Business Studies (054) · Class XII · Chapter-wise Board Questions

‘CARO Tech Solutions’ aimed at development of a software system for the company’s growing operations. The project was to be completed within six months with a budget of ₹ 12,00,000.

The software development team successfully completed its project on time by outsourcing a part of the project, leading to an additional expense of ₹ 2,00,000.

From the following, identify whether the software development team is :

1. Efficient and Effective
2. Efficient but not effective
3. Effective but not efficient
4. Neither efficient nor effective

Due to severe winter and rising pollution levels, ‘Green India Electronics’ planned to launch a new eco-friendly heater in the market. It conducted a survey and found that the demand of this product was very high. As the winter season lasts only for 2 to 3 months, the Chief Executive Officer wanted that there should be close coordination among all the managers to deliver orders on time. Top level managers were asked to work in coordination with their subordinates to ensure that company’s policies were properly followed. To ensure that the heaters would be ready on time, the production manager co-ordinated with the operational level managers. Operational level managers co-ordinated the activities of the workers to ensure that work proceeded according to plans. As a result ‘Green India Electronics’ was able to launch its heaters on time, in the market.

The feature of co-ordination discussed in the above case is :

1. Co-ordination is a deliberate function.
2. Co-ordination is the responsibility of all managers.
3. Co-ordination is a continuous process.
4. Co-ordination ensures unity of action.

Identify which of the following functions is Not performed by ‘Top Level Management’ :

1. Cooperating with other departments for smooth functioning of the organisation.
2. Being responsible for the welfare and survival of the organization.
3. Analyzing the business environment and its implications for the survival of the firm.
4. Formulating overall organizational goals and strategies for their achievement.

The process by which a manager synchronizes the activities of different departments is known as :

1. Management
2. Planning
3. Organising
4. Co-ordination

Neha is working as a Manager at ‘NutriBite’, a company that makes protein rich snacks which are high in demand. She is responsible for implementing organisation’s marketing plans, and ensuring that her department has necessary personnel to achieve goals as per company’s policy.

Identify the ‘level’ of management at which Neha is working :

1. Top level
2. Middle level
3. Operational level
4. Both Middle level and Operational level

‘A manager motivates and leads his team in such a manager that individual members are able to achieve personal goals while contributing to the organisational objective.’

The point of importance of management highlighted above is :

1. Management helps in achieving group goals
2. Management helps in increasing efficiency
3. Management helps in achieving personal objectives
4. Management helps in the development of society

Rohit is a manager at a furniture manufacturing company. The company holds an annual sale in the month of December, which is very popular. Rohit prepares the production plans for the annual sale well in advance, in the month of June every year. After planning, he ensures that enough workers are available and continuously monitors whether the work is progressing as scheduled or not. He also informs the marketing team well in time so that they can plan their promotional campaigns accordingly.

The feature of coordination highlighted in the above case is :

1. Coordination is an all-pervasive function.
2. Coordination is a continuous process.
3. Coordination is a deliberate function.
4. Coordination is the responsibility of all managers.

Dinkar, the General Manager at ‘Tara Lamps’ noticed that rising costs were affecting the company’s profits. To increase the profits, he decided to reduce the costs and increase the productivity. He planned for rearrangement of work processes, assigned the tasks according to workers’ skills, gave clearer directions to employees than before and regularly controlled the activities of the organisation. This not only resulted in cost reduction but also in increased productivity and profits.

The point of importance of management highlighted in the above case is :

1. Management creates a dynamic organisation
2. Management helps in achieving personal objectives
3. Management helps in the development of a society
4. Management increases efficiency

Read the following statements carefully:

Statement I: The entry to a profession is not restricted either through an examination or through acquiring an educational degree.

Statement II: There is no restriction on anyone being designated or appointed as a manager in any business enterprise irrespective of the educational qualifications possessed.

In the light of the given statements, choose the correct alternative from the following:

1. Statement I is true and Statement II is false.
2. Statement I is false and Statement II is true.
3. Both Statement I and Statement II are true.
4. Both Statement I and Statement II are false.

Sudha works in a departmental store. Her job is to ensure that her department is adequately staffed and that her team performs at an optimum level. She assigns them duties and responsibilities and motivates them to ensure that they achieve the desired objectives. The level of management at which Sudha is working is:

1. Top Level
2. Middle Level
3. Operational Level
4. Both Top and Middle Level

Bimal Rai is working in Funny Bunny Ltd. The company manufactures games and toys for children. The basic task of Bimal Rai is to integrate diverse elements and coordinate the activities of different departments. He also analyses the business environment and its implications for the survival of the firm. The level of management at which Bimal Rai is working is:

1. Top level
2. Middle level
3. Operational level
4. Both Middle and Operational level

There are two statements, Assertion (A) and Reason (R):

Assertion (A): Coordination ensures unity of action.

Reason (R): Coordination act as a binding force between departments and ensures that all action is aimed at achieving the goals of the organisation.

Choose the correct alternative from the alternatives given below:

1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
3. Assertion (A) is correct, but Reason (R) is wrong.
4. Assertion (A) is wrong, but Reason (R) is correct.

Sadhna, a graduate of a reputed institute of management, is a successful manager. She applies her acquired knowledge in a personalised and skillful manner in difficult situations at work. She uses her imagination and creativity in handling these situations.

The aspect of the nature of management highlighted in the above case is:

1. Management as an Art
2. Management as a Science
3. Management as a Profession
4. Management both as a Science and as a Profession

‘It is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.’ Identify the process.

1. Management
2. Organising
3. Staffing
4. Directing

Akshara runs a business in the name of ‘AK Solutions’ in a well reputed area of her city where people provide spaces to students as library, as study centres and as training and event centres to businesses. Akshara provides only conference halls to big and small enterprises for their meetings and events.

Suddenly, in July 2024, floods affected some libraries and study centres in her neighbouring area. The exams were fast approaching and students were facing a lot of problems as these study centres and libraries had to be closed. Taking advantage of this opportunity and to help the students ‘AK Solutions’ adapted itself to the needs of the environment, they decided to convert some of their conference halls into libraries and study centres. They also decided to provide food and other facilities required by the students at subsidized rates. This initiative increased their business manifold and earned them significant goodwill.

The feature of management highlighted in the above case is:

1. Management is a continuous process.
2. Management is an intangible force.
3. Management is a dynamic function.
4. Management is a group activity.

‘The task of management is to make people work towards achieving the organisational goals, by making their strengths effective and their weaknesses irrelevant.'

The dimension of management discussed above is:

1. Management of work
2. Management of people
3. Management of operations
4. Both (A) and (C)

'Management helps in providing good quality products and services, creates employment opportunities, adopts new technology for the greater good of the people and leads to the path towards growth and development.'

The point of importance of management highlighted above is:

1. Management helps in achieving group goals.
2. Management increases efficiency.
3. Management helps in achieving personal objectives.
4. Management helps in development of society.

Ramesh and Harish are best friends, both working at 'Anuja Garments Ltd.', a company manufacturing designer clothing for women. Ramesh works in the marketing department and aims to increase the sales by 15% by offering discounts. However, Harish, the finance manager is not giving approval for this discount as it would mean loss of revenue for the company. This kind of conflict arises in organisations where each department performs activities in isolation from the other. To resolve such issues, there is a need for linking the activities of various departments. The concept of management which integrates the efforts of different departments, and at different levels, is:

1. Efficiency
2. Effectiveness
3. Controlling
4. Coordination

‘Green Tech Solutions’, a manufacturer of eco-friendly products had an organisational structure with separate departments for production, marketing, sales, etc. Each department had its own objectives, policies and style of working. The company was facing challenges as the production department would focus on producing goods without consulting the sales department and the marketing department developed advertising campaigns without considering the production timelines, leading to confusion and conflicts. To resolve this, the Chief Executive Officer, Madhur arranged inter-departmental meetings explaining to the respective managers that they have to consult each other while performing their activities. All the departmental managers agreed to this.

By linking the activities of all the departments, the Chief Executive Officer was able to ensure that the right products are available when needed, marketing efforts match with the product availability and sales targets are achieved.

The concept of management followed by the Chief Executive Officer to resolve confusion and conflicts between departments was:

1. Organising
2. Coordination
3. Planning
4. Staffing

Shreyansh and Sudhir were close friends and were studying in a reputed engineering college. During campus recruitment in the final year of engineering, both of them got their dream jobs. Shreyansh's consultancy firm was in India and Sudhir's was a manufacturing firm situated out of India. Both looked forward to join their respective organisations after completing their engineering degree.

One month after joining the organisation, Sudhir came to India on an assignment and both friends decided to meet. Shreyansh looked happy and was all praise for the management of his company. He told Sudhir that there was complete orderliness in his organisation and that all employees were happy and satisfied with the work and the working environment. Targets of the organization too were met as per the plans. Sudhir, in contrast was unhappy with his job and was thus on the lookout for another job.

The characteristic of management being highlighted in the above case by Shreyansh is:

1. Management is a group activity.
2. Management is a dynamic function.
3. Management is an intangible force.
4. Management is all pervasive.

‘GEO Builders’ were to complete a housing project by December 2024 and hand over the flats to the buyers. Due to excessive heat in the month of May and June 2024, the work slowed down and the project was getting delayed. The firm, in order to complete the project on time, hired more workers through a contractor and asked all the workers to work overtime. Due to the above measures taken by the management, the project was completed on time but the cost of building the flats increased by 10%.

Identify the correct option.

‘GEO Builders’ were :

1. Efficient but not effective
2. Effective but not efficient
3. Neither effective nor efficient
4. Effective as well as efficient

____________ refers to doing the task correctly and with minimum cost.

1. Effectiveness
2. Coordination
3. Process
4. Efficiency

‘Bonfast Cement Ltd.’ supports 7 villages with housing facilities, schools, safe drinking water, health and hygiene. The company sends its employees to visit a nearby village every 15 days to provide support and to see whether the facilities provided are being implemented on ground. The objective which ‘Bonfast Cement Ltd.’ is trying to achieve is :

1. Personal objective
2. Social objective
3. Organizational objective
4. Economic objective

Most of the organizations these days have adapted themselves to changing environment. To reach and engage with the target customers, they started to have a strong presence on social media like Facebook, Instagram, etc.

From the following, identify the feature of management being highlighted :

1. Management is a group activity.
2. Management is a continuous process.
3. Management is multidimensional.
4. Management is a dynamic function.

Match the Levels of Management given in Column I with the functions performed at each level given in Column II :

Choose the correct option from the following :

1. 1-(i), 2-(ii), 3-(iii)
2. 1-(iii), 2-(ii), 3-(i)
3. 1-(iii), 2-(i), 3-(ii)
4. 1-(ii), 2-(iii), 3-(i)

‘Panmol Dairy’ started using environment-friendly ‘Bilona’ method of making ghee, unlike other dairies which were using modern methods involving machines and chemicals. By doing this, ‘Panmol Dairy’ is providing employment to hundreds of illiterate people in the rural areas.

Which objective of management is ‘Panmol Dairy’ trying to achieve :

1. National objective
2. Personal objective
3. Social objective
4. Economic objective

A multinational sweets and snacks company had been into catering business for the last many years. To add to its prospects and to grow in the long run, it wants to increase its sales volume, the number of products and capital investment.

The organisational objective of management it seeks to achieve is :

1. Survival
2. Profit
3. Growth
4. Corporate Social responsibility

With respect to levels of management choose the incorrect statement from the following :

1. Operational level management is responsible for maintaining safety standards in the organisation.
2. At middle level management, managers ensure that their department has the necessary personnel.
3. Chief Executive officer at Top Level management is responsible for all activities of first line managers.
4. Top level management is responsible for all the activities of the business and for its impact on the society.

______ is the process by which a manager synchronises the activities of different departments.

1. Management
2. Planning
3. Co-ordination
4. Directing

__________ means doing the task correctly and with minimum cost.

1. Efficiency
2. Effectiveness
3. Management
4. Coordination

Which of the following is the function of Top level management ?

1. They ensure that their department has the necessary personnel.
2. They interact with the actual work force and pass on instructions of the middle management to the workers.
3. They co-operate with other departments for smooth functioning of the organisation.
4. They analyse the business environment and its implications for the survival of the firm.

The activities involved in managing the enterprise are common to all organisations whether economic, political or social. Identify the feature of management :

1. Management is multidimensional.
2. Management is all pervasive.
3. Management is a continuous process.
4. Management is a dynamic function.

