Question

Which important limitation of planning is reflected by the statement, "Environment is not static"?

• A. Planning does not work in dynamic environment
• B. Planning does not lead to success
• C. Planning is suitable for all businesses
• D. Planning improves coordination

Hint:

Planning should be flexible and adaptable to external changes to remain effective and responsive to the environment.

Answer 1

The Correct Option is A

Step 1: Understanding the dynamic nature of the environment.
The case emphasizes that the environment is not static, meaning it constantly changes due to various factors like competition, consumer preferences, and market conditions. This dynamic nature can impact the effectiveness of static plans.
Step 2: The limitation of planning in a dynamic environment.
In a dynamic environment, rigid planning can become ineffective. Organizations must be flexible and adaptable, as the conditions that were favorable during planning may change, making the plans obsolete.
Step 3: Conclusion.
The limitation of planning in a dynamic environment is that plans may no longer be effective if the external conditions change rapidly.