function of top management 9 of any particular department.

Planning reduces creativity. It is an activity which is done by the top management. Usually the rest of the members must implement these plans. As a consequence, middle management and other decision makers and neither allowed to deviate from plan nor are the permitted to act on their own. Thus, much of the initiative and creativity in her in them also gets lost or reduced.

Planning requires a lot of time to collect information, if analysis and interpretation. So it is a time consuming process. When plans are drawn up huge cost are involved in the formulation. The environment in which business services is dynamic as it keeps on changing. The dynamic environment may sometimes lead to failure of plans.

In an organisation, a well-defined plan is drawn with specific goals to be achieved within a specific time frame. These plans then decide the future course of the action and managers may not be in a position to change it. This kind of rigidity and plans may create difficulty.

(ii), (i), (iii)

The first and foremost step is setting objectives. Every organisation must have certain objectives. Objectives may be set for the entire organisation and each department or unit within the organisation.

Planning is concerned with future which is uncertain and every planner is using picture about what might happen in future. Therefore, the manager is required to make certain assumptions about the future. These assumptions are called premises.

Premises include actual forecast data policies and plans of the enterprise. Planning involves looking into the future which necessary necessitates the Enterprise to know how future conditions will affect its activities.

To see whether the plans are being implemented and activities are performed according to schedule is also part of the planning process. Monitoring the plants is equally important to ensure that object is achieved.

Best plan to be adopted and implemented. The ideal plan, of course, would be the most feasible, profitable and with at least negative consequences. Most plants may not always be subjected to a mathematical analysis.

The best plan, which is the most profitable planet with minimum negative effect, is adopted and implemented.

In such case, managers experience and judgement plays an important role in selecting the best alternative.

Assumptions are the base material upon which plants are to be drawn. The base material may be in the form of forecast, existing plans or any past information about policies. The premises or assumptions must be same for all and there should be total agreement on them. All managers involved in Planning should be familiar with the use the same assumption.

(ii), (iii), (i)

Ass ertion-Reasoning Based MCQ

Both assertion and reason are true and reason is the correct explanation of assertion.
Both assertion and reason are true but reason is not the correct explanation of assertion.
Assertion is true but reason is false.
Assertion is false but reason is true.

1. Assertion Planning is a primary function of management.

Reason Planning is required at all levels of management as well as in all departments of organisation.

2. Assertion Planning is a time saving process.

Reason The success of an enterprise is possible only when plans are properly drawn up and implemented.

3. Assertion Planning is futuristic.

Reason Planning is regarded as a forward-looking function based on forecasting.

4. Assertion Planning is pervasive at all levels of management.

Reason Planning is required in all types of organisation and at all levels of management.

5. Assertion Developing planning premises is the primary step.

Reason Objective are in results with the management wants to achieve by its operations.

6. Assertion Monitoring of plants is very important to ensure that the plans are being implemented according to the schedule.

Reason Regular check and comparison of the results with set standards are done to ensure that objectives are achieved.

7. Assertion Planning is concerned with the future which is uncertain.

Reason The manager is required to make certain assumptions about the future.

Assertion-Reasoning Based MCQ Answers

Planning lays down the base for other function of management. All of the managerial functions are performed within the framework of the plans drawn. Thus, planning proceed other functions.

Planning is a time consuming process. Sometimes plans to be drawn up take so much time, there is not much time left for the implementation.

Planning essentially involves looking ahead and preparing for the future. The purpose of planning is to meet future events effectively to the best advantage of an organisation. It implies peeping into the future analysing and predicting it.

Planning is required at all levels of the management. It is not a function restricted to top level managers only but planning is done by managers at every level. Formation of major plan and framing of overall all policies is the task of top level managers where as departmental managers form plan for their respective departments. And lower level managers make plans to support the overall objective and to carry on day to day activities.

Setting objectives is the primary step in the process of planning which specifies the objective of an organisation, therefore what an organisation wants to achieve.

To see whether plans are being implemented and activities are performed according to schedule is also part of the planning process. Monitoring the plants is equally important to ensure that objectives are achieved.

Planning is concerned with future which is uncertain and every planner is using conjecture about what might happen in future. Therefore, the manager is required to make certain assumptions about the future. These assumptions are called premises.

Case-Study Based MCQ

1. Read the following passage and answer accordingly.

Mundhra Group Ltd. had taken over Simplex Limited immediately after India’s Independence. Since then it enjoys a rich record of industry presence and experience. In 2005, with aim to accelerate growth the company had gone through several rounds of meetings and discussions before launching ERP system to attract large projects.

The management had an effective forecast and critical thinking regarding allocation of resources to reduce wastage. For this purpose, the company had laid down multiple courses of action to meet the challenge of adverse situation. In 2008, the company suffered loss in many projects due to the great recession despite taking many cost-cutting measures.

The management had taken atmosphere regarding the possible outcome and timely review of the plans to achieve the set target during that hard time. In 2010, the system implemented successfully with subsequently help the company to execute numerous projects with precision and timeliness.

(i) “In 2005, with the aim to accelerate growth the company had gone through several rounds of meetings and discussions.” What is the objective mentioned here according to the process stated here?

(a) developing premises (b) growth and development (c) launching IT enabled system (d) cost cutting

(ii) “The management had an effective forecast and critical thinking regarding allocation of resources to reduce wastage.” Identify the function of management mentioned here.

(a) planning (b) organising (c) controlling (d) directing

(iii) “In 2008, the company suffered loss in many project due to the great recession despite taking many cost-cutting measures.” Which limitation of the management process is indicated here?

(a) it feels to cope with sudden changes (b) it involves use cost (c) it requires critical thinking (d) need to construct multiple action plans

(iv) “The management had taken utmost care regarding the possible outcome and timely review of the plans to achieve desired target during that hard time.” Which is the last step of the process mentioned here?

(a) implementation of plan (b) timely execution of projects (c) follow up (d) to prepare alternative course of action

2. Read the following passage and answer the following accordingly.

Rohit inherited a 25 acre ancestral land from his grandparents. He decided to venture into agriculture. For this purpose we set out specific goals, objectives and activities. Everything was a challenge because he was not aware about farming. He learnt every activity in the process thought of assisting other farmers as well.

He eventually launched his own company Agriculture Solution Ltd. He wanted to be sure that the activities effectively made the best interest of the company and the farmers. Hence, the prepared annual plan for production, sales and marketing through sales forecasting.

He also realised that farmers by growing only one or two crops. On account of this deal and remained idle for the rest of the year. Thus, he identified and evaluated different alternative through which the farms could be utilised throughout the year.

He used his foresight and logical and systematic thinking based on analysis of all taxes and examined and evaluated all the alternative. He presented a plant to the farmers union, where after harvesting the primary crop seasonal vegetables and fruit could be grown.

(i) “For this purpose he set out specific goals objectives and activities.” Which feature of planning is depicted in this statement?

(a) planning focuses on achieving objectives (b) planning is a primary function of management (c) planning is pervasive (d) planning is continuous

(ii) “Hence, he prepared an annual plan for production, sales and marketing through sales forecasting.” Which feature of planning is depicted in the statement?

(a) planning is continuous (b) planning is futuristic (c) planning in was decision making (d) planning is a mental exercise

(iii) “Thus, he invented and evaluated different alternative through which the farmers could be utilised throughout the year.” Which feature of planning is depicted in the statement?

(a) planning is pervasive (b) planning is continuous (c) planning is futuristic (d) planning involves decision making

(iv) “He used his foresight, logical & systematic thinking based on analysis of olfaction examined and evaluated all the alternative.” Which feature of planning is depicted in this statement?

(a) planning focuses on achieving objectives (b) planning is a primary function of management (c) planning in voice decision making (d) planning is a mental exercise

Case-Study Based MCQ Answers

1. (i)(b) (ii)(a) (iii)(a) (iv)(c)

2. (i)(a) (ii)(b) (iii)(d) (iv)(d)

Click Below To Learn Physics Term 1 Syllabus Chapter-Wise MCQs

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Final Words

From the above article, you have practiced Planning MCQ of Class 12 Business Studies Chapter 4. We hope that the above-mentioned MCQs for term 1 of chapter 4 Planning MCQ would will surely help you in your exam.

