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Tag: Planning

  • 8 Steps of Effective Planning for Every Business

    There are many people who dream of being an entrepreneur and starting their own businesses. With various opportunities coming forward at this age, the number of startups is increasing every day. Whenever you try to start a business, there are several factors that are needed to be done properly, among them is planning. In fact, effective planning can do wonders.,

    Planning is an important activity of every business organisation. It is the foremost task which every business has to do before starting its other initiatives. Every implementation of an idea starts with planning. Therefore, planning has an important role to play in any venture or business.

    If planning is not done properly, the business is bound to fail at any given point. Many brainstorming ideas die before execution because of improper planning. Effective planning is what makes the lifeline of every business. In this article, we will talk about the 8 steps that you need to follow for effective planning of your business. These steps are just paving the road to success, so let’s take a look at them.

    Recognise the Opportunities
    Create Objectives
    Planning Premises
    Finding Alternatives
    Evaluating Alternatives
    Choosing Alternatives
    Making Supporting Plans
    Implementation of Plans

    Recognise the Opportunities

    Before creating a plan, there is the foremost need to recognize the opportunities that exist in the external environment. There are 8 stages of planning, to make an effective plan, in which Recognising the opportunities comes first. The managers of the organisation must do a clear analysis of all the aspects of the opportunity on the basis of the future as well as the present. The management should also do an analysis of the present position of the company so that the strength and weaknesses can be taken out which will lay the foundation for setting up the objectives of the organisation.

    Importance of Planning in Business
    Importance of Planning in Business

    Create Objectives

    Your objectives define your business, if there are no objectives then the growth of the business is not possible. The objectives of an organisation must be very clear and well defined. A proper objective of an organisation provides a proper direction to the organisation and its different departments. The objective of the organisation decides the future of the organisation, therefore the management must create a clear set of objectives that the organisation needs to achieve.

    Planning Premises

    As we already know that the process of planning premises is done on the basis of the future. However, as the future is uncertain, so we must create some forecasts on the basis of assumptions. These forecasts are known as the planning premises. The assumptions may not be true, but considering and forecasting them will make the organisation ready to deal with them. Therefore, the management must develop the planning premises so that the organisation can survive in case of any unwanted occurrence.

    Finding Alternatives

    There are multiple ways to do a single thing. Similarly, there are multiple ways in which the objectives of an organisation can be achieved. The management must develop and identify all the multiple and unique ways of doing things that can help them in achieving the objective of the organisation because if by any chance one way is failed to achieve the objective, another is ready to take its place so that the objectives can be achieved without any delay or blockage. Apart from that amongst these alternatives, the best possible case must be chosen.

    Evaluating Alternatives

    After identifying all the ways for achieving the objective, each of the alternatives must be properly evaluated. The process of evaluation of the alternatives must be made on various factors like investment requirement, risk, uses of resources, profit, and others. The management should properly analyse the pros and cons of each and every alternative and where those alternatives can take them. So, that the best one of them can be taken out and can be applied to their business to achieve the objectives.

    Choosing Alternatives

    Once after the evaluation process, the managers will have the proper awareness of the pros and cons of each alternative. Out of all those alternatives, the managers have to make decisions and choose a plan which is more profitable and where less risk is involved. The alternative that will be chosen should fit perfectly to achieve the goals, while choosing the alternative, three tools are must that is, experience, experimentation and research.

    Making Supporting Plans

    Each main plan requires various work to be done. In order to execute the main plans, there is the requirement of supporting plans for various works like hiring manpower, buying required materials, purchasing raw materials and others. The supporting plans are not different plans but they are parts of the main plan which help in managing the different activities and things. The main plans couldn’t take place without the supporting plans and therefore, the managers should create supporting plans to carry forward the work.

    Implementation of Plans

    After the creation of the main plan and the supporting plan, there is a need to bring them into action. The plans should be implemented in such a way that they can help in achieving the objectives. The process of implementing the plans includes the formation of policies, procedures, the budgets, and a sequence of activities to be performed in order to achieve all the goals. Once the implementation is done, now you have to wait and see if you are able to achieve the objectives of your business.

