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Planning NCERT Textbook With Solutions PDF Free Download
Chapter 4: Planning
You have just read about the plans of Indian Oil Company Limited (IOCL). Of course, these broad statements were given by the company and they have to be broken down into steps for implementation.
This is an example of a company with a nationwide reach striving to be one of the top companies in India.
Furthermore, every organization whether it is government-owned, a privately owned business, or a company in the private sector requires planning.
The government makes five-year plans for the country, a small business has its own plans, while other companies have big plans, sales plans, and production plans. All of them have some plans.
All business firms would like to be successful, increase their sales and earn profits. All managers dream of these and strive to achieve their goals.
But to turn these dreams into reality, managers need to work hard in thinking about the future, making business predictions, and achieving targets.
Dreams can be turned into reality only if the business managers think in advance about what to do and how to do it. This is the essence of planning.
Planning is deciding in advance what to do and how to do it. It is one of the basic managerial functions.
Before doing something, the manager must formulate an idea of how to work on a particular task.
Thus, planning is closely connected with creativity and innovation. But the manager would first have to set objectives, only then will a manager know where he has to go.
Planning seeks to bridge the gap between where we are and where we want to go.
Planning is what managers at all levels do. It requires taking decisions since it involves making a choice from alternative courses of action.
Planning, thus, involves setting objectives and developing appropriate courses of action to achieve these objectives.
Objectives provide direction for all managerial decisions and actions. Planning provides a rational approach to achieving predetermined objectives.
All members, therefore need to work towards achieving organizational goals. These goals
set the targets which need to be achieved and against which actual performance is measured.
Therefore, planning means setting objectives and targets and formulating an action plan to achieve them. It is concerned with both ends and means i.e., what is to be done and how it is to be done.
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NCERT Solutions Class 12 Business Studies Chapter 4 Planning
1. How does planning provide direction?
Planning is the process of creating a structure in advance regarding the work that needs to be done. It is helpful in defining the objectives and goals that need to be achieved by an individual or organization.
Objectives and goals provide managers with the right direction on the course of action that needs to be followed in order to achieve them.
The plan also ensures that the thoughts have clarity and the right action can be done in the right direction which will result in achieving the objectives.
Planning helps in making each department know what exactly their functions are so work takes place in a coordinated manner in achieving the organization’s common objective.
If there is no planning, it will result in work being done haphazardly which results in inefficiency. Therefore, planning ensures that the organization’s desired goals are achieved smoothly.
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?
The step that has been undertaken by Ms Rajni is identifying alternative courses of action. In this process Ms. Rajni has noted down all possible course of action that can be used for increasing the market share.
3. Why are rules considered to be plans?
Rules are set of standards or statements that help us understand what needs to be done. Rules can be considered as plans because of the similarity in their nature.
The rule can be considered as a simple type of plan. Planning is mostly involved thinking and deciding about the action required for the future.
Similar to these, rules are also statements that help in deciding if any action needs to be carried out or not. Rules can be rigid in nature and need to be followed. Not complying with the rules can result in disciplinary action that can be taken by organization.
4. 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.
The type of plan that is adopted by Rama Stationery is a payment policy of making all payments by e-transfer.
5. Can planning work in a changing environment? Give a reason to justify your answer.
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.
NCERT Class 12 Business Studies Textbook Chapter 4 With Answer PDF Free Download