If you have any doubts or queries regarding Planning MCQ (Multiple Choice Questions) with answers, feel free to reach us and we will get back to you as early as possible.

17.2 The Planning Process

Outline the planning and controlling processes.

Planning is a process. Ideally it is future oriented, comprehensive, systematic, integrated, and negotiated. 11 It involves an extensive search for alternatives and analyzes relevant information, is systematic in nature, and is commonly participative. 12 The planning model described in this section breaks the managerial function of planning into several steps, as shown in Exhibit 17.3 . Following this step-by-step procedure helps ensure that organizational planning meets these requirements.

Step 1: Developing an Awareness of the Present State

According to management scholars Harold Koontz and Cyril O’Donnell, the first step in the planning process is awareness. 13 It is at this step that managers build the foundation on which they will develop their plans. This foundation specifies an organization’s current status, pinpoints its commitments, recognizes its strengths and weaknesses, and sets forth a vision of the future. Because the past is instrumental in determining where an organization expects to go in the future, managers at this point must understand their organization and its history. It has been said—“The further you look back, the further you can see ahead.” 14

Step 2: Establishing Outcome Statements

The second step in the planning process consists of deciding “where the organization is headed, or is going to end up.” Ideally, this involves establishing goals. Just as your goal in this course might be to get a certain grade, managers at various levels in an organization’s hierarchy set goals. For example, plans established by a university’s marketing department curriculum committee must fit with and support the plans of the department, which contribute to the goals of the business school, whose plans must, in turn, support the goals of the university. Managers therefore develop an elaborate network of organizational plans, such as that shown in Exhibit 17.4 , to achieve the overall goals of their organization.

Goal vs. Domain Planning

Outcome statements can be constructed around specific goals or framed in terms of moving in a particular direction toward a viable set of outcomes. In goal planning , people set specific goals and then create action statements. 15 For example, freshman Kristin Rude decides that she wants a bachelor of science degree in biochemistry (the goal). She then constructs a four-year academic plan that will help her achieve this goal. Kristin is engaging in goal planning. She first identifies a goal and then develops a course of action to realize her goal.

Another approach to planning is domain/directional planning , in which managers develop a course of action that moves an organization toward one identified domain (and therefore away from other domains). 16 Within the chosen domain may lie a number of acceptable and specific goals. For example, high-school senior Neil Marquardt decides that he wants to major in a business-related discipline in college. During the next four years, he will select a variety of courses from the business school curriculum yet never select a major. After selecting courses based on availability and interest, he earns a sufficient number of credits within this chosen domain that enables him to graduate with a major in marketing. Neil never engaged in goal planning, but in the end he will realize one of many acceptable goals within an accepted domain.

The development of the Post-it® product by the 3M Corporation demonstrates how domain planning works. In the research laboratories at 3M, efforts were being made to develop new forms and strengths of cohesive substances. One result was cohesive material with no known value because of its extremely low cohesive level. A 3M division specialist, Arthur L. Fry, frustrated by page markers falling from his hymn book in church, realized that this material, recently developed by Spencer F. Silver, would stick to paper for long periods and could be removed without destroying the paper. Fry experimented with the material as page markers and note pads—out of this came the highly popular and extremely profitable 3M product Scotch Post-it®. Geoff Nicholson, the driving force behind the Post-it® product, comments that rather than get bogged down in the planning process, innovations must be fast-tracked and decisions made whether to continue or move on early during the product development process. 17

Situations in which managers are likely to engage in domain planning include (1) when there is a recognized need for flexibility, (2) when people cannot agree on goals, (3) when an organization’s external environment is unstable and highly uncertain, and (4) when an organization is starting up or is in a transitional period. In addition, domain planning is likely to prevail at upper levels in an organization, where managers are responsible for dealing with the external environment and when task uncertainty is high. Goal planning (formulating goals compatible with the chosen domain) is likely to prevail in the technical core, where there is less uncertainty.

Hybrid Planning

Occasionally, coupling of domain and goal planning occurs, creating a third approach, called hybrid planning . In this approach, managers begin with the more general domain planning and commit to moving in a particular direction. As time passes, learning occurs, uncertainty is reduced, preferences sharpen, and managers are able to make the transition to goal planning as they identify increasingly specific targets in the selected domain. Movement from domain planning to goal planning occurs as knowledge accumulates, preferences for a particular goal emerge, and action statements are created.

Consequences of Goal, Domain, and Hybrid Planning

Setting goals not only affects performance directly, but also encourages managers to plan more extensively. That is, once goals are set, people are more likely to think systematically about how they should proceed to realize the goals. 18 When people have vague goals, as in domain planning, they find it difficult to draw up detailed action plans and are therefore less likely to perform effectively. When studying the topic of motivation, you will learn about goal theory. Research suggests that goal planning results in higher levels of performance than does domain planning alone. 19

Step 3: Premising

In this step of the planning process, managers establish the premises, or assumptions, on which they will build their action statements. The quality and success of any plan depends on the quality of its underlying assumptions. Throughout the planning process, assumptions about future events must be brought to the surface, monitored, and updated. 20

Managers collect information by scanning their organization’s internal and external environments. They use this information to make assumptions about the likelihood of future events. As Kristin considers her four-year pursuit of her biochemistry major, she anticipates that in addition to her savings and funds supplied by her parents, she will need a full-time summer job for two summers in order to cover the cost of her undergraduate education. Thus, she includes finding full-time summer employment between her senior year of high school and her freshman year and between her freshman and sophomore years of college as part of her plan. The other two summers she will devote to an internship and finding postgraduate employment—much to mom and dad’s delight! Effective planning skills can be used throughout your life. The plan you develop to pay for and complete your education is an especially important one.

Step 4: Determining a Course of Action (Action Statements)

In this stage of the planning process, managers decide how to move from their current position toward their goal (or toward their domain). They develop an action statement that details what needs to be done, when, how, and by whom. The course of action determines how an organization will get from its current position to its desired future position. Choosing a course of action involves determining alternatives by drawing on research, experimentation, and experience; evaluating alternatives in light of how well each would help the organization reach its goals or approach its desired domain; and selecting a course of action after identifying and carefully considering the merits of each alternative.

Step 5: Formulating Supportive Plans

The planning process seldom stops with the adoption of a general plan. Managers often need to develop one or more supportive or derivative plans to bolster and explain their basic plan. Suppose an organization decides to switch from a 5-day, 40-hour workweek (5/40) to a 4-day, 40-hour workweek (4/40) in an attempt to reduce employee turnover. This major plan requires the creation of a number of supportive plans. Managers might need to develop personnel policies dealing with payment of daily overtime. New administrative plans will be needed for scheduling meetings, handling phone calls, and dealing with customers and suppliers.

Planning, Implementation, and Controlling

After managers have moved through the five steps of the planning process and have drawn up and implemented specific plans, they must monitor and maintain their plans. Through the controlling function (to be discussed in greater detail later in this chapter), managers observe ongoing human behavior and organizational activity, compare it to the outcome and action statements formulated during the planning process, and take corrective action if they observe unexpected and unwanted deviations. Thus, planning and controlling activities are closely interrelated (planning ➨ controlling ➨ planning . . .). Planning feeds controlling by establishing the standards against which behavior will be evaluated during the controlling process. Monitoring organizational behavior (the control activity) provides managers with input that helps them prepare for the upcoming planning period—it adds meaning to the awareness step of the planning process.

Influenced by total quality management (TQM) and the importance of achieving continuous improvement in the processes used, as well as the goods and services produced, organizations such as IBM-Rochester have linked their planning and controlling activities by adopting the Deming cycle (also known as the Shewhart cycle).

It has been noted on numerous occasions that many organizations that do plan fail to recognize the importance of continuous learning. Their plans are either placed on the shelf and collect dust or are created, implemented, and adhered to without a systematic review and modification process. Frequently, plans are implemented without first measuring where the organization currently stands so that future comparisons and evaluations of the plan’s effectiveness cannot be determined. The Deming cycle , shown in Exhibit 17.6 , helps managers assess the effects of planned action by integrating organizational learning into the planning process. The cycle consists of four key stages: (1) Plan—create the plan using the model discussed earlier. (2) Do—implement the plan. (3) Check—monitor the results of the planned course of action; organizational learning about the effectiveness of the plan occurs at this stage. (4) Act—act on what was learned, modify the plan, and return to the first stage in the cycle, and the cycle begins again as the organization strives for continuous learning and improvement.

