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NCERT Solutions for Class 12 Business Studies Chapter 4 Planning
NCERT Solutions for Class 12 Business Studies Chapter 4 Planning
NCERT Solutions for Class 12 Business Studies Chapter 4 Planning is designed and prepared by the best teachers across India. All the important topics are covered in the exercises and each answer comes with a detailed explanation to help students understand concepts better. These NCERT solutions play a crucial role in your preparation for all exams conducted by the CBSE, including the JEE.
NCERT TEXTBOOK QUESTIONS SOLVED
1. What are the main points in the definition of planning?Ans. The main points in the definition of planning are as follows
(i) Planning is deciding in advance what to do and how to do.
(ii) It is one of the basic managerial function.
(iii) Planning involves setting objectives and developing an appropriate course of action to achieve these objectives.
(iv) It bridges the gap between where we are and where we want to reach.
Ans. Planning provides direction for action by deciding in advance what has to be done, how to do, when to do and who will do. When we try to seek answers to the above questions, which are well planned then directions are automatically highlighted.
3. Do you think planning can work in a changing environment?Ans. Planning may not work in a changing environment. The environment consists of a number of dimensions, economic, political, social, legal and technological dimensions. The organisation has to constantly adapt itself to changes. It becomes difficult to accurately assess future trends in the environment. Planning cannot foresee everything and thus, there may be obstacles to effective planning
4. If planning involves working out details for the future, why does it not ensure success?Ans. Planning does not guarantee success. The success of an enterprise is possible only when plans are properly drawn up and implemented. Any plan needs to be translated into action or it becomes meaningless. Managers have a tendency to rely on previously tried and tested successful plans. It is not always true that just because a plan has worked before it will work again. This kind of false sense of security may actually lead to failure instead of success.
5. Why are rules considered to be plans?Ans. 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.
6. What kind of strategic decisions are taken by business organisations?Ans. 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 seek to acquire a dominant position in the same market.
Ans. In such a situation, formulating a strategy would be advisable.
A strategy is a single use plan. It is normally made to fight competition in the market.
The model business plan, i.e., strategy will be
(i) It is objective and its purpose is that how much sales it wants to increase over a specified time.
(ii) The company should then list down its strengths and weakness. This brings in light as to what will be easy and what will be difficult.
(iii) Aggressive, advertising and sales promotion techniques to be adopted.
Ans. Limitations of the above strategy can be
(i) Shortage of funds.
(ii) Shortage of technical professionals.
(iii) Top level may not be competent enough to develop a suitable strategy.
(iv) The company may not be successful in assessing the future plans of the competitors as compared to its own strategy.
Ans. The above limitations can be overcome by
(i) Arranging funds in advance.
(ii) Effective methods of recruitment should be adopted to ensure availability of effective staff in all departments.
(iii) Middle level should be encouraged to propose plans in the form of suggestions. After considering all these, a strategy should be planned.
(iv) The company should be able to assess the moves of the competitors.
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