Entrepreneurship Development and Communication Skills (1+1)

6.1.5.4. Formulation of Derivative Plans

1. Derivative plans are the sub plans or secondary plans which help in the achievement of main plan.
2. Secondary plans will flow from the basic plan. These are meant to support and expediate the achievement of basic plans.
3. These detail plans include policies, procedures, rules, programmes, budgets, schedules, etc. For example, if profit maximization is the main aim of the enterprise, derivative plans will include sales maximization, production maximization, and cost minimization.
4. Derivative plans indicate time schedule and sequence of accomplishing various tasks.