CHAPTER-4 PLANNING

#Basic
Question 1.
An established firm has fifty years of experience in shipping industry. The company time and again proves itself as one of
the dominant figures in the market. The plan for the whole year is given a lot of importance. According to the owner of the
company their plans are the basic structures upon which other important functions of management rest. It is important
that the plans are communicated to the employees. The top management ensures that the plans are communicated and
implemented at all levels and in all departments. To learn from past mistakes is a habit of this successful company. They
prepare plans for short term as well as long term where it can be seen that throughout the year the plans are prepared one
after another. Shipping industry needs such dedicated companies. The goals are specific and the activities to achieve these
specific goals are undertaken. The company has planned a growth of 20% in revenue this year. Let's see how much it's
possible for it to achieve it by the end of the year.
In the above case identify the various features of planning highlighted.
Which type of plan is indicated in the above case?
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Question 2.
Sukumar is an energetic middle level manager. He tries to make best plans. For this he involves foresight and intelligent
imagination. Within three years many of his projects have been very successful. His high success rate is due to his good
plans. He always makes alternative plans and selects the best out of them after considering relevant aspects. However, he
knows it is not necessary that his all plans will be successful. He knows that sometimes his concern for making very good
plans eats a lot of time and energy. His friend Jyoti suggests him to take suggestions from others when he makes his plans
and also consider plans made by others. Even after so much painstaking Sukumar knows that his plans can yet fail in the
uncertain business environment. He has recently decided to plan carefully in future.
Which features of Planning have been highlighted in the above case?
Which limitations of Planning have been highlighted in the above case?
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Question 3.
In an annual general meeting a company sets its targets for the year. The manufacturing department has decided to
manufacture 2.5 million units of the product and has decided to monitor the performance so as to control it accordingly.
The survey done by the company has shown a number of cities in the north which are showing increased demand for the
product. The company in its research during the last three months generated various options and decided to follow the
best one. The HR team is also concerned about its output. The HR head revealed that there can be shortage of MBA pass
outs which can reduce the quality of manpower in the near future so it has decided to arrange HR workshops in different
colleges to get the best candidates. The board meeting ends on a positive note.
In the above case identify the importance of planning and the concerned lines.
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Question 4.
Suraj is the CEO of a company. He in accordance with the other board members decides to formulate a general statement
which will be guiding the thinking of the employees. He further goes on to formulate many such statements in the next six
months. These statements could be divided into two categories.
Which type of plan is indicated above? What are the two types of this plan? Also give one example of this plan.
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Question 5.
A specific statement was given by an HR head. This statement had no ’scope for any flexibility. It was the simplest type of
plan. Identify the type of plan. Give one more characteristic of this plan. Which plan is the widest type of plan?
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Question 6.
Ramesh is a supervisor in a company. He works at the lower level of management. He teaches 'on the job training' the ways
in which a task is to be done by the workers at the shop floor level. He meets his boss once a week day and givies him a
numerical statement quantifying the numbers needed in various activities at the shop floor for next 6 months. The boss
approves his requirements and gives him a job to set targets in figures about the next plan he thinks is good for the
manufacturing unit. Ramesh's dedication is noticed by all.
In the above case which types of plans have been highlighted?
Which step of planning process is highlighted in the above case?
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Question 7.
Arun joins as a sales manager of a company dealing in naturopathy products. Being proficient in his work, he knew that
without good planning he will not be able to organise ,direct ,control or perform any of the Other managerial functions
effectively and efficiently. Only on the basis of sales forecasting, he would assist in the preparation of the annual plants for
its production and sales. Besides, he will have to prepare sales plans regularly on weekly monthly quarterly and half-yearly
basis. While preparing the sales forecasts, he undertakes intellectual thinking involving foresight, visualization and issued
judgment rather than wishful thinking or guess work. Most importantly, all this planning activities will be meaningful only
if they will coincide with the purpose for which the business is being carried out.
