PLANNING PREMISES

PRESENTED BY :- KIRAN MAHESHWARI

AASHKA JADEJA
PRUTHVI DANI
TOPIC NAME :- PLANNING PREMISES

PLANNING PREMISING
Premising: Planning made today is dependent

upon certain assumptions.

It constitutes a framework in which planning is to
be done.
Planning premises are made taking into
consideration both the past as well as the
expected events.

DEFINATIONS
1. According to H. Weihrich and H . Koontz,
" Planning premises are identified as the
anticipated environment in which plans are
expected to operate."
2. According to C.B.Gupta,
"Planning premises are the critical factors which
lay down the boundary for planning

TYPES OF PLANNING PREMISE :Premises can be

External premises
Internal premises
Premises can be

Controllable premises
Uncontrollable premises
Premises can be

Tangible premises
Intangible premises

EXTERNAL PREMISES
External planning premises
pertain to the outside
environment of the firm.

Similarly, the political

philosophy of national and
state governments, fiscal
and monetary policies,
trends in population
growth, education, national
income etc.

EXTERNAL FACTORS
Econo
mic

Technolo
gical

Political
-legal

Socialcultural

competi
tive

Economical
factor:----

Political factor:--Law relating to business

Political interference in
business

Government
policies
Infrastructure
Raw material
Social
cultural factor:--Acceptance of new products
Change in lifestyle of people

Competitive factor:-Price change by competitor

Product feature of
competitor

INTERNAL FACTORS
Internal premises are those factors which exist

within the firm or which belong to the firms own

climate.
These premises are commitments for resources,

sources of raw materials and other equipment,

sales forecasts, basic policies and programmes,
availability and competence of management and
other personnel.
All these factors are known and fully controllable.

INTERNAL FACTORS ARE:SALES POLICIES

CAPITAL
BASIC
SUPPLY
ABILITY
FORECAST
OF
OF
INVESTMENT
MATERIALS
EMPLOYEESAND PARTS

INTERNAL PREMISES FACTORS :SALE FORECAST :-

- Future sales by product and price for a number of

months and year
- Profit and loss flow can be estimated by sales
forecast
CAPITAL INVESTMENT :-

- IT is difficult to recover investment made in fixed

assets in a short time.
- Hence, it is necessary that business manager frames
the plans to ensure best use of their fixed assets.

BASIC POLICES :-

- Some business policies cannot be readily

changes.
- For instance, once the firm introduces profit
sharing scheme , it is difficult to stop it later.
- It is not possible to ignore existing costumers
and look for new ones to make more profit.
SUPPLY OF MATERIALS AND PARTS :-

-This factor can be said internal factor as well as

external factor.
-The business manager have to premise whether
materials and parts would be produced internally
or must be brought from outside.

DEVELOPMENTS OF UNIT :-

- Planning must also take into account the probability

of development of business unit.
- This calculation will give an idea about problem that
may arise in future and proper steps can be taken.
ABILITY OF EMPLOYEES :-

- Employees, contribution is a very important factor

in implementing the plan.
- Sometimes, employees may oppose the targets laid
down.
- Therefore, their suggestions must be invited at time
of preparing plans and must be taken in
consideration, if found useful.

IMPORTANCE OF PREMISES:EFFECTIVE
REDUCING
CO-ORDINATION
CHANGES IN
PLANNING
RISK
PLANNING
AND UNCERTAINTIES

Some Methods of Sales

Forecasting
Jury of executive opinion method