What are the three phases of intermediate planning?
The three stages of intermediate planning are as follows: 1 Adoption of the business plan: This entails reviewing the different areas of the business plan and adopting those portions that are relevant to the requirements of intermediate planning. 2 Aggregate Planning: The next stage of intermediate planning is aggregate planning. Here, we look at the overall financial performance of the company over a period of time by combining information from the various plans adopted during the adoption of the business plan. For example, if the business plan calls for implementing a new product line this year that will cost $10,000 then the CEO should consider whether the company will have enough revenue to cover its expenses including any expected profits. If not, then the company won't be able to afford it. 3 Individual Planning: The final stage of intermediate planning is individual planning. Here, the CEO reviews each of the projects in the business plan with their associated costs to determine which ones can be dropped or delayed until future periods. For example, if it was determined in the aggregate phase of intermediate planning that the company won't be able to afford to launch its new product line this year then it would be appropriate to delay this activity until future periods when the company expects to have more revenue coming in. Intermediate planning is important because it allows the CEO to make decisions based on actual data instead of assumptions.