In the context of the above case, identify the various features of planning highlighted in the above paragraph by quoting
lines from it.
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Question 8.
'Apna Ghar', a company dealing in consumer durables, plans to increase the sale of its products by 25% around Diwali this
year. Moreover, in order to cash on the implementation of the 7th pay commission by that time which is likely to raise the
income of 47 lakh serving employees of the central government in 52 lakh pensioners, the company has created 30
advertisement films which will be aired across 85 National and regional channels until Diwali. In the context of the above
case:
1. Identify the two different types of plans that Apna ghar proposes to implement by quoting lines from the paragraph.
2. Distinguish between the two types of plans as identified in part (a).
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Question 9.
After completing a diploma in bakery and patisserie, Payal sets up a small outlet at Goa airport to provide a healthy food
option to the travelers. To begin with, she has decided to sell 5 types of patties, Three Types of Pizzas and low sugar muffins
in 4 flavors. Thus, by deciding in advance what to do and how to do, she is able to reduce the risk of uncertainty and avoid
overlapping and wasteful activities. But sometimes her planning does not work due to some unavoidable circumstances
the cancellation of flights, bad weather conditions, government alert, etc which adversely affects her client. In context of
the above case:
1. Identify and explain the points highlighting the importance of planning mentioned in the above paragraph.
2. Describe briefly the limitation of planning with adversely affects Payal's business.
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Question 10.
Super fine rice limited has a largest share of 55% in the market. The company’s policy is to sell only for cash. In 2015 for the
first time company number one position in industry has been threatened because other companies started selling rice on
credit also. But the managers of super fine rice limited continued to rely on previously tried and tested successful plans
with didn't work because the environment is not static. This led to decline in sales of super fine ice limited. The above
situation is indicating to limitations of planning which led to decline in its sales. Identify these limitations.
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Question 11.
Lakshmi chemicals limited a soap manufacturing company wanted to increase its market share from 30 % to 55% in the
long run. A recent deports committed by disturbed and development Department of the company had predicted a growing
friend of herbal and organic products. On the basis of this report, the companies decided diversify into new variety of soap
with natural ingredients having benefits and fragrances of jasmine, rose, lavender, mogra, lemongrass, green apple
strawberry etc. The unique telling proposition goes to promote equals landing living in the contemporary life style. The
computer decided to allocate rupees 30 crores to achieve the objective.
Identify the type of one of the function of management mentioned above it will help the company to acquire dominant
position in the market.
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Question 12.
Suhasini a home science graduate from a reputed college has recently done a cookery course. She wished to start her own
venture with a goal to provide health food at reasonable prices. She discussed her idea with her teacher who encouraged
her. After analyzing various options for starting a business venture the shortlisted the option to sell readymade and ready
to make vegetable shakes and satty milk shakes. Then they weighed 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.
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Question 13.
Rahul , a worker, is given a target of assembling two computers per day. Due to his habit of doing things differently, an idea
struck him which would not only reduce the assembling time of computers but would also reduce the cost of production of
the computers. Instead of appreciating him Rahul supervisor order in to complete the work as per the methods and
techniques decided earlier is nothing could be changed at that stage. The above paragraph describes one of the limitations
of the Planning function of management. Name and explain that limitation.

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Question 14.
The term demonetization has become a household name since the government pulled the old rupees 500 and 1000 notes
out of circulation in November 2016. Prior to the year 2016, the Indian government had demonetized banknotes on to prior
occasions- once in the year 1946 Indian in the year 1978. In both cases the purpose was to combat tax evasion by Black
money. Identify the type of one of the functions of Management being discussed in the above lines.
In the context of the above case identify and explain the different types of plants being used by Flipkart by quoting lines
from the paragraph.
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Question 15.
'COMVIL' a company dealing in consumer durables, plans to increase the sale of its products by 25% around Diwali this year.
