Page 1 - Lesson Note 2
P. 1
SAI INTERNATIONAL SCHOOL
Class-12
th
Business studies
Chapter – 4, Planning
Topics: Limitations, process and types of plan
(Lesson Notes-10)
Short Notes On:
(B)Internal Limitations
They are those limitations of planning which arises due to external factors over which an
organization has no control.
1. Changes in Government policies way leads to failure of planning.
2. Natural calamities such as flood, earthquake etc. also adversely affects the success of
planning.
3. Changes in the strategies of competitors also lead to failure of planning many times.
4. Regular technological changes may affect planning.
5. Changes in the Economic and Social Conditions also reduce the effectiveness of planning.
Planning Process
(i) Setting Objectives: In planning function manager begin with setting up of objectives because
all the policies procedures and methods are framed for achieving objectives only.