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

Multiple Choice Questions

Q1: What is the first step in the process of planning?
(a) Setting objectives
(b) Establishing goals
(c) Formulating strategies
(d) None of the above
Ans: (a)

Q2: Which of the following is not a characteristic of a good plan?
(a) Flexibility
(b) Specificity
(c) Complexity
(d) Feasibility
Ans: (c)

Q3: Which type of planning focuses on achieving the overall goals of the organization?
(a) Strategic planning
(b) Operational planning
(c) Tactical planning
(d) Contingency planning
Ans: (a)

Q4: Who is responsible for implementing the plans formulated by top management?
(a) Middle-level managers
(b) Frontline supervisors
(c) Top-level managers
(d) Board of Directors
Ans: (b)

Q5: Which of the following is a limitation of planning?
(a) Encourages innovation
(b) Reduces flexibility
(c) Facilitates coordination
(d) Enhances decision-making
Ans: (b)

Very Short Answers

Q1: Define Planning.
Ans: Planning is the process of setting objectives, determining the actions required to achieve these objectives, and formulating strategies to coordinate and control these actions.

Q2: What is the significance of planning in an organization?
Ans: Planning provides direction, reduces uncertainties, helps in focusing on objectives, and aids in efficient resource allocation and coordination.

Q3: Mention any two types of plans in an organization.
Ans: Strategic Plans: Long-term plans that define the organization's objectives and strategies.
Operational Plans: Short-term plans detailing specific actions to be taken within a year.

Q4: Explain the concept of Contingency Planning.
Ans: Contingency planning involves preparing alternative courses of action that can be implemented if the original plan fails due to unforeseen circumstances or changes in the external environment.

Q5: What is the difference between Policy and Strategy?
Ans: Policy: A general guideline or course of action that provides boundaries for decision-making within an organization.
Strategy: A detailed plan of action formulated to achieve a specific goal or objective.

Short Answers

Q1: Discuss the steps involved in the planning process.
Ans: Setting Objectives: Clearly defining the goals to be achieved.
Planning Premises: Identifying the assumptions and factors influencing the planning process.
Identifying Alternatives: Generating various possible courses of action.
Evaluating Alternatives: Assessing the pros and cons of each alternative.
Selecting the Best Alternative: Choosing the most suitable course of action.
Implementing the Plan: Putting the chosen plan into action.
Follow-up and Control: Monitoring progress and taking corrective actions if necessary.

Q2: Explain the advantages and disadvantages of centralized planning. 
Ans: Advantages:

• Better coordination and control
• Consistent decision-making
• Efficient resource allocation

Disadvantages:

• Lack of flexibility
• Slow response to local issues
• Overburdened top management

Q3: Describe the importance of planning in the context of small-scale businesses.
Ans: Planning in small-scale businesses is crucial as it helps in defining clear objectives, allocating limited resources efficiently, and adapting to market changes. It provides a roadmap for growth, enhances decision-making, and ensures survival amid competition.

Q4: Explain the concept of 'Management by Objectives' (MBO).
Ans: MBO is a systematic approach that involves setting specific objectives for individuals and departments within an organization. It emphasizes the importance of defining clear, achievable goals, and aligning individual and organizational objectives. Regular performance evaluations are conducted to ensure that employees' efforts contribute towards the accomplishment of organizational objectives.

Q5: Discuss the role of planning in the effective utilization of resources.
Ans: Planning plays a vital role in optimizing resource utilization by identifying the exact requirements for various activities. It ensures that resources such as manpower, finances, and materials are allocated efficiently to achieve organizational goals. By forecasting future needs and analyzing present resources, planning prevents wastage, reduces costs, and enhances overall productivity.

Long Answers

Q1: Explain the steps involved in the strategic planning process.
Ans: Setting Objectives: Clearly define the organization's long-term goals and objectives.
Environmental Scanning: Analyze the internal and external factors influencing the organization.
Strategy Formulation: Develop strategies based on strengths, weaknesses, opportunities, and threats (SWOT analysis).
Strategy Implementation: Allocate resources and put the plan into action.
Evaluation and Control: Monitor progress, assess performance, and make necessary adjustments to achieve strategic goals.

Q2: Discuss the challenges faced by organizations in the planning process.
Ans: Uncertainties: Rapid changes in the business environment make it challenging to predict future outcomes accurately.
Resistance to Change: Employees may resist new plans and strategies, hindering their effective implementation.
Limited Resources: Constraints in finances, manpower, and technology can limit the scope of planning.
Complexity: Large organizations often have intricate structures, making it difficult to formulate plans that cater to every department's needs.
Inadequate Information: Lack of accurate data can lead to faulty decision-making, affecting the planning process adversely.

Q3: Case Study 1: XYZ Company is facing declining sales despite having a strong product line. Analyze the situation and suggest possible planning strategies.
Sub-questions:
(a) Identify the possible reasons for declining sales.
(b) Propose short-term strategies to boost sales.
(c) Recommend long-term strategies to sustain growth.
Ans: (a) Possible reasons for declining sales could include market saturation, changing consumer preferences, or increased competition.
(b) Short-term strategies may involve launching promotional campaigns, offering discounts, and improving customer service to attract immediate sales.
(c) Long-term strategies may include diversifying the product line, expanding into new markets, investing in research and development, and enhancing the overall customer experience.

Q4: Case Study 2: A startup is facing challenges in resource allocation due to limited funds. Devise a plan to ensure optimal resource utilization.
Sub-questions:
(a) Identify the key resources essential for the startup.
(b) Propose methods to prioritize resource allocation.
(c) Suggest contingency plans in case of unforeseen resource constraints.
Ans: (a) Key resources may include skilled manpower, technology, and marketing resources.
(b) Prioritization methods could involve focusing on core business functions, outsourcing non-essential tasks, and implementing cost-effective technologies.
(c) Contingency plans may include seeking partnerships or collaborations, exploring crowdfunding options, and revising the business model to minimize expenses.

Q5: Case Study 3: A multinational company plans to expand its operations globally. Outline the strategic planning steps the company should follow for successful international expansion.
Sub-questions:
(a) Analyze the factors the company needs to consider before expanding globally.
(b) Discuss the market research strategies the company should employ.
(c) Outline the risk management strategies for international expansion.
Ans: (a) Factors to consider include cultural differences, legal regulations, economic stability, and political climate in the target countries.
(b) Market research strategies should involve studying local consumer behavior, competitor analysis, and understanding the demand for the company's products/services in the new market.
(c) Risk management strategies may include diversifying investments, having a clear understanding of local laws and regulations, and establishing a crisis management plan in case of unforeseen challenges.