The plan is one of the most significant and basic concepts of business. It is a primary function of management.
The method of deciding on a course of action is known as planning.
It executes all operations, enables the organization to utilize its resources fully, and helps achieve organizational goals.
Steps in planning :
There are several steps in planning that an organization implements.
Establishing objectives:
The objectives are the goals towards which the organization’s efforts are directed.
The objectives should be determined keeping in mind the several factors such as market conditions, organizational capabilities, competition, experience, and the development of a training plan.
Objectives must be inferred carefully and clearly.
Objectives must be quantifiable and measurable.
Objectives must reflect the values and philosophy of top management.
Strategies and Tactics:
After preparing the objectives, the organization should develop strategies and tactics to achieve those objectives.
Strategies and tactics are the specific means of carrying out a strategy.
Strategies are long-term plans or broad approaches to achieving an objective, and they require extensive sources, planning, and coordination.
Tactics are short-term, less extensive actions than strategies, and they involve fewer resources in terms of time, effort, and money.
Final Answer :
The two vital steps involved in a plan are:
Establishing objectives :
Establishing objectives for a plan is one of the core activities of the strategy formation process.
It is a very significant part of strategic planning. It should be well-defined and precise.
It should be measurable and feasible.
Objectives set by the organization should be constant with each other and with the organization’s mission statement.
For example:
If a company is developing a training plan for new sales representatives, they must first determine why more training is needed and what the company expects to achieve via it.
2. Strategy and Tactics :
A plan is developed at the outset of a campaign and determines how the overall aim will be achieved.
But tactics often help determine whether a plan succeeds or fails.
For example :
The strategy to increase market share is to develop new product lines to attract existing customers and new customers.
Commission a research study on customer preferences for a new product line.
Review all departmental budgets for cost reductions within two weeks.