PLANNING
MULTIPLE CHOICE QUESTIONS:
1 _________ IS THE ESSENCE OF Planning.
(a) Organizing
(b) Controlling
(c ) Forecasting
(d) Directing
2 _________ gives a complete detail of doing a particular activity.
(a) Procedure
(b) Budget
(c) Programme
(d) Method
3 What out of the following is the example of Objective?
(a) Raising sales upto Rs.5,000 crore
(b) Giving employment to 1000 employees
(c) Raising income by 3%
(d) all of these
4 Which of the following is not the internal element of limitation of Planning?
(a) Capital
(b) Raw material
( c) Increase in population
(d) Machine
5 ‘Smoking is prohibited in the factory’ what element of planning does it exemplify?
(a) Policy
(b) Rule
( c) Procedure
(d) Method
6 Rules are a ________ statements.
7 Programme is an example of _______
8 Which one of the following is not a step of planning>
(a) To forecast
(b) Establishing objectives
( c) Valuation of objectives
(d) Induction of employees on the job
9 Which out of the following is the focus of planning?
(a) Budget
(b) Objectives
( c) Programme
(d) Rule
10 State whether the following statements are true or false:
a) Planning results in the increase of possible risks due to would be uncertainities
b) Budget is a standing plan.
c) Rule is an example of single use plan.
d) The stage of planning at which evaluation of alternative courses is done is called “follow up Function”.
e) Procedures fixes the order or sequence of different activities undergone for the completion of a job.
11 Define planning?
12 Laxmi Chemicals Ltd., a soap manufacturing company, wanted to increase its market share from 30% to 55% in the long-run. A recent report submitted by the Research & Development Department of the company had predicted a growing trend of herbal and organic products. On the basis of this report, the company decided to diversify into new variety of soaps with natural ingredients having benefits and fragrance of Jasmine Rose,
Lavender, Mogra, Lemon Grass, Green Apple, Strawberry etc. The Unique Selling Proposition (USP) was to promote eco- friendly living in the contemporary life style. The company decided to allocate Rs.30 crores to achieve the objective. Identify the type of one of the functions of management mentioned above which will help the company to acquire dominant position in the market.
13 How does planning provide direction?
14 Why are rules considered to be plans?
15 Suhasini, a home science graduate from a reputed college, has recently done a crockery course. She wished to start her venture with a goal to provide a ‘health food’ at reasonable prices. She discussed her idea with her teacher (mentor) who encouraged her. After analysing various options for starting her business adventure, they short listed the option to sell readymade and ‘ready to make’ vegetable shakes and sattu milk shakes. Then, they weighted the pros and cons of both the short listed options.
(a) Name the function of management being discussed above and give any one of its characteristics.
(b) Also briefly discuss any three limitations of the function discussed in the case.
16 Government is planning to construct a ware house in remote area to store necessary goods. So as to make them available even at the time of bad weather regularly. Which values are being considered here to be achieved by the government?
17 Planning is an activity which enables a manager to look ahead and anticipate changes. Mention the benefit of planning highlighted here.
18 Two years ago, Madhu completed her degree in food technology. She worked for sometime in a company that manufactured chutneys, pickles and murrabbas. She was not happy in the company and decided to have her own organic food processing unit for the same. She set the objectives and the targets and formulated an action plan to achieve the same.
One of her objectives was to earn 10% profit on the amount invested in the first year. It was decided that raw materials like fruits, vegetables, spices, etc. will be p urchased on three months credit from farmers cultivating only organic crops. She also decided to follow the steps required for marketing of the products through her own outlets. She appointed Mohan as the Production manager who decided the exact manner in which the production activities were to be carried out. Mohan also prepared a statement showing the number of workers that will be required in the factory throughout the year. Madhu informed Mohan about her area wise sales target for different products for the forthcoming quarter. While working on the production table, a penalty of Rs.100 per day for not wearing caps, gloves and apron was announced. Quoting lines from the above paragraph, identify and explain the different types of plans discussed.
19 Removal of mobile towers from residential area is being planned by the government to
promote which value?
20 What are the steps taken by management in the planning process? Explain.
21 Wazir Ahmed joins ‘Ashiyana Ltd.’ a company dealing in real estate, a human resource manager. Through a series of interactions with his team during lunch breaks, he comes to know that quite a few managers at middle and senior levels have recently left the organisation as their promotions were overdue. Therefore, in order to reinstate the confidence of the staff, he lays out a clear cut plan consisting of a set of general guidelines for both time bound and performance related appraisals of the mangers at all levels. Moreover, he develops standardized processes containing a series of steps specified in a chronological order for its implementation. In context of the above case:
Identify the two different types of plans that Wazir Ahmed proposes to implement in order to instate the confidence of the staff by quoting line from the paragraph.
22 Does planning have limitations? Explain any five such limitations.
23 What are the main features to be considered by the management while planning?
24 During partition, Kundan Lal came to Mumbai from Lahore with a lot of wealth. Keeping in view his innate ability to visualize and create things, he decided to work as a junior assistant in a film studio. Over a period of time, as he gained experience and his work was well acclaimed, he decided to set up his own film studio. Initially he was himself looking into every aspect of the business, but as his work increased manifolds and his own productivity reduced with age, he hired Jimmy as manager. Jimmy being immature in his work started giving booking for the studio haphazardly. He would never decide anything in advance or do any kind of forecasting of events. This led to lot of confusions and conflicts. As a result, the goodwill earned by Kundan lal over the years began to decline.
In context of the above paragraph:
(a) Identify and explain the function of management which Jimmy failed to perform by quoting lines from the paragraph.
(b) Describe briefly any two features of the function of management as identified in part (a).
25 Planning ensures clarity in thoughts and actions, work is carried on smoothly without interruptions. Which importance of planning is mentioned here?
26 ‘Planning eliminates changes/uncertainties’. Do you agree? Give reason in support of your answer.
27 Following a pre-decided plan, when circumstances have changed, may not turn out to be in the organization’s interest. Which limitation of planning referred here?
28 An auto company C Ltd. is facing a problem of declining market share due to increased competition from other new and existing players in the market. Its competitors are introducing lower priced models for mass consumers who are price sensitive. For quality conscious consumers, the company is introducing new models with added features and new technological advancements.
Questions
1. Prepare a model business plan for C Ltd. to meet the existing challenge. You need not be very specific about quantitative parameters. You may specify which type of plan you are preparing.
2. Identify the limitations of such plans.
3. How will you seek to remove these limitations?
29 A company needs a detailed plan for its new project, ‘Construction of a Shopping Mall’. What type of plan is it?
30 In order to reduce the cost, an organization is planning the following:
a) To reduce the charities to the social and religious institution.
b) To arrange skilled workers from outside in-spite of semi-skilled local employees.
c) To increase the working hours.
d) To increase the rate of remuneration.
Which value will be affected by the decisions?
Please click on below link to download CBSE Class 12 Business Studies Planning Worksheet Set D
