What are planning premises? Explain the classifications of planning premise.

What are planning premises? Explain the classifications of planning premise.
The planning premise is a set of assumptions made about the environment during a planning process. There are mainly three category of planning premises

• Internal and external premises
• Tangible and intangible premises
• Controllable and n0n-controllable premises

Internal and external premises : Internal premise include assumptions made on factors that are pertinent to internal of the company such as policy, capital investment, competence of managers etc. External premise include assumptions about market, competition, technological changes government policy etc

• Tangible and intangible premises : Premises that can be verifiable are called tangible premises such as market demand, demographics . On the other hand factors such as political stability, economic environment are intangible premises
• Controllable and n0n-controllable premises : Factors that can be controlled by a company such as production capacity are said to be controllable premise. Factors such as tax policy or import policy are non-controllable premises