Page 1 - Lesson Note 2
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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.
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