Concept:
• Planning: Planning involves choosing a course of action from various alternatives.
• Types of Plans: Plans can be classified into several types like Objectives, Strategy, Policy, Procedure, Rule, Method, Program, and Budget.
Step 1: Identify and explain the type of plan: Objective
The first plan identified is Objective.
Quote: “Greener sets its target to increase its sales by \( 25\% \) in the next year.”
Explanation: Objectives are the desired end results which management wants to achieve within a specific period. They are usually expressed in numerical terms and provide the final goal for all organizational activities.
Step 2: Identify and explain the type of plan: Strategy
The second plan identified is Strategy.
Quote: “To achieve this, Greener made a comprehensive plan to enter Tier-2 and Tier-3 cities by working with local farmer groups... promote their brand through on-line campaigns...”
Explanation: A strategy is a comprehensive plan for achieving an organization’s objectives. it involves defining long-term goals, adopting a particular course of action, and allocating resources necessary for achieving the goals.
Step 3: Identify and explain the type of plan: Policy
The third plan identified is Policy.
Quote: “The company also laid down broad parameters within which the managers could function. All raw materials used had to be certified organic and preferably sourced from local farmers.”
Explanation: Policies are general statements that guide thinking or channel energy towards a particular direction. They provide broad parameters within which managers can use their discretion to solve routine problems.
Step 4: Identify and explain the type of plan: Budget
The fourth plan identified is Budget.
Quote: “The company allocated \( \text{₹} 50 \) lakhs for marketing... By quantifying future facts and figures, the company planned to control costs...”
Explanation: A budget is a statement of expected results expressed in numerical terms for a definite future period. It acts as a control device by allowing managers to compare actual performance with estimated figures.