Concept Check

What are the five steps in the planning process?
What is the difference between goal, domain, and hybrid planning?
How are planning, implementation, and controlling related?

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17.2: The Planning Process

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Learning Objectives

Outline the planning and controlling processes.

Planning is a process. Ideally, it is future-oriented, comprehensive, systematic, integrated, and negotiated. 11 It involves an extensive search for alternatives and analyzes relevant information, is systematic in nature, and is commonly participative. 12 The planning model described in this section breaks the managerial function of planning into several steps, as shown in Figure 17.2.1. Following this step-by-step procedure helps ensure that organizational planning meets these requirements.

A flowchart shows the five steps in the planning process.

Figure \(\PageIndex{1}\): The Planning Process Source: Adapted from H. Koontz and C. O’Donnell, 1972. Principles of management: An analysis of managerial functions . New York: McGraw-Hill, 113.

Step 1: Developing an Awareness of the Present State

Step 2: Establishing Outcome Statements

The second step in the planning process consists of deciding “where the organization is headed or is going to end up.” Ideally, this involves establishing goals. Just as your goal in this course might be to get a certain grade, managers at various levels in an organization’s hierarchy set goals. For example, plans established by a university’s marketing department curriculum committee must fit with and support the plans of the department, which contribute to the goals of the business school, whose plans must, in turn, support the goals of the university. Managers, therefore, develop an elaborate network of organizational plans, such as that shown in Figure 17.2.2, to achieve the overall goals of their organization.

An illustration shows an example of a network of organizations plans.

Figure \(\PageIndex{2}\): Network of Organization Plans (Attribution: Copyright Rice University, OpenStax, under CC-BY 4.0 license)

Goal vs. Domain Planning

Another approach to planning is domain/directional planning, in which managers develop a course of action that moves an organization toward one identified domain (and therefore away from other domains). 16 Within the chosen domain may lie a number of acceptable and specific goals. For example, high-school senior Neil Marquardt decides that he wants to major in a business-related discipline in college. During the next four years, he will select a variety of courses from the business school curriculum yet never select a major. After selecting courses based on availability and interest, he earns a sufficient number of credits within this chosen domain that enables him to graduate with a major in marketing. Neil never engaged in goal planning, but in the end, he will realize one of many acceptable goals within an accepted domain.

A photo shot directly from the above shows a set of stationery items including, papers, highlighters, pens, and sticky labels.

Figure \(\PageIndex{3}\): Post-it® notes, a 3M product, are often used to create and edit shared documents, such as a company strategic plan. How might technology that allows multiple people to share and edit documents such as Word or PowerPoint files affect the sales of Post-it® products? (Credit: Kevin Wen/ flickr/ Attribution 2.0 Generic (CC BY 2.0))

Hybrid Planning

Occasionally, the coupling of domain and goal planning occurs, creating a third approach, called hybrid planning. In this approach, managers begin with more general domain planning and commit to moving in a particular direction. As time passes, learning occurs, uncertainty is reduced, preferences sharpen, and managers are able to make the transition to goal planning as they identify increasingly specific targets in the selected domain. Movement from domain planning to goal planning occurs as knowledge accumulates, preferences for a particular goal emerge, and action statements are created.

Consequences of Goal, Domain, and Hybrid Planning

Step 3: Premising

In this step of the planning process, managers establish the premises, or assumptions, on which they will build their action statements. The quality and success of any plan depend on the quality of its underlying assumptions. Throughout the planning process, assumptions about future events must be brought to the surface, monitored, and updated. 20

Step 4: Determining a Course of Action (Action Statements)

Step 5: Formulating Supportive Plans

Planning, Implementation, and Controlling

After managers have moved through the five steps of the planning process and have drawn up and implemented specific plans, they must monitor and maintain their plans. Through the controlling function (to be discussed in greater detail later in this chapter), managers observe ongoing human behavior and organizational activity, compare it to the outcome and action statements formulated during the planning process, and take corrective action if they observe unexpected and unwanted deviations. Thus, planning and controlling activities are closely interrelated (planning ➨ controlling ➨ planning...). Planning feeds controlling by establishing the standards against which behavior will be evaluated during the controlling process. Monitoring organizational behavior (the control activity) provides managers with input that helps them prepare for the upcoming planning period—it adds meaning to the awareness step of the planning process.

It has been noted on numerous occasions that many organizations that do plan fail to recognize the importance of continuous learning. Their plans are either placed on the shelf and collect dust or are created, implemented, and adhered to without a systematic review and modification process. Frequently, plans are implemented without first measuring where the organization currently stands so that future comparisons and evaluations of the plan’s effectiveness cannot be determined. The Deming cycle, shown in Figure 17.2.4, helps managers assess the effects of planned action by integrating organizational learning into the planning process. The cycle consists of four key stages: (1) Plan—create the plan using the model discussed earlier. (2) Do—implement the plan. (3) Check—monitor the results of the planned course of action; organizational learning about the effectiveness of the plan occurs at this stage. (4) Act—act on what was learned, modify the plan, and return to the first stage in the cycle, and the cycle begins again as the organization strives for continuous learning and improvement.

An illustration depicts the Deming cycle.

Figure \(\PageIndex{4}\): The Deming (Shewhart) Cycle (Attribution: Copyright Rice University, OpenStax, under CC-BY 4.0 license)

concept check

What are the five steps in the planning process?
What is the difference between goal, domain, and hybrid planning?
How are planning, implementation, and controlling related?

MCQ Questions for Class 12 Business Studies Chapter 4 Planning with Answers

Published by indiangk on january 21, 2022.

Question 1. Pervasiveness of planning indicates that planning (a) is a top management function. (b) extends throughout the organisation. (c) is a future-oriented activity. (d) is the first element of management process.

Answer: (b) extends throughout the organisation.

Question 2. Which one of the following is an importance of planning? (a) Reducing uncertainty (b) Identifying alternatives critically (c) Developing leadership (d) Selecting the most appropriate plan

Answer: (a) Reducing uncertainty

Question 3. Which one of the following is not a limitation of planning? (a) Dynamic environment (b) Costly process (c) Rigidity (d) Top management approach

Answer: (d) Top management approach

Question 4. Which one of the following is a step of planning? (a) Analysis of organisation structure (b) Analysis of environment (c) Analysis of employee behaviour (d) Analysis of employee morale

Answer: (b) Analysis of environment

Question 5. The basic role of strategy is to provide (a) setting procedures. (b) direction for action (c) direction for motivation. (d) direction for control

Answer: (b) direction for action

Question 6. Which one of the following plans prescribes chronological steps for performing activities? (a) Procedure (b) Rule (c) Policy (d) Method

Answer: (a) Procedure

Question 7. Which one of the following is a single-use plan? (a) Strategy (b) Rule (c) Budget (d) Method

Answer: (c) Budget

Question 8. Decision-making is the case of __ (a) Planning (b) Organising (c) Staffing (d) Directing

Answer: (a) Planning

Question 9. __ is a statement of expected results in numerical terms. (a) Forecast (b) Budget (c) Plan (d) Estimate

Answer: (b) Budget

Question 10. ___ is a feature of planning also referred to as primacy of planning. (a) Pervasive (b) Primary function of management (c) Continuous (d) Integrating

Answer: (b) Primary function of management

Question 11. ___ is a comprehensive plan for achieving its objectives. (a) Strategy (b) Method (c) Rule (d) Policy

Answer: (a) Strategy

Question 12. ___ is the type of plan which is time-bound and linked with measurable outcome. (a) Strategy (b) Policy (c) Rule (d) Budget

Answer: (d) Budget

Question 13. ___ is a standardised way or manner of performing a routine activity considering its objectives. (a) Procedure (b) Method (c) Rule (d) Programme

Answer: (b) Method

Question 14. ___ specifies the end to be achieved. (a) Objective (b) Strategy (c) Policy (d) Method

Answer: (a) Objective

Question 15. ___ are relevant to recurring activities. (a) Single-use plans (b) Standing plans (c) Objectives (d) Programmes

