2. Whathasbeentheimpactofthesechangeswithregardsto
globalizationandprivatization?
43 Twobigbannermovieswerescheduledtobereleasedonthesame 3
date.Onthelastmovementreleaseofoneofthemovieshastobe
postponedduetooppositionofagroupofpeopleduetosomeunethical
contentsrelatedtotheirreligionwasshowninthethatmovie.Theother
movie released on time and made huge profitas there was no
competitionandmoviewhichwaspostponedsufferedloss.
1.Whichfeatureofbusinessenvironmentishighlightedhere.
2.Identifythe dimension ofbusiness environment,which
delayedthereleaseofmovie.
44 Afterwinningtheelection,PrimeMinisterMr.NarenderModilauncheda 5
Campaignof“SwachhBharat”andinvitedvariouscelebritiestobeapart
ofthisAbhiyaan.Thisspreadawarenessamongthepeopleinsociety
andingeneral,peoplestartedbecomingmorecarefulandawareabout
thecleanlinessaroundtheirarea.Tocontinueitsimpact,anew service
taxforSwachhBharatwasalsostarted.Thegovernmentisplanningto
importnewandbettertechnologytoadoptnewmethodsoftreatingthe
garbageandwaste.
State the various dimension of business environment
mentionedintheaboveparaquotingthelinesfrom theabove
para.
45 EvenafteropeningupofIndianEconomy,foreigncompaniesfoundit 1
extremelydifficulttocutthroughthebureaucraticandredtapism in
governmentoffices.Thisdiscouragesthem from investinginIndia.
Identifythedimensionofenvironmentmentioninabovepara.
46 JustafterthedeclarationofLokSabhaElectionsin2019,theBombay 1
StockExchangeIndexroseby1000points.
51/190
Identifythedimensionofbusinessenvironment.
47 MamtaRiceFoodLtd‟isawellknowriceproducingcompany.Thesales 5
havebeenfallingdownfrom thebeginningoftheyear.Themanaging
directorMR.Bhuvanisworriedaboutthissituation.Withaview tofind
outthesolutionofthisproblem hemadeateam tofindbutthereasons
fordownfallofsales.Theteam conductedthesurveyandgavefollowing
fourreasonsforthedownfallofcompany’ssale.
1.Onaccountofincreaseinexportdutymadebythegovernment,the
foreigndemandhasgonedown.
2.Duetoavailabilityofothereatablesubstitutethetasteofpeopleis
divertedfrom rice.
3.The competitor’s imported new technology machine and are
producingbetterqualityrice.
4.Due to strain with neighbouring country’s governmentand our
Country’sgovernmentexportiseffected.
IdentifythedimensionofBusinessEnvironmentdiscussedintheabove
case.
48 Withchangesintheconsumptionhabitsofpeople,Neelesh,whowas 3
runningasweetshop,shiftedtothechocolatebusiness.Ontheeveof
Diwali,he offered chocolates in attractive packages atreasonable
prices. He anticipated huge demand and created a website
chocolove.com fortakingordersonline.Hegotalotofordersonlineand
earnedhugeprofitsbysellingthechocolate.
Identifyandexplainthedimensionsofbusinessenvironmentdiscussed
intheabovecase.
49 A recentratecutintheinterestonloansannouncedbythebanks 3
encouragedAmit,asciencestudentofProgressiveSchool,totakea
52/190
loanfrom StateBankofIndiatoexperimentanddevelopcarstobe
poweredbyfuelproducedform garbage.Hedevelopedsuchacarand
exhibiteditintheScienceFairorganizedbytheDirectorateofEducation.
Hewasawardedthefirstprizeforhisinvention.
Identifyandexplainthedimensionsofbusinessenvironmentdiscussed
intheabovecase.
50 AccentelectronicsLtd.‟wasoperatingitsbusinessinMalaysia.The 3
companystartedexportingitsproductstoIndiawhenthePrimeMinister
announcedrelaxationinimportdutiesonelectronicitems.Thecompany
appointedretailersinIndiawhohaddirectonlinelinkswiththesuppliers
toreplenishstockswhenneeded.
Identifyandexplainthedimensionsofbusinessenvironmentdiscussed
intheabovecase.
