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Planning is identifying where you want to go, why you want to go there, how you will get there, what you need in order to get there and how you will know if you’re there or not. The following are many of the types of plans generated in a business organization:
I work for a major oil producing company, which uses extensive business planning, MBO or Management-by-Objectives, and Strategic planning. These plans make sure that resources are optimized and the company accomplishes its long and short terms goals in given amount of time, using available (and acquired) resources. For example, during advertising planning, the company zeros onto appropriate communication medium/channels, targeted customers, and general public; and for this a definite timeline is prepared and a budget a sanctioned. Likewise, during production planning, the management plans how much raw material needs to be purchased on the basis of current level of inventory, availability of workers and machineries etc. and only then monthly and quarterly production level is planned.
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