Establishing Planning Premises
The premises which can be quantifiable are called tangible premises. The tangible premises include population growth, product demand, past sales, capital invested and the like. The intangible premises are those which cannot be measured quantitatively. These premises include political factors, social factors, technological factors, natural factors, etc. Some factors are controllable and some are uncontrollable. Business plans are to be modified and sometimes reformulated due to the presence of and interaction of uncontrollable premises. Uncontrollable premises include strikes, lockouts, wars natural calamities, emergency situations etc. Controllable premises include company’s labor policy, investment policy, advertising policy, level of technology competency of managerial personnel, quality of human resources, availability of financial resources etc.
