Planning NCERT Solutions | Business Studies (BST) Class 12 - Commerce PDF Download

Very Short Answer Type Questions

Q2: A company wants to increase its market share from the present 10% to 25%  to have a dominant position in the market by the end of the next financial year. Ms Rajni, the sales manager has been asked to prepare a proposal that will outline the options available for achieving this objective. Her report included the following options ‑ entering new markets, expanding the product range offered to customers, using sales promotion techniques such as giving rebates, discounts or increasing the budget for advertising activities. Which step of the planning process has been performed by Ms Rajni? 
Ans: Ms. Rajni has performed the step of "Identifying alternative courses of action" in the planning process by outlining various strategies like entering new markets, expanding product ranges, and using sales promotions to achieve the objective.

Q3: Why are rules considered to be plans? 
Ans: Rules are considered plans because they specify what actions must or must not be taken under particular circumstances. They guide behavior and ensure consistency, leaving no room for discretion or flexibility.

Q4: Rama Stationery Mart has made a decision to make all the payments by e‑transfers only. Identify the type of plan adopted by Rama Stationery Mart. 
Ans: Rama Stationery Mart has adopted a policy as a type of plan. Policies are general statements that guide decision-making and actions, such as mandating e-transfers for payments.

Q5: Can planning work in a changing environment? Give a reason to justify your answer.
Ans: Yes, planning can work in a changing environment because it helps anticipate potential changes and develop strategies to adapt. However, its effectiveness depends on how flexible and dynamic the plan is to accommodate unforeseen changes.

Short Answer Type Questions

1. Setting Objectives: Identifying goals to be achieved.
2. Developing Strategies: Deciding on ways to accomplish the objectives.
3. Course of Action: Selecting the best action plan from alternatives.
4. Decision-making for the Future: Preparing for potential challenges and opportunities.

Q2: If planning involves working out details for the future, why does it not ensure success?
Ans: Planning does not ensure success because:

1. Uncertainty of Future: External factors like market conditions, economic changes, or technological advancements may disrupt plans.
2. Rigidity: Overemphasis on plans can make organizations inflexible to changing circumstances.
3. Implementation Issues: Poor execution or lack of resources can lead to failure despite good plans.

Q3: What kind of strategic decisions are taken by business organisations?
Ans: Strategic decisions taken by business organizations include:

1. Entering New Markets: Expanding into new regions or countries.
2. Product Diversification: Launching new products or services.
3. Technological Advancements: Adopting innovative technologies.
4. Competitive Strategy: Countering competition through pricing, promotions, or partnerships.

Q4: Planning reduces creativity. Critically comment.
Ans:

• Planning Promotes Innovative Ideas: During the planning process, managers often brainstorm to develop creative strategies and solutions. It provides a structured framework for innovation.
• Planning Reduces Creativity: Overemphasis on formal plans may restrict employees' ability to think outside the box and make spontaneous decisions, thereby limiting creativity.

Q5: In an attempt to cope with Reliance Jio’s onslaught in 2018, market leader Bharti Airtel refreshed its ₹ 149 prepaid plan to offer 2 GB of 3G/4G data per day, twice the amount it offered earlier. Name the type of plan highlighted in the given example? State its three dimensions also.
Ans: Type of Plan: Strategy.
Three Dimensions of the Plan:

1. Competitive Response: Offering more value to counter competition.
2. Market Retention: Retaining market leadership by matching customer demands.
3. Customer Engagement: Attracting customers through enhanced offerings.

Q6: State the type of plan and state whether they are Single-use or Standing plan:
(a) A type of plan which serves as a controlling device as well (Budget):

• Type of Plan: Budget
• Plan Type: Single-use plan

(b) A plan based on research and analysis and is concerned with physical and technical tasks (Method):

• Type of Plan: Method
• Plan Type: Standing plan

Long Answer Type Questions

1. Planning: Leads to Rigidity In an organisation a wen defined plan is drawn up with specific goals to be achieved, with in a specific time frame. These plans then decide how the work will progress In the future and managers may not be in a position to change It. This creates a problem as flexibility is very important. Always adhering to the plan may not give us the desired results always
2. Planning May not Work in a Dynamic Environment: The business environment is dynamic, nothing is constant. The business environment is a totality of external forces, where In some changes or the other keep on taking place Plans decide in advance what has to be done in future Planning cannot foresee everything and thus there may be obstacles to effective planning.
3. Planning Reduces Creativity: Planning is generally done by top management. Usually the rest of the members just implements these plans. As a consequence, middle management and other decisions makers are neither allowed to deviate from plans nor are permitted to act on their own, thus planning in a way reduces creativity since people tend to think along the same lines as others, there is nothing new or innovative.
4. Planning Involves Huge Cost: Planning involves huge cost in their formulation. These may be in terms of time and money. The Costs incurred sometimes may not justify the benefits derived from plans.
5. Planning is a Time Consuming Process: Sometimes plans to drawn take up so much of time that there is not much time left for their  implementation and the objectives to be achieved.
6. Planning does not Guarantee Success: Any plans needs to translated into action or it becomes meaningless. Managers have tendency to rely on previously tried and tested successful plans. It not always true just because a plan has worked before it will work again.

Q2: What are the steps taken by management in the planning process? 
Ans: The planning process involves the following steps 

1. Establishing Objectives: The first step in planning is to determine objectives which must be realistic, specific and clear so as to specify what is to be accomplished by the network of policies, procedures, strategies etc.
2. Developing Premises: They include assumptions or forecasts of the future and unknown conditions that will affect the operations of the plans. They provide an idea about the future which facilitates the work of planning. 
3. Identifying the Alternative Courses of Action: The next step in planning is to identify the various alternatives available to achieve the objectives. 
4. Evaluating Alternative Courses: The merits and demerits of different courses of actions are evaluated in the light of objectives to be achieved and their feasibility is judged i.e., how far they will be successful in helping to achieve the objective. 
5. Selecting an Alternative: The next step is to find out the most suitable course to be followed. The efforts are directed towards selecting that course. Which increases efficiency in the organisation by maximising output and profits at the minimum costs. 
6. Implement the Plan: At this step the best alternative chosen is put to use. 
7. Follow Up: Only putting the best alternative to action is not enough. The future is uncertain and dynamic. Therefore, it becomes important to check back whether the plan is giving results or not.

Q3: An auto company C Ltd. is facing a problem of declining market share due to increased competition from other new and existing players in the market. Its competitors are introducing lower priced models for mass consumers who are price sensitive. C Ltd. realized that it needs to take steps immediately to improve its market standing in the future. For quality conscious consumers, C Limited plans to introduce new models with added features and new technological advancements. The company has formed a team with representatives from all the levels of management. This team will brainstorm and will determine the steps that will be adopted by the organisation for implementing the above strategy. Explain the features of Planning highlighted in the situation given below.(Hint: Planning is pervasive, Planning is futuristic and Planning is a mental exercise).
Ans: The features of planning highlighted in the given situation are:

1. Planning is Pervasive: In the case of C Ltd., planning involves representatives from all levels of management, demonstrating that planning is required and applied at all levels in the organization. Each level contributes to the formulation and implementation of strategies.
2. Planning is Futuristic: C Ltd. is looking ahead to improve its market position by introducing new models with added features and technological advancements. This reflects the futuristic nature of planning, as it involves preparing for future challenges and opportunities.
3. Planning is a Mental Exercise: The company has formed a team to brainstorm and determine steps to implement its strategy. This highlights that planning involves intellectual processes, logical thinking, and decision-making rather than mere guesswork.