Case Studies on Business Studies Class 12 Chapter 4 Planning

PLANNING

1. A company gave its sales executives the directions that they could sell the goods on credit. It also told them to inform the customers that if upto one month they did not make the payment, they would have to pay interest at the rate of 10% per annum. Identify the 2 plans mentioned.

2. As a part of its comprehensive plan ‘Neerja Ltd.’, decided to combine a new line of activity with its existing footwear business. Identify the type of plan.

(CBSE 2019)

3. The production department of a co. has fixed several standards (related to quantity, method of work, quantity, cost and time) for his department. For example, he has fixed the standard that a worker shall follow particular method of working to produce ten units daily.

One of the employees wants to follow a separate method of working to produce fourteen units daily which is more than the standard quantity. The supervisor refuses him to do so by saying that the work should be done according to the plan.

1. Which concept of scientific management is implemented by the production department? 

2. State the limitation of planning mentioned.

4. In an industry, due to increasing competition, companies were concentrating on reducing the prices. But Managing Director of X Ltd decided to focus on improving quality rather than focusing on the prices. Identify the type of plan.

5. The Principal of a school appointed Mr. Prakash as the coach for football team which was to play match in state level tournament. During the training, Mr. Prakash inspired the players to win the match in any case. He stressed that they had to win the match with the difference of at least five goals from the losing team. He explained several methods for offensive and defensive game. He also told them how football would be passed from one player to other until it reached the goal box of the opposite team. At the end of the training, the coach warned all the players against misbehaving with any of the players of the opposite team, otherwise they could be punished.

1. Identify the concept of planning function in the case.

2. Identify the types of the concept identified in part (a).

6. Identify the types of plans:

1. It is long range blue print of an organisation’s direction and destination.

2. Giving promotion to employees on the basis of seniority.

3. A firm wants to increase sales by 25%.

4. The plan which has least flexibility.

5. It serves as guide for overall business planning and defines the end result which organisation strives to achieve.

6. An employee will retire at the age of 60 years.

7. No smoking in the organisation premises.

8. Goods will be sold on cash basis only

9. All employees must report to their duties sharp at 8.30 A.M

7. Saurabh decided to start a chocolate manufacturing business. He set the target of earning 10% profit on sales in the first year. As a good business man, he was concerned about the future of the business, which was uncertain. He gathered information that the demand for chocolates is increasing day by day. He used this information as the base for future planning and shared it with his team. On the basis of the gathered information, he scheduled a meeting in the following week to find innovative ways to achieve the objectives.

List the first two steps, which have been followed by Saurabh that are related to the process of one of the functions of management.

(CBSE 2018)

8. Sneha has recently done a cookery course. She wished to start her own venture with a goal to provide ‘health food’ reasonable price. She discussed her idea with her teacher who encouraged her. After analyzing various options for starting her business venture, they shortlisted the option to sell readymade and ‘ready to make’ vegetable shakes and sattu milk shakes. Then they both weighed the pros and cons of both the shortlisted options.

1. Name the function of management and give any one of its characteristics.

2. State ant two limitations of the function discussed in the case.

9. Reliance Industries Limited acquired Reliance Petroleum Limited to strengthen its financial position and to get competitive edge over its rival companies.  Name the type of plan involved in this context and explain it.

10. The Manager is required to make certain assumptions about the future, which are the base material upon which plans are to be drawn. This statement point out towards which step of planning? 

11. Two years ago, Mayank obtained degree in food technology. For some time he worked in a company manufacturing Bread and Biscuits. He was not happy in the company and decided to have his own Bread and Biscuits manufacturing unit. For this he decided the objectives and the targets and formulated action plan to achieve the same.

One of the his objective was to earn 50% profit on the amount invested in the first year. It was decided that raw materials like flour, sugar, salt etc. will be purchased on two months credit. He also decided to follow the steps required for marketing the products through his own outlets. He appointed Harsh as a Production Manager who decided the exact manner in which the production activities are to be carried out. Harsh also prepared a statement showing the requirement of workers in the factory throughout the year. Mayank informed Harsh about sales target for different products, areawise for the forthcoming quarter. While working on the production table a penalty of Rs 150 per day was announced for not wearing the helmet, gloves and apron by the workers.

Quoting lines from the above para identify and explain the different types of plans discussed.

(CBSE 2016)

12. In 2015, Naveen left his luxurious life in Mumbai, where he worked as a manager for Blue Birds Ltd. He shifted to Begampur, Chandigarh to fulfill his grandmother’s dream of converting their 25 acre ancestral land into a fertile farm. For this he set out specific goals along with the activities to be performed to achieve the goals.

Every activity was a challenge since he was clueless about farming. He learnt every activity from filling the land to sowing the seeds. To aid farmers he launched his own company ‘Innovative Agriculture Solutions Pvt Ltd.’

It was difficult initially as no one trusted an urban youth telling farmers about farming. But when everything was discussed in detail the farmers started taking interest. He wanted to ensure that the future events meet effectively the best interests of the company. Through sales forecasting, he prepared an annual plan for production and sales.

He also found that the farmers grew only paddy, which was an activity of 3-4 months and the land remained idle for the rest 8-9 months of the year. He not only identified but evaluated various alternatives through which the farms could be utilized for the remaining months of the year. Through correct foresight and logical and systematic thinking based on analysis of all facts, all alternatives were examined and evaluated. He presented a plan to the farmers, where after harvesting paddy, vegetables could be grown.

The above case highlights the features of one of the functions of management. By quoting lines from the above identify and explain these features.

(CBSE 2018)

13. Saurabh Jain set up a telecom business in Nasik, named as ‘Ketone’, with an ambitious target of reaching out to 90% of the Indian population within one year. He chose this business on the belief that the demand for data services will increase 4 times within the next 2-3 years. To fulfill such an ambitious target, he had to either acquire an existing telecom business or collaborate or go independent aggressively in the light of tough competition.

He assessed the proposals of different companies’ vis-à-vis earnings per share, tax liabilities, dividends paid etc and their future projections, knowing well that the projections may change if the country’s economic policies get modified.

The above paragraph discusses some of the steps of one of the functions of management. By quoting the lines from the above paragraph, explain these steps in chronological order. 

(CBSE 2019)