Aparna and Priyanka are working in ‘Shreya Industries’, a company dealing in readymade garments for women. Each of them was assigned the responsibility of producing 10 dresses each within 5 days at a cost of ₹ 1,000 per dress. Aparna was able to produce 10 dresses at a cost of ₹ 1,100 per dress within 5 days, whereas Priyanka was able to produce only 8 dresses at a cost of ₹ 900 per dress in 5 days. Which of the following statements is correct with respect to the above ?

1. Aparna is efficient but Priyanka is effective.
2. Aparna is effective but Priyanka is efficient.
3. Both Aparna and Priyanka are effective.
4. Both Aparna and Priyanka are efficient.

Which of the following is not a function of middle level management ?

1. To interpret the policies framed by the top management
2. To ensure that their department has the necessary personnel
3. To coordinate the activities of different departments
4. To assign necessary duties and responsibilities to the personnel in their departments

‘Coordination integrates the efforts of different departments and at different levels.’ Identify the characteristic of coordination highlighted in the above statement.

1. Coordination ensures unity of action.
2. Coordination is an all pervasive function.
3. Coordination is a deliberate function.
4. Coordination is the responsibility of all managers.

Statement I: Management is multi-dimensional.

Statement II: The activities involved in managing an enterprise are common to all organisations whether economic, social or political.

Choose the correct option from the options given below:

1. Statement I is true and II is false.
2. Statement II is true and I is false.
3. Both the statements are false.
4. Both the statements are true.

Management has its own vocabulary of terms and concepts. Managers need to communicate with one another with the help of a common vocabulary for the better understanding of their work situation.

Which characteristic of ‘Management as a Science’ is highlighted in the above statement?

1. Principles based on experimentation
2. Systematised body of knowledge
3. Universal validity
4. Personalised application

‘Alfanzo Ltd.’ is achieving all its objectives in an effective and efficient manner. It is earning enough revenue to cover costs and the risks of the business. Now the company wants to increase the sales volume, the capital investment, the number of employees and the number of products also.

By doing this, the management wants to achieve its following objective:

1. Survival
2. Profit
3. Personal
4. Growth

Akash works as a production manager in ‘Elite Enterprises’ manufacturing LED lights. Due to festive season, there is lot of demand for their lights. Akash was given the task of producing 100 units of LED lights @ ₹ 200 per unit within 5 days for an urgent order. Akash was able to achieve the target of 100 units of LED lights within 5 days @ ₹ 220 per unit.

Identify from the following whether Akash is:

1. Efficient only
2. Effective only
3. Both efficient and effective
4. Neither efficient nor effective

Which of the following features of ‘Management as an Art’ highlights that every manager applies his knowledge of principles in his own way to deal with a given situation?

1. Ethical code of conduct
2. Existence of theoretical knowledge
3. Personalised application
4. Universal Validity

The management of a bag manufacturing company has recently changed. Due to this, an improvement can be felt in the way company functions. Now, targets are met according to plans, whereas, earlier deadlines were never given importance. Now there is orderliness, instead of chaos in the organisation and the employees are happy and satisfied.

From the following identify the characteristic of management which is highlighted in the above case:

1. Management is dynamic.
2. Management is a continuous process.
3. Management is a group activity.
4. Management is an intangible force.

In an organisation, coordination is the function of every manager. Top level managers need to coordinate with their subordinates to ensure that the overall plans of the organisation are duly carried out. Middle level managers coordinate with both the top level and the supervisory level managers. Supervisory level managers coordinate the activities of workers to ensure that work proceeds according to plans.

The characteristic of coordination discussed in the above para is:

1. Coordination is a continuous process.
2. Coordination is a deliberate function.
3. Coordination is the responsibility of all Managers.
4. Coordination integrates group efforts.

Which of the following is not a function of middle level management?

1. Analysing the business environment and its implications for survival of the firm
2. Interpreting the policies framed by top management
3. Ensuring that their department has necessary personnel
4. Motivating people in their department to achieve desired objectives

Management helps in providing good quality products and services, creating employment opportunities, adopting new technology for the greater good of the people and leads the path towards growth and development.

This highlights the following point of importance of management:

1. Management helps in achieving group goals.
2. Management creates a dynamic organisation.
3. Management helps in the development of society.
4. Management helps in achieving personal objectives.

Neeraj is the Director of ‘Tulip Public School’ having 2000 students. There are two Headmasters – one for Senior classes and another for Junior classes. 50 teachers are under the supervision of the Senior Headmaster and 60 teachers under the supervision of the Junior Headmaster. No teacher working under the supervision of the Senior Headmaster is happy and satisfied, which is affecting the result of the Senior classes. On the other hand the teachers working under the supervision of the Junior Headmaster are performing their duties willingly and achieving their objectives. All the teachers are happy and satisfied. The Director, Neeraj can feel how nicely the Junior Headmaster was managing his classes.

The characteristic of management discussed above is:

1. Management is a goal-oriented process
2. Management is a dynamic function
3. Management is an intangible force
4. Management is a continuous process

Different organisations have different goals. ‘Zeepo’ is an upcoming retail chain for providing consumer goods door-to-door, the objective of this organisation is to increase sales. ‘Allie’ is an educational organisation working with an objective of providing education to under privileged children of the society. Management of each of these organisations unite the efforts of their employees towards achieving organisational goals.

The characteristic of management discussed above is:

1. Management is goal-oriented.
2. Management is a continuous process.
3. Management is a dynamic function
4. Management is an intangible force.

Project ‘Nanhi Kali’ run by Shivam and Sohan Ltd. was started in 1998 and is one of the largest programmes that enables underprivileged girls to complete 10 years of schooling. The project has impacted the lives of over 5 lakh girls from low income group families across the country.

The objective achieved by Shivam and Sohan Ltd. by doing so is:

1. Organizational objective
2. Social objective
3. Personal objective
4. Both (a) and (c)

Ashita works in a company where her basic task is to integrate diverse elements and co-ordinate the activities of different departments according to the overall objectives of the organisation. At which level of management is Ashita working?

1. Top level management
2. Middle level management
3. Supervisory level management
4. Both (b) and (c)

The project managers in an organisation set targets for the upcoming months and outline strategies to achieve them. At the same time, they assign specific roles and responsibilities to their team members. They motivate them to meet the deadline, by celebrating their achievements and taking their feedback. Thus, various functions are simultaneously performed by all managers all the time. Name the characteristic of Management discussed above.

1. Management is a dynamic function
2. Management is a continuous process
3. Management is an intangible force
4. Management is goal oriented

Match the concepts of management given in column I with their meaning given in column II

Choose the correct option from the following:

1. A iv, B iii, C ii, D i
2. ii, B iii, C iv, D ii
3. A iv, B iii, C i, D ii
4. A iii, B iv, C i, D ii

Ms Pratima Bhanot is working as Quality Control Supervisor in a company. Identify the function that she will not be performing at the level at which she is working:

1. Ensuring the quality of output of workers.
2. Confirming that safety standards are maintained in the organisation.
3. Analysing the business environment and its implications for the survival of the firm.
4. Minimising the wastage of materials.

State any three functions of middle level management.

State any three features of Co-ordination.

P. Madhav is the production manager of ‘Trendy Style Pvt. Ltd.’, a firm manufacturing office furniture. His objective is to increase production by 20% in the next one year. But the Sales Manager, R. Shetty does not approve of the increase in production, till changes are brought about in the quality of wood, locks, handles etc. to incorporate latest trends. This kind of conflict brings to light an important concept of management that can help to link the activities of various departments.

1. Identify and explain the concept discussed above.
2. State any two points of importance of the concept identified in (i) above.

Two ambitious friends, Sana and Mihir, having passion for creating innovative software applications, established a tech startup named ‘Quick Solutions’. Their software was developed in such a way that it caters to the needs of all sections. Since its inception, ‘Quick Solutions’ was earning enough revenue to cover the costs. They faced countless challenges from competing with large and well-established companies. But they learned from their mistakes and continuously improved their product. Slowly, their software gained recognition for its quality and uniqueness and the company started making profits. It was a big incentive for Sana and Mihir for the continued successful operation of the enterprise. Within two years, the customer base increased manifold. Now, Sana and Mihir decided to make additional capital investment and hired more employees. They invested in research and development and expanded their product line to meet emerging market demands. ‘Quick Solutions’ ultimately became the industry leader because of the tireless efforts of Sana and Mihir.

Quoting lines, identify and state the objectives of management discussed in the above case which ‘Quick Solutions’ seeks to achieve.

Three friends, Aman, Ashish and Ashi after completing their MBA from a reputed management institute, formed a start up named ‘Solutions’. The goal of the start up was to make a social and environmental impact through its services. ‘Solutions’ supports social business ideas to improve living conditions in slums of Mumbai. As all the three friends are specialised in social work, they adopted three different slums of Mumbai and started educating the slum dwellers in their own creative manner. Aman used ‘playway method’, Ashish used ‘music’ as a method of learning while Ashi used ‘activity based method of learning’. They used basic knowledge in their unique manner and were able to educate the slum dwellers.

It implies that skillful and personal application of acquired knowledge varies from individual to individual in achieving desired results.

1. Identify and state the nature of management discussed in the above case.
2. Quoting lines from the above para, state any two features of nature of management identified in (a) above.

‘Cortico Fabrics’ was started by Ashish in 2001 to sell bed sheets, towels, comforters, pillows, cushions, bath mats etc. It is now a famous name and its branches are across India. To manage the work all over India, it has eight teams-two each for North, South, East and West India. Ashish spends a considerable amount of time to develop an orderly pattern of group efforts among different teams and to secure unity of action in pursuit of a common purpose.

To ensure suitable allocation of tasks to the various members of the teams and to see that the tasks are performed with harmony among the members, he tries to balance the different teams at different locations.

1. Identify and explain the concept of management discussed in the above para.
2. Also, explain any one point of importance of the concept identified in (a) above.

Hitesh is the Chief Executive Officer of ‘Kids Garments Ltd.’ Due to festive season, Hitesh got an additional order of 10,000 garments which he had to supply within two days. Due to his goodwill in the market, he did not want to lose the order. So, he decided to achieve the target by operating on double shifts. He achieved the target and supplied the order within two days. But due to double shifts, his cost of production was higher than the regular production cost.

Identify and give the meaning of the two concepts of management discussed in the above para.

Praveen and Naveen are friends. Praveen became a professional after completing his MBBS from ‘Hindu Medical College’. Naveen completed his MBA from IIM, Bangalore. In a discussion with Praveen, Naveen said that he too is a professional and is working with a multinational company as a senior manager getting a good package. Praveen was not convinced about the fact that Naveen was a professional in spite of being aware that nowadays there is increasing emphasis on managed business concerns. Praveen gave three reasons in support of his opinion. Explain the three reasons that Praveen might have given.

After completing his MBA degree, Aman joined a multinational company ‘Zeyovya Ltd.’. His job demands long hours and commitment to the organisation. He is responsible for integrating diverse elements and coordinating all the activities of the business and for its impact on society. His job is complex and stressful.

1. Identify the level of management at which Aman joined the organisation.
2. State any two functions to be performed by Aman at this level other than those discussed in the para.

Monika, Rashmi and Garima are childhood friends. After completing their education, Monika joined a school as a teacher. Rashmi joined a firm as a Chartered Accountant and Garima as a General Manager in a MultiNational Company. After a long time in a re-union function of the school, they met each other. Rashmi said that they were all professionals now.

Garima told Rashmi that she can say this about Monika and herself, but not about her since Manager is not considered a full fledged professional.

Why did Garima say that she was not a professional? State any three points in support of your answer.

Muralidhar Parekh started textile printing business in Gujarat in the year 2022 by using practices like eco-friendly dyeing and printing processes in order to ensure environmental sustainability. Soon the business started flourishing. For the financial year 2024-25, Muralidhar formulated the organisational goal of increasing sales by 10% and framed strategies for their achievement. Since his job was complex and stressful, he appointed subordinates to carry out the main task of implementing and controlling the plans and strategies made by him.

Identify the level at which the necessary workforce was appointed for implementing and controlling the plans and strategies made by Muralidhar Parekh. What will they need to do to carry out this main task? State any two points.

‘GW Industries’, known for its paper products, decided to produce and launch a new line of sustainable packaging called ‘EcoPac’.

As management is a complex activity, the Chief Executive Officer of the company translated the work into clear goals and assigned the means to achieve those. He knew that human resources are the greatest asset of an organization, so getting work done through them is also a major task. The production of high quality sustainable packaging also required a proper production process. This was put in place for managing the flow of input materials and technology to convert these materials into high quality sustainable packaging.

