Comprehension
Nishtha runs a chain of famous restaurants, ’Indian Kitchen’, in different parts of
Delhi. The restaurant chain was known for good quality food and quick service.
‘Indian Kitchen’ was generating good revenue and had goodwill in the market. Nishtha
would take a weekly report from all the Restaurant Managers and take necessary
action to resolve the problems, if any. Nishtha noticed a sudden decline in sales in one
of the restaurants. She questioned the Restaurant Manager who mentioned that the
restaurant is seeing a gradual decrease in the number of customers, but could not
provide a clear explanation for it. So, Nishtha formed a team to find out the causes of
the declining customers as this is the key area for restaurant business and is critical to
the success of business. By doing this, Nishtha is performing a step of the process of a
function of management.
Question: 1
Identify and explain the function of management discussed above.
Identify and explain the function of management discussed above.
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Controlling ensures that organizational objectives are achieved effectively by identifying and addressing deviations in performance.
Updated On: Jan 13, 2026
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Solution and Explanation
Management Function: Control
- Control is the management process of verifying that all actions align with planned activities and organizational goals.
- This function entails evaluating current performance against set benchmarks, pinpointing discrepancies, and implementing corrective actions to resolve these differences.
- Control is the management process of verifying that all actions align with planned activities and organizational goals.
- This function entails evaluating current performance against set benchmarks, pinpointing discrepancies, and implementing corrective actions to resolve these differences.
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Question: 2
Explain the step of the function identified in (i) above, followed by Nishtha to find out the causes of declining revenue.
Explain the step of the function identified in (i) above, followed by Nishtha to find out the causes of declining revenue.
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To manage deviations effectively, focus on critical areas (Critical Point Control) and escalate only significant deviations (Management by Exception).
Updated On: Jan 13, 2026
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Solution and Explanation
Step: Analyzing Deviations
- Analyzing deviations entails comparing actual results against benchmarks to pinpoint substantial discrepancies.
- Nishtha concentrated on a crucial metric (customer footfall), vital to restaurant operations. This practice, known as Critical Point Control, prioritizes immediate attention to deviations in essential areas.
- Management by Exception was employed, with only significant deviations triggering further investigation.
- Analyzing deviations entails comparing actual results against benchmarks to pinpoint substantial discrepancies.
- Nishtha concentrated on a crucial metric (customer footfall), vital to restaurant operations. This practice, known as Critical Point Control, prioritizes immediate attention to deviations in essential areas.
- Management by Exception was employed, with only significant deviations triggering further investigation.
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Question: 3
Explain the step Nishtha will take after she gets the report from the team formed to find out the causes of declining revenue.
Explain the step Nishtha will take after she gets the report from the team formed to find out the causes of declining revenue.
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Corrective actions should address root causes of deviations and focus on long-term improvements to maintain performance standards.
Updated On: Jan 13, 2026
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Solution and Explanation
Step: Implementing Corrective Measures
- Implementing corrective measures entails resolving the fundamental causes of identified discrepancies to guarantee performance meets planned benchmarks.
- Nishtha shall deploy resolutions derived from the team's conclusions, including enhancing service standards, launching novel promotions, or rectifying operational inefficiencies.
- Corrective measures prevent the recurrence of comparable discrepancies moving forward.
- Implementing corrective measures entails resolving the fundamental causes of identified discrepancies to guarantee performance meets planned benchmarks.
- Nishtha shall deploy resolutions derived from the team's conclusions, including enhancing service standards, launching novel promotions, or rectifying operational inefficiencies.
- Corrective measures prevent the recurrence of comparable discrepancies moving forward.
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