    Conclusion

    A proper business plan helps you in your strategies to make your business successful. When you start your journey of entrepreneurship, the growth of your business keeps you going and it can only happen through proper planning. While planning you need to follow all the steps required, then only you can achieve your end goal.

    FAQs

    What are the effective planning steps of a business?

    Some steps to make planning effective:

    • Recognise the opportunities.
    • Create Objectives.
    • Planning Premises.
    • Finding Alternatives.
    • Evaluating Alternatives.
    • Choosing Alternatives.
    • Making Supporting Plans.

    What is planning in management?

    Planning defines the correct actions to achieve organisational goals. It helps in the efficient utilization of available resources. Realistic planning helps in achieving organisational goals in the most competitive way. Hence go on and plan to achieve the goals you have set.

    What is planning premises?

    The forecast or the assumptions about the future which provide a base for planning in the present are known as planning premises. They are the anticipated environment in which plans are expected to operate.

    What is a good business plan?

    A company often needs a business plan before it can borrow money from a bank. Good plans are usually highly detailed and include information on all aspects of the business, including the industry, marketing, finance, personnel, and various operating procedures.

  • The Impact of Lockdown Extension on Electric Vehicle(EV) Market

    Since March 24, 2020, the novel coronavirus pandemic has put brakes on India’s manufacturing industries due to the 21-days complete lockdown across the nation. The coronavirus outbreak is having an unanticipated impact on every sector due to disruption in the supply chain and production. Many sectors like Electric Vehicle(EV) Market had planned things once the lockdown would be over.

    This week, Prime Minister Narendra Modi announced the extension of lockdown till May 3, 2020. As the extension was announced, things have begun to look sceptical for various companies across industries. Due to lockdown, the manufacturing and mobility services economy has collapsed but there is still a ray of hope for the electric vehicle market in India. EV market is less impacted since the EVs do not have a large audience as compared to the traditional auto industry in India but still it’s going to affect this sector.

    The lockdown has forced the people to avoid travel which has consequently hampered people’s appetite for new purchases. Especially costly ones such as a new car. This has resulted into great loss in electric vehicle industry. This impact is going to last for months even after the virus is contained.

    At the same time, due to the extension of lockdown, the electric vehicle owners might expect service issues post lockdown and might even have to arrange the charge and discharge of their vehicles. The same goes for petrol and diesel vehicles as well for their lead-acid starter batteries. So, the problems will be on both ends.

    At the same time, due to the extension of lockdown, the electric vehicle owners also might expect service issues post lockdown and might even have to arrange the charge and discharge of their vehicles themselves. The same goes for traditional petrol and diesel vehicles as well for their lead-acid starter batteries. Many industry experts suggested that the government should use this extended lockdown period to create an exit plan.

    SMEV says Lockdown Extension is the Right Move

    Society of Manufacturers of Electric Vehicles (SMEV) – the registered association representing Indian manufacturers of electric vehicle & its components, said that extension of the lockdown is the right move taken by government. Yet, there will be certainly an adverse impact on the operations of its members for the next 1-2 months.

    SMEV Director General – Sohinder Gill describing the situation as a testing time for the whole EV industry. He also said that it is also time for its members to conserve cash, take care of workmen and utilise this time to plan ahead once the lockdown is over. Even though extension of lockdown is going to affect EV market and startups, Gill has expressed confidence that the EV industry will be able to spring back into action to recover the losses due to this shutdown.

    Sohinder Gill said in a statement, “Looking at the current situation in the country, the extension of the lockdown is the right move. Though there will be certainly an adverse impact on the operations for the next 1-2 months, I believe that we will be able to save lives of thousands and emerge as a healthier nation. I appeal to all the stakeholders in EV companies to conserve cash, take care of our workmen and utilize this time to plan ahead.”

    Most of the Indian electric vehicle (EV) industries are dependent on China for import of cells, battery and other electronic components and sensors used in electric vehicles.The EV companies & startups had initially started feeling the heat when coronavirus broke out in China and they faced component shortages. Now China is reportedly getting back into action, but manufacturing in India is still under lockdown.