In this way ‘GW industries’ took care of various aspects for successful launch of ‘EcoPac’.

A characteristic of management is discussed in the above case. Identify and explain the characteristic.

Arjun and Neha were close friends. They had studied together in the same school. After completing their higher education, both of them joined a company named ‘Apex Ltd.’ in different roles, based on their qualifications. Arjun’s role involved analysing the business environment and its implications for the survival of the firm. He was also responsible for the welfare and survival of the organisation. Neha, on the other hand, was heading the marketing department in the organisation. Her responsibility was to ensure that her department had the necessary personnel. In addition to many other responsibilities, she had to motivate them to achieve desired objectives.

Apart from the functions mentioned in the above case, state two more functions each for Arjun and Neha that they would perform at the level at which they are working.

State any four features of coordination.

State any four points of importance of management.

Explain the following features of co-ordination:

1. Co-ordination integrates group efforts.
2. Co-ordination is the responsibility of all managers.

Explain the following features of management:

1. Management is a goal-oriented process.
2. Management is a continuous process.

Nisha had given some old dresses of her own to her house-helper Beenu. After a few days, Nisha was happily surprised when she saw Beenu wearing one of the dresses beautifully refurbished. On enquiry, Beenu told Nisha that this was done by her daughter who had just completed her Class 12th studies. Beenu also told Nisha that she was a little concerned as her daughter did not want to study further. Nisha was very much impressed by the creativity of Beenu’s daughter, so she decided to setup a small business for her. Nisha bought 15 sewing machines and appointed 15 girls to refurbish the old dresses. Nisha also arranged old dresses from various sources and employed a person who will sell these dresses at a very low cost for the one’s who could not purchase news dresses due to their low income.

Nisha divided the girls in three equal groups, each having five sewing machines. Each group was given a target of refurbishing 150 old dresses in a fortnight with a cost of Rs. 30 per dress.

After a fortnight, Nisha who was supervising this business with Beenu was informed that Group I was able to meet the target by refurbishing 150 old dresses at a cost of Rs. 30 per dress. Group II was able to refurbish 150 old dresses at a cost of Rs. 35 per dress, whereas Group III could refurbish only 140 old dresses but at a cost of Rs. 27 per dress.

1. Identify the concepts of management discussed above for each of the three groups giving reason in support of your answer.
2. Give meaning of the concepts identified in (i) above and state which one is important for the management and why?

Explain the following features of 'Management':

1. Management is a dynamic function.
2. Management is an intangible force.

Shreedar had worked as an Operations Manager at a cab aggregator firm for ten years, gaining in-depth knowledge of the business. He then decided to leave the job and started his own cab aggregator business ‘Easy Cab’ with his friend Mukesh. Shreedar became the Chief Executive Officer and Mukesh the Chief Operating Officer in ‘Easy Cab’. They decided to initially offer their services only in Goregram. To finance the venture, they applied for a loan to purchase electric cars for their fleet aiming to provide a sustainable and eco-friendly way to travel.

1. Identify the level of management at which Shreedar and Mukesh are working in ‘Easy Cab’.
2. State any three functions required to be performed by both Shreedar and Mukesh at the level of management they are working.

‘Silver Mills' started their business as a B2B supplier of high quality millet seeds. The firm was set up in a backward area of Ransdhan. The firm was earning just enough revenues to cover its cost. Over a period of time, due to rising awareness amongst people about the health benefits of millets and with the year 2023 declared as 'International Year of Millets', the demand for millets increased and the firm was able to earn profits. This gave a vital incentive to the firm to continue its successful operations. It then expanded its operations and introduced millet flour, millet-based snacks and millet-based beverages. With increase in its operations, it provided employment opportunities specially to women, involving them in dehusking, cleaning and packing of millets.

State the objectives of management highlighted in the above case.

Explain the following features of Coordination :

1. Coordination is a continuous process.
2. Coordination is an all-pervasive function.

Explain the following characteristics of Management :

1. Management is a dynamic function.
2. Management is a group activity.

State any four characteristics of management.

State any four functions performed by Top Level Management.

Pallavi started a wedding planner company ‘Dreams Unlimited’ in 2016 and her target was to be amongst the top 10 companies in this field within the next three years. For this she employed people having different skills. She worked hard and united the efforts of different people to achieve this goal. The requirements of the customers in this industry changed very fast and the company adapted to keep pace with the changing environment. As planned, the company achieved its target within three years. All the employees of the organisation were happy and satisfied and the effect of management was noticeable in the organisation.

The way Pallavi was managing her business highlights some of the features of management. By quoting lines from the above paragraph, explain any two such features.

Guruji Garments Ltd., a leading apparel manufacturing company in Ludhiana, produces winter wear for domestic and international markets.

During the peak season, the Production Department increased output to meet rising demand. However, the Sales Department had not secured enough confirmed orders, leading to excess stock. At the same time, the Finance Department delayed releasing funds for raw materials, causing interruptions in production. As a result, confusion and conflict arose among different departments.

The General Manager noticed that the departmental heads were not sharing the information regularly thus leading to lack of synchronisation of activities of different departments.

1. The problem faced by Guruji Garments Ltd. mainly indicates absence of an important concept of management. Name the concept.
2. State any three characteristics of the above identified concept.

‘Global Tech Ltd.’ was a multinational company that manufactured modern electronics devices and employed nearly 10,000 people from across the world. The company had a well-defined organisational structure with separate departments for finance, marketing and production. Every department had its own objectives, policies and style of working. As each department performed its activities in isolation from others, conflicts arose within the organisation.

Further, due to complex technology involved in producing modern electronic devices, ‘Global Tech Ltd.’ relied heavily on specialists. The specialists were confident of their professional knowledge and often did not consider suggestions from others in matters pertaining to their area of specialisation. This resulted in conflict among different specialists and others in the organisation. As the company continued to grow, more employees from different backgrounds and work habits joined the organisation. The increasing size of workforce, along with departmental differences and dependence on specialists, made it difficult to ensure that everyone worked towards the same organisational goals. Therefore it became necessary for the management to harmonise individual goals with organisational goals and integrate the efforts of departments and specialists to achieve common objectives.

1. Identify and state the concept which would help ‘Global Tech Ltd.’ in bringing together the efforts of employees and specialists to achieve common goals of the organisation.
2. Quoting lines from the given case, state any three points of importance of the concept identified in (i) above.

Explain the following features of coordination:

1. Coordination ensures unity of action
2. Coordination is the responsibility of all managers
3. Coordination is a deliberate function

Explain the following points of importance of management:

1. Management helps in achieving personal objectives
2. Management helps in the development of society
3. Management creates a dynamic organisation

Objectives of Management can be classified into organisational, social and personal objectives. Explain these objectives.

‘Successful organisations do not achieve their goals by chance, but by following a deliberate process called management.’

In the light of this statement, explain any four points of the importance of management.

‘Coordination is the process by which a manager synchronises the activities of different departments towards the achievement of common goals.’

In the light of this statement, explain any four features of coordination.

Nalini has an online flower and gifts retail business. She has eight outlets in four cities of India. From November to February, during the wedding season, the demand shoots up. She coordinates the efforts of her staff in a conscious and deliberate manner and plans for the wedding season demand in the month of June itself. She ensures that there is adequate workforce and continuously monitors whether work is proceeding according to plans. She also briefs the marketing department in time to prepare their promotional and advertising campaigns. Thus, her coordination with all departments of the organization begins at the planning stage and continues till controlling. This acts as a binding force between the departments and ensures that all action is aimed at achieving organizational goals. As a result, Nalini is able to give a common focus to group effort to ensure that the business is performing as planned, year after year.

Quoting lines from the above paragraph, identify and explain four features of an important concept of management highlighted in the above case.

Explain any four points of significance of management for an organization.

Explain any three points that highlight the importance of ‘Management’.

Explain the following characteristics of management:

1. Management is a goal-oriented process
2. Management is a continuous process
3. Management is all pervasive

The workers in Alpha manufacturing company were using traditional methods for production of metal parts. Since no standard procedure existed, workers relied on personal experience and guess work. As a result, productivity in the assembly line began to decline.

To improve productivity, the company hired a consultant specializing in scientific management. The consultant explained that there was only one best method to maximize efficiency and this method could be developed through proper study and analysis. He emphasized that the scientific method should replace the old method, that the workers were using.

So, to develop the scientific method, the consultant carefully investigated the traditional methods through work-study and by unifying the best practices, he developed a standard method that would be followed by everyone in the organization.

After applying scientific method, there was a three fold increase in productivity within six months.

The principle of scientific management which helped the company in increasing the productivity was :

1. Science, not Rule of Thumb
2. Harmony, Not Discord
3. Cooperation, Not Individualism
4. Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity

Match the principle of management given in Column – I with its explanation given in Column – II :

Choose the correct option from the following :

Identify the incorrect statement with respect to ‘Motion Study’, as a technique of scientific management :

1. Unnecessary movements are sought to be eliminated so that it takes less time to complete the job efficiently.
2. It refers to the study of movements like lifting, putting objects, sitting and changing positions etc., which are undertaken while doing a typical job.
3. Through this technique, Taylor was able to design suitable equipment and tools to educate workers on their use.
4. This technique helps to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs.

‘Taylor believed that industrial efficiency depends to a large extent on personnel competencies. He was of the view that the concern for efficiency could be built in right from the process of employee selection. Each person should be scientifically selected. The work assigned should suit her/his capabilities. To increase efficiency, they should be given the required training.’ The principle of scientific management discussed above is :

1. Science, not Rule of Thumb
2. Harmony, Not Discord
3. Cooperation, Not Individualism
4. Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity.

‘Agri Solutions’, a fast-growing agri-tech company, was facing a problem of employees leaving the organisation frequently. As a result, work suffered and time and money were spent repeatedly on recruitment and training. On investigation, it was found that the problem was due to employees not getting sufficient time to settle into their new roles. So the company decided to keep their employees at the same position for a minimum tenure and give them sufficient time to show results. This led to a significant reduction in employee turnover and improvement in organisational efficiency.

The principle of management highlighted in the above case is :

1. Order
2. Stability of Personnel
3. Division of Work
4. Authority and Responsibility

‘‘The application of principles of management is dependent upon the prevailing situation at a particular point of time.’’ This statement highlights which of the following features of principles of management?

1. General guidelines
2. Flexible
3. Mainly behavioural
4. Contingent

‘Taylor called for complete mental revolution on the part of both management and workers. It means that management and workers should transform their thinking.’

The principle of Scientific Management being referred to, in the above statement is:

1. Science, not Rule of Thumb
2. Harmony, not Discord
3. Cooperation, not Individualism
4. Development of each and every person to his or her Greatest Efficiency and Prosperity

The principles of management can be modified by the managers when the situation so demands. This highlights which of the following feature of principles of management:

1. General guidelines
2. Flexible
3. Contingent
4. Mainly behavioural

Match the techniques of scientific management given in Column I with their meaning given in Column-II:

Choose the correct option from the options given below:

1. (a) (ii), (b) (iii), (c) (i), (d) (iv)
2. (a) (i), (b) (iv), (c) (ii), (d) (iii)
3. (a) (iv), (b) (i), (c) (iii), (d) (ii)
4. (a) (iii), (b) (ii), (c) (iv), (d) (i)

The study which refers to the study of movements which are undertaken while doing a typical job, is called:

1. Method study
2. Fatigue study
3. Motion study
4. Time study

Match the following functions of Production In-charges stated in Column-II with their names in Column-I

Choose the correct option from the following:

1. 1-(iii), 2-(iv), 3-(ii), 4-(i)
2. 1-(ii), 2-(i), 3-(iii), 4-(iv)
3. 1-(i), 2-(ii), 3-(iii), 4-(iv)
4. 1-(iv), 2-(iii), 3-(i), 4-(ii)

Read the following statements: Assertion (A) and Reason (R).

Assertion (A): The principles of management are guidelines to action, but do not provide readymade, straitjacket solutions to all managerial problems.

Reason (R): Real business situations are neither complex, nor dynamic and are not the result of many factors.

Choose the correct alternative from the options given below:

1. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
3. Assertion (A) is true, but Reason (R) is false.
4. Assertion (A) is false, but Reason (R) is true.