Answer: (b) Standing plans

Question 16. In 2019 alone, Swiggy has launched operations in 300 towns and cities. Swiggy follows a two-step sequence while expanding to a small town. First, it provides more laborious training to restaurants and delivery partners compared to their counterparts in the city. Second, it focuses on building scale in operations and increase the restaurant’s reach to a larger base of consumers, including optimizing kitchens, resource planning among others. Identify the type of plan being described in the above lines. (a) Method (b) Strategy (c) Programme (d) Procedure

Answer: (b) Strategy

Question 17. Deepak is striving to earn a profit of 30% in the current financial year. Identify the type of plan being described in the above lines. (a) Method (b) Objective (c) Strategy (d) Programme

Answer: (b) Objective

Question 18. Ketan Enterprises adopts different ways to provide training to employees, like Job . Rotation, Coaching, Vestibule Training, Conference, Lecture Method and Role Playing. Identify the type of plan being described in the above lines. (a) Method (b) Strategy (c) Programme (d) Procedure

Answer: (a) Method

Question 19. The government has been doubling down on its efforts to switch to 100% electric vehicles by 2030. Many companies such as Tata Motors, Kinetic Motors, Maruti Suzuki and Hyundai Motors are all readying their EV models for a 2020 launch in order to support the plan. Identify the type of plan being described in the above lines. (a) Method (b) Strategy (c) Programme (d) Objective

Question 20. Based on National Common Mobility Card standards, India’s first indigenously developed inter-operable transport card was launched in March 2019 to make travel across various modes convenient. Identify the type of plan being described in the above lines. (a) Strategy (b) Programme (c) Method (d) Rule

True or False

State with reasons whether the following statements are True or False.

1. Rule is a specific statement that prescribes what is to be done or not to be done.

Answer: True; rule sets the conditions which must be observed in performing various activities.

2. Rule is the prescribed way or manner in which a task has to be performed considering its objectives.

Answer: False; method is the prescribed way.

3. Identifying alternative courses of action is a step in organising process.

Answer: False; it is a step in the planning process.

4. Method is a chronological sequence in which an activity should be performed.

Answer: False; procedure is the chronological sequence in which an activity should be performed.

5. The last step in the process of planning is “Plan Implementation.”

Answer: False; follow-up action is the last step.

6. Planning premises are the actual plans about the future organisational resources.

Answer: False; planning premises are the assumptions about future environmental scenario and organisational resources.

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What is a SWOT Analysis?

A SWOT analysis is a framework for analyzing a business's internal and external environment. The acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and weaknesses include internal factors such as the company's resources, capabilities, and culture. Opportunities and threats are external factors such as market trends, competition, and regulations.

A SWOT analysis can help businesses identify areas of improvement and growth, assess their competitive position, and make informed decisions. It can be used for various purposes, such as business planning, product development, marketing strategy, and risk management.

Importance of Conducting a SWOT Analysis

Conducting a SWOT analysis is crucial for businesses to develop a clear understanding of their internal and external environment. It can help businesses identify their strengths and weaknesses and uncover new opportunities and potential threats. By doing so, businesses can make informed decisions about their strategies, resource allocation, and risk management.

A SWOT analysis can also help businesses identify their competitive position in the market and compare themselves to their competitors. This can help businesses differentiate themselves from their competitors and develop a unique value proposition.

Example of a SWOT Analysis

Here is an example of a SWOT analysis for a fictional business that sells handmade jewelry:

Unique and high-quality products
Skilled and experienced craftsmen
Strong brand reputation and customer loyalty
Strategic partnerships with local boutiques
Limited production capacity
High production costs
Limited online presence
Limited product variety

Opportunities

Growing demand for handmade products
Growing interest in sustainable and eco-friendly products
Opportunities to expand online presence and reach new customers
Opportunities to expand product lines
Increasing competition from online and brick-and-mortar retailers
Fluctuating consumer trends and preferences
Economic downturns and uncertainty
Increased regulations and compliance requirements

This SWOT analysis can help the business identify areas for improvement and growth. For example, the business can invest in expanding its online presence, improving its production efficiency, and diversifying its product lines. The business can also leverage its strengths, such as its skilled craftsmen and strategic partnerships, to differentiate itself from its competitors and attract more customers.

Step 2: Defining Your Business Objectives

Once you have conducted a SWOT analysis, the next step is to define your business objectives. Business objectives are specific, measurable, achievable, relevant, and time-bound (SMART) goals that align with your business's mission and vision.

Your business objectives can vary depending on your industry, target audience, and resources. Examples of business objectives include increasing sales revenue, expanding into new markets, improving customer satisfaction, and reducing costs.

You can use tools such as a goal-setting worksheet or a strategic planning framework to define your business objectives. You can also seek input from your employees and stakeholders to ensure your objectives are realistic and achievable.

What is Market Research?

Market research is an integral part of the business planning process. It gathers information about a target market or industry to make informed decisions. It involves collecting and analyzing data on consumer behavior, preferences, and buying habits, as well as competitors, industry trends, and market conditions.

Market research can help businesses identify potential customers, understand their needs and preferences, and develop effective marketing strategies. It can also help businesses identify market opportunities, assess their competitive position, and make informed product development, pricing, and distribution decisions.

Importance of Market Research in Business Planning

Market research is a crucial component of the business planning process. It can help businesses identify market trends and opportunities, assess their competitive position, and make informed decisions about their marketing strategies, product development, and business operations.

By conducting market research, businesses can gain insights into their target audience's behavior and preferences, such as their purchasing habits, brand loyalty, and decision-making process. This can help businesses develop targeted marketing campaigns and create products that meet their customers' needs.

Market research can also help businesses assess their competitive position and identify gaps in the market. Businesses can differentiate themselves by analyzing their competitors' strengths and weaknesses and developing a unique value proposition.

Different Types of Market Research Methods

Businesses can use various types of market research methods, depending on their research objectives, budget, and time frame. Here are some of the most common market research methods:

Surveys are a common market research method that involves asking questions to a sample of people about their preferences, opinions, and behaviors. Surveys can be conducted through various channels like online, phone, or in-person surveys.

Focus Groups

Focus groups are a qualitative market research method involving a small group to discuss a specific topic or product. Focus groups can provide in-depth insights into customers' attitudes and perceptions and can help businesses understand the reasoning behind their preferences and behaviors.

Interviews are a qualitative market research method that involves one-on-one conversations between a researcher and a participant. Interviews can be conducted in person, over the phone, or through video conferencing and can provide detailed insights into a participant's experiences, perceptions, and preferences.

Observation

Observation is a market research method that involves observing customers' behavior and interactions in a natural setting such as a store or a website. Observation can provide insights into customers' decision-making processes and behavior that may not be captured through surveys or interviews.

Secondary Research

Secondary research involves collecting data from existing sources, like industry reports, government publications, or academic journals. Secondary research can provide a broad overview of the market and industry trends and help businesses identify potential opportunities and threats.

By combining these market research methods, businesses can comprehensively understand their target market and industry and make informed decisions about their business strategy.

Step 3: Conducting Market Research

Market research should always be a part of your strategic business planning. This step gathers information about your target audience, competitors, and industry trends. This information can help you make informed decisions about your product or service offerings, pricing strategy, and marketing campaigns.

There are various market research methods, such as surveys, focus groups, and online analytics. You can also use tools like Google Trends and social media analytics to gather data about your audience's behavior and preferences.

Market research can be time-consuming and costly, but it's crucial for making informed decisions that can impact your business's success. Strikingly website builder offers built-in analytics and SEO optimization features that can help you track your website traffic and audience engagement.

Step 4: Identifying Your Target Audience

Identifying your target audience is essential in the business planning process. Your target audience is the group of people who are most likely to buy your product or service. Understanding their needs, preferences, and behaviors can help you create effective marketing campaigns and improve customer satisfaction.

You can identify your target audience by analyzing demographic, psychographic, and behavioral data. Demographic data include age, gender, income, and education level. Psychographic data includes personality traits, values, and lifestyle. Behavioral data includes buying patterns, brand loyalty, and online engagement.

Once you have identified your target audience, you can use tools such as buyer personas and customer journey maps to create a personalized and engaging customer experience. Strikingly website builder offers customizable templates and designs to help you create a visually appealing and user-friendly website for your target audience.

