Question:
Explain the following limitation of planning :
(ii) Planning may not work in a dynamic environment
Explain the following limitation of planning :
(ii) Planning may not work in a dynamic environment
(ii) Planning may not work in a dynamic environment
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The business environment keeps changing.
It is difficult to assess future trends accurately.
Planning cannot foresee everything, so obstacles arise.
Updated On: Oct 26, 2026
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Solution and Explanation
Concept:
• Dynamic environment: The business environment (economic, technological, social, legal) keeps changing.
• Limits of forecasting: Plans are based on forecasts, and forecasts of future trends can go wrong.
Step 1: Explain the changing environment
The organisation has to constantly adapt itself to the changes taking place in the business environment.
Step 2: Explain why planning suffers
It becomes difficult to accurately assess future trends in the environment. Planning cannot foresee everything and thus there may be obstacles to effective planning.
• Dynamic environment: The business environment (economic, technological, social, legal) keeps changing.
• Limits of forecasting: Plans are based on forecasts, and forecasts of future trends can go wrong.
Step 1: Explain the changing environment
The organisation has to constantly adapt itself to the changes taking place in the business environment.
Step 2: Explain why planning suffers
It becomes difficult to accurately assess future trends in the environment. Planning cannot foresee everything and thus there may be obstacles to effective planning.
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