Question:medium
‘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 ?
‘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 ?
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Planning is a "future-oriented" process. If the future becomes unpredictable due to external shifts, the plan loses its effectiveness.
Updated On: Mar 29, 2026
- Planning may not work in a dynamic environment
- Planning leads to rigidity
- Planning does not guarantee success
- Planning involves huge costs
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The Correct Option is A
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Top Questions on Planning
- 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
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(i) Planning provides directions
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(iii) Planning establishes standards for controlling.
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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.
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