‘The principle of management which emphasizes on obedience to organisational rules and employment agreements necessary for the working of the organisation’ is called:

1. Division of work
2. Discipline
3. Scalar chain
4. Remuneration of employees

Identify the incorrect statement with respect to ‘functional foremanship’ as a technique of scientific management:

1. It advocates separation of planning and execution functions.
2. Speed boss, gang boss, repair boss and inspector work under the production incharge.
3. It is an extension of the principle of unity of command to the shop floor.
4. Each worker takes orders from eight foremen in the process of production.

‘Vanguard Inc.’, a company manufacturing footwear for men, women and children has been earning consistent profits for the last many years. It has a democratic style of working. Workers are encouraged to develop and carry out plans for improvement in the organisation. Varun who is working in the production department gave a suggestion which resulted in 10% reduction in the cost of production of shoes. He was rewarded for his suggestion. Identify the principle of management followed by ‘Vanguard Inc.’ in the above case :

1. Esprit De Corps
2. Subordination of Individual Interest to General Interest
3. Initiative
4. Equity

‘If there is a fixed place for everything and it is present there, then there will be no hindrance in the activities of business/factory.’

The principle of management that is highlighted in the above statement is :

1. Discipline
2. Order
3. Unity of direction
4. Esprit de corps

The purpose of the principle of ‘unity of command’ is that :

1. It avoids dual subordination.
2. It subordinates individual interests to organizational interests.
3. It promotes a team spirit of unity and harmony among employees.
4. It concentrates decision-making authority at the top level.

‘The management should not close its ears to any constructive suggestions made by the employees but reward them for their suggestions which results in substantial reduction in costs.’

Which principle of scientific management is discussed in the above statement ?

1. Science, Not Rule of Thumb
2. Harmony, Not Discord
3. Cooperation, Not Individualism
4. Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity

Ashok Industries Ltd. is a company manufacturing components for automobile industries. In this company, standards have been set for every manufacturing activity including standardisation of process, raw material, time, product, machinery and methods which must be adhered to during production. This has been done to bring excellence in quality of the materials produced. The foreman of the company, Mehra, has designed the jobs of the workers in such a manner that unnecessary movements are eliminated and it takes less time to complete the jobs efficiently. He has also scientifically analysed the duration and frequency of rest intervals that should be provided to the workers in the factory so that they can regain stamina and work efficiently.

Out of the following, which technique of scientific management has not been discussed in the above paragraph ?

1. Fatigue study
2. Method study
3. Motion study
4. Standardisatrion and simplification

Sangeeta visited ‘Smile Dental Clinic’ for treatment of toothache. She observed that the receptionist was seated at the reception desk, the place fixed for her. Dental instruments were laid neatly in dental instrument trays and the used instruments were placed in the sterilisation area. There was a fixed place for everything and it was present there. There was no hindrance in the work of the dentist and she was working with her maximum efficiency.

The principle of management followed at the ‘Smile Dental Clinic’ was:

1. Equity
2. Discipline
3. Order
4. Initiative

‘M/s J.K. Computers’ is a small organisation engaged in assembling of computers. In this organisation, decision making rests with top management while the middle level is involved in only the implementation of plans. On the other hand, ‘Progressive Computers Ltd.’ is a large company where a number of people from each level are involved in the decision-making process.

The application of the principle of ‘Centralisation and Decentralisaton’ is different in the two organisations as the situation in each enterprise is not same.

From the following identify the nature of principles of management:

1. Mainly Behavioural
2. Contingent
3. Flexible
4. Universal

Taylor called for complete mental revolution on the part of both management and workers. It meant that management and workers should transform their thinking. Management should share the gains of the company, if any, with the workers. At the same time, workers should work hard and be willing to embrace change for the good of the company. The principle of management highlighted above is:

1. Science, not the Rule of Thumb
2. Cooperation, not Individualism
3. Harmony, not Discord
4. Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity

Statement I: Values are general rules for behaviour of individuals in society formed on the basis of common practice and principles after research in work situations.

Statement II: While practising principles of management, values cannot be neglected as businesses have to fulfil social and ethical responsibilities towards society.

Choose the correct option from the options given below:

1. Statement I is true and II is false.
2. Statement II is true and I is false.
3. Both the statements are true.
4. Both the statements are false.

Henri Fayol's principle of discipline which emphasizes obedience to organisational rules and employment agreement, is evolved out of the experience and collective wisdom of managers. The nature of principle of management reflected through the above statement is ______.

1. Universal applicability
2. Flexible
3. Mainly behavioral
4. Formed by practice and experimentation

Read the following statements carefully:

Statement I: Values are basic truths or guidelines for behaviour which are formed after research in work situations.

Statement II: While practising Principles of Management, values cannot be neglected as business organisations have to fulfil social and ethical responsibility towards society.

In the light of given statements, choose the correct alternative from the following:

1. Both the statements are true.
2. Both the statements are false.
3. Statement I is true, Statement II is false.
4. Statement II is true, Statement I is false

Name the technique of Scientific Management that relates the compensation system to the efficiency of workers.

1. Motion Study
2. Differential Piece Wage System
3. Standardisation and Simplification of work
4. Fatigue Study

[Picture not reproduced: an illustration titled “Teamwork” showing a group of people together holding up a large light bulb.]

Choose the incorrect statement about the principle of management illustrated by the above picture:

1. Absence of this principle will result in loss of coordination.
2. The principle should be promoted in all organisations otherwise objectives would be difficult to realise.
3. The principle helps avoid dual subordination.
4. The principle promotes a spirit of unity and harmony among employees.

State any three points of significance of Principles of Management.

Dhiren Patel is the Chief Executive Officer of a milk processing company. He is a very effective manager. He is quite organized in his work and exhibits exemplary behaviour.

Dhiren Patel insists that all managers and subordinates in the organization should follow a chain of authority that runs from top to bottom for all communication purposes.

Identify and explain the general principle of management highlighted in the above case.

The students of Class XII of ‘NK Senior Secondary School’ visited the factory of ‘Jaipur Exports Private Limited’, a company manufacturing readymade garments. They observed that different workers were allocated different tasks like cutting the fabric as per specification, stitching dresses, putting buttons, ironing the finished dresses, packing them and putting labels. The Chief Executive Officer told the students that this results in efficient and effective output. They also observed orderliness in the factory as there was a fixed place for everything and it was present there.

The students later discussed with their Business Studies teacher and understood that principles of management given by Fayol were being followed in the factory.

Identify and explain the two principles of management that have been discussed in the above case.

‘Yellow Pumpkin’ is an Italian restaurant in Delhi, well known for its fresh and authentic dishes including pasta, pizza, etc. It has been serving its customers for the last 20 years. It had been winning various awards and recognition for its services.

During Covid-19, it suffered huge losses. As the effect of Covid reduced and the business started picking up, the management of ‘Yellow Pumpkin’ also decided to go in for home delivery service to increase its revenue and profit. For this they needed support of their workers to work overtime. ‘Yellow Pumpkin’ entered into an agreement with its workers to put in extra hours without additional payment to revive it out of losses. In return, they promised to increase the wages of the workers when the mission is accomplished. The workers put in extra hours as committed and in just three months, the restaurant’s business turned around and it became profitable again. ‘Yellow Pumpkin’ honoured its commitment and not only increased the wages of the workers but also gave them bonus as an additional incentive.

Identify and explain the principle of management followed by ‘Yellow Pumpkin’.

Vibhu joined as a Chief Executive Officer (CEO) of ‘Mega Marut Ltd.’, a firm manufacturing cars. On the first day he addressed his subordinates saying that organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates. He also added that for routine matters a worker can not directly contact the CEO but in an emergency he/she may contact directly.

Vibhu discussed an important principle of management. Identify and explain the principle with the help of an example.

Rajiv was on the board of directors of ‘Tako Solutions’, a software development company and ‘Sabka Mart Retail’, a large supermarket chain. He wanted to apply management principles in both the companies to improve efficiency and profitability.

He knew that management principles can be applied as much to ‘Tako Solutions’ as to ‘Sabka Mart Retail’ though the extent to which the principles can be applied will differ, because the nature of work, scale of operations and business activities in a software firm and a supermarket chain are not the same.

Rajiv also knew that the management principles would not provide readymade solutions because real world situations faced by the two companies were very complex and dynamic. Still, he believed that even small guidelines could help in solving many problems and will improve the way both companies worked.

Identify and explain the two points that highlight the nature of principles of management, in the above case.

Explain the following features of principles of management :

1. Cause and effect relationship
2. Contingent

Explain the following techniques of scientific management :

1. Motion Study
2. Differential Piece Wage System

Explain the following techniques of Scientific Management:

1. Method Study
2. Standardisation and simplification of work

Hitesh started a garment manufacturing company recently. However, he soon began facing several problems like targets not met, conflicts among managers, high labour turnover, etc. He hired a management consultant to find out what was going wrong. The consultant conducted investigations and gave the following observations:

1. In Production Department, workers were receiving instructions from both, the Production Manager and the Marketing Manager. As a result, there was a lot of confusion regarding tasks to be done.
2. Promotions were given only to women employees. Other employees did not get equal opportunities in the company to rise.

Identify and explain the two principles of management given by Fayol which are not being followed in Hitesh’s company.

Zenne Solutions, a project services company was growing rapidly, but was facing internal management problems from some time. The employees in the company were working on client projects and had to report to both the Project Manager and the Technical Head. The Project Manager asked them to finish the work within strict deadlines whereas, the Technical Head asked them to follow detailed work procedures and check everything carefully. As a result, the employees were confused about whose instructions to follow and their performance started declining. Also, the employees were frequently changed or removed from their job positions. They were not given sufficient time to show their results. This created insecurity among the employees. The quality of the work and the company’s image were being affected by this, leading to a loss of clients.

Identify and explain the two principles of management that Zenne Solutions have not followed in the above case.

Explain the following principles of management given by Fayol:

1. Division of work
2. Authority and Responsibility

Explain the following points of significance of principles of management:

1. Providing managers with useful insights into reality.
2. Optimum utilization of resources and effective administration.

Explain the following principles of ‘Scientific Management’:

1. Science not rule of thumb
2. Development of each and every person to his/her greatest efficiency and prosperity.

Explain the following principles of 'General Management':

1. Centralisation and Decentralisation
2. Division of work

'AK Ltd.' is a large company with 4000 workers engaged in production of wide varieties of spices used in the Indian kitchen. The company has been struggling with a persistent issue of workers making unreasonable demands and going on strike frequently. To address the issue, the Chief Executive Officer appointed a management expert who will analyse the situation and suggest solutions to overcome the problem. The management expert analysed the situation and suggested that the company could resolve the issue by following Taylor's principle of Scientific Management which suggested complete mental revolution on the part of both management and workers. It means that management and workers should transform their thinking, where even trade unions will not think of going on strike. It emphasises that prosperity of the employer cannot exist for a long time unless it is accompanied by the prosperity for the employees and vice versa.

1. Identify and explain the principle of Scientific Management discussed in the above case by the management expert.
2. Also, explain another principle suggested by Taylor, which is an extension of the principle identified in (i) above.

Explain the following features of 'Principles of Management':

1. General guidelines
2. Cause and Effect relationship

Explain the following principles of 'General Management':

1. Division of work
2. Unity of command

Explain the following points of importance of principles of management:

1. Providing managers with useful insights into reality
2. Optimum utilisation of resources and effective administration

Rushil opened ‘RK Hair and Beauty Salon’ in a reputed locality and appointed fifteen people as salon staff. However, within just a few months, he observed that the employees were leaving the salon one by one and the business was not able to meet even the monthly targets.

Rushil asked his manager to find out the reason. The manager reported that quite often, according to the requirement, the hair stylist was asked to do the work of a makeup artist and a makeup artist was asked to do nail care, etc. As a result, the employees were not happy and wanted to work at a salon where work was divided according to their competence and would enhance their specialisation.

The manager also added that there was neither any fixed place for hair care, skin care or nail care materials nor for the employees. This created confusion and hindrance in the work and led to further dissatisfaction amongst the staff. As a result, the employees kept leaving the salon leading to high employee turnover ratio and a shortage of experienced staff.

Identify and explain the two principles of management discussed above that are not followed in ‘RK Hair and Beauty Salon’.

The Factory Manager of Manik Steel Plant, Mussadi Lal was in dilemma over workers shirking work. It was becoming difficult for him to identify the workers who sometimes faked illness to skip work and on various other times, intentionally wasted time, which led to underutilisation of resources. The job of the workers was complex and intricate. He discussed the problem with one of his retired friends, Kantilal, who suggested him to appoint eight supervisors who would be specialists in their own fields and would be assigned work according to his/her qualities. Identify and explain the technique of scientific management discussed above.

