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Class 12 Business Administration Notes · GSEB

Elements / Components of Planning

Elements / Components of Planning — open the planning toolkit of objectives, strategy, policy, method, rules, budget and programme with examples. GSEB Class 12 Commerce notes with tabbed elements and a master-budget walkthrough.

Last updated: 23 Oct 2026

Notes

The Seven Elements of Planning

Notes — the seven-element chain

  • Objectives → target. Strategy → competitive route. Policy → standing rule.
  • Method → best way. Rules → discipline.
  • Budget → control number. Programme → sequence.
1.

The purpose of every business is to determine and fulfil objectives. While determining objectives, all the factors affecting business are to be considered. Objectives must be pragmatic and should not be over ambitious.

Name the element

Management decides to sell only on 30-day credit.
A firm sets a target of ₹50 lakh sales for the year.
A firm plans to beat a rival by opening stores next to theirs.
A company fixes quarterly production runs to meet the annual target.
The factory displays “No smoking on the shop floor”.
TrapPolicy, strategy and method are different: policy is a standing decision, strategy is the competitive contrivance, method is the best way to perform the task.
RecallExplain elements or components of planning — walk the seven-element chain, then expand any four.

Key Takeaways

  • Objectives → target.
  • Strategy → competitive route.
  • Policy → standing rule.
  • Method → best way.
  • Rules → discipline.
  • Budget → control number.
  • Programme → sequence.

Exam Questions

Exam Questions

Answer in the marks band shown. Try before you reveal.

6 questions
1
What is the need of strategy?
2 marks
2
State the elements or components of planning.
2 marks
3
What is final budget?
2 marks
4
What do you mean by policy?
2 marks