 The learners, continuing our discussion on unit 4 that is on planning, now we shall take up the part 2 of our planning unit. Here we have got 2 learning objectives, one is describe the different types of plans and discuss the steps involved in the planning process. Describe the different types of plans and discuss the steps involved in the planning process. These are the learning objectives we have taken up for this particular part of unit 4. The types of plans we are having the corporate planning, functional planning, operational planning and I have already discussed in unit 1, in part 1 of this unit that the scope, time, natural level of management vary with each and every type of plan. Corporate planning is for the entire organization. Functional planning is with respect to a particular function like say marketing planning, production planning, operational planning, maintenance planning, materials planning, manpower planning, financial planning, right we have got different types of plans. Then we have to think about the operational plan say time bomb plan, quarterly plan, monthly plan, daily plan, hourly plan is not it. So, with all these types of plans the scope, time, natural level of management varies. This is important to discuss once again in the part 1 also we discuss this. In part 2 also we are just briefly mentioning about this because all these are related with the steps of planning. While discussing about the steps of planning some of these things may vary with respect to the nature of the plan. Say scope, time, level management vary with each type of plan. Say in case of corporate planning the scope is broadest. In case of operational planning the scope is narrowest. So, you may come across some of the multiple choice question that in which of the following plans the scope is largest. Suppose you may be given the options of say corporate plan, operational plan, functional plan and suppose say all of the book or could be none of the book. Here you will have to answer that the scope is broadest in corporate planning and the scope is narrowest in operational planning. So, they are learners when you will go to the unit and when you will go to these videos you just observe this. That wherever you have got the definite answer there you may be asked some of the multiple choice questions. Likewise say where it is time is where the longest time is spent where corporate planning or operational planning. So, longest time is spent in corporate planning because we have to plan for about say 5 years, 10 years, mid term plan, long term plan like that. So, time horizon is very very high, but in case of say the market, monthly budget, early budget the other time is short compared to compared the corporate planning. Likewise corporate planning is very very complex, operational is least complex. Corporate is for top level, operational is for lower level. Steps in planning process we need to be very very clear about the steps. We cannot start with implementation of nothing, we will go for implementation of something. That something is the plan, it is a concrete plan. That concrete plan does not take place in a VEQUA. In order to as I told you in the part 1 of this video series that in English there is a saying that plans are nothing planning is everything. So, in order to go for that kind of planning process first of all we have to start with our environment because no organization exist in isolation. Organization is a part, organization is an entity, it belongs to an environment. So, the organization will have to respond to the forces of the environment. So, we will have to see about the environment. In the environment if demand is growing, so we will have to plan for our production. If the environment is demand is not growing, demand needs to be stimulated in that case we will have to plan for our advertisement. We will have to plan for our marketing function, is not it? So, we will have to first of all be concerned about the surroundings that we exist. Then based on the environmental realities we will have to fix up the objectives for our organization. Where do we want to go? As I told you planning bridges the gap between past and the future. So, planning will help us in deciding about the goal. When we discuss about the objectives we will have to establish the planning premises. Suppose we have established an objective that after 3 years our annual growth rate should be 20 percent. So, this annual growth rate of 20 percent here we have made an assumption that the current growth rate of the market will prevail for the coming 3 years. So, that becomes a planning premise. Suppose our factories, the factories that we are having all the factories will be functionally running for the coming 3 years. Based on the successful running of the factories after 3 years we assume that we shall be able to achieve a growth of 20 percent. That becomes a planning premise. Means we have to be clear about certain assumptions, certain premises, certain rationally drawn assumptions in order to be clear about the objectives. Then in order to reach an objective there will be different alternative courses of action. Suppose in our example as I have stated that we shall achieve a 20 percent market share say after 3 years. So, it can be done by different courses. Suppose we can increase the price, we can decrease the price, we can increase the size of the market. We can invest on more on advertisement, we can spend more money on sales promotion, we can expand our distribution coverage. We have got a number of alternatives. So, we will have to be being clear about the goal, we shall have to think about the alternative courses of action. Then we shall have to evaluate the pros and cons of each of these alternatives. All the alternatives may not be desirable. All the alternatives might consume, might demand a loss of resources. So, we will have to be concerned about the resource requirements about the ease of achieving the objectives. Then we shall have to select the best alternative. Then we have to prepare the supplementary plans. More or less we are clear about the objective, more or less we are clear about the grand strategic plan. Then we shall have to go for the formulation of our supporting objectives. Suppose we decided that we shall be very, very aggressive on marketing in order to achieve a 20 percent share of the market. Now, being very, very aggressive in the marketing means what? We will have to have a detailed advertising plan. We shall have to have a detailed strategic sales promotion plan. We shall have to have a detailed strategic marketing action plan. So, these are all examples of supplementary plan. Then we shall have to implement it. We shall have to periodically monitor all these, the progress of these plans. Then we shall have to make a revision. If required, we may be required to sense our goal also. That is why planning is a continuous process. It is not something that planning once we have completed the goal. We have implemented the plan and we have reviewed the plan and we have stopped the process. It is not like that. It is a revolving process. It is a re-engineered process. It will go on and on and that is how planning will go on. So, they are learners. You will have to be highly clear about the steps in planning process. That nothing takes place in Vikvam. We will have to start with the objectives. Then we will have to first go for environmental analysis. Then we shall have to fix the objectives. Then we shall have to establish the planning premises. Then we shall have to formulate our alternative course of action. Based on that, we shall have to carry out our supplementary plans. Then we will be required to monitor, review and planning will go on like that. With this, we have come to the end of part 2 of discussion of our planning unit. We shall come to our discussion in part 3 of this unit. Thank you.