Explain the following points of nature of Principles of Management:

1. Cause and effect relationship
2. Universal applicability

Explain the following Principles of Management:

1. Harmony not discord
2. Science not rule of thumb

Explain ‘Science, not Rule of Thumb’ as a principle of Scientific Management and ‘Functional Foremanship’ and ‘Time study’ as techniques of Scientific Management.

Explain the following principles of General Management :

1. Unity of Command
2. Esprit De Corps
3. Stability of Personnel

Explain the following principles of management :

1. Discipline
2. Unity of direction
3. Equity

Explain the following points of significance of principles of management :

1. Providing managers with useful insights into reality
2. Scientific decisions
3. Meeting changing environment requirements

Explain the following principles of General Management:

1. Scalar chain
2. Equity
3. Initiative

Explain the following principles of Scientific Management:

1. Science not Rule of Thumb
2. Harmony, not Discord
3. Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity

Explain the following features of principles of management:

1. Universal applicability
2. Cause and effect relationships
3. General guidelines

‘Marut Enterprises’ is a large company manufacturing washing machines. From the last few months, employees have been reporting dissatisfaction with the overall work environment which has led to a decline in productivity. The management realized that there is no coordination between various departments. On one hand, the Production Manager is giving instructions to the workers to speed up the work to achieve the targets whereas on the other hand, the Sales Manager is also giving instructions to the workers of the production department to slow down the production as sales are not picking up. It was also observed by the company’s management that there is a lack of proper communication among different levels of superiors and subordinates. Even in case of emergencies, a worker is not in a position to contact the Chief Executive Officer directly, which is affecting the productivity and the morale of the workforce. The management felt a need to foster a positive environment which may promote team spirit of unity and harmony among the employees.

Identify and explain the three principles of management given by Henri Fayol which can help in addressing the challenges faced by the company.

Explain the following techniques of Scientific Management :

1. Time study
2. Differential piece wage system
3. Motion study

Explain the following features of principles of management :

1. General guidelines
2. Mainly behavioural
3. Formed by practice and experimentation

Explain the following principles of Scientific Management :

1. Science, Not Rule of Thumb
2. Harmony, Not Discord
3. Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity

Explain the following points of significance of principles of management :

1. Providing managers with useful insights into reality
2. Scientific decisions
3. Fulfilling social responsibility

Explain the following techniques of Scientific Management :

1. Time study
2. Method study
3. Differential piece wage system

Explain the following features of principles of management :

1. Universal applicability
2. Formed by practice and experimentation
3. Flexible

Ankur Sachdeva did his MBA from ITB University. He decided to apply his knowledge of scientific management in the fast food restaurant chain ‘Coffee Bean’ set up by him. This restaurant was providing burgers, fries, shakes etc. as a part of its menu.

Now a days people are quality conscious, so he was using standardised raw materials, processes, methods, working conditions, machinery etc. The objective was to establish standards of excellence. By doing this he was not only able to reduce the cost but was also able to provide new varieties of burgers, fries and shakes leading to increased turnover.

Ankur Sachdeva also believed that there was only one best method to maximise efficiency. As a result he developed best way of grilling burgers, cooking fries and preparing shakes. His main objective was to maximise the satisfaction of customers, which he was able to achieve.

Not only to learn the best way of doing a job, but to perform their tasks efficiently, ‘Coffee Bean’ regularly invests in training and development programmes to equip employees with the necessary skill and knowledge. ‘Coffee Bean’ believed that efficient employees will produce more and earn more. This will ensure their greatest efficiency and prosperity for both company and workers.

The above case highlights the use of Scientific principles and techniques by ‘Coffee Bean’. Explain any one such principle and two techniques.

Explain the following characteristics of Principles of Management :

1. General guidelines
2. Flexible
3. Cause and effect relationship

Explain the following techniques of Scientific Management :

1. Method Study
2. Differential Piece Wage System
3. Fatigue Study

Explain the following principles of management:

1. Discipline
2. Unity of Command
3. Unity of Direction

Explain the following techniques of Scientific Management:

1. Fatigue study
2. Motion study
3. Time study

Explain the following techniques of scientific management:

1. Differential Piece wage system
2. Time Study
3. Method Study

A famous cricket coach, Alam Raza was hired by Sports College, Indore to coach the college cricket team for a National level competition. In the first meeting itself, the Principal of the college announced that the players would enter into an agreement with the college. The agreement would state the reporting time for players on the field and other rules and regulations. Failure to obey the agreement and rules would lead to judicious application of penalties. It was also announced by the College Principal that the players would receive orders from the coach and they would all be responsible only to the coach, to prevent confusion regarding tasks to be done. The coach was very determined to train the players to win, as the entire responsibility was on his shoulders. He promoted the spirit of mutual trust and belongingness among the team members without which he felt it would be difficult to win. The players were also enthusiastic and the training started in full swing.

Identify and explain the three principles of management discussed in the above case.

Explain the following as nature of principles of management:

1. Universal applicability
2. Flexible
3. Mainly behavioural

Explain: (i) ‘Science not Rule of Thumb’ as a principle of management and (ii) ‘Method Study’ and ‘Time Study’ as techniques of Scientific Management.

Explain: (i) ‘General Guidelines’ as a feature of principles of management, (ii) Providing managers with useful insights into reality and fulfilling social responsibilities as significance of principles of management.

Abhishek studied management principles and techniques of Henri Fayol and F.W. Taylor when he was in class XII. Now he is trying to apply his knowledge while doing his business. By using different techniques and scientifically analysing work he found one best way of doing the job. By removing unproductive movements of the workers he reduces the time to complete the job. Not only this, to increase productivity and to regain stamina he started giving more rest intervals to his employees. He followed no discrimination policy on account of sex, religion, caste, etc. in his organisation. He ensured that the compensation should be fair to both, employees and the organisation.

Identify and explain any two techniques of scientific management and two principles of general management adopted by Abhishek.

‘Business environment keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competitors in the market.’

The feature of business environment highlighted in the above statement is :

1. Totality of external forces
2. Complexity
3. Dynamic nature
4. Relativity

‘Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment.’

The feature of business environment highlighted above is :

1. Relativity
2. Uncertainty
3. Complexity
4. Dynamic Nature

Green-Eats is a start-up offering plant based meal kits. It gained popularity as more young consumers were becoming health conscious and awareness about environmental issues was increasing day-by-day. To promote sustainable eating, they collaborated with schools and colleges and organized workshops for them.

Identify the element of business environment highlighted in the above case :

1. Economic Environment
2. Social Environment
3. Political Environment
4. Technological Environment

Read the following statements carefully :

Statement I : Business environment includes both specific and general forces.

Statement II : Specific forces have an impact on all business enterprises and thus may affect an individual firm only indirectly.

In light of the given statements, choose the correct alternative from the following :

1. Statement I is true and Statement II is false.
2. Statement I is false and Statement II is true.
3. Both Statement I and Statement II are true.
4. Both Statement I and Statement II are false.

‘Gamma Ltd.’, with its state-of-the-art manufacturing set-up in Karnesha, produces smartphones for the Indian market. Rapid technological improvements, changing consumer preferences and the entry of new competitors in the market push the company to revise its plans frequently. This reflects which characteristic of business environment ?

1. Inter-relatedness
2. Dynamic nature
3. Complexity
4. Relativity

‘Sumi’, a well-established domestic car manufacturer, anticipates entry of a premium foreign automobile brand in the country. The management of the company foresees a decline in the market share, especially in the premium segment. To retain its market share and stay competitive, the company launches aggressive advertising and takes measures to reduce the cost of production. It further invests in improving product quality, introducing new features and aligning their cars with international standards.

The point of importance of business environment described above is :

1. It helps in coping with rapid changes.
2. It helps in tapping useful resources.
3. It enables a firm to identify opportunities and getting the first mover advantage.
4. It helps the firm to identify threats and early warning signals.

‘The business environment differs from country to country and even region to region.’

The feature of business environment reflected in the above statement is :

1. Relativity
2. Complexity
3. Uncertainty
4. Dynamic nature

Identify the incorrect statement with respect to the importance of business environment :

1. It helps in coping with rapid changes
2. It helps in tapping useful resources
3. It helps in assisting in planning and policy formulation
4. It helps in increasing political instability and thus build the confidence of people to invest in long term projects

The top management of a smartphone manufacturing company recently observed that the government has ordered new safety standards for batteries used in smartphones to prevent overheating. It also noticed that the government announced a reduction in import duties on components used in mobile phones.

The dimensions of business environment highlighted in the above case are:

1. Technological and legal environments
2. Political and technological environments
3. Legal and social environments
4. Political and legal environments

Read the following statements: Assertion (A) and Reason (R)

Assertion (A): General forces such as social, political, legal and technological conditions affect an individual firm only indirectly.

Reason (R): General forces have an impact on all business enterprises, in contrast to, specific forces that affect individual firms directly and immediately in their day-to-day working.

Choose the correct alternative from the following:

1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
3. Both Assertion (A) and Reason (R) are incorrect.
4. Assertion (A) is correct, but Reason (R) is incorrect.

‘Business Environment is the sum total of all things external to business firms and, as such, is aggregative in nature.’

The feature of business environment reflected in the given statement is:

1. Specific and general forces
2. Inter-relatedness
3. Totality of external forces
4. Complexity

Salim and Karim are good friends. They started a business of selling high quality seeds for growing organic vegetables. They are offering 200 varieties of vegetable seeds suitable for terrace gardens, balconies and backyards. Due to the growing trend towards healthy consumption habits, there is a huge demand for their seeds. The dimension of business environment being discussed above is:

1. Economic Environment
2. Political Environment
3. Social Environment
4. Legal Environment

Alfa Graphics Ltd. was a reputed Indian company which had been in business for many years. The Chief Executive Officer of the company, Rohit Gupta always believed in understanding the business environment as well as responding and adapting to it.

When he found that a foreign multinational company, Leno Graphics, is entering the Indian market with new substitutes, he prepared to meet this threat by reducing cost and creating good quality and aesthetically appealing layouts, advertisements, logos etc. As a result, Alfa Graphics Ltd. was not only able to retain its own customers, but also started getting new projects.

The point of importance of Business Environment discussed above is:

1. Tapping useful resources.
2. Identifying threats and early warning signals
3. Improving performance
4. Identifying opportunities and getting first mover advantage

High inflation rates generally result in constraints on business enterprises as they increase the various costs of business such as the purchase of raw materials and payment of wages and salaries to employees etc. The dimension of business environment referred to above is:

1. Political Environment
2. Technological Environment
3. Social Environment
4. Economic Environment

Identify the dimension of business environment illustrated by the given picture:

[Picture: a humanoid robot in a suit presenting news on a TV channel, captioned “I am an A-I News Anchor”]

1. Social
2. Political
3. Technological
4. Economic

For Visually Impaired Candidates:

Shifts in demand from steam locomotives to electric engines, from fountain pens to ball-point pens, from typewriters to computer based word processors highlights which of the following dimension of business environment?

1. Economic
2. Technological
3. Political
4. Social

‘Business Environment includes both specific and general forces.’ Which of the following force is not included in specific forces?

1. Legal conditions
2. Investors
3. Competitors
4. Suppliers

Seeing the increasing demand for automobiles in Buleti, ‘Veso Cars’, a global car manufacturing company planned to expand its operations and sell its cars there. However, the government of Buleti imposed high import duties on foreign made cars to protect local manufacturers from foreign competition. This attitude of the Buleti government towards foreign car manufacturers increased the cost of importing cars, making it less affordable for ‘Veso Cars’ to sell its cars at competitive prices in Buleti.

The component of business environment highlighted above is:

1. Political environment
2. Social environment
3. Legal environment
4. Economic environment

The Go-Vegan Movement has been an integral part of western nations owing to its numerous health and environmental benefits. India too has witnessed a propelling vegan food market. Concerned with the quality of life, people have shifted to a variety of plant-based food alternatives that offer great taste and health benefits and strengthen the immune system.

The dimension of business environment discussed above is:

1. Economic environment
2. Social environment
3. Technological environment
4. Political environment

Read the following statements: Assertion (A) and Reason (R).

Assertion (A): Increased life expectancy of people and increased awareness for health care have increased the demand for many health products and services.

Reason (R): Different elements of business environment are not inter-related.

Choose the correct alternative from the options given below:

1. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
3. Assertion (A) is true, but Reason (R) is false.
4. Assertion (A) is false, but Reason (R) is true.

