All questions of Planning for Commerce Exam

General rule is a rule that is applicable to a class of cases or circumstances. It can also be formal order or direction made by a court, as for governing the procedure of the court or a general norm mandating or guiding conduct or action in a given type of situation. 

Panning is not guarantee of success beacuse planning only base of analysing future. future is uncertain it is difficult to predict so,panning may be fail.

C

Choice of Advertising Media

Strategy for choosing the appropriate advertising media is crucial in marketing. It is a process that is based on research and analysis of the target audience, budget, and objectives of the campaign. To ensure that the advertising message reaches the target audience effectively, the following factors are considered:

1. Target audience: The choice of advertising media is influenced by the target audience. For instance, if the target audience is the older generation, traditional media such as print and television will be more effective. However, if the target audience is in the younger generation, social media will be more effective.

2. Budget: A budget is an important factor that determines the choice of advertising media. Advertising through traditional media such as television and print is expensive compared to digital media such as social media and email. Thus, the budget determines the choice of advertising media.

3. Objectives: The objectives of the advertising campaign also influence the choice of advertising media. If the objective is to increase brand awareness, then television and print media are more effective than social media.

Conclusion

In conclusion, the choice of advertising media is a strategic process that is based on research and analysis of the target audience, budget, and objectives of the campaign. The decision on which media to use should be based on the effectiveness of the media in reaching the target audience, the budget available, and the objectives of the campaign. Therefore, it can be concluded that the correct answer is option 'C' - Strategy.

Objective:

The objective of increasing sales by 15% is to achieve a specific target of growth in revenue. It is an aim or goal that the company wants to accomplish within a specific period.

Method:

The method or approach to achieve this objective can vary based on the company's products, customers, and market. However, some common methods that can be implemented to increase sales are:

1. Identifying the target market: By identifying the target audience, the company can focus on the marketing efforts, which can lead to a higher conversion rate.

2. Improving the product quality: If the product quality is improved, it can lead to customer satisfaction and loyalty, which can result in an increase in sales.

3. Increasing marketing efforts: By increasing marketing efforts, the company can create awareness about the product and reach a wider audience.

4. Offering discounts and promotions: Offering discounts and promotions can attract customers and encourage them to make a purchase, leading to an increase in sales.

5. Improving customer service: By improving customer service, the company can create a positive reputation, which can lead to increased sales through word-of-mouth marketing.

Rule/Procedure:

There is no specific rule or procedure to increase sales by 15%. However, the company can follow a structured approach by setting targets, implementing strategies, and monitoring the progress regularly. The company can also involve the sales team and provide them with the necessary training and resources to achieve the target.

In conclusion, increasing sales by 15% is an objective that can be achieved through various methods and strategies. The company can follow a structured approach and involve the sales team to ensure the target is met.

Planning leads to rigidity: Plan is drawn up with specific goals to be achieved within a specific time frame. These plans then decide the future course of action and managers may not be in a position to change it.

The correct answer is option 'D' - Looking forward.

**Introduction to Planning:**
Planning is a fundamental function of management that involves setting objectives, determining the actions required to achieve those objectives, and developing strategies to guide those actions. It is a proactive process that focuses on looking ahead and preparing for the future.

**Looking Forward:**
Planning primarily involves looking forward and anticipating future events and circumstances. It involves analyzing the current situation, understanding the desired outcomes, and identifying the steps and resources necessary to achieve those outcomes. By looking forward, organizations can anticipate challenges, opportunities, and potential risks, and develop strategies to effectively respond to them.

**The Importance of Looking Forward in Planning:**
1. Anticipating Future Needs: By looking forward, organizations can identify potential needs, demands, and trends that may arise in the future. This enables them to develop strategies to meet those needs and stay ahead of the competition.

2. Setting Objectives: Looking forward helps in setting clear and achievable objectives for the organization. By understanding the desired outcomes, organizations can establish specific, measurable, attainable, relevant, and time-bound (SMART) goals that align with their vision and mission.

3. Allocating Resources: Planning involves assessing the resources required to achieve the objectives. By looking forward, organizations can determine the resources needed in terms of finances, manpower, technology, and infrastructure, and allocate them effectively to ensure successful implementation of the plans.

4. Identifying Potential Risks: Looking forward allows organizations to identify potential risks and challenges that may arise in the future. By analyzing these risks, organizations can develop contingency plans and risk management strategies to mitigate their impact and ensure business continuity.

5. Enhancing Decision Making: Planning involves making informed decisions based on future projections and analysis. By looking forward, organizations can gather relevant information, evaluate alternatives, and make decisions that align with their long-term objectives.

**Conclusion:**
Planning is a forward-looking process that enables organizations to anticipate future events, set objectives, allocate resources, identify risks, and make informed decisions. By focusing on the future, organizations can develop effective strategies to achieve their goals and ensure long-term success.

Reducing the Risk of Uncertainty through Planning

Planning is an essential activity for individuals, organizations, and businesses to achieve their goals. It involves identifying objectives, determining the actions needed to achieve them, and allocating resources to accomplish them. One of the primary benefits of planning is that it helps in reducing the risk of uncertainty. This article explains how planning helps in reducing the risk of uncertainty.