Moreover, in order to cash on the implementation of the seventh pay commission by that time, which is likely to raise the
income of 47 lakh serving employees of the Central government and 52 lakh pensioners, the company has created 30
advertisement films which will be aired across 85 national and regional channels until Diwali.
In context of the above case: Identify the two different types of plans that 'COMVIL' proposes to implement by quoting
lines from the paragraph.
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Question 16.
Rahul has been running a successful business of manufacturing traditional wedding wear for women including sarees and
lehengas. His friend Naveen who is engaged in the business of providing web designing solutions to his clients, suggests
him to explore the option of selling his products online. Rahul agrees to his suggestion and decides to venture into online
business, keeping in view the various e- Commerce regulations in order to avoid imposition of any penalty. In order to
facilitate the sale of his products, Rahul decides to offer multiple payment options such as cash on delivery, credit or debit
card transactions, net banking to the buyers etc.
In context of the above case: a. Identify the two different types of plans mentioned in the above paragraph that relate to
the online portal that Rahul intends to start by quoting lines from the paragraph.
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#Advanced
Question 1.
Holistic education public school in Bahadurgarh decides to implement the literacy programme of the government in the
school. It is decided that within the year the 45 support staff employees of the school will be made literate by the school
counselors and social workers. In order to enhance the learning process the school decides to use audio visual aids. To start
the program the School has to first procure the literacy books from the state resource centre at Jamia. Besides the
curriculum is Literacy book contains a series of 9 tests which the volunteers have to get completely by the learners during
the program. Over by implementing the plan of “each one teach one each” student of the school from classes 5th to 10th
will be encouraged to make one person literate. The student volunteers me select a learner by adopting any one of the two
ways away from the slum areas adopted by the school or on their own within the vicinity of their residents. As per the
norms of the Delhi government it is mandatory for the volunteers to send back the files copy of only ninth test paper in the
series to that holidays as a conclusive proof of the completion of the course else the certificate of commendation will not
be awarded to them. Considering the implementation of the program to be a part of its corporate social responsibility
initiative the School has decided to spend around rupees 15000 on the distribution of free stationery items refreshments
of the learners etc.
In the context of the above case:
a) Identify the various types of plans being used by Holistic education public school in order to implement the literacy
program in the school by quoting the lines from the paragraph.
b) Categorize the various types of plans as identified in part (a) into single use plans and standing plans.
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Question 2.
'Serious Business' is a balloon manufacturing firm. With the arrival of foreign firms it is feeling the pressure of improving its
business strategy. Because of the firm's advance planning it could not suddenly bring changes in its plans as the whole
organization had started implementing the decided plan. But this year the organization wants to ensure success. However,
the firm knows that the external environment is changeable and continues to vary in a fast manner. The organization wants
to prepare in advance for a better future. It has decided to allocate a portion of its budget specifically for proper planning
as it knows there are going to be expenses like Expert's fee, survey charges, etc.
Which limitations of planning have been identified in the above case?
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Question 3.
'Flows Technology' deals in bulb manufacturing business. It plans for a successful year of production and sale this year. It
has in advance given targets to all its departments and employees. The departments and employees are happy about this.
They know that now they won't have to do unconcerned activities thus leading to more focused approach resulting in saving
of resources. The company is thinking of starting two new plants in the southern portion of India. For this some concrete
plan has to be made. The main core team of the company has decided to weigh all the options and then choose the best
one. The road might be long but the company is geared to face all the challenges.
In the above case identify importance of planning highlighted.
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Question 4.
A shoe manufacturing company wants to become a market leader. For this a detailed planning is required. The first step
taken by the firm is to set targets for the three months duration for selling maximum number of shoes in the market which
they set as 2,50,000. The team doesn't want to make any mistake so they decide to do proper planning. They decide to
chalk out alternative plans so that they can arrive at the best possible plan. However the team is surrounded with doubts.
