Question

(a) State any four limitations of planning.
OR
(b) Explain the following types of plans: (i) Strategy (ii) Procedure

Hint:

Strategy questions test big-picture thinking, while procedure questions focus on operational consistency.

Answer 1

(a) Limitations of Planning:
1. Rigidity:
- Fixed plans may hinder adaptability
  - Example: Kodak's failure to pivot from film photography
  - Impact: 63 percent of rigid plans fail during market shifts (McKinsey)

2. Time-Consuming:
  - Delays urgent decision-making
  - Average strategic plan takes 3-6 months to develop
  - Opportunity costs during planning periods

3. Costly Process:
  - Requires specialized personnel
  - Market research expenses
  - Technology investments for forecasting

4. False Sense of Security:
  - Over-reliance on plans
  - Neglects emergent strategies
  - Case: Blockbuster's plan-based complacency vs Netflix's agility

(b)(i) Strategy:

• Definition: Comprehensive master plan for achieving long-term objectives
• Characteristics:
  • Organization-wide scope
  • Resource allocation framework
  • Competitive positioning tool
• Example: Apple's ecosystem strategy (hardware-software integration)

(ii) Procedure:

• Definition: Step-by-step guidelines for routine activities
• Characteristics:
  • Chronological sequence
  • Department-specific
  • Standardized implementation
• Example: McDonald's 60-step burger preparation procedure