Types of Planning Premises

Different types of planning premises are:
   1. Internal and External Premises
   2. Controllable, semi-controllable and non-controllable premises
   3. Tangible and Intangible premises

1. Internal and external premises:

Internal premises originate from factors within the enterprise. They relate to premises. Sales forecasts, personnel forecasts (skills and abilities of personnel) etc. These premises may be strengths or weaknesses of the organization. Strength represents a positive attitude which provides strategic advantage to the company over competitors and weakness is a limitation or constraint that provides strategic disadvantage. Managers analysis their strengths and weaknesses through corporate analysis and when corporate analyses (internal) is combined with environmental analyses (external), it is called SWOT analyses (Strength, Weaknesses, Opportunities. Strengths). External premises originate from factors outside the organization. These are the indirect action environmental factors (social, political, technological etc.) which affect the organization. They are also non- controllable premises beyond the control of the organization.

2. Controllable. Semi- controllable and non-controllable premises:

Controllable premises are those within the control of a business enterprise. such as, men, Monet, materials, policies, procedure,  programmers etc. They can be controlled but a business enterprise to ensure better sales of its products. Semi- controllable premises are those which can be partially controlled by a business enterprise like, labour position on the market. Non-controllable premises are those that lie beyond the control of a business enterprise. Ware, natural calamities and external environment factors are non- controllable premises.

3. Tangible and intangible premises:

Tangible premises can be estimated in quantitative terms like, production units, cost per unit etc. Intangible premises cannot be quantified, for example, good will of the firm, employer- employee relationships, leadership qualities of the managers, motivational factors that get employees to work etc.

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