There are four types of planning, depending on the number of years covered by the plan. There is short term planning, medium term planning, long range planning and very long range planning.
1. SHORT TERM: short term planning covers a period of planning of one year or less. It is the responsibility of a lower level managers. It involves determining daily, weekly, monthly or quarterly sales quotas , advertising budget and merchandising plans in a store.
2. MEDIUM TERM PLANNING: medium term planning convert a period from two to five years. it is the responsibility of middle level managers. Its involved partly the areas covered by short-term plans and partly discovered by long-range plans.
3. LONG RANGE PLANNING: long range planning covers every period of time from 6 years to 10, 15 or 20 years. It usually involves top management and special planning staff. It deals with board, company wide issues such as stages and other issues touching on expansion and diversification of operation, plant installation, market and product expansion.
4. VERY LONG RANGE PLANNING: according Keynes, in the very long run, we are all dead. The very long range planning covers quite a long period of time that can afford the firm to be borne and dead. It is a planning that covers the death of old companies and the birth of new ones. It is the responsibility of the people who can imagine what is possible and what is probable .
