Subject: Introduction to Management

Department: BK1/R1/N1/A
Name: Ahmed Mustefa
ID number: UUA00349R

SUBMISSION DATE:- APRIL 9/2021

 INDIVIDUAL ASSIGNMENT
1. Why is it necessary to analyse and evaluate environment while planning? Explain.

 Environmental analysis will help the firm to understand what is happening both inside
and outside the organization and to increase the probability that the organizational
strategies developed will appropriately reflect the organizational environment.
 Environmental analyses is necessary because there are rapid changes taking place in the
environment that has a great impact on the working of the business firm. Analysis of
business environment helps to identify strength weakness, opportunities and threats.

Some of the necessity to analyses environment while planning are:-

A. Identification of strength:

Strength of the business firm means capacity of the firm to gain advantage over its
competitors. Analysis of internal business environment helps to identify strength of the
firm. After identifying the strength, the firm must try to consolidate or maximize its
strength by further improvement in its existing plans, policies and resources.

B. Identification of weakness:

Weakness of the firm means limitations of the firm. Monitoring internal environment
helps to identify not only the strength but also the weakness of the firm. A firm may be
strong in certain areas but may be weak in some other areas. For further growth and
expansion, the weakness should be identified so as to correct them as soon as possible.

C. Identification of opportunities:

Environmental analyses helps to identify the opportunities in the market. The firm should
make every possible effort to grab the opportunities as and when they come.

D. Optimum use of resources:

Proper environmental assessment helps to make optimum utilization of scare human,

natural and capital resources. Systematic analyses of business environment helps the firm
to reduce wastage and make optimum use of available resources, without understanding
the internal and external environment resources cannot be used in an effective manner.

E. Survival and growth:

Systematic analyses of business environment help the firm to maximize their strength,
minimize the weakness, grab the opportunities and diffuse threats. This enables the firm
to survive and grow in the competitive business world.

F. To plan long-term business strategy:

 A business organization has short term and long-term objectives. Proper analyses of
environmental factors help the business firm to frame plans and policies that could help
in easy accomplishment of those organizational objectives. Without undertaking
environmental analyses, the firm cannot develop a strategy for business success.

G. Environmental analyses aids decision-making:

Decision-making is a process of selecting the best alternative from among various

available alternatives. An environmental analysis is an extremely important tool in
understanding and decision making in all situation of the business. Success of the firm
depends upon the precise decision making ability. Study of environmental analyses
enables the firm to select the best option for the success and growth of the firm.

2. Suppose Ato Abebe Tesema, Ato Munir Bedru, Engineer Azeb Debella, and Ato Legesse
Tolla are general manager, marketing manager, production manager, and production supervisor
of the Abbey plastic plant, respectively.

A. Indicate the relative place of each person in the levels of management of the factory.

 Ato Abebe tesema as a general manager is responsible for all or part of a department's
operations or the company's operations, including generating revenue and controlling
costs. General Managers often report to higher-level managers or executives and
supervise lower-level managers.
 Ato Munir Bedru as a marketing manager is located in middle level of management.
 Engineer Azeb Debella as a production manager is responsible for dealing with strategic
decision such as what products are to be manufactured, in how much quantities, what are
the delivery dates etc. production managers can be located in the top level management.
 Ato Legesse Tolla as a production supervisor is responsible for managing production
processes and staff and ensuring that the process is as efficient as possible without
sacrificing employee safety. Production supervisor is located on the lower level of
management.

B. Tell which type of management skill is more required by whom.

 The skills needed by managers vary according to level. Top managers need strong
conceptual skills, while those at midlevel need good interpersonal skills and those at
lower levels need technical skills. All managers need strong communication, decision-
making, and time-management skills.

3. Suppose firm X and firm Y are both effective in meeting pre-established goals. But firm
Y is efficient than firm X in the process of meeting the goals. Explain the phenomenon.

 There are numbers of reasons why Y is more efficient than firm X. some of these reasons
are:-

a. Matching Tasks to Skills of the employees.

 b. Communicating effectively with customers and employees.
c. Keep Goals Clear & Focused help the firm to be more efficient in long run.
d. Incentivizing Employees to make them feel better and work hard.
e. Train and Develop Employees for better and more efficient working environment.

 How do you explain the case if both firms efficient, but firm X is effective than firm Y?

 There are numbers of reasons why X is more effective than firm Y. some of these reasons
are:-
a. Make Use of Human Resources
b. Focus on Education and Growth
c. Keep the Customers in Mind
d. Work on Quality Services or Products
e. Use Technology
4. Briefly explain the relationship between planning and controlling?
Planning and controlling are inseparable twins of management. Planning and controlling
functions always co-exist or have to exist together as one function depends on the other.
Planning decides the control process and controlling provides a sound basis for planning. In
simple words, planning and controlling are basically dependent on each other.
The relationship between planning and controlling can be divided into the following two parts:
(1) Interdependence between Planning and Controlling
(2) Difference between Planning and Controlling.
A system of control presupposes the existence of certain standards. These standards of
performance which serve as the basis of control are provided by planning. Once a plan becomes
operational, controlling is necessary to monitor the progress, measure it, discover deviations and
initiate corrective measures to ensure that events conform to plans. Thus, planning without
controlling is meaningless. Similarly, controlling is blind without planning. If the standards are
not set in advance, managers have nothing to control.
The relationship between planning and control can be explained as follows:
a. Planning Originates Controlling:
In planning the objectives or targets are set in order to achieve these targets control procedure is
needed. So planning precedes control.
b. Controlling Sustains Planning:
Controlling directs the course of planning. Controlling spots the areas where planning is
required.
Controlling Provides Information for Planning:
In controlling the real performance is compared to the standards set and records the deviations, if
any. The information collected for exercising control is used for planning also.
c. Controlling measures plans:
Controlling measures are taken in accordance with the pre-determined plans, programs, and
targets. Planning is the initial step and controlling is in the process and required at every step.
d. Planning and controlling, both are forward-looking:
Both planning and controlling aim at the future prospects of the business. Planning is always for
future and control is also forward-looking. Their combined efforts are to reach maximum output
with a minimum of cost.
 Relationship between the two can be summarized in the following points :-
Planning proceeds controlling and controlling succeeds in planning.
Planning and controlling are inseparable functions of management.
Activities are put on rails by planning and they are kept at the right place through controlling.
Planning and controlling are integral parts of an organization as both are important for the
smooth running of an enterprise.
Planning and controlling reinforce each other. Each drives the other function of management.
Therefore, planning involves looking ahead and is called a forward-looking function. On the
contrary, controlling is like a postmortem of past activities to find out deviations from the
standards. In that sense, controlling is a backward-looking function. However, it should be
understood that planning is guided by past experiences and the corrective action initiated by
control function aims to improve future performance.