What is a Target Audience?

A target audience is a group most likely to be interested in and purchase a company's products or services. A target audience can be defined based on various factors such as age, gender, location, income, education, interests, and behavior.

Identifying and understanding your target audience is crucial for developing effective marketing strategies and improving customer engagement and satisfaction. By understanding your target audience's needs, preferences, and behavior, you can create products and services that meet their needs and develop targeted marketing campaigns that resonate with them.

Importance of Identifying Your Target Audience

Identifying your target audience is essential for the success of your business. By understanding your target audience's needs and preferences, you can create products and services that meet their needs and develop targeted marketing campaigns that resonate with them.

Here are reasons why identifying your target audience is important:

Improve customer engagement. When you understand your target audience's behavior and preferences, you can create a more personalized and engaging customer experience to improve customer loyalty and satisfaction.
Develop effective marketing strategies. Targeting your marketing efforts to your target audience creates more effective and efficient marketing campaigns that can increase brand awareness, generate leads, and drive sales.
Improve product development. By understanding your target audience's needs and preferences, you can develop products and services that meet their specific needs and preferences, improving customer satisfaction and retention.
Identify market opportunities. If you identify gaps in the market or untapped market segments, you can develop products and services to meet unmet needs and gain a competitive advantage.

Examples of Target Audience Segmentation

Here are some examples of target audience segmentation based on different demographic, geographic, and psychographic factors:

Demographic segmentation. Age, gender, income, education, occupation, and marital status.
Geographic segmentation. Location, region, climate, and population density.
Psychographic segmentation. Personality traits, values, interests, and lifestyle.

Step 5: Developing a Marketing Plan

A marketing plan is a strategic roadmap that outlines your marketing objectives, strategies, tactics, and budget. Your marketing plan should align with your business objectives and target audience and include a mix of online and offline marketing channels.

Marketing strategies include content marketing, social media marketing, email marketing, search engine optimization (SEO), and paid advertising. Your marketing tactics can include creating blog posts, sharing social media posts, sending newsletters, optimizing your website for search engines, and running Google Ads or Facebook Ads.

To create an effective marketing plan , research your competitors, understand your target audience's behavior, and set clear objectives and metrics. You can also seek customer and employee feedback to refine your marketing strategy.

Strikingly website builder offers a variety of marketing features such as email marketing, social media integration, and SEO optimization tools. You can also use the built-in analytics dashboard to track your website's performance and monitor your marketing campaign's effectiveness.

What is a Marketing Plan?

A marketing plan is a comprehensive document that outlines a company's marketing strategy and tactics. It typically includes an analysis of the target market, a description of the product or service, an assessment of the competition, and a detailed plan for achieving marketing objectives.

A marketing plan can help businesses identify and prioritize marketing opportunities, allocate resources effectively, and measure the success of their marketing efforts. It can also provide the marketing team with a roadmap and ensure everyone is aligned with the company's marketing goals and objectives.

Importance of a Marketing Plan in Business Planning

A marketing plan is critical to business planning. It can help businesses identify their target audience, assess their competitive position, and develop effective marketing strategies and tactics.

Here are a few reasons why a marketing plan is important in business planning:

Provides a clear direction. A marketing plan can provide a clear direction for the marketing team and ensure everyone is aligned with the company's marketing goals and objectives.
Helps prioritize marketing opportunities. By analyzing the target market and competition, a marketing plan can help businesses identify and prioritize marketing opportunities with the highest potential for success.
Ensures effective resource allocation. A marketing plan can help businesses allocate resources effectively and ensure that marketing efforts are focused on the most critical and impactful activities.
Measures success. A marketing plan can provide a framework for measuring the success of marketing efforts and making adjustments as needed.

Examples of Marketing Strategies and Tactics

Here are some examples of marketing strategies and tactics that businesses can use to achieve their marketing objectives:

Content marketing. Creating and sharing valuable and relevant content that educates and informs the target audience about the company's products or services.
Social media marketing. Leveraging social media platforms like Facebook, Twitter, and Instagram to engage with the target audience, build brand awareness, and drive website traffic.
Search engine optimization (SEO). Optimizing the company's website and online content to rank higher in search engine results and drive organic traffic.
Email marketing. Sending personalized and targeted emails to the company's email list to nurture leads, promote products or services, and drive sales.
Influencer marketing. Partnering with influencers or industry experts to promote the company's products or services and reach a wider audience.

By using a combination of these marketing strategies and tactics, businesses can develop a comprehensive and effective marketing plan that aligns with their marketing goals and objectives.

Step 6: Creating a Financial Plan

A financial plan is a detailed document that outlines your business's financial projections, budget, and cash flow. Your financial plan should include a balance sheet, income statement, and cash flow statement, and it should be based on realistic assumptions and market trends.

To create a financial plan, you should consider your revenue streams, expenses, assets, and liabilities. You should also analyze your industry's financial benchmarks and projections and seek input from financial experts or advisors.

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Strikingly website builder offers a variety of payment and e-commerce features, such as online payment integration and secure checkout. You can also use the built-in analytics dashboard to monitor your revenue and expenses and track your financial performance over time.

What is a Financial Plan?

A financial plan is a comprehensive document that outlines a company's financial goals and objectives and the strategies and tactics for achieving them. It typically includes a description of the company's financial situation, an analysis of revenue and expenses, and a projection of future financial performance.

A financial plan can help businesses identify potential risks and opportunities, allocate resources effectively, and measure the success of their financial efforts. It can also provide a roadmap for the finance team and ensure everyone is aligned with the company's financial goals and objectives.

Importance of Creating a Financial Plan in Business Planning

Creating a financial plan is a critical component of the business planning process. It can help businesses identify potential financial risks and opportunities, allocate resources effectively, and measure the success of their financial efforts.

Here are some reasons why creating a financial plan is important in business planning:

Provides a clear financial direction. A financial plan can provide a clear direction for the finance team and ensure everyone is in sync with the company's financial goals and objectives.
Helps prioritize financial opportunities. By analyzing revenue and expenses, a financial plan can help businesses identify and prioritize financial opportunities with the highest potential for success.
Ensures effective resource allocation. A financial plan can help businesses allocate resources effectively and ensure that financial efforts are focused on the most critical and impactful activities.
Measures success. A financial plan can provide a framework for measuring the success of financial efforts and making adjustments as needed.

Examples of Financial Statements and Projections

Here are some examples of financial statements and projections that businesses can use in their financial plan:

Income statement. A financial statement that shows the company's revenue and expenses over a period of time, typically monthly or annually.
Balance sheet. A financial statement shows the company's assets, liabilities, and equity at a specific time, typically at the end of a fiscal year.
Cash flow statement. A financial statement that shows the company's cash inflows and outflows over a period of time, typically monthly or annually.
Financial projections. Forecasts of the company's future financial performance based on assumptions and market trends. This can include revenue, expenses, profits, and cash flow projections.

Step 7: Writing Your Business Plan

The final step in the business planning process is to write your business plan. A business plan is a comprehensive document that outlines your business's mission, vision, objectives, strategies, and financial projections.

A business plan can help you clarify your business idea, assess the feasibility of your business, and secure funding from investors or lenders. It can also provide a roadmap for your business and ensure that you stay focused on your goals and objectives.

Importance of Writing a Business Plan

Writing a business plan is an essential component of the business planning process. It can help you clarify your business idea , assess the feasibility of your business, and secure funding from investors or lenders.

Here are some reasons why writing a business plan is important:

Clarifies your business idea. Writing a business plan can help you clarify your business idea and understand your business's goals, objectives, and strategies.
Assesses the feasibility of your business. A business plan can help you assess the feasibility of your business and identify potential risks and opportunities.
Secures funding. A well-written business plan can help you secure funding from investors or lenders by demonstrating the potential of your business and outlining a clear path to success.
Provides a roadmap for your business. A business plan can provide a roadmap and ensure that you stay focused on your goals and objectives.

