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Types of Planning Premises: 2. Controllable, Semi-Controllable and Uncontrollable Premises

The document discusses different types of planning premises that provide frameworks for making business plans more realistic. There are internal premises that come from within a business, like employee skills and sales forecasts, and external premises from outside, such as economic conditions. Premises can also be categorized as controllable, semi-controllable, or uncontrollable depending on the level of management control. Additionally, premises are either tangible and can be quantified, or intangible and difficult to measure.

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Karthika Nathan
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378 views1 page

Types of Planning Premises: 2. Controllable, Semi-Controllable and Uncontrollable Premises

The document discusses different types of planning premises that provide frameworks for making business plans more realistic. There are internal premises that come from within a business, like employee skills and sales forecasts, and external premises from outside, such as economic conditions. Premises can also be categorized as controllable, semi-controllable, or uncontrollable depending on the level of management control. Additionally, premises are either tangible and can be quantified, or intangible and difficult to measure.

Uploaded by

Karthika Nathan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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These assumptions are essential to make plans more realistic and operational.

Planning
premises provide a framework. All plans are made within this framework. There are many
environmental factors, which influence the plan. Assumptions are made about these factors.
These assumptions are called premises.

Types of Planning Premises


Different types of planning premises are depicted in the picture (figure) below.

Types of Planning Premises are briefly explained as follows:-

1. Internal and External Premises


1. Internal Premises come from the business itself. It includes skills of the workers, capital
investment policies, philosophy of management, sales forecasts, etc.
2. External Premises come from the external environment. That is, economic, social, political,
cultural and technological environment. External premises cannot be controlled by the
business.

2. Controllable, Semi-controllable and Uncontrollable Premises


1. Controllable Premises are those which are fully controlled by the management. They include
factors like materials, machines and money.
2. Semi-controllable Premises are partly controllable. They include marketing strategy.
3. Uncontrollable Premises are those over which the management has absolutely no control.
They include weather conditions, consumers' behaviour, government policy, natural
calamities, wars, etc.

3. Tangible and Intangible Premises


1. Tangible Premises can be measured in quantitative terms. They include units of production
and sale, money, time, hours of work, etc.
2. Intangible Premises cannot be measured in quantitative terms. They include goodwill of the
business, employee's morale, employee's attitude and public relations.

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