Chapter planning: Planning Case Study Questions | business studies Class 12 CBSE

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Chapter planning: Planning Case Study Questions | business studies Class 12 CBSE | ByteNotes.in

Case Study

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Case Set

Case Set 1

Case Analysis

Passage

Sunita is the CEO of FreshBite, a food delivery startup in Delhi. After analysing the market, she decides to expand operations to three new cities within six months. She sets clear targets: increase orders by 40%, onboard 200 new restaurant partners, and hire 150 delivery executives. She prepares detailed timelines, allocates budgets to each department, and holds weekly review meetings. Every manager is informed of their individual targets and how those targets contribute to the overall company goal. Sunita also makes certain assumptions about customer demand patterns, internet penetration, and competitor activity in the new cities before finalising the expansion plan.

Question 1: What does Sunita's act of setting targets like 40% increase in orders and hiring 150 delivery executives represent in the planning process?

Setting objectives is the first step of the planning process.
Objectives specify what the organisation wants to achieve within a given time frame.

Question 2: Identify the step of the planning process where Sunita makes assumptions about customer demand, internet penetration, and competitor activity.

This represents the step of 'Developing Premises'.
Premises are assumptions about the future that form the base material upon which plans are drawn. They include forecasts, existing plans, or past information.

Question 3: Explain any three features of planning that are evident from FreshBite's expansion strategy described above.

Planning focuses on achieving objectives – Sunita has set specific, measurable targets for the expansion.
Planning is pervasive – every manager from CEO to delivery supervisors has been informed of their individual targets, showing planning exists at all levels.
Planning is futuristic – Sunita analyses future demand patterns, competitor activity, and prepares forecasts before finalising plans.
Planning is a mental exercise – the entire expansion plan involves foresight, analysis of facts, intelligent imagination, and sound judgment.

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Case Set

Case Set 2

Case Analysis

Passage

Ramesh runs a medium-sized textile manufacturing company called SilkWeave Ltd. Due to a sudden change in government import policies, raw material prices rose by 30%. His pre-set annual plan had not accounted for this possibility. The production manager tried to follow the original plan rigidly, but the financial manager argued that costs had to be revised. Meanwhile, the sales team was unable to meet targets since the final product prices had increased, reducing consumer demand. The board of directors eventually had to overhaul the entire plan mid-year, wasting time and resources. The episode highlighted major weaknesses in how the company approached planning.

Question 1: Which limitation of planning is highlighted by the production manager's rigid adherence to the original plan despite changed circumstances?

The limitation highlighted is 'Planning leads to rigidity'.
Well-defined plans with specific goals and time frames can restrict managers from adapting to changed circumstances.

Question 2: Identify and explain the limitation of planning illustrated by the failure of SilkWeave's plan due to changes in government import policy.

The limitation is 'Planning may not work in a dynamic environment'.
The business environment is dynamic and constantly changing. Economic, political, legal, and physical factors change frequently. Planning cannot foresee all changes, making effective implementation difficult.

Question 3: Despite its limitations, planning is considered indispensable for organisations. In light of SilkWeave's experience, explain any three reasons why planning is still important.

Planning reduces risks of uncertainty – had SilkWeave done forecasting about possible policy changes, it could have developed contingency plans.
Planning establishes standards for controlling – without a baseline plan, it is impossible to measure deviations or take corrective action.
Planning facilitates decision making – planning helps managers evaluate alternatives and make rational decisions instead of reacting impulsively to changes.
Planning provides direction – a clear plan ensures that all departments work towards common goals instead of working at cross purposes.

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Case Set 3

Case Analysis

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EduNest, an online education platform, is preparing its annual business plan. The management team follows a step-by-step approach. First, they decide that EduNest should achieve a 25% increase in paid subscribers and reduce course dropout rates by 15% within the year. Then they research market conditions, student preferences, and technological trends. Next, they brainstorm and identify multiple strategies: adding live classes, offering EMI options, partnering with colleges, and launching a mobile app. Each option is evaluated for cost, feasibility, and expected outcomes. Finally, the team selects a combination of live classes and EMI options as the best course of action and assigns responsibilities to departments for implementation.

Question 1: Identify the step of the planning process where EduNest's team researches market conditions, student preferences, and technological trends.

This step is 'Developing Premises'.
Premises are assumptions and forecasts about the future that form the foundation for planning decisions.

Question 2: When the team brainstorms and identifies multiple strategies like live classes, EMI options, college partnerships, and mobile app, which step of the planning process is being performed?

This step is 'Identifying Alternative Courses of Action'.
All possible ways to achieve the set objectives are identified so they can be evaluated and the best one selected.

Question 3: Explain the steps followed by EduNest's management team in developing their annual plan, as described in the passage.

Setting objectives – EduNest sets clear targets: 25% increase in paid subscribers and 15% reduction in dropout rates.
Developing premises – The team researches market conditions, student preferences, and technological trends to build assumptions.
Identifying alternative courses of action – Multiple strategies such as live classes, EMI options, college partnerships, and a mobile app are brainstormed.
Evaluating alternative courses – Each option is assessed on cost, feasibility, and expected outcomes.
Selecting an alternative – The combination of live classes and EMI options is chosen as the best course of action.
Implementing the plan – Responsibilities are assigned to departments for execution.

