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Chapter Analysis
Intermediate18 pages • EnglishQuick Summary
The chapter 'Planning' in the NCERT Business Studies textbook for Class 12 discusses the significance, features, and limitations of planning in management. It covers the planning process, emphasizing the need for setting objectives, developing premises, and evaluating alternatives. The chapter also explores different types of plans, such as single-use and standing plans, and highlights planning as an essential yet challenging task that involves creativity and logical decision-making.
Key Topics
- •Meaning of Planning
- •Features and Importance of Planning
- •Limitations of Planning
- •The Planning Process
- •Types of Plans
- •Role of Decision Making in Planning
- •Implementation and Monitoring of Plans
Learning Objectives
- ✓Understand the concept and process of planning.
- ✓Identify the features and importance of planning in management.
- ✓Analyze the limitations of planning and how to address them.
- ✓Learn the steps involved in the planning process.
- ✓Recognize the different types of plans and their characteristics.
- ✓Appreciate the role of decision-making in successful planning.
Questions in Chapter
Why are rules considered to be plans?
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Rama Stationery Mart has made a decision to make all the payments by e-transfers only. Identify the type of plan adopted by Rama Stationery Mart.
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Can planning work in a changing environment? Give a reason to justify your answer.
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What are the main aspects in the definition of planning?
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If planning involves working out details for the future, why does it not ensure success?
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What kind of strategic decisions are taken by business organisations?
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Planning reduces creativity. Critically comment.
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In an attempt to cope with Reliance Jio’s onslaught in 2018, market leader Bharti Airtel has refreshed its Rs 149 prepaid plan to offer 2 GB of 3G/4G data per day, twice the amount it offered earlier. Name the type of plan highlighted in the given example.
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Why is it that organisations are not always able to accomplish all their objectives?
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What are the steps taken by management in the planning process?
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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.
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Additional Practice Questions
Explain the significance of setting objectives in the planning process.
mediumAnswer: Setting objectives gives a direction to all managerial activities and provides a benchmark for evaluating performance. It is crucial because it outlines what the organisation aims to achieve, ensuring that all efforts are aligned towards the same end goal.
Discuss the importance of developing premises in effective planning.
mediumAnswer: Developing premises involves making assumptions about the future conditions under which plans will operate. It helps reduce uncertainty by forecasting and creates a framework within which planning can be realistically based, allowing managers to anticipate possible changes and prepare appropriately.
Identify and explain the limitations of planning.
hardAnswer: The limitations of planning include rigidity, reduced creativity, the significant time and cost involved, the potential ineffectiveness in a dynamic environment, and the fact it does not guarantee success. These limitations highlight the need for flexibility and critical assessment in planning processes.
How does planning contribute to decision making?
easyAnswer: Planning aids in decision making by providing a clear set of goals and an understanding of alternatives. This clarity helps managers evaluate options logically and systematically, ensuring the best choices are made in line with organisational objectives.
Why is planning considered a mental exercise?
mediumAnswer: Planning is considered a mental exercise because it involves foresight, thoughtful imagination, and sound judgement. It requires analytical thinking and the ability to envision future scenarios, enabling managers to devise effective strategies for goal achievement.