To remove doubts it goes for judging the plans to get the most profitable one. The plan is taken to the whole organization
and the concerned persons. Ultimately it is put into action. Without much
caring for the results the company starts working on the other project simultaneously.
Identify the steps in the planning process which have been applied by the organization in the above case? In the above case
identify the steps of the planning process which are not indicated?
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Question 5.
Identify the types of plans:
a) Ramesh is a senior middle level manager. He is busy in allocating resources to his staff, he has also finalised
the objectives and decided the course of action to be followed. He is expecting energy in his staff for the whole
season but he will have to be cautious.
b) Suresh is giving a speech to the workers of his factory. He is the owner of a toy manufacturing factory and has 123
workers. He tells them that this year's target of production is 7.5 lakh toys.
c) On the wall of 'Health is Wealth' hospital a board is hanging. On this board. It is written We care for the health of
senior citizens as our topmost priority'. This hospital is known for treating people aged more than 60 years.
d) Rakesh calls his new subordinates for a meeting. He is a top level manager. He arranges for a power point
presentation to train his subordinates who are all middle level managers. He tells them the way of doing task of
treating suppliers through a new software system to be installed within next 30 days.
e) Dinesh takes a meeting and guides his employees in a type of plan which is chronological in nature and is situation
specific. It is a collection of various methods in a step wise sequence.
f) Amit has given a detailed statement of expected results in numerical terms. This plan is conveyed to the
subordinates by him in a special meeting.
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Question 6.
'Dhulai' is a washing machine manufacturing company. The company decides to enter into music system manufacturing
industry. The company has a committed top management. It knows that there are various challenges in the market where
its decisions regarding the new industry might fail. Still the top management doesn't want to waste a lot of resources on its
plans. It knows that sometimes plans take more time in making than getting implemented. However, the company wants
to proceed with a positive approach. It has decided to study all the aspects of its competitors, to set all its objectives and
to allocate the required resources. The company did well in its previous business. At that time they took planning very
seriously as they knew everything the company would do had to be based on concrete plans. The company will start its
operations from next month.
Which function of management has been discussed in the above case? Which limitations of planning have been highlighted
in the above case? Which type of plan is indicated in the above case? Which feature of planning is highlighted above?
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Question 7.
Dheeraj is a very hard working manager. After working for the implementation of his well chalked out plan he, from the
start of July, decides to see in what ways and up to what accuracy has his plan been implemented.
Which step of the planning process will be involved by Dheeraj from the starting of July?
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Question 8.
Rajesh is at the real point of decision making in the course of his planning. He has arrived at this point after identifying
various alternative courses of action. After identification he was thoroughly involved in the evaluation of each of these
alternatives. He later got involved into making several permutations and combinations of these alternatives to arrive at this
point. Through which stage of the planning process is Rajesh going? Also give the next two steps of planning process.

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Question 9.
Naman is a very intelligent planner. He knows the market pretty well. For 'last 15 years he has been leading several
successful projects for his company. Company gives him responsibility to start a new project in America. With his experience
he makes assumptions about all the possible future scenarios.
Which step of the planning process is the above paragraph related to?
What is the other term used for assumptions in planning process?
What is the base material for developing premises?
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Question 10.
'High Voltage'—a company which manufactures microwaves is known for its flawless planning. However the top
management of the company accepts that some of its plans have failed in the past as the outside business environment is
unpredictable and dynamic. The company invests a huge portion of its revenue on planning related issues. Recently in a
newspaper the company was blamed for preventing its employees from doing new things due to the plans which are
decided by the top management. Rajesh a middle level manager in the company in a seminar said that the planning aspect
of a company should be dealt cautiously. There should be specific goals and activities to reach these goals should also be
properly executed. Company has many serious competitors in the market. Even they unanimously agree that without
planning no other function of management can exist and it's the basic platform on which the whole structure of
management is laid. When it comes to follow up of plans it becomes very important to know the standards. The success of
a plan can only be checked when it is known how much of the set target has been met because it is at the Stage of planning
these targets are set. It's not about the past. It's for the coming time and challenges that a company formulates a plan.