‘KM Creations’, a leading fashion brand, has been expanding its business into new markets. However, recently the company is facing challenges due to changes in inflation rates and disposable income of people. These factors have started affecting the company’s pricing strategy and profitability. ‘KM Creations’ is now closely monitoring these changes to minimise their impact on its operations.

The component of business environment highlighted in the above para is :

1. Political Environment
2. Technological Environment
3. Economic Environment
4. Social Environment

Which of the following is an element of ‘Social Environment’ ?

1. Rates of saving and investment
2. Expectations from the workforce
3. The nature of relationship of our country with foreign countries
4. Planned outlay in public and private sectors

‘SK Builders’ became the market leader in the designer house segment as it was the first to recognize the need of using Artificial Intelligence in designing houses in the changing environment of technological advancement. This highlights the following point of importance of business environment :

1. It helps to identify threats and early warning signals.
2. It enables the firm to identify opportunities and getting the first mover advantage.
3. It helps in tapping useful resources.
4. It helps in improving performance.

Due to increasing presence of women in the workforce, ‘Kisan Mart’ comes out every Friday with big discount offers on daily use items to attract office-going women to shop on weekends.

Which dimension of business environment is being highlighted in the above case ?

1. Social environment
2. Legal environment
3. Political environment
4. Technological environment

Raunaq, while studying at the university, felt that there should be a food joint in the university campus to provide food to students round the clock. After passing out of college, he set up ‘Hunger Point’, a food joint with a varied menu ranging from burgers, pizzas, street food and much more, in the university campus. For this, he obtained necessary permissions from the university administration. Since he was the first one to recognize the need for a food joint for all the students in an environment where students study day and night, it soon became a popular eating joint. Within six months, ‘Hunger Point’ started earning good profits.

Identify the point of importance of business environment discussed in the above case :

1. It enables the firm to identify opportunities and get the first mover advantage.
2. It helps the firm to identify threats and early warning signals.
3. It helps in assisting in planning and policy formulation.
4. It helps in improving performance.

Choose the incorrect statement with respect to demonetization :

1. The two largest denomination notes of ₹ 500 and ₹ 1000 were demonetized with immediate effect, ceasing to be legal tender except for buying properties.
2. The aim of this step was to curb corruption and accumulation of black money.
3. It led to the tax administration channelizing savings into the formal financial system.
4. Restrictions were placed on the convertibility of domestic money and bank deposits.

Statement – I : Business Environment is dynamic as it differs from country to country.

Statement – II : Business Environment is largely uncertain as it is very difficult to predict future happenings.

Choose the correct option from the following :

1. Statement I is true and Statement II is false.
2. Statement II is true and Statement I is false.
3. Both the statements are true.
4. Both the statements are false.

Which of the following is NOT a feature of demonetisation ?

1. It leads to creation of a less-cash or cash-less (free) economy i.e. channeling more savings through the formal financial system and improving tax compliance.
2. It is interpreted as a shift on the part of the government indicating that tax evasion will no longer be tolerated or accepted.
3. It is viewed as a tax administration measure.
4. It led to tax administration channelising savings away from the formal financial system.

Samaira and her friend, Sana wanted to watch a movie over the weekend. They booked the movie tickets online and chose the seats as per their preference at the click of a button at the desired movie hall. Now going to theatre for booking of tickets is no longer required.

The dimension of business environment reflected in the above para is :

1. Political environment
2. Social environment
3. Legal environment
4. Technological environment

Rajat was carrying on a business of manufacturing plastic disposables like plastic plates, plastic cups and plastic straws. He heard about the upcoming ban on single use plastics. He was able to identify this external environmental trend which could hinder his firm’s performance. So he took action and shifted to manufacturing the plates, cups and straws from bamboo and palm leaves. As a result, his business not only survived but was able to generate profit.

The point of importance of Business Environment highlighted above is :

1. It enables the firm to identify opportunities and getting the first mover advantage.
2. It helps the firm to identify threats and early warning signals.
3. It helps in tapping useful resources.
4. It helps in assisting in planning and policy formulation.

‘Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment’. Thus it is relatively easier to understand the environment in parts but difficult to grasp in its totality. Identify the feature of business environment highlighted above :

1. Uncertainty
2. Complexity
3. Relativity
4. Dynamic nature

As per Plastic Waste Management Rule 2022, single use plastic items were prohibited in Delhi from 1st July, 2022. The dimension of business environment referred to here is ________.

1. Economic environment
2. Legal environment
3. Technological environment
4. Political environment

Which of the following is not an element of social environment ?

1. Composition of family
2. Consumption habits
3. Rates of saving and investment
4. Educational system and literacy rates

Techpack Ltd. is a company in Hyderabad that produces and sells packaging material to various industries across the nation in a B2B e-business form. It is a dynamic company. Over the years, due to rising concerns for climate change and shift of preferences of Indian customers towards environment-friendly products, the company has shifted to the production of biodegradable packaging material. Moreover, due to its digital transformation, the company has tremendously benefited as its customers could place orders and make cashless payments in various online modes.

The dimensions of business environment discussed in the above case are :

1. Economic and social environments
2. Social and technological environments
3. Technological and economic environments
4. Social and political environments

Which of the following are the examples of Legal Environment?

1. Advertisement of alcoholic beverages is prohibited
2. Decrease in interest rate on loans
3. Increase in demand for organic foods
4. Digilockers for storing documents
5. In 1993, the Supreme Court passed an order to close the iron foundries around ‘Taj Mahal’ at Agra

1. (i) and (iv)
2. (i) and (ii)
3. (ii) and (iii)
4. (i) and (v)

Match the various characteristics of Business environment given in Column I with their respective explanations in Column II:

1. A (iii), B (ii), C (i)
2. A (ii), B (iii), C (i)
3. A (iii), B (i), C (ii)
4. A (i), B (ii), C (iii)

Which of the following items is a component of economic environment?

1. Expansion of transportation and communication services in Delhi.
2. Facility of booking train tickets, through mobile apps.
3. Restriction on 15-years-old petrol vehicles plying on roads in Delhi.
4. The Haryana Government’s announcement of free bus rides for females on the occasion of Rakshabandhan.

With a revolution taking place in the manufacturing of mobile phones with super class cameras, the business of cameras in the consumer market has taken a hit. Studies show that mobile phone photography has devastated the camera industry.

The dimension of business environment highlighted in the above case is:

1. Economic Environment
2. Technological Environment
3. Social Environment
4. Political Environment

In a recent ruling, the Supreme Court of India has ordered an immediate stop on commercial activities in a 500-metre radius of the Taj Mahal and asked Agra Development Authority to ensure compliance of its directive. Which dimension of business environment is reflected here?

1. Social
2. Technological
3. Legal
4. Political

Which of the following is not a part of social environment of Business?

1. Life expectancy
2. Education system and literacy rates
3. Consumption habits
4. Money supply in the economy

These days consumers are making eco-friendly and healthy choices and are saying no to all things made of plastic and replacing it with stainless steel and ceramic containers, thus forcing business to change as well. Identify the feature of business environment highlighted above:

1. Totality of external sources
2. Specific and general forces
3. Inter-relatedness
4. Dynamic nature

Government of India demonetised notes of ₹500 and ₹1000 on November 8, 2016. Demonetisation means:

1. They ceased to be legal tender except for a few specified purposes.
2. These notes could not be banked but could be freely used otherwise.
3. These notes could be converted into gold coins from Reserve Bank of India.
4. These notes could be used for household purposes but not for business purposes.

Hitesh and Reena are entrepreneurs. They noticed that every year in the months of November and December, Delhi, the capital city of India, witnesses poor air quality and rise in pollution levels. They also observed that nowadays people are more concerned about quality of life. Sensing the need, they were the first to bring into the market a new ‘Anti-Pollution W-98 Mask’ which was not only helpful in combating the pollution but also in increasing the life expectancy of people.

Their venture saw a massive success as there was no competitor.

From the following, identify the importance of Business Environment highlighted above:

1. Business Environment helps the firm to identify threats and early warning signals.
2. Business Environment helps in tapping useful resources.
3. Business Environment helps in improving performance.
4. Business Environment enables the firm to identify the opportunities and in getting the first mover advantage.

Plastic utensils are often used as a low cost, convenient option for business or personal use. These utensils are lightweight, easy to transport and can be disposed off easily instead of cleaned and reused. But plastic utensils are harmful from health point of view and create various environmental issues. Nowadays health and fitness trend is becoming popular. People are looking for different alternatives and have started opting for paper-made, steel or glass utensils which has tremendously increased the demand of these products.

The above para discusses an important dimension of Business Environment which is:

1. Economic Environment
2. Social Environment
3. Technological Environment
4. Political Environment

‘Cartoony Planet’ is a well-known indoor playground for organising parties for children in Noida. It has many play-stations and it organises various activities for the kids to enjoy. Looking at the increasing number of children visiting ‘Cartoony Planet’, a new indoor playground in the name of ‘Tiny-Tots House’ came up with advanced swings, play stations and entertainment activities near ‘Cartoony Planet’.

To compete with the newly opened indoor playground, ‘Cartoony Planet’ also added some advanced swings and entertainment activities to attract more children.

The above information highlights one of the features of ‘Business Environment’. Identify the feature from the following:

1. Uncertainty
2. Dynamic Nature
3. Relativity
4. Interrelatedness

‘Dolma’ and ‘Una’ were gardeners with decades of hands-on experience. They were the first ones to recognise the need of indoor gardens specially for plant-lovers living in apartments. They took advantage of this opportunity and decided to offer beautiful designing ideas for indoor gardening through their innovative venture ‘My Space’.

‘My Space’ offered creative ideas like ‘Garden wall’, ‘Hanging Garden’, ‘Window Garden’, ‘Book-shelf garden’ and many more. Since there were no competitors they soon became the market leaders in the field.

From the following points, identify the importance of Business Environment highlighted above:

1. Business Environment helps the firm to identify threats and early warning signals.
2. Business Environment helps in tapping useful resources.
3. Business Environment enables the firm to identify opportunities and getting the first mover advantage.
4. Business Environment helps in assisting in planning and policy formulation.

‘Digilocker’ is a flagship initiative of ‘Ministry of Electronics and IT’, Government of India. It aims at digital empowerment of the citizens by providing access to authentic digital documents such as academic certificates issued by different Examination Boards, Driving Licenses, Vehicle registrations etc. in a digital fromat.

The above para discusses a few dimensions of Business Environment. Identify the correct dimensions from the following:

1. Economic Environment and Technological Environment
2. Social Environment and Economic Environment
3. Social Environment and Political Environment
4. Political Environment and Technological Environment

With rising pollution levels, consumers are becoming conscious about the harmful effects of polluted air, so the demand for home air-purifiers is increasing day-by-day. Which dimension of business environment is discussed here?

1. Political Environment
2. Technological Environment
3. Economic Environment
4. Social Environment

Out of the following, which is/are the component(s) of the social environment.

1. Rate of inflation has increased by 2% leading to a higher total cost for business enterprises.
2. Various specialty health food and grocery shops have opened in an area where fitness and health enthusiasts live.
3. Life expectancy rate in India has improved over the past 20 years due to adequate health facilities and infrastructure.
4. A company in its human resource manual discloses a zero tolerance policy for racial discrimination and discriminatory practices against employees with disability.
5. The Advertising Standards Council of India prohibits the advertisement that promotes products or services that are banned by law.

Choose the correct option:

1. only 2
2. 1,2,3
3. 2,4,5
4. 2,3,4

‘Dash n Dip’ was established in 2022 as one of the first fast-food chains in India introducing the concept of family-style restaurants. However, within two years, the business started losing customers to multinational food chains and eventually had to shut down its operations.

The owner of the restaurant, Ms Kamya Kulkarni realized that she had been unable to identify, understand, evaluate and respond to the external environmental trends like changes in customer’s preferences and increasing competition. This had resulted in hindering the firm’s performance.

Identify the importance of understanding the business environment highlighted in the above case.

1. It helps in tapping useful resources.
2. It helps the firm to identify threats and early warning signals.
3. It helps in assisting in planning and policy formulation
4. It enables the firm to identify opportunities and get the first mover advantage.

State any three features of ‘Demonetisation’.

‘Tiva Motors’ planned to set up a new manufacturing unit for the electric scooters in Varanchal. One important consideration for setting up of the unit in Varanchal was that the government in Varanchal had been stable for several years. This had built confidence among business people to invest in long-term projects there. They understood that an adequate knowledge of the rules and regulations framed by the government is a prerequisite for a good business performance. So, before starting the operations, the company decided to obtain licences under environmental laws and necessary permissions from the government departments.

