Business planning procedure
After setting up of objectives the managers make a list of alternatives through which the organization can achieve its objectives as there can be many ways to achieve the objective and managers must know all the ways to reach the objectives. After making the list of various alternatives along with assumptions supporting them, the manager starts evaluating each and every alternative and notes down the positive and negative aspects of every alternative.
After this the manger starts eliminating the alternatives with more of negative aspect and the one with the maximum positive aspect and with most feasible assumption is selected as best alternative. Alternative are evaluated in the light of their feasibility. The best alternative is selected but as such there id no mathematical formula to select the best alternative. Some times instead of selecting one alternative, a combination of different alternatives can also be selected. The most ideal plan is most feasible, profitable and with least negative consequences.
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