Which of the following is the essence of planning?

Forecasting

The correct answer is option 3 i.e. forecasting.

All business firms would like to be successful, increase their sales and earn profits. All managers dream of these and strive to achieve their goals. But to turn these dreams into reality managers need to work hard in thinking about the future, in making business predictions and achieving targets. Dreams can be turned into reality only if business managers think in advance on what to do and how to do it. This is the essence of planning.

The essence of planning is typically associated with forecasting. Planning involves setting goals, determining actions to achieve those goals, and making decisions about the allocation of resources. Forecasting is an essential aspect of planning as it involves estimating future trends and conditions, helping organizations make informed decisions to achieve their objectives. Therefore, "Forecasting" is the essence of planning.