Identify and explain the two dimensions of business environment that are highlighted in the above case.

VTK Ltd. was a well known company engaged in selling sweets and beautifully crafted gift hampers. Taking advantage of the traditions of distributing sweets and exchanging gift-packs during festivals in India, VTK Ltd. experienced high demand for its products. The company regularly introduced special festive packs and promotional offers. The company noticed that customers were not only expecting attractive offers, but also faster services, easy payment options and better availability of products. In order to meet those expectations, the company introduced computer-based billing, digital payment facilities and an online system through which customers could place orders from their homes.

In the above case, the two important dimensions of business environment have been discussed. Identify and explain these dimensions.

Sweets has been the mainstay for several large homegrown restaurant brands. Increased life expectancy of people and increased awareness for health care amongst consumers has increased the demand for healthy food options. Young consumers are moving away from consuming traditional sweets to buying more western style premium products which are baked or steamed. With this shift in consumer preferences, ‘Shree Restaurants’, a well known restaurant brand, is gearing itself up for playing a greater role in the healthy packaged foods market. In addition to traditional sweets, the company is also planning to expand to healthy savoury and sweet items and some ready-to-eat items. These new healthy products are expected to change people's lifestyles.

Identify and explain the two features of Business Environment highlighted in the above case.

State any three points of importance of business environment.

State any three features of demonetisation.

State any three features of business environment.

State any three features of ‘Demonetization’.

‘Burgers and Fudge’ was among the first fast food chains in India which pioneered the concept of family-style restaurants. However, over the years it started losing business to multinational food chains like McDonalds and Pizza Hut, etc. and soon had to shut down.

The reason to shut down was the inability of managers to identify, understand, evaluate and to react to the forces external to their firm.

In the light of the above situation, explain with the help of any two points, how understanding of business environment is important for managers.

Explain the following points of importance of business environment:

1. Helps in tapping useful resources
2. helps in coping with rapid changes

Identify and explain the dimension of business environment in each of the following situations:

1. 'Alexa pay my electricity bill' is the latest feature of Alexa App which enables Amazon customers to pay their utility bills with 'Amazon Pay' just by speaking to Alexa.
2. Monika is working in a multi-national company. As an impact of work-from-home regime, she is now in a better position to inculcate moral values and healthy food habits in her children.
3. Atisha purchased a home and for this she took a loan from the bank. Monthly instalment on her loan increased as the banks increased the interest rate on loans.
4. 'Mother's milk is best for babies' is printed on the pack of 'First Bite' baby milk powder, produced by 'MQP Baby Food Ltd. By doing this, the company is not only protecting the consumers' interests, but also necessarily informing its potential buyers about the importance of mother's milk.

‘Global Foods Ltd.’, a multinational company in the food processing industry, has a good customer base. Recently it has expanded into new international markets. But due to increased awareness for health care, there is a shift in consumer demand for healthier food options. For this reason, the company needs to adapt to frequent technological advancements in production processes so that healthy food product options can be made available in the market. Additionally, the company is concerned about fluctuations at global level in commodity prices, exchange rates and political conditions. ‘Global Foods Ltd.’ is finding it increasingly difficult to predict future outcomes due to the constantly changing nature of the market. In order to effectively cope up with these significant changes, managers have to understand and examine the environment to develop suitable courses of action. By continuously monitoring the environment and adopting suitable business practices, the company will not only improve its present performance but also continue with it for a long period in achieving its objectives.

Identify and explain two features and two points of importance of business environment discussed in the above para.

‘VBR Cinema’, an Indian multiplex cinema hall was the first to recognize the change in consumption habits of people. It changed its food menu from burgers, pizza, soft drinks, etc. and switched over to healthier options like salads and smoothies, soups and anjeer-based sweets. Within a month, the revenue of the multiplex from sale of food items doubled. ‘VBR Cinema’, by continuously monitoring the environment and adopting suitable business practices, was able to improve its revenues and profits and was hopeful that it will continue to succeed in the market in the long run too.

Identify and explain one dimension of business environment and one point of importance of understanding the business environment highlighted in the above case.

The Marketing Research Manager of ‘Trendy Textiles’ has been assigned the task of analysing the influence of Generation Z on fashion trends. On studying the forces that affect business, he observed that increased awareness amongst Generation Z, with respect to, environmental protection, preference of individuality over trends, rejection of traditional norms in clothing, greater use of social media have increased the demand for sustainable and innovative styles in clothing, ‘Do It Yourself’ (DIY) products, promotion of products on various social media platforms by companies.

1. In context of the above case, identify and explain the feature of the business environment highlighted above.
2. Explain any two features of the business environment, apart from the one identified in part a).

Lisha Fabric Private Limited is a company manufacturing cotton garments. The Marketing Manager of the company notices a shift in Generation Z’ expectations as they are becoming aware of ethical fashion. The company decides to collaborate with Hridyansh, a Tech Enthusiast who has invented an innovative machine that recycles plastic bottles to manufacture sustainable fabrics.

Identify and explain the dimensions of the business environment highlighted in the above case.

Explain any four points that highlight the significance of business environment.

Identify the incorrect statement with respect to the importance of planning function of management :

1. Planning provides directions by stating in advance how work is to be done.
2. Planning eliminates uncertainty by looking ahead and anticipating changes.
3. Planning facilitates decision making by making a choice among various alternative courses of action.
4. Planning promotes innovative ideas as new ideas can take the shape of concrete plans.

Identify the feature of planning which states that the purpose of planning is to meet future events effectively to the best advantage of an organisation :

1. Planning involves decision making
2. Planning is futuristic
3. Planning is a mental exercise
4. Planning focuses on achieving objectives

‘Planning requires application of mind involving foresight, intelligence imagination and sound judgement.’

The feature of planning reflected by the above statement is :

1. Planning is futuristic
2. Planning involves decision-making
3. Planning is a mental exercise
4. Planning is continuous

‘Cosy Garments’ started the manufacturing of jackets in September, 2025. They expected a rise in the demand for jackets during the winter season. To handle the increased workload, the Production Manager estimated the number of workers required during peak production days and planned accordingly.

The type of plan highlighted in the above case is :

1. Budget
2. Policy
3. Method
4. Objective

‘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?

1. Planning may not work in a dynamic environment
2. Planning leads to rigidity
3. Planning does not guarantee success
4. Planning involves huge costs

Match the type of plan given in Column-I with its meaning in Column-II:

Choose the correct alternative from the following:

1. a-(ii), b-(iv), c-(i), d-(iii)
2. a-(iv), b-(ii), c-(i), d-(iii)
3. a-(iv), b-(ii), c-(iii), d-(i)
4. a-(iv), b-(i), c-(ii), d-(iii)

Shweta, a graduate from ‘Premier Institute of Fashion Technology’, was keen to start her own fashion accessories business. She used foresight and intelligent imagination to visualise future demand for her products and possible challenges she could face. Shweta relied on logical and systematic thinking to decide the actions to be taken on various aspects of the business, such as target customers, the types of products to design and the resources required.

The feature of planning highlighted in the above case is:

1. Planning is futuristic
2. Planning involves decision-making
3. Planning focuses on achieving objectives
4. Planning is a mental exercise

Nikhil owned a paper manufacturing business. His business had been facing losses for the last two years. Nikhil’s son, Ravi, who had just completed his studies, had joined his father’s business. Ravi was interested in sustainability and thus suggested his father that they should start making eco-friendly paper products. Nikhil agreed and asked Ravi to prepare a proper plan for the same. He also asked Ravi to set a target of earning profit of 10% on sales in the first year itself. Ravi, then began collecting information about the market demand, consumer preferences, availability of raw materials, competition, etc.

Based on this information, he made certain assumptions about the future, such as expected demand for eco-friendly paper products, its price, etc. The step of the planning process performed by Ravi was:

1. Identifying alternative courses of action
2. Developing premises
3. Setting objectives
4. Implementing the plan

Which of the following statements is incorrect with respect to ‘strategy’ as a type of plan?

1. Strategy provides the broad contours of an organization’s business.
2. Strategy refers to future decisions defining the organization’s direction and scope in the long run.
3. Strategy is the desired future position that the management would like to reach.
4. Strategy is a comprehensive plan for accomplishing an organization’s objectives.

Kavi works as a Marketing Manager in stationery mart. It deals in various types of stationery items for many schools across the country. When new session starts in schools, Kavi forecasts the sales of different stationery products for each school for every month. All items are represented in numbers so that it becomes easier for him to compare the actual sales with expected sales.

The type of plan discussed above is:

1. Strategy
2. Policy
3. Programme
4. Budget

Given below are two statements, Assertion (A) and Reason (R):

Assertion (A): Planning involves looking ahead and preparing for the future.

Reason (R): The purpose of planning is to meet future events effectively to the best advantage of an organization.

Choose the correct alternative from the alternatives given below:

1. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
3. Assertion (A) is true, but Reason (R) is false.
4. Assertion (A) is false, but Reason (R) is true.

Read the following statements carefully:

Statement I: A rule reflects a managerial decision that a certain action must or must not be taken.

Statement II: A rule allows flexibility or discretion.

In the light of the given statements, choose the correct alternative from the following:

1. Both Statement I and Statement II are true.
2. Both Statement I and Statement II are false.
3. Statement I is true and Statement II is false.
4. Statement I is false and Statement II is true.

A leading newspaper company decided to increase its market share by 10%. After developing the premises, the company identified the following alternative courses of action to be adopted:

1. To have eco-friendly newspapers
2. To introduce specific sections for children
3. To have columns for increasing general awareness for competitive exams
4. To have international news on a daily basis

After identifying the above alternatives, a board meeting was called.

Identify from the following, the next step in the planning process which is to be taken in the board meeting.

1. Follow-up action
2. Implementing the plan
3. Evaluating alternatives courses
4. Selecting an alternative

‘Monitoring plans is important to ensure that objectives are achieved’ is one of the steps in the process of planning.

Identify the step from the following:

1. Setting objectives
2. Developing premises
3. Implementing the plan
4. Follow-up action

Match the type of plan given in Column I with its meaning given in Column II.

Choose the correct option from the following:

1. 1-(iii), 2-(iv), 3-(ii), 4-(i)
2. 1-(i), 2-(iii), 3-(iv), 4-(ii)
3. 1-(ii), 2-(i), 3-(iii), 4-(iv)
4. 1-(iv), 2-(ii), 3-(i), 4-(iii)

Read the following statements carefully:

Statement I: A single-use plan is used for activities that occur regularly over a period of time.

Statement II: Policies are a general form of standing plans that specify the organisation's response to a certain situation.

In the light of the given statements, choose the correct alternative from the following:

1. Statement I is true and Statement II is false.
2. Statement I is false and Statement II is true.
3. Both Statement I and Statement II are true.
4. Both Statement I and Statement II are false.

Which of the following is not a limitation of planning function of management?

1. Planning leads to rigidity.
2. Planning reduces creativity.
3. Planning guarantees success.
4. Planning may not work in a dynamic environment.

Identify the type of plan shown on the Notice Board of the factory, from the picture given below :

[Picture: a factory floor with workers; a Notice Board reads “NOTICE BOARD — No Food or Drink Allowed”.]

1. Method
2. Policy
3. Strategy
4. Rule

Note : The following question is for the Visually Impaired Candidates only in lieu of Q. No. 6.

‘It prescribes the ways or manner in which a task has to be performed considering the objective.’

The type of plan discussed above is :

1. Method
2. Procedure
3. Programme
4. Rule

Which of the following are ‘Standing Plans’ ?

1. Budgets
2. Policies
3. Programmes
4. Procedures
5. Methods
6. Rules

Choose the correct alternative :

1. (ii), (iii), (v) and (vi)
2. (ii), (iv), (v) and (vi)
3. (iii), (iv), (v) and (vi)
4. (i), (ii), (iii) and (iv)

Plans are prepared for a specific period of time, may be for a month, a quarter or a year. At the end of that period, there is a need for a new plan to be drawn on the basis of new requirements and future conditions. The feature of planning reflected in the above lines is :

1. Planning is futuristic
2. Planning is continuous
3. Planning is pervasive
4. Planning is a mental exercise

‘Best Electronics’ is led by its visionary Chief Executive Officer, Nikhil. It has a reputation for good quality products and customer service. Nikhil recognised the need to continually innovate and provide customers with the latest products. He wanted the company to be the market leader in electronics.

