RBSE SS Business Studies study materials
RBSE SS Business Studies study resources

RBSE SS Business Studies: Planning

RBSE SS Business Studies · Work through your exam, one topic at a time.

All guide sections

Planning

What the domain tests

Planning is deciding in advance what to do, how, when and by whom. RBSE tests features, process, importance and limitations, and the types of plans: objectives, strategy, policy, procedure, rule, method, programme, budget. It often asks you to classify a statement correctly.

Core rules

  • Planning is goal-oriented, primary, pervasive, continuous, futuristic, and involves choice.
  • Process: setting objectives, developing premises, identifying alternatives, evaluating alternatives, selecting an alternative, implementing, and follow-up.
  • A policy is a general guideline; a procedure is a step-by-step sequence; a rule is a specific do/don’t; a method is the prescribed way to perform one step.
  • A programme combines objectives, policies, procedures, rules and budgets for a project. A budget is a statement of expected results in numerical terms.
  • Limitations: rigidity, huge cost/time, may not work in dynamic environments, reduces creativity, and does not guarantee success.

Worked example

A company decides to launch a new fan model. “Increase market share by 5%” is an objective. “Use only authorised dealers” is a policy. “Receive dealer order, verify credit, dispatch within 48 hours” is a procedure. “No dispatch without full payment” is a rule. The launch schedule with activities and funds is a programme; its sales and cost figures form budgets. Classify by scope and specificity, not by length.

Traps

Planning is not forecasting; forecasting is one input. A strategy is a comprehensive plan for an uncertain competitive situation, not a one-line goal. Do not call every plan a policy. Planning does not eliminate risk; it only reduces uncertainty.