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TYPES OF PLANS

Planning is a crucial element of starting and operating a business. Entrepreneurs create plans to address an array of issues. Plans help business owners think
through complex processes and address each of the series of requirements to accomplish the specified goals. Managers draft both standing plans and single-
use plans to address the range of challenges they confront in their leadership roles. Understanding the difference between the two can help in creating
effective business plans.

BROAD CLASSIFICATION OF PLANS

Single Use Plans Standing Plans

 To address short-term challenges  Used over a long period of time
 To provide guidance for short-term initiatives.  To meet long-term challenges
 One-time plans  Can be altered to adapt to the changing circumstances.
 Applied to the activities which do not repeat.  Made once and are repeated
 Scope - smaller than the scope of standing plans.  Also known as recurring plans.
 May be from a day or week to month.
Examples. Method, Policies, Procedure, Rules, etc.
Example. Budget, Programmes, Projects, Schedules,
Note: The plans ‘strategy’ and ‘objectives’ are usually not classified as single use or standing plans.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accounts, Economics, Stats, Tax, Costing, Business, Financial management

 ARIHANT COACHING CENTRE
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BUSINESS PLANS

GOALS OBJECTIVES STYRATEGY POLICY

 Aims or missions of an  Set to achieve the goals  Based on objectives  Provides basis to interpret
organisation strategy
 Represent collective ends   Refer to future decisions  Route to achieve objectives
 Decided by top  Decided at all levels of  General response or solution
management management to a particular problem or
 Primary objectives (top level) situation.
& secondary objectives (other  Generally formulated by top
levels) management for long

term
 Expressed in quality  Expressed in quantity  Sets direction and scope in the  Guide to managerial
long run actions
 Short term and long term  Time bound Involve three elements:  Set to resolve problems or
 Different departments and issues
units have their own Determining long-term objectives  Managers may use their own
objectives Adopting a particular discretion to interpret and
course of action apply
Allocating necessary  Major policies –
resources. customers,
clients, competitors


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 Non-measurable
Examples
 Improve Product
Quality. By making detailed
marketing
research, innovation, taking 
feedback from the customers, Mr.
Ratan Tata decided to take the
feedback personally from the
customer to improve the quality of
Nano Car or Lakhtakia Car.
 Improve Communication.
By conducting
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 Measurable  To change as per changes in  Means of encouraging
the business discretion (self-decision
environment making) and initiative, but
within limits.
Examples: Examples Marketing strategy Examples
may include answers to
 Loss of quality not more than following questions: A strategy is required to
2%. implement admission policy.
 Hold weekly meetings to  Identification of
improve communication. customers?  A school may grant admission
Recruiting 50 disable  To assess the demand for our to those students who secure
employees every year. product more than 60 % marks and
above.
 Increasing sales of detergent  To identify the channel of
distribution  It may be the policy of a
power by 3% every year.
 Determination of company to resolve the
price (Price policy? complaints of the customers
 To know promotion within a month.
(Advertisement policy)  Other Examples.

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SUBJECTS: Accounts, Economics, Stats, Tax, Costing, Business, Financial management

 ARIHANT COACHING CENTRE
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managers at the different levels Promotion Policy, Policy on
with their subordinates. Transfer, Policy on Salary
Promotion, Marketing
 Improve Social Policy, Price Policy, etc.
Responsibility. By
providing employment
opportunities to the
disabled, construction of
hospitals or orphanage by
the business
organisations.
 Improves Sales of Detergent
Powder. By distributing free
samples or selling it in the
form of small sachets or
pouches.
PROCEDURE METHOD RULES PROGRAMME

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 ARIHANT COACHING CENTRE
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 To enforce a policy  A step of a procedure  Spell out the Do’s and Don’ts  Sum of plans =
 Each step to carry out within  Varies from task to task  Specific statements Programme
broad policy framework  Suggest how a particular
 Step by step instructions step has to be performed
 Meant for insiders

 Manner in which an  Provide the prescribed  Actions to be taken or not  Combination of goals,
activity must be way to be taken objectives, policies,
performed  Lack of flexibility procedures, rules, task,
 No scope for individual assignments, steps to be
discretion taken, resources to be
employed
 Generally rigid  Removes doubts, saves  Change is possible  Supported by budgets
 In chronological order time, makes comparison subject to change in
 Almost no scope for possible, simplifies and policy
discretion. standardises the work.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accounts, Economics, Stats, Tax, Costing, Business, Financial management

 ARIHANT COACHING CENTRE
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Examples Example Example

 Procedure for admission in aFor imparting training at higher  Smoking cigarette in the
school is as follows: level, orientation programme or premises is prohibited.
lecturer method may be adopted  Littering or spitting is a
To sell the admission form at thewhereas at supervisory level on- punishable offence.
school counter or make it availablethe-job training methods may be
to download from the school’sadopted.
website.
Receive the filled forms through
traditional mails or e-mails.
Scrutinising of the
application forms. (d)Deciding the
points for admission.

(e) Preparing the merit lists for

successful applicants.
BUDGET

 Forecast of results
 Expected results in numerical terms
 Quantifies future facts and figures
 Helps to compare with actual results
 Helps to find deviations and to take corrective actions
 Examples: Cash Budget, Sales Budget, Purchase Budget, Production Budget, Master Budget etc.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accounts, Economics, Stats, Tax, Costing, Business, Financial management