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Case Set 4

Case Analysis

Passage

GreenLeaf Organics is an agricultural company that produces organic vegetables. The top management has decided on a long-term goal of capturing 20% of the Delhi-NCR organic vegetable market in five years. To achieve this, the company formulates a plan that involves acquiring new farm land, hiring agronomists, entering into partnerships with supermarkets, and investing in cold storage infrastructure. The top management also lays down rules that no pesticides will be used on any farm, and all produce must be certified by FSSAI before sale. They also prepare a budget of ₹5 crore for the first year and a detailed programme outlining the sequence of all activities with names of responsible personnel.

Question 1: Identify the type of plan that prohibits the use of pesticides on GreenLeaf's farms.

The type of plan is a 'Rule'.
Rules are specific statements that inform what must or must not be done, with no scope for flexibility or discretion.

Question 2: GreenLeaf prepares a budget of ₹5 crore for the first year. Explain what a budget is and why it is also considered a control device.

A budget is a statement of expected results expressed in numerical terms. It quantifies future facts and figures.
It is a control device because actual figures can be compared with budgeted figures, and any deviation can be identified and corrective action can be taken.

Question 3: GreenLeaf formulates a comprehensive long-term plan with three dimensions. What type of plan is this? Explain its three dimensions.

This is a 'Strategy'. A strategy is a comprehensive plan for accomplishing an organisation's objectives.
First dimension – Determining long-term objectives: GreenLeaf's goal is to capture 20% of the Delhi-NCR organic market in five years.
Second dimension – Adopting a particular course of action: The company decides to acquire farmland, hire agronomists, partner with supermarkets, and invest in cold storage.
Third dimension – Allocating resources necessary to achieve the objective: A budget of ₹5 crore is prepared and resources like personnel and infrastructure are planned.

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Case Set

Case Set 5

Case Analysis

Passage

Priya is the HR manager at TechCore Solutions, a software firm. The company has a policy that all new employees must undergo a 30-day induction programme before being assigned to projects. The company also follows a detailed procedure for recruitment: posting job openings, screening applications, conducting technical tests, holding HR interviews, and issuing offer letters. For conducting technical interviews, the method specified is a structured panel interview with a standardised question bank. Priya realises that because of these pre-set plans, employees are not encouraged to think independently or suggest process improvements, which has led to a gradual decline in innovative thinking within the HR department.

Question 1: The company's 30-day induction policy and recruitment procedure are examples of which type of plan? Give a reason for your answer.

They are examples of 'Standing Plans'.
Standing plans are designed for activities that occur regularly over a period of time and are used repeatedly. Both the induction policy and the recruitment procedure apply to every new hiring cycle.

Question 2: Distinguish between 'procedure' and 'method' as illustrated in TechCore's HR practices.

Procedure refers to the sequence of steps to be followed in particular circumstances. In TechCore, the procedure involves: posting job openings, screening, technical tests, HR interviews, and issuing offer letters – all in chronological order.
Method refers to the prescribed manner in which a specific task or one step of a procedure is to be performed. The structured panel interview with a standardised question bank is the method used within the interview step of the procedure.

Question 3: Priya observes a decline in innovative thinking due to rigid planning. Explain this limitation of planning and discuss whether planning still has value despite this drawback.

The limitation is 'Planning reduces creativity'. Planning is done by top management and the rest merely implement plans. Middle management and employees are not permitted to deviate from plans, which reduces initiative and innovative thinking.
However, planning still has value because it provides direction, reduces uncertainty, facilitates decision making, and establishes standards for controlling.
The limitation can be managed by involving employees at all levels in the planning process and allowing some flexibility within the framework.

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Chapter sections

Chapter planning: Planning | Case Study Questions

Passage

Question 1: What does Sunita's act of setting targets like 40% increase in orders and hiring 150 delivery executives represent in the planning process?

Question 2: Identify the step of the planning process where Sunita makes assumptions about customer demand, internet penetration, and competitor activity.

Question 3: Explain any three features of planning that are evident from FreshBite's expansion strategy described above.

Passage

Question 1: Which limitation of planning is highlighted by the production manager's rigid adherence to the original plan despite changed circumstances?

Question 2: Identify and explain the limitation of planning illustrated by the failure of SilkWeave's plan due to changes in government import policy.

Question 3: Despite its limitations, planning is considered indispensable for organisations. In light of SilkWeave's experience, explain any three reasons why planning is still important.

Passage

Question 1: Identify the step of the planning process where EduNest's team researches market conditions, student preferences, and technological trends.

Question 2: When the team brainstorms and identifies multiple strategies like live classes, EMI options, college partnerships, and mobile app, which step of the planning process is being performed?

Question 3: Explain the steps followed by EduNest's management team in developing their annual plan, as described in the passage.

Passage

Question 1: Identify the type of plan that prohibits the use of pesticides on GreenLeaf's farms.

Question 2: GreenLeaf prepares a budget of ₹5 crore for the first year. Explain what a budget is and why it is also considered a control device.

Question 3: GreenLeaf formulates a comprehensive long-term plan with three dimensions. What type of plan is this? Explain its three dimensions.

Passage

Question 1: The company's 30-day induction policy and recruitment procedure are examples of which type of plan? Give a reason for your answer.

Question 2: Distinguish between 'procedure' and 'method' as illustrated in TechCore's HR practices.

Question 3: Priya observes a decline in innovative thinking due to rigid planning. Explain this limitation of planning and discuss whether planning still has value despite this drawback.

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