Limitations of Business Planning
In planning we are always thinking in advance and planning is concerned with future only and future is always uncertain. In planning many assumptions are made to decide about future course of action. But these assumptions are not 100 percent accurate and if these assumptions do not hold true in present situation or in condition then whole planning will fail. If in the plan it is assumed that there will be 5 percent inflation rate and in future condition the inflation rate becomes 10 percent then the whole plan will fail many adjustments will the requires to be made. Planning process involves lot of because it is an intellectual process and companies need to hire the professional experts to carry on this and money to collect accurate facts and figures. So it is a cost consuming process. If the benefits of planning are not more than its cost then it should not be carried on.