Tips on How to Write a Successful Business Plan

Here are some tips on how to write a business plan successfully:

Start with an executive summary. The executive summary is a brief business plan overview and should include your business idea, target market, competitive analysis, and financial projections.
Describe your business and industry. Provide a detailed description of your business and industry, including your products or services, target market, and competitive landscape.
Develop a marketing strategy. Outline your marketing strategy and tactics, including your target audience, pricing strategy, promotional activities, and distribution channels.
Provide financial projections. Provide detailed financial projections, including income statements, balance sheets, and cash flow statements, as well as assumptions and risks.
Keep it concise and clear. Keep your business plan concise and clear, and avoid using jargon or technical terms that may confuse or intimidate readers.

Role of Strikingly Website Builder in Creating a Professional Business Plan

Strikingly website builder can play a significant role in creating a professional business plan. Strikingly provides an intuitive and user-friendly platform that allows you to create a professional-looking website and online store without coding or design skills.

Using Strikingly, you can create a visually appealing business plan and present it on your website with images, graphics, and videos to enhance the reader's experience. You can also use Strikingly's built-in templates and a drag-and-drop editor to create a customized and professional-looking business plan that reflects your brand and style.

Strikingly also provides various features and tools that can help you showcase your products or services, promote your business, and engage with your target audience. These features include e-commerce functionality, social media integration, and email marketing tools.

Let’s Sum Up!

In conclusion, the 7 steps of the business planning process are essential for starting and growing a successful business. By conducting a SWOT analysis, defining your business objectives, conducting market research, identifying your target audience, developing a marketing plan, creating a financial plan, and writing your business plan, you can set a solid foundation for your business's success.

Strikingly website builder can help you throughout the business planning process by offering a variety of features such as analytics, marketing, e-commerce , and business plan templates. With Strikingly, you can create a professional and engaging website and business plan that aligns with your business objectives and target audience.

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Strategic Planning is MCQ With Answers

Strategic planning is MCQ with answers. This post covers top 20 important Multiple choice questions related to statement “strategic planning is…”. These questions are useful for MBA, BBA, B Com, M Com, UGC NET, SET, UPSC and other competitive and entrance exams.

Strategic planning is also called as _______

A. Tactical planning

B. Short term planning

C. Long term planning

D. Business policy

Strategic planning is _________ exercise .

A. nothing but a step by step

B. more than a step-by-step

C. short term tactical business management

D. non essential and avoidable

Strategic planning is done by which level of management ?

A. floor level management

B. middle level management

C. top level management

D. both A & B

Strategic planning is formalization of planning where plans are made for ______ periods

A. indefinite

Strategic planning is done by _________

A. high level of management

C. low level of management

D. floor level of management

Strategic planning as a broad concept consists of _______

A. micro and macro environmental analysis

B. inputs as well as outputs

C. business & corporate strategy

D. strategy formulation and strategy implementation

Another name for strategic planning is _______

A. business myopia

B. short term planning

C. long term planning

D. tactical business policy

A. senior managers

B. middle managers

C. top managers

D. owners only

Strategic planning is based on ______ environmental scanning

A. external

B. extensive

C. selective

D. short term

Strategic planning is a _______ process.

A. short term

B. one time

C. continuous

D. discrete

Strategic planning is the process of determining a company’s _______.

A. long-term goals

B. short-term goals

C. nearby goals

D. current i.e. today’s

Strategic planning is _______ in nature

A. descriptive

B. theoretical

C. creative

D. analytical

Strategic planning is a process in which ________ determine their vision for the future for the organization.

A. permanent employees

B. organizational leaders

C. operational managers

D. organisational suppliers

A strategic plan is _______ a business plan.

A. different from

C. not important as compared to

D. none of the above

Strategic planning is the art & science of __________in regard to a company’s overall long-term goals or desires.

A. creating specific business strategies

B. implementing specific business strategies

C. evaluating results of executed plans

D. all of the above

A strategic plan is typically focused on ______ goals.

B. long term

C. mid term

D. both B & C

In strategic planning or thinking, the long term is approximately ______ .

A. up to 2 years

B. 5 years or more

D. less than 1 year

The primary focus of strategic management is ______

A. strategy implementation

B. the total organisation

C. strategic analysis

D. strategy formulation

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is the first step in the process of planning.

The correct option is d setting objectives the first step in the process of planning is to set the objective for the plan. the managers set up very clearly the objectives of the company keeping in mind the goals of the company and also the physical and financial resources of the company..

The first two steps in the process of planning

Explain the first three steps in the process of 'planning'.

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How to Start a Business

How to Start a Business: A Comprehensive Guide and Essential Steps

Building an effective business launch plan

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Conducting Market Research

Crafting a business plan, reviewing funding options, understanding legal requirements, implementing marketing strategies, the bottom line.

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Starting a business in the United States involves a number of different steps spanning legal considerations, market research, creating a business plan, securing funding, and developing a marketing strategy. It also requires decisions about a business’ location, structure, name, taxation, and registration. Here are the key steps involved in starting a business, as well as important aspects of the process for entrepreneurs to consider.

Key Takeaways

Entrepreneurs should start by conducting market research to understand their industry space, competition, and target customers.
The next step is to write a comprehensive business plan, outlining the company’s structure, vision, and strategy.
Securing funding in the form of grants, loans, venture capital, and/or crowdfunded money is crucial if you’re not self-funding.
When choosing a venue, be aware of local regulations and requirements.
Design your business structure with an eye to legal aspects, such as taxation and registration.
Make a strategic marketing plan that addresses the specifics of the business, industry, and target market.

Before starting a business, entrepreneurs should conduct market research to determine their target audience, competition, and market trends. The U.S. Small Business Administration (SBA) breaks down common market considerations as follows:

Demand : Is there a need for this product or service?
Market size : How many people might be interested?
Economic indicators : What are the income, employment rate, and spending habits of potential customers?
Location : Are the target market and business well situated for each other?
Competition : What is the market saturation ? Who and how many are you going up against?
Pricing : What might a customer be willing to pay?

Market research should also include an analysis of market opportunities, barriers to market entry, and industry trends, as well as the competition’s strengths, weaknesses, and market share .

There are various methods for conducting market research, and these will vary depending on the nature of the industry and potential business. Data can come from a variety of places, including statistical agencies, economic and financial institutions, and industry sources, as well as direct consumer research through focus groups, interviews, surveys, and questionnaires.

A comprehensive business plan is like a blueprint. It lays the foundation for business development and affects decision-making, day-to-day operations, and growth. Potential investors or partners may want to review and assess it in advance of agreeing to work together. Financial institutions often request business plans as part of an application for a loan or other forms of capital.

Business plans will differ according to the needs and nature of the company and should only include what makes sense for the business in question. As such, they can vary in length and structure. They can generally be divided into two formats: traditional and lean start-up. The latter is less common and more useful for simple businesses or those that expect to rework their traditional business plan frequently. It provides a vivid snapshot of the company through a small number of elements.

The process of funding a business depends on its needs and the vision and financial situation of its owner. The first step is to calculate the start-up costs . Identify a list of expenses and put a dollar amount to each of them through research and requesting quotes. The SBA has a start-up costs calculator for small businesses that includes common types of business expenses.

The next step is to determine how to get the money. Common methods include:

Self-funding , also known as “ bootstrapping ”
Finding investors willing to contribute to your venture capital
Raising money online by crowdfunding
Securing a business loan from a bank, an online lender, or a credit union
Winning a business grant from a donor, usually a government, foundation, charity, or corporation

Different methods suit different businesses, and it’s important to consider the obligations associated with any avenue of funding. For example, investors generally want a degree of control for their money, while self-funding puts business owners fully in charge. Of course, investors also mitigate risk; self-funding does not.

Availability is another consideration. Loans are easier to get than grants, which don’t have to be paid back. Additionally, the federal government doesn’t provide grants for the purposes of starting or growing a business, although private organizations may. However, the SBA does guarantee several categories of loans , accessing capital that may not be available through traditional lenders. No matter the funding method(s), it’s essential to detail how the money will be used and lay out a future financial plan for the business, including sales projections and loan repayments .

Businesses operating in the U.S. are legally subject to regulations at the local, county, state, and federal level involving taxation, business IDs, registrations, and permits.

