Following are the main points in the definition of planning:

(i) What to do? (ii) How to do it?

(iii) When to do it? (iv) Who is to do it?

Under the process of planning the objectives of the organisation are defined in simple and clear words. The obvious outcome of this is that all the employees get a direction and all their efforts are focussed towards a particular end. In this way, planning has an important role in the attainment of the objectives of the organisation.

Plan is a sort of commitment to accomplish all the activities needed for the attainment of special results. In this way, rules are also plans as they are helpful for the attainment of special results.

The main strategic decisions may include the following:

(i) Whether the company will continue the existing business? or

(ii) Whether the company will combine some new products to the existing business? or

(iii) Whether the company will try to acquire the maximum market share in the existing business?