Nikhil knew that to realise his ambitious vision, he needed a clear and well-defined plan that would provide broad contours of the company’s business. His team conducted extensive market research to uncover emerging trends, customer preferences, and potential competitors. On its basis, a plan was prepared defining the company’s direction and scope in the long run. On the implementation of the plan ‘Best Electronics’ became the market leader in two years. The type of plan which helped ‘Best Electronics’ to become the market leader was :

1. Policy
2. Rule
3. Strategy
4. Procedure

‘Vishesh Constructions’, a construction company, decided to strictly implement ‘No Helmet, No Entry’ and put the following sign at their construction sites :

[Picture: a sign showing a worker wearing a helmet, with the words “NO HELMET” above and “NO ENTRY” below]

Identify the type of plan indicated by the above sign :

1. Policy
2. Rule
3. Method
4. Programme

Sudha and Shweta were twin sisters. After completing their education from college, they decided to start a business. As they were Commerce students, they knew the importance of deciding in advance ‘what to do’ and ‘how to do’. It was very challenging for them as this decision was to guide all their future actions. While discussing the same with their mother, they got a new idea of starting a ‘Cloud Kitchen’. Both the sisters were very excited to start this. The idea took the shape of a concrete plan and within a month, they were successful in starting their ‘Cloud Kitchen’.

Identify the point of importance of planning highlighted in the above case :

1. Planning reduces the risk of uncertainty.
2. Planning promotes innovative ideas.
3. Planning establishes standards for controlling.
4. Planning reduces overlapping and wasteful activities.

In T-pex Ltd, a company trading in stationery items, it was decided that all purchases would be made from AK Ltd. on credit basis with credit period of at least 7 days. This was done because no other company was offering credit facility. Which type of plan has been referred to in the above paragraph ?

1. Rule
2. Policy
3. Method
4. Strategy

In planning, generally managers have to follow pre-determined plans and they are not in a position to change it. This statement highlights the following limitation of planning:

1. Planning may not work in a dynamic environment
2. Planning does not guarantee success
3. Planning leads to rigidity
4. Planning is time-consuming

‘The purpose of planning is to meet future events effectively to the best advantage of an organisation.’ This statement highlights which of the following features of planning?

1. Planning focuses on achieving objectives.
2. Planning involves decision-making.
3. Planning is the primary function of management.
4. Planning is futuristic.

A statement of expected results expressed in numerical terms is a type of plan called as ___________.

1. Method
2. Budget
3. Programme
4. Procedure

Match the features of planning given in Column I with their respective explanation given in Column II.

1. A-(i), B-(ii), C-(iii)
2. A-(iii), B-(ii), C-(i)
3. A-(ii), B-(iii), C-(i)
4. A-(i), B-(iii), C-(ii)

____________ is a standing plan.

1. Rule
2. Budget
3. Programme
4. Strategy

Mr Gun Amroha, the General Manager of Welworth Textiles scans the business environment and adapts the organisation to the changes taking place in different dimensions of the business environment. However, it is still difficult for him to accurately assess the future trends. Identify the limitation of planning related to the above.

1. Planning leads to rigidity.
2. Planning may not work in a dynamic environment.
3. Planning does not guarantee success.
4. Planning reduces creativity.

Arijit and Ananya started a small business selling Eco-Friendly home decoration items made from recycled materials under the name ‘EcoComfort’. Ananya carefully analysed market conditions and predicted that there will be an increasing awareness about sustainability among urban consumers and the competition from conventional home decor brands will be moderate.

They decided to achieve ₹2 lakh monthly sales by the end of first year. Arijit explored the following innovative courses of action to achieve the target:

1. Selling through online platforms like E-Commerce market places and social media stores.
2. Including local retail outlets to reach the local target market.
3. Partnering with cafes, gyms, wellness stores for product placements.

Identify the steps which have not been performed by Arijit and Ananya in carrying out the planning function of management.

1. Setting objectives
2. Follow up action
3. Implementing the plan
4. Developing premises
5. Identifying alternative courses of action
6. Selecting an alternative
7. Evaluating alternative courses

Choose the correct option:

1. (i),(iv),(v)
2. (ii),(iii),(iv),(vi)
3. (i),(iv),(v),(vii)
4. (vii),(vi),(iii),(ii)

Explain the following points of importance of planning:

1. Planning provides directions
2. Planning facilitates decision-making

Explain the following types of plans:

1. Policy
2. Procedure

Explain the following features of 'Planning':

1. Planning focuses on achieving objectives.
2. Planning is a mental exercise.

Explain the following types of plans:

1. Strategy
2. Policy

After studying Entrepreneurship in Class XII, Neel completed a baking course and started a bakery, ‘Cakes and Bakes’. He set a target of earning a modest 10% return on investment in the first year. As he was supplying healthy bakery products, the demand kept increasing. ‘Cakes and Bakes’ became a famous bakery in a year. He now wanted to develop a plan to define the direction and scope of ‘Cakes and Bakes’ for the long run. He made a marketing plan to decide if he could charge higher price to improve his return on investment, how to advertise the products, etc.

Quoting lines from the above paragraph, identify and explain two types of plans discussed in the above case.

Ananta Ltd. is a firm manufacturing electronic goods. To increase its sales and earn profits, its General Manager, Kamal is thinking in advance what to do and how to do it. He is also preparing forecasts to reduce the risk of uncertainty and to achieve its targets.

By doing so Kamal is performing an important function of management.

Identify and state the function of management highlighted above. Also state any two points of importance of this function.

Explain the following points of importance of planning :

1. Planning establishes standards for controlling
2. Planning reduces overlapping and wasteful activities

(2+2)

Explain the following types of plans :

1. Objective
2. Method

(2+2)

Explain the following limitations of planning :

1. Planning leads to rigidity
2. Planning may not work in a dynamic environment

Prachi is working as an academic counsellor for specially abled students at one of the top school to provide special support and guidance to these students. She clearly states in advance the methods of teaching and tackling the students. She ensures that the goals are clearly stated for each and every teacher so that they act as a guide for deciding what action should be taken and in which direction.

Her well laid plans will serve as a basis for coordinating the activities and efforts of teachers teaching different subjects to these students. It helps the teachers in bringing clarity of thought and action to their work.

Identify and explain the two points of importance of ‘Planning’ function of management highlighted in the above para.

Explain the following features of planning:

1. Planning focuses on achieving objectives.
2. Planning is pervasive.

Explain the following points of the importance of planning:

1. Planning provides directions.
2. Planning promotes innovative ideas.

Explain the following points of importance of ‘Planning’ function of management:

1. Planning provides direction.
2. Planning reduces the risk of uncertainty.

Explain the following features of ‘Planning’ function of management:

1. Planning is futuristic.
2. Planning is a mental exercise.

'Mefco Ltd.' has been in online grocery e-commerce business for the last six years. Recently, it started facing increasing competition in the market. Understanding that speed of delivery in the key differentiator amongst online business firms, 'Mefco Ltd.' planned to launch 'Mefco Fast', a service designed to deliver the products to the customers within 10 minutes. It studied the market and made assumptions about the future regarding the convenience offered by such a service to the consumers who are increasingly seeking faster delivery options.

1. Identify the step of the planning process highlighted in the above case.
2. State the next three steps to be followed by 'Mefco Ltd.' after the step identified in (a) above.

Explain any four limitations of ‘Planning’.

‘Leno’ is a reputed car manufacturing company, which is going to complete its 75 years in October 2024. The Chief Executive Officer of the company decided to take the company to a higher level. For this he called a meeting of all departmental heads of the company. In the meeting, the Chief Executive Officer proposed a target to increase sales by 10% and profits by 20% in its Platinum Jubilee year.

The Human Resource Manager estimated that an increase of 500 workers would be required to achieve the target. The Finance Manager suggested that the company must hold adequate cash balances for various purposes, and he will prepare a statement showing the estimated cash inflows and outflows for this particular period.

Identify and explain two types of plans discussed in the above case.

State any four limitations of planning.

Explain the following types of plans :

1. Strategy
2. Procedure

Explain why planning is considered as

1. pervasive
2. futuristic function of management.

Explain the following as a type of plans:

1. strategy
2. procedure

Greener Organic is a company producing eco-friendly fertilizers and soil boosters. With the growing interest in organic farming, the company is planning to expand its operations across India.

Greener sets its target to increase its sales by 25% in the next year. This gave all departments – sales, production, marketing and logistics – a common target to work. To achieve this, Greener made a comprehensive plan to enter Tier-2 and Tier-3 cities by working with local farmer groups. They also plan to promote their brand through on-line campaigns focused on eco-friendly farming. The company also laid down broad parameters within which the managers could function. All raw materials used had to be certified organic and preferably sourced from local farmers. This would improve quality, support local people and build trust with customers. The company allocated ₹ 50 lakhs for marketing, which included funds for regional newspaper advertisements, digital marketing, promotional events and dealer incentives. By quantifying future facts and figures, the company planned to control costs and evaluate performance.

Identify and explain any four type of plans discussed in the above case.

Explain the following limitations of planning :

1. Planning leads to rigidity
2. Planning may not work in a dynamic environment
3. Planning involves huge costs

Explain the following points of importance of planning :

1. Planning facilitates decision-making
2. Planning establishes standards for controlling
3. Planning promotes innovative ideas

Explain the following points of limitations of planning :

1. Planning reduces creativity
2. Planning leads to rigidity
3. Planning does not guarantee success

Explain the following points of importance of planning:

1. Planning provides directions
2. Planning reduces overlapping and wasteful activities
3. Planning establishes standards for controlling

Explain the following points of importance of ‘Planning’ function of management:

1. Planning provides directions.
2. Planning promotes innovative ideas.
3. Planning reduces the risk of uncertainty.

Explain ‘Objectives’, ‘Rule’ and ‘Budget’ as types of plans.

Explain any four points of importance of Planning' function of management.

Explain the following features of planning :

1. Planning is a mental exercise.
2. Planning is continuous.
3. Planning is futuristic.
4. Planning involves decision-making.

Atul Sharma was the Chief Executive Officer of a footwear company, ‘Stepone Footwear’. The company manufactured innovative and comfortable footwear for all age groups. Atul Sharma was known for meticulous planning. He ensured that the goals and objectives of the company are clearly stated so that they act as a guide for deciding what action should be taken and in which direction. Before each season, ‘Stepone Footwear’ carefully analysed market trends, customer preferences and production schedules. This analysis enabled the company to look ahead and anticipate changes and develop managerial responses, wherever necessary. As a result, they were able to consistently deliver innovative and comfortable shoes to the market.

During one season, there was a sudden surge in demand for eco-friendly shoes. ‘Stepone Footwear’ had already planned their production for the year with specific goals to be achieved within a specific time frame. The managers of ‘Stepone Footwear’ did not have the flexibility to change the plan to cope with the changed circumstances. Another shoe company ‘Eco Step’ quickly adapted and started manufacturing comfortable eco-friendly shoes. By not being able to adjust to the rapidly changing market, ‘Stepone Footwear’ faced inventory surplus while ‘Eco Step’ emerged as a market leader in sustainable eco-friendly footwear.

Quoting lines from the above paragraph, identify and explain two benefits and two limitations of ‘Planning’ function of management discussed in the above case.

Explain any four points of importance of ‘Planning’ function of management.

Explain the following types of plans :

1. Strategy
2. Method
3. Budget

Explain the following limitations of planning function of management :

1. Planning may not work in a dynamic environment.
2. Planning leads to rigidity.
3. Planning is time consuming.

Explain with the help of any four points why planning is important in an organization.

‘Setting objectives is the first step in the process of one of the significant functions of management.’

1. Identify the function of management referred above.
2. State the next five steps of the process.

‘Planning is important as it provides directions for action, reduces the risks of uncertainty and facilitates decision making.’ Explain.

The Government of India in its budget for the financial year of 2021-22 reiterated its support for Electric Vehicle sector. The Government launched several schemes and incentives to boost their demand as well as to motivate manufacturers to invest in the same. Inspired by these incentives and concerned about the environmental impact of gas and diesel-powered engines, Nitin Kothari has set up an electric car manufacturing unit at Bhilwara. He set a target of earning Return On Investment of 10% in the first year itself and forecasted that the demand for electric cars will increase by 20 million in the next few years.

The above case highlights the first two steps of the process of one of the important functions of management.

1. Identify the function of management discussed above.
2. State the remaining steps required to complete the above process.