Rajesh knows this well. He uses his intelligent imagination and foresight while formulating the plans.
Which limitations of planning have been highlighted in the above case?
Which features of planning have been indicated in the above paragraph?
Which importance of planning do you find sighted in the above case?
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Question 11.
2 years ago Madhu completed her degree in food technology. She worked for some time in a company can manufacture
Chutneys pickles in Murabbas. She was not happy in the company and decided to have our own organic food processing
unit for the same. She said the objectives and the targets and formulated and action plan to achieve the same. One of the
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 purchased 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 is a
production manager who decided the exact manner in which the production activities were to be carried out. Mohan also
prepared 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 rupees hundred per day for not wearing caps, gloves and apron was announced.
Quoting lines from the word paragraph identify and explain the different types of plans discussed.
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Question 12.
'Agile Ltd.' is a well-known automobile manufacturing company in India the company plans to increase the sale of its Sedan
cars by 20% in the next quarter. In order to achieve the desired target, the marketing team of the company considers the
impact of policy of the government towards diesel vehicles and the level of competition and the segment of cars. The
explore the various available options like offering more discount to dealers and customers, providing more consumer
friendly finance options, lucky draws on test drives, increasing advertising, offering more of free accessories on the purchase
of car, etc. A thorough analysis of the various available options is done keeping in view the relative viability of each option.
The company decides to pursue the option of offering more discount to dealers and customers in order to boost the sale
of sedan cars. In order to implement the plan, the determined various discount packages and communicate the same to
the product dealers. To make the prospective consumers aware about the new available benefits, advertisements are made
through various sources of print and electronic media. The market analysts of the company keep a close watch on the
revenue from the Sedan cars to study the effect of new initiatives by the company to promote its sales. In the context of
the above case:
a) Name the function of management described in the above paragraph.
b) Identify and explain the various steps involved in the process the function of management as identified in part (a)
by quoting the lines from the above paragraph.
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Question 13.
Rajendra has been running a successful business of manufacturing traditional wedding wear for women including sarees
and lehengas. His friend Surendra who is engaged in the business of providing web designing solutions to his clients, suggest
him to explore the option of selling his products online. Rajendra agrees to his suggestion and decides to venture into online
business, keeping in view the various E-Commerce regulations in order to avoid imposition of any penalty. In order to
facilitate the sale of his products Rajendra decides to offer multiple payment options such as cash on delivery, credit or
debit card transactions, net banking to the buyers, etc.
In the context of the above case:
a) Identify the two different types of plans mentioned in the buff paragraph that relate to the online portal that
Rajendra intends to start by quoting lines from the paragraph.
b) Distinguish between the two types of plants as identified in part (a).
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Question 14.
Wazir Ahmed joints 'Ashiana Limited' a company dealing in real estate is 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 organization as they promotions were overdue. Therefore, in order to reinstate the confidence of the
staff, he lays out the clear-cut plan consisting of a set of general guidelines for both time bound and performance related
appraisals of the managers at all levels. Moreover, he develops standardized processes containing a series of steps specified
in a chronological order for its implementation.
 In the context of the above case:
a) Identify the two different types of plans mentioned in the above paragraph that relate to the online portal that
Rajinder intends to start by quoting lines from the paragraph.
b) Distinguish between the two types of plans identified in part (a).
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Question 15.
Josh Limited is a one of the largest two wheeler manufacturer in India. It has a market share of about 42% in the two
wheeler category. The company had witnessed almost 35% drop in the booking as the currency crunch was prompting
people to with hold new purchases due to demonetization. Therefore, the production manager of the company has decided
to align production to factor in slower sales in the market.
In the context of the above case:
a) Identify and explain the function of management being discussed and the above lines.
b) Which limitations of the function of management as identified in part (a) of the Question was the production
manager trying to overcome due to demonetization.
