Class 12 - Business Studies - Different Types of Plan

Different Types of Plan

Question: What is a business plan?

Answer: A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s).It is a document that outlines how goals are going to be met.

Different Types of Plan:

Plans are made based on Strategic planning, tactical planning, operational planning and contingency planning.




⑴  Single Use Plan: These plans are devised for time event or project. In general, the actions in this plan is not expected to be repeated in future. e.g. budget plans, programs.

⑵  Standing Plans: Such plans are formed for the activities which are recurrent. It is formed so the operations of the organisation can run smoothly.

⑶  Objectives Plan: These are defined as ends which the management seeks to achieve by its operations. e.g. quarter production objectives.

⑷  Strategy Plan: A strategy is a comprehensive plan used to set priorities, focus energy and resources, strengthen operations in order to achieve objectives.

⑸  Policies: These are general guidelines or protocol to reach long-term goals.

⑹  Procedures: These are the specific methods to express policies in action e.g. day-to-day operations of a factory.

⑺ Budgets: A budget is a financial plan for a given accounting period.

⑻  Rules: Rules are the specific statements that serve as a norm for guiding or mandating action or conduct.

⑼  Methods: It provides prescribed ways or manner in which a task has to be performed to accomplish an objective or set of objectives.

⑽  Programme: Programmes are the combination of goals, policies, procedure and rules.

⑾  Projects: A formal document designed to guide the control and execution of a project within a time-frame.