List of top Business Studies Questions on Planning asked in CBSE CLASS XII

Greener Organic is a company producing eco-friendly fertilizers and soil boosters. With the growing interest in organic farming, the company is planning to expand its operations across India. Greener sets its target to increase its sales by 25% in the next year. This gave all departments – sales, production, marketing and logistics – a common target to work. To achieve this, Greener made a comprehensive plan to enter Tier-2 and Tier-3 cities by working with local farmer groups. They also plan to promote their brand through on-line campaigns focused on eco-friendly farming. The company also laid down broad parameters within which the managers could function. All raw materials used had to be certified organic and preferably sourced from local farmers. This would improve quality, support local people and build trust with customers. The company allocated ` 50 lakhs for marketing, which included funds for regional newspaper advertisements, digital marketing, promotional events and dealer incentives. By quantifying future facts and figures, the company planned to control costs and evaluate performance. Identify and explain any four type of plans discussed in the above case.

Explain the following points of importance of planning :
(i) Planning provides directions
(ii) Planning reduces overlapping and wasteful activities
(iii) Planning establishes standards for controlling

Match the type of plan given in Column-I with its meaning in Column-II :
[Table omitted per user instruction]
Choose the correct alternative from the following:

'Renew Ltd.' was the pioneer in the Electric Vehicles segment and presently has 70% market share. Keeping in mind the rapidly increasing demand for Electric Vehicles due to the rising environment consciousness among people and lower operating costs, the company set a target to increase its market share to 80% in the current year. However, the incentives provided by the government to encourage manufacturing of Electric Vehicles attracted many new players in the market. As this change in the business environment happened suddenly, the company was not able to accurately assess future trends. As a result, the market share of 'Renew Ltd.' fell from 70% to 55% in the current year. Which limitation of planning has been discussed in the above case?

Explain the following steps in the process of planning :
(i) Setting objectives
(ii) Developing premises
(iii) Identifying alternative courses of action

Explain the following features of planning function of management :
(i) Planning is a mental exercise
(ii) Planning involves decision making
(iii) Planning is futuristic

Explain the following points of importance of planning:
(i) Planning provides directions
(ii) Planning reduces overlapping and wasteful activities
(iii) Planning establishes standards for controlling.

Match the type of plan given in Column-I with its meaning in Column-II :
Column-I - Column-II
a. Policy - (iv) A general statement that guides thinking.
b. Programme - (ii) Detailed statement about a project.
c. Method - (i) Prescribed way in which a task is performed.
d. Strategy - (iii) Comprehensive plan taking environment into consideration.
Choose the correct alternative :

‘Renew Ltd.’ was the pioneer in the Electric Vehicles segment and presently has 70% market share. Keeping in mind the rapidly increasing demand for Electric Vehicles due to the rising environment consciousness among people and lower operating costs, the company set a target to increase its market share to 80% in the current year. However, the incentives provided by the government to encourage manufacturing of Electric Vehicles attracted many new players in the market. As this change in the business environment happened suddenly, the company was not able to accurately assess future trends. As a result, the market share of ‘Renew Ltd.’ fell from 70% to 55% in the current year. Which limitation of planning has been discussed in the above case ?

(a) Explain any four points of importance of ‘Planning’ function of management.
OR
(b) Explain the steps in the process of ‘Organising’ function of management.

‘Leno’ is a reputed car manufacturing company, which is going to complete its 75 years in October 2024. The Chief Executive Officer of the company decided to take the company to a higher level. For this he called a meeting of all departmental heads of the company. In the meeting, the Chief Executive Officer proposed a target to increase sales by 10% and profits by 20% in its Platinum Jubilee year. The Human Resource Manager estimated that an increase of 500 workers would be required to achieve the target. The Finance Manager suggested that the company must hold adequate cash balances for various purposes, and he will prepare a statement showing the estimated cash inflows and outflows for this particular period. Identify and explain two types of plans discussed in the above case.

(a) Explain any four characteristics of planning.
OR
(b) Explain any four points of importance of decentralisation.

‘Leno’ is a reputed car manufacturing company, which is going to complete its 75 years in October 2024. The Chief Executive Officer of the company decided to take the company to a higher level. For this he called a meeting of all departmental heads of the company. In the meeting, the Chief Executive Officer proposed a target to increase sales by 10 percent and profits by 20 percent in its Platinum Jubilee year. The Human Resource Manager estimated that an increase of 500 workers would be required to achieve the target. The Finance Manager suggested that the company must hold adequate cash balances for various purposes, and he will prepare a statement showing the estimated cash inflows and outflows for this particular period.
Identify and explain two types of plans discussed in the above case.

(a) Exlpain any four limitations of "Planning".
OR
(b)Explain any four points of importance of "Oragnising".

(a) State any four characteristics of planning.
OR
(b) Explain the following types of plans:
(i) Policy
(ii) Budget

(a) State any four points of importance of planning function of management.
OR
(b) Explain the following types of plans :
(i) Objective
(ii) Programme

(a) State any four limitations of planning.
OR
(b) Explain the following types of plans: (i) Strategy (ii) Procedure

Sudha and Shweta were twin sisters. After completing their education from college, they decided to start a business. As they were Commerce students, they knew the importance of deciding in advance 'what to do' and 'how to do'. It was very challenging for them as this decision was to guide all their future actions. While discussing the same with their mother, they got a new idea of starting a 'Cloud Kitchen'. Both the sisters were very excited to start this. The idea took the shape of a concrete plan and within a month, they were successful in starting their 'Cloud Kitchen.'
Identify the point of importance of planning highlighted in the above case:

‘Vishesh Constructions', a construction company, decided to strictly implement 'No Helmet, No Entry’ and put the following sign at their construction sites: 


 Identify the type of plan indicated by the above sign: 
 

Atul Sharma was the Chief Executive Officer of a footwear company, 'Stepone Footwear’. The company manufactured innovative and comfortable footwear for all age groups. Atul Sharma was known for meticulous planning. He ensured that the goals and objectives of the company are clearly stated so that they act as a guide for deciding what action should be taken and in which direction. Before each season, 'Stepone Footwear’ carefully analysed market trends, customer preferences and production schedules. This analysis enabled the company to look ahead and anticipate changes and develop managerial responses, wherever necessary. As a result, they were able to consistently deliver innovative and comfortable shoes to the market. During one season, there was a sudden surge in demand for eco-friendly shoes. 'Stepone Footwear' had already planned their production for the year with specific goals to be achieved within a specific time frame. The managers of 'Stepone Footwear' did not have the flexibility to change the plan to cope with the changed circumstances. Another shoe company 'Eco Step' quickly adapted and started manufacturing comfortable eco-friendly shoes. By not being able to adjust to the rapidly changing market, 'Stepone Footwear’ faced inventory surplus while 'Eco Step' emerged as a market leader in sustainable eco-friendly footwear. Quoting lines from the above paragraph, identify and explain two benefits and two limitations of 'Planning function of management discussed in the above case.