Class 12 business studies chapter 4 ncert solutions: Planning class 12 questions and answers
| Textbook | Ncert |
| Class | Class 12 |
| Subject | Business Studies |
| Chapter | Chapter 4 |
| Chapter Name | Planning class 12 ncert solutions |
| Category | Ncert Solutions |
| Medium | English |
Are you looking for business studies class 12 chapter 4 questions and answers? Now you can download Planning class 12 questions and answers pdf from here.
Very Short Answer Type:
Question 1: How does planning provide direction?
Answer 1: Planning provides direction by setting clear goals, outlining steps to achieve them, and determining resources needed. It helps individuals and organizations stay focused on desired outcomes and avoid distractions, ensuring efficient and purposeful progress.
Question 2: A company wants to increase its market share from the present 10% to 25% to have a dominant position in the market by the end of the next financial year. Ms Rajni, the sales manager has been asked to prepare a proposal that will outline the options available for achieving this objective. Her report included the following options entering new markets, expanding the product range offered to customers, using sales promotion techniques such as giving rebates, discounts or increasing the budget for advertising activities. Which step of the planning process has been performed by Ms Rajni?
Answer 2: The step of the planning process has been performed by Ms. Rajni is identifying the various courses of action. She did a detailed study of the various fields and now the company will choose the best alternative which is profitable, feasible and with the least negative consequences.
Question 3: Why are rules considered to be plans?
Answer 3: Rules are specific statements that inform what is to be done. They do not allow for any flexibility or discretion. It reflects a managerial decision that a certain action must or must not be taken. They are usually the simplest type of plans because there is no compromise or change unless a policy decision is taken.
Question 4: Rama Stationery Mart has made a decision to make all the payments by etransfers only. Identify the type of plan adopted by Rama Stationery Mart.
Answer 4: The type of plan adopted by Rama stationary mart is a policy. Policies are general statements that guide thinking or channelize energies towards a particular direction.
Question 5: Can planning work in a changing environment? Give a reason to justify your answer.
Answer 5: Planning has less chance of working correctly in a changing environment. The nature of business is dynamic, and it continuously changes. For example, factors like social, political, rules and regulations are prone to changes on a continuous basis. Planning cannot detect such changes and therefore prove not that effective.
For example, a company has planned to make white bread, but the market demand shifted to brown bread due to people becoming more health conscious. Here, the company needed to change its previous plan, as market factors were not as per the plan.
Short Answer Type:
Question 1: What are the main aspects in the definition of planning?
Answer 1: The main aspects of the definition of planning are mentioned below:
- a. Planning is deciding in advance what to do and how to do.
- b. It involves the setting up of objectives and choosing the best alternative from the various alternative.
- c. It reduces the gap between where are we and where we want to reach.
- d. It is a basic managerial function.
- e. Plans are devised by the top management.
- f. Plans are formulated for a fixed duration of time
Question 2: If planning involves working out details for the future, why does it not ensure success?
Answer 2: Planning is regarded as a forward-looking function, and it is helpful in predicting and analysing the events in future. The future is uncertain and, therefore, cannot be predicted. There exist various forces that can have an impact on the way an organisation functions. Such forces are complex and dynamic in nature, which results in changes occurring on short notice.
The factors such as social, political, legal and technological and rules and regulations by the government can change quickly, and due to such uncertainty, one cannot be sure that success can be achieved. Hence, plans need to be modified in order to adapt to the ever-changing environment. Therefore, it can be said that even though planning involves preparing details of the future, it does not guarantee that success will follow.
Question 3: What kind of strategic decisions are taken by business organisations?
Answer 3: Major strategic decisions include whether the organisation will continue to be in the same line of business or combine new lines of activity with the existing business or the position company is aiming in the existing market and the pricing policy which should be used.
Question 4: Planning reduces creativity. Critically comment.(Hint: both the points Planning promotes innovative ideas and planning reduces creativity – will be given).
Answer 4: Planning always helps in promoting innovation. Formulating policies and plans is an intellectual process, and it requires creativity and some innovation from the managers. Once a plan is formulated, it is not possible for a manager to change it. Such type of rigidity creates hurdles when changes are uncertain, and therefore, it reduces creativity.
Question 5: In an attempt to cope with Reliance Jio’s onslaught in 2018, market leader Bharti Airtel has refreshed its 149 prepaid plan to offer 2 GB of 3G/4G data per day, twice the amount it offered earlier. Name the type of plan is highlighted in the given example. ? State its three dimensions also.
Answer 5: Bharti Airtel has adopted a Strategy. A strategy is created by keeping the business environment in mind. Strategy includes three dimensions:
- Determining long term objectives
- Adopting a particular course of action
- Allocating resources necessary to achieve the objective.