Choosing a Business Location

Where a business operates will dictate such things as taxes, zoning laws (for brick-and-mortar locations), licenses, and permits. Other considerations when choosing a location might include:

Human factors : These include target audience and the preferences of business owners and partners regarding convenience, knowledge of the area, and commuting distance.
Regulations : Government at every level will assert its authority.
Regionally specific expenses : Examples are average salaries (including required minimum wages), property or rental prices, insurance rates, utilities, and government fees and licensing.
The tax and financial environment : Tax types include income, sales, corporate, and property, as well as tax credits; available investment incentives and loan programs may also be geographically determined.

Picking a Business Structure

The structure of a business should reflect the desired number of owners, liability characteristics, and tax status. Because these have legal and tax compliance implications , it’s important to understand them fully. If necessary, consult a business counselor, a lawyer, and/or an accountant.

Common business structures include:

Sole proprietorship : A sole proprietorship is an unincorporated business that has just one owner, who pays personal income tax on its profits.
Partnership : Partnership options include a limited partnership (LP) and a limited liability partnership (LLP) .
Limited liability company (LLC) : An LLC protects its owners from personal responsibility for the company’s debts and liabilities.
Corporation : The different types of corporations include C corp , S corp , B corp , closed corporation , and nonprofit .

Getting a Tax ID Number

A tax ID number is the equivalent of a Social Security number for a business. Whether or not a state and/or federal tax ID number is required will depend on the nature of the business and the location in which it’s registered.

A federal tax ID, also known as an employer identification number (EIN) , is required if a business:

Operates as a corporation or partnership
Pays federal taxes
Has employees
Files employment, excise, alcohol, tobacco, or firearms tax returns
Has a Keogh plan
Withholds taxes on non-wage income to nonresident aliens
Is involved with certain types of organizations, including trusts, estates, real estate mortgage investment conduits, nonprofits, farmers’ cooperatives, and plan administrators

An EIN can also be useful if you want to open a business bank account, offer an employer-sponsored retirement plan, or apply for federal business licenses and permits. You can get one online from the Internal Revenue Service (IRS) . State websites will do the same for a state tax ID.

Registering a Business

How you register a business will depend on its location, nature, size, and business structure. For example, a small business may not require any steps beyond registering its business name with local and state governments, and business owners whose business name is their own legal name might not need to register at all.

That said, registration can provide personal liability protection, tax-exempt status, and trademark protection, so it can be beneficial even if it’s not strictly required. Overall registration requirements, costs, and documentation will vary depending on the governing jurisdictions and business structure.

Most LLCs, corporations, partnerships, and nonprofits are required to register at the state level and will need a registered agent to file on their behalf. Determining which state to register with can depend on factors such as:

Whether the business has a physical presence in the state
If the business often conducts in-person client meetings in the state
If a large portion of business revenue comes from the state
Whether the business has employees working in the state

If a business operates in more than one state, it may need to file for foreign qualification in other states in which it conducts business. In this case the business would register in the state in which it was formed (this would be considered the domestic state) and file for foreign qualification in any additional states.

Obtaining Permits

Filing for the applicable government licenses and permits will depend on the industry and nature of the business and might include submitting an application to a federal agency, state, county, and/or city. The SBA lists federally regulated business activities alongside the corresponding license-issuing agency, while state, county, and city regulations can be found on the official government websites for each region.

Every business should have a marketing plan that outlines an overall strategy and the day-to-day tactics used to execute it. A successful marketing plan will lay out tactics for how to connect with customers and convince them to buy what the company is selling.

Marketing plans will vary according to the specifics of the industry, target market, and business, but they should aim to include descriptions of and strategies for the following:

A target customer : Including market size, demographics, traits, and relevant trends
Value propositions or business differentiators : An overview of the company’s competitive advantage with regard to employees, certifications, and offerings
A sales and marketing plan : Including methods, channels, and a customer’s journey through interacting with the business
Goals : Should cover different aspects of the marketing and sales strategy, such as social media follower growth, public relations opportunities, and sales targets
An execution plan : Should detail tactics and break down higher-level goals into specific actions
A budget : Detailing how much different marketing projects and activities will cost

How Much Does It Cost to Start a Business?

Business start-up costs will vary depending on the industry, business activity, and product or service offered. Home-based online businesses will usually cost less than those that require an office setting to meet with customers. The estimated cost can be calculated by first identifying a list of expenses and then researching and requesting quotes for each one. Use the SBA’s start-up costs calculator for common types of expenses associated with starting a small business.

What Should I Do Before Starting a Business?

Entrepreneurs seeking to start their own business should fully research and understand all the legal and funding considerations involved, conduct market research, and create marketing and business plans. They will also need to secure any necessary permits, licenses, funding, and business bank accounts.

What Types of Funding Are Available to Start a Business?

Start-up capital can come in the form of loans, grants, crowdfunding, venture capital, or self-funding. Note that the federal government does not provide grant funding for the purposes of starting a business, although some private sources do.

Do You Need to Write a Business Plan?

Business plans are comprehensive documents that lay out the most important information about a business. They reference its growth, development, and decision-making processes, and financial institutions and potential investors and partners generally request to review them in advance of agreeing to provide funding or to collaborate.

Starting a business is no easy feat, but research and preparation can help smooth the way. Having a firm understanding of your target market, competition, industry, goals, company structure, funding requirements, legal regulations, and marketing strategy, as well as conducting research and consulting experts where necessary, are all things that entrepreneurs can do to set themselves up for success.

U.S. Small Business Administration. “ Market Research and Competitive Analysis .”

U.S. Small Business Administration. “ Write Your Business Plan .”

U.S. Small Business Administration. " Calculate Your Startup Costs ."

U.S. Small Business Administration. “ Fund Your Business .”

U.S. Small Business Administration. “ Grants .”

U.S. Small Business Administration. “ Loans .”

U.S. Small Business Administration. “ Pick Your Business Location .”

U.S. Small Business Administration. “ Choose a Business Structure .”

Internal Revenue Service. “ Do You Need an EIN? ”

U.S. Small Business Administration. “ Get Federal and State Tax ID Numbers .”

U.S. Small Business Administration. “ Register Your Business .”

U.S. Small Business Administration. “ Apply for Licenses and Permits .”

U.S. Small Business Administration. “ Marketing and Sales .”

