The process of Planning

Planning follows a number of logically related processes which can be listed as follows:
 
(1) Analysis of the company's situation and performance: This is the process whereby the past performance and failures are indicated,and also the operating circumstances and costs as well as its relevant problems and opportunities.This will enable the company know it's standing among its competitors



(2) Esablishment off objectives: this is a statement containing what the company intends to achieve at the end of the planning period.objectives must be specific,consistent measurable and attainable.




(3) forecasting of anticipated events: This is a process of basically forecasting what the future holds,like for examples,forecasting the quantity of raw materials t be supplied,and forecasting if competitors would be encouraged to come into thier industry.



(4) Selection and development strategies: After   analysing its situation and established objectives,the company then proceeds in outlining the alternative methods in attaining the set objectives.It is advisable that the strategies selected should be consistent with the set objectives,compatible and related to the problems and opportunities of the company.



(5)  Specification of resource requirements: the sources which include but are not limited to machineries,money,and other assets which are basically required to implement the plan and achieve set objectives are stated.





(6) Budgeting: After the fifth process,a statement is made concerning the cost of the resources to be used,how they would be acquired or allocated and a schedule of the time each would be utilized




(7) Implementation: this is stating how the strategy would be translated to action,how it would be made operational and how people would be deployed and motivated to achieve the set objectives.




(8) Evaluation and control: when the plans as been fully implemented,the value of the effort is determined by listing the achievements and failures.