Evaluation of Plans

(a)        How can you evaluate and appreciate a plan of action?

Plan	Plan is the means devised for attempting to reach a future target or end result that an organization wishes to achieve.
Planning	Planning is the primary task of management.  It must occur before all other managerial functions because it determines the nature of those functions.  Planning makes things happen that would not otherwise occur.
Strategy is a Plan or Action orientation	Strategy is a comprehensive plan or action orientation that sets critical direction and guides the allocation of resources for an organization.  It is a focus for action that represents a best guess regarding what must be done to ensure longer-run prosperity for the organization or one of its subsystems.
	In the evaluation the planning process builds on the action of the organization, the organization’s purpose or fundamental reason for existence.  A plan of action to achieve the goals serves several purposes.  For managers, it can be a benchmark against which to evaluate success.  For employees, it will be a common purpose, nurtures organizational loyalty, and fosters a sense of community among workers.  For external
	parties such as investors, governmental agencies, and the public at large, it will help to provide unique insight into the organization’s value and future directions.  In some organizations, a plan is explicitly presented as a formal written document.  In others, it is implicitly understood.
Resources for Plan’s success or failure	Basically, four types of resources are available for a company to call on, and the state of their health and their skillful use by management often determine whether a plan will be successful or will fail.
	Marketing resources - these include an established marketing position, brand recognition, and well developed channels of distribution.
	Operations resources - these include the quality of the physical plant.  How modern and efficient are the factories?  What is the state of its technology?
	Financial Resources - these give a company more flexibility in its options and include a positive cash flow, a strong capital base, and an ability to borrow money.
	Human Resources - these are crucial but often over looked.  They include employees who are well trained, experienced, and highly motivated.
	For successful in a plan for action a manager holds an open mind about both the past and the future.  The thinking that led the company to its need to be dropped in favour of new plans.  Programming for future plans may be necessary because of uncertainties that cannot be foreseen.