Definition of Uncertainty

Uncertainty is a situation in which the outcome or consequences of an action or decision are unknown or unpredictable. It arises from various sources such as lack of information, complexity, ambiguity, and unpredictability of events, and external factors such as economic, political, and social changes.

Importance of Reducing the Risk of Uncertainty

Reducing the risk of uncertainty is crucial for individuals, organizations, and businesses for the following reasons:

- It helps in making informed decisions.
- It minimizes the negative impact of unexpected events.
- It improves the chances of achieving objectives.
- It enhances the effectiveness and efficiency of operations.

How Planning Helps in Reducing the Risk of Uncertainty

Planning helps in reducing the risk of uncertainty in the following ways:

1. Identifying Potential Risks

Planning involves identifying potential risks and developing strategies to mitigate them. By anticipating potential risks, individuals, organizations, and businesses can take proactive measures to minimize their impact.

2. Creating Contingency Plans

Contingency plans are backup plans that are developed to address unexpected events or situations. Planning helps in creating contingency plans that can be implemented quickly and effectively to minimize the negative impact of unexpected events.

3. Allocating Resources Effectively

Planning involves allocating resources such as time, money, and personnel effectively. By allocating resources based on priorities and objectives, individuals, organizations, and businesses can reduce the risk of uncertainty and maximize the chances of achieving their goals.

4. Providing Direction for Action

Planning provides direction for action by defining objectives, identifying strategies, and determining the actions needed to achieve them. By providing a clear roadmap for action, planning reduces the risk of uncertainty and improves the chances of success.

Conclusion

In conclusion, planning is an essential activity for individuals, organizations, and businesses to achieve their goals. One of the primary benefits of planning is that it helps in reducing the risk of uncertainty. By identifying potential risks, creating contingency plans, allocating resources effectively, and providing direction for action, planning minimizes the negative impact of unexpected events and improves the chances of success.

Intuitive Decision Making

Intuitive decision making is a process of making decisions based on experience, feelings, and accumulated judgment. This type of decision-making is often used when a person has a high level of expertise in a particular area, and they can use their intuition to make decisions quickly and effectively.

Intuitive decision making involves taking a holistic approach to decision-making, taking into account all the available information, both tangible and intangible, and using this information to make a decision that feels right. This type of decision-making is often used in situations where there is a high level of uncertainty or ambiguity, and where there is no obvious solution.

Advantages of Intuitive Decision Making:

1. Quick and Efficient: Intuitive decision making is often quick and efficient, as it allows individuals to make decisions based on their past experiences and accumulated knowledge.

2. Effective in Ambiguous Situations: Intuitive decision making is particularly effective in situations where there is a high level of ambiguity or uncertainty.

3. Can Result in Innovative Solutions: Intuitive decision making can also result in innovative solutions, as it allows individuals to think outside the box and consider new and creative solutions to problems.

Disadvantages of Intuitive Decision Making:

1. Limited by Personal Bias: Intuitive decision making is limited by personal bias, as individuals may be influenced by their own beliefs, values, and experiences.

2. Lack of Objectivity: Intuitive decision making may also lack objectivity, as it is based on personal interpretation and judgment.

3. Not Suitable for Complex Decisions: Intuitive decision making may not be suitable for complex decisions, where a more structured approach may be necessary.

Conclusion:

Intuitive decision making is a valuable tool for making quick and efficient decisions in uncertain or ambiguous situations. However, it is important to be aware of its limitations and to use a structured approach when necessary.

The correct answer is option 'B' - Policy.

Explanation:
A firm's policy refers to a set of guidelines or principles that guide its decision-making and operations. It is a framework that helps the firm achieve its objectives and align its actions with its overall strategy.

In this case, the firm has decided to sell its product on a cash basis only. This means that the firm will only accept payment in cash at the time of the transaction, and will not offer any credit or installment options to customers. This decision is a part of the firm's policy.

Policies are established by management and are designed to ensure consistency and efficiency in the firm's operations. They provide a framework for decision-making and help management make informed choices.

Policies can be established in various areas of a firm's operations, including sales, marketing, finance, human resources, and production. They are usually based on the firm's objectives and are intended to support the firm's overall strategy.

In this case, the policy of selling the product on a cash basis only may have been established to ensure prompt and guaranteed payment from customers. By selling on a cash basis, the firm eliminates the risk of non-payment or late payment, which can have a negative impact on its cash flow and financial stability.

Moreover, selling on a cash basis may also help the firm maintain better control over its inventory and manage its working capital more effectively. It allows the firm to receive immediate payment for its products, which can be used to cover operational expenses and invest in growth opportunities.

Overall, the decision to sell the product on a cash basis only is a part of the firm's policy, which guides its operations and helps it achieve its objectives.

First step of the planning is setting objectives as it is necessary to know that 'where we are standing' i.e. what is the current position of our firm and 'where to reach' i.e. to determine the destination of the organisation.