Previous Year Long Questions With Answers - Planning Commerce Notes | EduRev

Business Studies (BST) Class 12

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Commerce : Previous Year Long Questions With Answers - Planning Commerce Notes | EduRev

The document Previous Year Long Questions With Answers - Planning Commerce Notes | EduRev is a part of the Commerce Course Business Studies (BST) Class 12.
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Q. 1. After completing her studies in product design, Sarah wishes to start her own business to design products to cater to the mobility and communication requirements of persons with special needs. She told her friend that she wanted to focus on supplying high quality and affordable products on “no profit – no loss basis”. The Unique Selling Proposition (U.S.P.) of the products will be sensitivity to challenges and needs of the differently abled. She has to follow a series of steps to attain her predetermined objectives. In the above lines, Sarah has discussed about one of the functions of management. Identify the function and state its steps in chronological order other than the one discussed in the above para. [Outside Delhi Set-I, II, III (Comptt.) 2017]
Ans.
Planning. Steps in the process of Planning are:
(i) Developing Premises which involves making assumptions about future, upon which plans are to be withdrawn.
(ii) Identifying alternative courses of action which may be used to achieve the set objectives.
(iii) Evaluating alternative courses of action and selecting the best alternative which involves scrutinising the feasibility and consequences of each alternative before a choice is made.
(iv) Implementing the plan which involves seeing whether plans are put into action.
(v) Follow up which involves seeing that activities are performed according to plans.
Detailed Answer:
(i) Developing Premises: Premises refers to making assumptions regarding future. The assumptions are made on the basis of forecasting. Forecast is the technique of gathering information.
(ii) Identifying Alternative Courses of Action: After setting up of objectives the managers make a list of alternatives through which the organisation canachieve its objectives.
(iii) Evaluating Alternative Courses: After making the list of various alternatives along with the assumptions supporting them the manager starts evaluating each and every alternative.
(iv) Selecting an Alternative: The best alternative is selected but as such there is no mathematical formula to select the best alternative. Some times instead of selecting one alternative a combination of different alternatives can also be selected.
(v) Implementing the Plan: This is the step where other managerial functions also come in to the picture. The step is concerned with putting the plan into action i.e., doing what is required.
(vi) Follow-up Action: Planning is a continuous process so the manager’s job does not get over simply by putting the plan into action. The manager monitor the plan carefully while it is implemented.

Q. 2. Two years ago, Madhu completed her degree in food technology. She worked for sometime in a company manufacturing chutneys, pickles and murabbas. She was not happy in the company and decided to have her own organic food processing unit for the same. She set the objectives and the targets and formulated action plan to achieve the same. One of her objective was to earn 10% profit on the amount invested in the first year. It was decided that raw materials like fruits, vegetables, spices etc. will be purchased on three months credit from farmers cultivating organic crops only. She also decided to follow the steps required for marketing of the products through her own outlets. She appointed Mohan as a Production Manager who decides the exact manner in which the production activities are to be carried out. Mohan also prepared a statement showing the number of workers that will be required in the factory throughout the year. Madhu informed Mohan about her sales target for different products, area wise for the forthcoming quarter. While working on the production table a penalty of ` 100 per day for not wearing the caps, gloves and apron was announced. Quoting lines from the above para identify and explain the different types of plans discussed. [Delhi Set I 2016]
OR
Two years ago, Mayank obtained degree in food technology. For some time he worked in a company manufacturing bread and biscuits. He was not happy in the company and decided to have his own bread and biscuits manufacturing units. For this, he decided the objectives and the targets and formulated action plan to achieve the same. One of his objective was to earn 50% profit on the amount invested in the first year. It was decided that raw materials like flour, sugar, salt etc. will be purchased on two months credit. He also decided to follow the steps required for marketing the products through his own outlets. He appointed Harsh as a Production Manager who decided the exact manner in which the production activities are to be carried out. Harsh also prepared a statement showing the requirement of workers in the factory throughout the year. Mayank informed Harsh about his sales target for different products, area wise for the forth coming quarter. While working on the production table, a penalty of ` 150 per day was announced for not wearing the helmet, gloves and apron by the workers. Quoting lines from the above para identify and explain the different types of plans discussed. [Outside Delhi Set I 2016]
Ans.
The different types of plans are:
(i) Objective: ‘One of her objective is to earn 10% profit on the amount invested in the first year.’ An objective is the end which the management seeks to achieve within a given time period.
(ii) Policy: ‘It was decided that raw materials like fruits, vegetables, spices etc. will be purchased on three months credit from farmers cultivating organic crops only.’ Policy is a general guideline which brings uniformity in decision making for achievement of predetermined objectives.
(iii) Procedure: ‘She also decided to follow the steps required for marketing of the products through her own outlets.’
OR
‘She appointed Mohan as a Production Manager who decides the exact manner in which the production activities are to be carried out’. It consists of sequence of routine steps on how to carry out activities. It details the exact manner in which any work is to be performed.
(iv) Budget: ‘Mohan also prepared a statement showing the number of workers that will be required in the factory throughout the year.’
OR
‘Madhu informed Mohan about the sales target for different products, areawise for the forthcoming quarter.’ A budget is plan which states expected results of a given future period in numerical terms. It may be expressed in time, money or physical units.
(v) Rule: ‘While working on the production table, a penalty of ` 150 per day for not wearing the caps, gloves and aprons was announced.’ A rule is a statement that specifies what is to be done or not to be done.

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