TYPES OF PLANNING PREMISES

Planning premises are categorised in various ways.

External Premises relate to general economic and business conditions, social, political, technological and other trends.

Internal Premises are confined to the activities of the enterprise; for example, cash flow, cost of products and services, profitability and so on. Tangible Premises are quantitative in nature, as sales volume of Rs. 50 crores.

Intangible Premises are qualitative, as for instance the competence and character of managerial personnel in the organisation.

Controllable Premises are those which are manageable by the enterprises (example: advertising expenditure).

Uncontrollable Premises relate to acts of god or man about which little can be done by the industrial enterprise (example: A big fire in the plant, government policies etc.)