    What Experts have to Say about this?

    Co-founder, CEO, Ather Energy – Tarun Mehta, “The lockdown has certainly disrupted the local supply chains and manufacturing. While demand will come down across all categories, EVs have a smaller audience in India and the impact may be lower than conventional automobile industry. The products and manufacturing aside, financing options for consumers will take precedence to enable new sales in the coming months.”

    Recently, research firm Wood Mackenzie has released a report where it predicted a 43 % contraction in the global EV industry by the end of 2020. The EV sector had just building up some serious momentum but the crisis couldn’t have come at a worse time. The big hope now is that government plans will continue to push for more electrification of the transportation sector. According to sources, sales of electric vehicles in 2019 had topped with 2.2 million sales but now this number is expected to drop by 43% to 1.3 million by the end of 2020.

    Vikrant K Aggarwal, director at EVI Technologies, also said that the entire auto sector is currently witnessing a 10% slowdown in sales. It has affected the electric vehicle industry the most as its compound annual growth rate (CAGR) is bound to suffer due to slow down in new bookings. Since the market size of electric vehicle in India is very small and thus just 1% of the total motorized vehicles run in India. Hence, EVs sector’s growth require constant nurturing.

    Sharing the ground reality of the industry, managing director at Magenta Power – Maxson Lewis said that the demand for electric vehicles is linked to overall auto demand which has been and will continue to be impacted for months. This will push the electric vehicle business investments plans out by months. Further, Lewis said that possibly this extended lockdown could also mean that traditional auto may look towards electric vehicles as the reset plan.

    Also Read: 12 Founders Shared Opinions on Strategies to Fight with Situation if the Lockdown Continues

    Impact on EV Sector of Other Countries

    The effect of the outbreak on the world’s biggest EV market -China, are already visible. Electric car sales there fell by 54% by the end of January when the epidemic really took off in the country. February sales figures are expected to be even worse, with a decline of 90%. EV sales in Europe was really an impressive that increased up by 121% on the year in January. Then, due to coronavirus outbreak, it put brakes on this.

    Electric Vehicles may rise in demand after COVI-19
    People might turn to EVs after the Pandemic

    By now, it should be clear to everyone that the fallout of the coronavirus pandemic is killing both the energy and transportation industries all over the world. Now, three months after the COVID-19 originated, China is slowly restarting its economy despite a second wave of infections knocking on its door. Europe, the second biggest market for electric cars, is in the impact of the coronavirus and the countries are seeking ways to restore their economies.

    Several Governments are Taking Efforts

    Many governments across the globe have already devised plans to grow the EV market once the pandemic is under control. The electric vehicle supply equipment (EVSE) market is predicted to witness a 10.7% CAGR during the forecast period 2020-2025 to see an increase in its revenue from $1.5 billion in 2019 to $2.7 billion in 2025.

    Apart from this, the global market is being positively impacted by the increasing sale of electric vehicles. The investments by manufacturers have increased in last 4-5 years and government support for installing such charging stations has also increased. EV battery costs are expected to be nearly halved by 2025. There are several factors that have contributed to this growth and many EV players believe that these factors will eventually lead to the exponential growth of electric vehicles.

    The government of several countries are taking efforts to install EV charging stations. For instance, the South Korean government has targeted the deployment of 10,000 fast chargers by 2022. Similarly, India has plans to install 2,700 charging stations by 2023, in cities with more than 4 million residents. In the same the same way, Canada sanctioned $4.6 million for the installation of 92 DC chargers, while the Californian government has proposed a funding of $900 million for the deployment of 250,000 charging points by 2025.

    Also Read: How Different Sectors will Resume their Operations after Lockdown?

    At present, India is still in the early stages of adoption. According to a report, the electric vehicle adoption rate is less than 1%. However, over the last two years, there has been a significant development in the electric vehicle space in India with both two-wheeler and four-wheeler launches. The government’s target of 30% electric vehicle adoption by 2030 is projected to be powered primarily by electrification of two-wheeler, three-wheeler, and commercial vehicles in India.