Question 6: State the type of plan and state whether they are Single use or Standing plan:
a. A type of plan which serves as a controlling device as well.(budget)
b. A plan based on research and analysis and is concerned with physical and technical tasks. (Method)
Answer 6: a. The budget plan is a one-time use plan. Budge is a numerically expressed statement of expected results. It is a projection intended to define the anticipated cost and results of a single project in numerical terms.
b. This is a pre-existing strategy known as method. Method specifies the prescribed ways or manner in which a task must be completed while keeping the objectives in mind. It deals with a task, which could be a step in a procedure, and specifies how that step should be carried out.
Long Answer Type:
Question 1: Why is it that organisations are not always able to accomplish all their objectives?
Answer 1: It is extremely important for an organisation to invest enough time and money to formulate plans for the success of the organisation. Planning is the most important activity and sets the foundation for its working. But at times due to certain unpredictable changes in the business environment both internal and external the plans of the organisation may not turn out as they had hoped to be. This is because of the various limitations of planning due to which the organizations would not be able to accomplish all of their objectives. These limitations are explained below:
- a. Once the plans are made to decide the future course of action of the form it is not easy for the manager to change them. It is not feasible to alter a pre-decided plan. This type of rigidity may hamper the progress of the organisation.
- b. The business environment is dynamic in nature and uncertain. It is not easy to predict the changes which may happen even in a short duration of time. Planning cannot oversee everything and may prove to be a hindrance.
- c. Formulation of the plan requires a lot of money and time. It involves a lot of scientific calculation, analyzing and detail study of subjects. The cost incurred may not be justified with the benefit of the plans.
- d. Planning is usually done by the top management level in a firm. The middle management and lower management is not allowed to take part in this planning process. This leads to a reduction in creativity and innovation.
- e. A lot of time is consumed by the managers to formulate plans. This is because of the time involved in research and evaluation.
- f. The planning process depends on various assumptions. These assumptions may not be accurate and me not guarantee success.
Question 2: What are the steps taken by management in the planning process?
Answer 2: The steps taken by management in the planning process are:
a. Setting Objectives: Management must first decide the objectives—what needs to be achieved and how it will be achieved. Both specific and general objectives should be considered. Plans should be purposeful, and the objectives must be clearly defined.
b. Assumptions about the Future: Planning is based on assumptions or forecasts about the future. These assumptions may stem from past experiences, current policies, and predictions about future trends. It is important for all managers to have a shared understanding of these assumptions to ensure consistency.
c. Identifying Alternatives: The manager must list various alternatives or courses of action that the organization can take to achieve its objectives.
d. Evaluating Alternatives: Each alternative should be evaluated based on its utility and consequences. The advantages and disadvantages of each option must be carefully analyzed to understand their feasibility and potential outcomes.
e. Selecting the Best Alternative: After evaluating the options, the manager selects the most suitable alternative. Sometimes, a combination of alternatives may be chosen. The ideal plan is one that is practical, profitable, and has minimal negative consequences.
f. Implementing the Plan: After selecting the best course of action, other management functions—such as organizing, directing, staffing, and controlling—are engaged to put the plan into action.
g. Follow-up and Monitoring: Planning does not end with implementation. Continuous supervision and monitoring of actions are necessary to ensure the plan’s success. Adjustments may be made as needed to address unforeseen challenges and ensure that objectives are achieved.
Question 3: An auto company C Ltd. is facing a problem of declining market share due to increased competition from other new and existing players in the market. Its competitors are introducing lower priced models for mass consumers who are price sensitive. C Ltd. realized that it needs to take steps immediately to improve its market standing in the future. For quality conscious consumers, C Limited plans to introduce new models with added features and new technological advancements. The company has formed a team with representatives from all the levels of management. This team will brainstorm and will determine the steps that will be adopted by the organisation for implementing the above strategy. Explain the features of Planning highlighted in the situation given below. (Hint: Planning is pervasive, Planning is futuristic and Planning is a mental exercise).
Answer 3: The features of planning that are highlighted in the above case are:
(i) Planning is pervasive: Planning is required at all levels of management as well as in all departments of the organization. The scope of planning differs at different management levels. It is performed at all level as it is not just a function restricted to top level .As the organizational plans form by top level management, then the middle level does departmental planning, and the lower level makes plans for the day-to-day operations for the organization.
(ii) Planning is futuristic: Planning is based on forecasting and it is prepared for the future. This is done to scan the general environment so that the organisation set their objectives accordingly. Hence, its main purpose is to meet future events effectively to the best advantage of an organization. It implies looking into the future, analyzing it. Thus, planning is a futuristic process.
(iii) Planning is a mental exercise: Planning is a mental exercise as it requires creativity, imagination and higher thinking skills with sound judgement. It is an intellectual activity of thinking rather then doing which requires application of mind involving foresight, intelligent imagination and sound judgement. . It requires logical and systematic thinking rather than guesswork or wishful thinking.