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Management chapter 5 and 6 Flashcards
a. improved focus. b. less need for controlling. c. more accurate forecasts. d. increased business profits. a. improved focus. The first step in the planning process is to _____. a. decide how to get where you want to go. b. define your objectives. c. identify possible future conditions or scenarios.
MGT Chapter 5 Smart Book Questions Flashcards
Terms in this set (85) The process of making decisions about goals and activities that an organization will pursue in the future is referred to as ______________. planning. Which step of the formal planning process involves evaluating goals and plans? third. 3 multiple choice options.
MCQs on Planning with Answers
2. In which step of the planning process, the best and most feasible plan will be chosen to be implemented. a) Selecting an alternative. b) Evaluating alternative course of action. c) Setting up objective. d) Developing Premises. Answer: A. 3. In which step of the planning process pros and cons of each alternative is examined. a) Developing ...
M: Management Chapter 5 SmartBook Flashcards
The first step in the planning process, situational analysis, summarizes information relevant to the planning issue. In the second step, the planners should use the findings from the first step to produce _____. alternative goals. See an expert-written answer!
MCQ on Planning Class 12 Business Studies
Identify the step followed by Naman from the planning process in the above case-. (a) Identifying various courses of action. (b) Developing premises. (c) Setting objectives. (d) Follow-up plan. Answer. Business Studies Class 12 MCQs - Term 1. Nature and Significance of Management MCQs. Principles of Management MCQs.
Chapter 10: The Planning Process Flashcards
planning. the method of determining important goals in advance and the best way to achieve them. define the objectives. Step 1 in Planning Process, end results that one is determined to achieve, objective must be quantifiable and easily measured. know where you stand in relation to objectives. Step 2 in Planning process, how far are you from ...
Planning Solved MCQs with PDF Download
The first step in the planning process is to A. Set an objective: B. ... and long-range plans versus a strategic plan is that the annual and long-range plans deal with the company's current business and how to keep them going, while the strategic plan deals with: ... , Planning multiple choice questions and answers ...
Business Studies MCQs for Class 12 with Answers Chapter 4 Planning
8. Planning requires logical and systematic thinking rather than guess work or wishful thinking. Identify the related feature of planning. (a) Planning is futuristic. (b) Planning is a mental exercise. (c) Planning establishes standards for controlling. (d) Planning focuses on achieving objectives. 9.
Important MCQs of Planning chapter Business Studies Class 12
This. is related to which importance of planning. a) Planning facilitate decision making. b) Planning promotes innovative idea. c) Planning reduces the risk of uncertainities. d) Planning provides direction. Ans - c) Which limitation is highlighted here once plan decided the future course of action,
Planning MCQ [Free PDF]
Get Planning Multiple Choice Questions (MCQ Quiz) with answers and detailed solutions. ... The first step in the planning process is to identify and evaluate different courses of action that could be taken to achieve the desired goal or objective. ... Common components of a business plan include external and internal analyses, marketing and ...
The Business Planning Process: Steps To Creating Your Plan
The Better Business Planning Process. The business plan process includes 6 steps as follows: Do Your Research. Strategize. Calculate Your Financial Forecast. Draft Your Plan. Revise & Proofread. Nail the Business Plan Presentation. We've provided more detail for each of these key business plan steps below.
[Latest] Planning MCQ
Planning MCQ Chapter 4Below are some of the very important NCERT Planning MCQ Class 12 Business Studies Chapter 4 with Answers. ... 10. Planning is decided in advance, what to do and how to do it. The first step of planning process is (a) setting objectives ... 14. _____ step is a process of planning is considered as the 'real point of ...
17.2 The Planning Process
Step 1: Developing an Awareness of the Present State. According to management scholars Harold Koontz and Cyril O'Donnell, the first step in the planning process is awareness. 13 It is at this step that managers build the foundation on which they will develop their plans. This foundation specifies an organization's current status, pinpoints its commitments, recognizes its strengths and ...
17.2: The Planning Process
Planning is a process. Ideally, it is future-oriented, comprehensive, systematic, integrated, and negotiated. 11 It involves an extensive search for alternatives and analyzes relevant information, is systematic in nature, and is commonly participative. 12 The planning model described in this section breaks the managerial function of planning into several steps, as shown in Figure 17.2.1.
Planning MCQ [Free PDF]
Planning is the process of setting goals, defining strategies, and outlining actions to achieve desired outcomes. It is an essential managerial function that helps organizations and individuals determine the best course of action to accomplish objectives effectively. MCQs on planning cover topics such as the planning process, types of plans (strategic, tactical, operational), goal setting ...
MCQS on Planning
MCQs on "Planning": Find the multiple choice questions on "Planning", frequently asked for all competitive examinations. Planning is the most initial part to start. Planning helps in accomplishing the motive. Always, the associations are set up with a similar purpose of running profits. Admiring from past years, planning is always said to be a ...
MCQ Questions for Class 12 Business Studies Chapter 4 Planning with
MCQ Questions for Class 12 Business Studies Chapter 4 Planning with Answers. Question 1. (a) is a top management function. (b) extends throughout the organisation. (c) is a future-oriented activity. (d) is the first element of management process. Question 2.
The 7 Steps of the Business Planning Process: A Complete Guide
The first step in the business planning process is to conduct a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. ... In conclusion, the 7 steps of the business planning process are essential for starting and growing a successful business. By conducting a SWOT analysis, defining your business objectives ...
Chapter 2. Strategy Flashcards
Study with Quizlet and memorize flashcards containing terms like Which of the following is the first step in a typical strategic planning process?, Supply chain coordination risks that are associated with the day-to-day management of the supply chain, are normally dealt using which of the following?, The _____ are individuals or organizations that legally own one or more shares of stock in the ...
The first step in the planning process is to
Syed Ali Akbar Bokhari 6. Solved Answer of MCQ The first step in the planning process is to - (a) Set an objective - (b) Evaluate alternatives - (c) Determine strength and weaknesses - (d) none of above - The Strategic Role of Human Resource Managers Multiple Choice Question- MCQtimes.Com.
Strategic Planning is MCQ With Answers (2024)
This post covers top 20 important Multiple choice questions related to statement "strategic planning is…". These questions are useful for MBA, BBA, B Com, M Com, UGC NET, SET, UPSC and other competitive and entrance exams. Strategic planning is also called as _______. A. Tactical planning. B. Short term planning.
First step in planning process is to ____________.
Which step in the process of planning will precede the step in which the manager is required to make certain assumptions about the future, which are the base material upon which the plans are drawn. If there is a plan to increase production then more labour, more machinery will be required.
is the first step in the process of planning.
Solution. The correct option is D Setting objectives. The first step in the process of planning is to set the objective for the plan. The managers set up very clearly the objectives of the company keeping in mind the goals of the company and also the physical and financial resources of the company. Suggest Corrections.
How to Start a Business: A Comprehensive Guide and Essential Steps
The process of funding a business depends on its needs and the vision and financial situation of its owner. The first step is to calculate the start-up costs. Identify a list of expenses and put a ...
ENTR Chapter 12 Flashcards
ENTR Chapter 12. Get a hint. Planning is the ______ step in the entrepreneurial development process. Multiple choice question. Click the card to flip 👆. first. Click the card to flip 👆. 1 / 67.
How To Start A Business In 11 Steps (2024 Guide)
The best way to accomplish any business or personal goal is to write out every possible step it takes to achieve the goal. Then, order those steps by what needs to happen first. Some steps may ...
Outsourcing
Outsourcing is a business practice in which companies use external providers to carry out business processes that would otherwise be handled internally, or in-house. Outsourcing sometimes involves transferring employees and assets from one firm to another. The term outsourcing, which came from the phrase outside resourcing, originated no later than 1981 at a time when industrial jobs in the ...

Topic 1 – Introduction, Meaning, Importance, Features & Limitations of Planning

MCQ on Planning Class 12 Business Studies – Topic 2 – Planning Process

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Important MCQs of Planning chapter Business Studies Class 12

Multiple Choice Questions of Planning chapter of BST Class 12

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The Business Planning Process: 6 Steps To Creating a New Plan

What is Business Planning?

Finish Your Business Plan Today!

The Better Business Planning Process

1. Do Your Research

2. Strategize

3. Calculate Your Financial Forecast

4. Draft Your Plan

5. Revise & Proofread

6. Nail the Business Plan Presentation

Business Planning Process Conclusion

How to Finish Your Business Plan in 1 Day!

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Other Helpful Business Plan Articles & Templates

Planning MCQ | Class 12 | Business Studies | Chapter-4

MCQ Answers

Ass ertion-Reasoning Based MCQ

Assertion-Reasoning Based MCQ Answers

Case-Study Based MCQ

Case-Study Based MCQ Answers

17.2 The Planning Process

Step 1: Developing an Awareness of the Present State

Step 2: Establishing Outcome Statements

Goal vs. Domain Planning

Hybrid Planning

Consequences of Goal, Domain, and Hybrid Planning

Step 3: Premising

Step 4: Determining a Course of Action (Action Statements)

Step 5: Formulating Supportive Plans

Planning, Implementation, and Controlling

Concept Check

Margin Size

17.2: The Planning Process

Learning Objectives

Step 1: Developing an Awareness of the Present State

Step 2: Establishing Outcome Statements

Goal vs. Domain Planning

Hybrid Planning

Consequences of Goal, Domain, and Hybrid Planning

Step 3: Premising

Step 4: Determining a Course of Action (Action Statements)

Step 5: Formulating Supportive Plans

Planning, Implementation, and Controlling

concept check

MCQ Questions for Class 12 Business Studies Chapter 4 Planning with Answers

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The 7 Steps of the Business Planning Process: A Complete Guide

Step 1: Conducting a SWOT Analysis

What is a SWOT Analysis?

Importance of Conducting a SWOT Analysis

Example of a SWOT Analysis

Opportunities

Step 2: Defining Your Business Objectives

What is Market Research?

Importance of Market Research in Business Planning

Different Types of Market Research Methods

Step 3: Conducting Market Research

Step 4: Identifying Your Target Audience

What is a Target Audience?

Importance of Identifying Your Target Audience

Examples of Target Audience Segmentation

Step 5: Developing a Marketing Plan

What is a Marketing Plan?

Importance of a Marketing Plan in Business Planning

Examples of Marketing Strategies and Tactics