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Question 16.
The arrangement to demonetize the rupees 500 and 1000 banknotes begins 6 to 10 months prior to the public
announcement and was kept highly confidential. The cabinet was informed about the demonetization on 8 November 2016
in a meeting called by the Prime Minister of India, Narendra Modi. This was followed by Modi's public announcement about
the demonetization in a televised address very announce that currency notes with the denomination of rupees 500 and
1000 would cease to be the legal tender from 9th of November 2016. Denomination of rupees 500 and 1000 would cease
to be the legal tender from 9th of November 2016 the most interesting thing regarding the demonetization is that people
were devising various unique ways for transforming their black money into white one by depositing money in the accounts
of the poor relatives and friends, converting black money into gold, paying a few salaries in advance and so on. In the
context of the above case:
Identify and explain the types of plans being discussed in the above lines with regard to demonetization.
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Question 17.
Flipkart is an E- commerce company founded in the year 2007 by Sachin Bansal and Binny Bansal. The company is registered
in Singapore but has its headquarters in Bangalore, India. The company seeks to increase traffic and boost sales and revenue
through integration of mobile apps, display, pay per click and Search Engine Optimization. In order to dispel this year of
people related to shopping online Flipkart was the first company to implement the popular cash on delivery facility. All the
products sold by the company and under a particular category may have different return/ replacement period. Flipkart
allows multiple payment options such as cash on delivery, credit or debit card
transactions net banking, e-gift voucher and card swipe on delivery. The company operates both ways when an order is
received. The products for which it holds inventory are dispatched by it directly. For the products they do not store in
inventory they just sent the order received by them to the supplier to ships it. The company plans to spend about to be 75
crores on e commerce advertising in the year 2016. Flipkart reserves the right to terminate your membership and /or refuse
to provide you with access to the website if it is brought to Flipkart notice or if it is discovered that you are under the age
of 18 years. This is because as per the Indian Contract Act 1872 the minors, undercharged insolvent, etc. are not eligible to
use the website.
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Question 18.
Rana 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 fragrances 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.
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Question 19.
Two years ago, Rahul obtained a degree in food technology. For some time, he worked in a company that manufactured
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 an action plan to achieve the same. One of his objectives
was to earn 50% profits 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 Naveen as the Production
Manager who decided the exact manner in which the production activities were to be carried out. Naveen also prepared a
statement showing the requirement of workers in the factory throughout the year. Rahul informed Naveen about his area
wise sales target for different products, 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 paragraph, identify and explain the different types of plans discussed.
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Question 20.
Agra Public School in Agra decides to implement the literacy programme of the government in the school. It is decided that
within the year, the forty five support staff employees of the school will be made literate by the school counsellors and
social workers. In order to, enhance the learning process, the school decides to use audio-visual aids. To start the
programme, the school has to first procure the literacy books from State Resource Centre at Tundla. Besides the curriculum,
each literacy book contains a series of nine tests which the volunteers have to get completed by the learners during the
programme. Moreover, by implementing the plan of 'each one teach one', each student of the school from classes fifth to
tenth will be encouraged to make one person literate. The student volunteers may select a learner by adopting anyone of
the two ways; either from the slum areas adopted by the school or on their own within the vicinity of their residence. As
per the norms of the Delhi Government, it is mandatory for the volunteers to send back the filled copy of only the ninth
test paper in the series to the authorities as a conclusive proof of the completion of the course, else the certificate of
commendation will not be awarded to them. Considering the implementation of the programme to be a part of its corporate
social responsibility initiative, the school has decided to spend around Rs.50,000 on the distribution of free stationery items,
refreshments of the learners, etc. In context of the above case:
(a) Identify the various types of plans being used by Agra Education Public School in order to implement the literacy
programme in their school by quoting the lines from the paragraph,
(b) Categorize the various types of plans as identified in part (a) into single use plans and standing plans.
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