Question

Explain the following types of plans :
(i) Strategy
(ii) Method
(iii) Budget

Hint:

Effective planning should be flexible, forward-looking, and continuously updated to align with changing business conditions.

Answer 1

(a) Types of Plans:
1. Strategy: It is a comprehensive plan to achieve organizational objectives. Strategies are formulated by top-level management to tackle future uncertainties and competitive forces.
2. Method: It outlines the exact procedure or manner in which a particular activity is to be performed. It ensures standardization in performance.
3. Budget: A budget is a quantitative statement prepared for a specific future period of time. It specifies expected outcomes and provides benchmarks for comparison.