51 AsperthedirectionsissuedbytheSupremeCourt,thegovernment 3
passedanordertobanthesaleoftobaccoproductswithintheareaof
200metersofalleducationalinstitutionsas:
1.Itsconsumptionsinjurioustohealth.
2.Peoplearebecomingmoreconsciousabouthealthandfitness.
Thisindicatesthegovernment‟sattitudetowardsthisbusiness.
Identifythebusinessenvironmentunderthreedifferentdimensionsby
quotingfrom aboveparagraph.
52 MakeinIndiaisaninitiativelaunchedbytheGovernmentofIndiato 5
encouragenationalandmultinationalcompaniestomanufacturetheir
productsinIndia.Itfocusesonjobcreationandskillenhancementand
isintwentyfivesectorsoftheeconomy.Undertheinitiative,brochures
onthesesectorsandawebportalwerereleased.Theinitiativeaimsat
highqualitystandardsandminimizingtheimpactontheenvironment.It
53/190
alsoseekstoattractforeigncapitalinvestmentinIndia.
Incontextoftheabovecase:
1.Identify the various dimensions ofbusiness environmentbeing
referredtobyquotinglinesfrom theparagraph.
2.ListanytwovalueswhichtheGovernmentofIndiawantstoconvey
throughthisinitiative.
53 India’sretailsectorhasbeenundergoingstructuralchangesforthelast 3
twodecades.Ononehand,the„mallculture‟hasgraduallybecomea
wayoflife,especiallyinthemetrosandmini-metros.Ontheotherhand,
thereisacceleratedgrowthine-businessascustomersalsopreferto
buyproductsandservicesviatheInterest,telephoneandtelevision.
However,operatingineitherofthesegmentsismarkedbythepresence
ofstrongcompetitors.
Identifythecomponentsofspecificforcesandgeneralforcesbeing
discussedintheaboveparagraph..
54 TomarkthecelebrationsofInternationalFamilyDayon16thmay2016,5
Kurkureflagged offIndia’sfirstfamilyfood train – KurkureFamily
ExpressatNew Delhi.Thetraintookfortyfamiliesonafunculinary
experienceofalifetimethroughaneight-dayjourneyacrossfourteen
statesinIndia.Awholelotoffunactivitieswerehostedonthetrainby
thetravelandfoodanchorsRockyandmayor.
Thefamilieswereselectedthroughanonlinecampaign,Chatpatafamily
photos‟.Thecontestattractedapproximately1,000entries,ofwhich40
entriesthatgelledwiththebrand’simagewereselected.
Thecoreideaofthecampaignwastobringfamiliesfrom acrossIndia
togetheroverajourneylikethis.Asintoday’stime,everyoneisbusy
withtheirlifethefamilymembersmayfeeldisconnectedwitheach
other.
54/190
Identifyandexplainthevariousdimensionsofbusinessenvironment
being referred to the in the above case byquoting linesfrom the
paragraph.
55 Intheyear2016,theStateGovernmentofKeralahadmadeitmandatory 6
foranganwadis hostels and canteens in educationalinstitutions to
securetheFoodSafetyandstandardsAuthorityofIndia(FSSAI)licence
to ensure food safety.As the educationalinstitutions also get
categorized asfood businessoperatorsin theeventoftheannual
turnoverofthehostels,theyrunexceedingRs.12lakhperannum.
Incontextoftheabovecase:
1.Identifyandexplainthevariousdimensionsofbusinessenvironment
beingreferredtohere.
2.ListanytwovalueswhichtheStateGovernmentofKeralawantsto
conveythroughthisinitiative.
56 Postagestampshavebeenunveiledtocommemorate140yearsof 6
existence ofthe country’s firststock exchange the BombayStock
Exchange(BSE).ThesettingupofBSEisconsideredtobethegreatest
revolutionthattookplaceinthefinancialmarketsinIndiaasitactsasa
keydriverforeconomicgrowthofacountry.Thisisduetothefactthat
thereexistsastrongcorrelationbetweeneconomicgrowthandcapital
accumulation.
Inthecontextoftheabovecase:
1.IdentifythedimensionofbusinessenvironmentofIndiabeingreferred
here.
2.Stateanythreefactorswhichbroadlyaffected thedimensionof
businessenvironmentofIndiaasidentifiedinpart(a)ofthequestion.
57 InMay2016,thegovernmenthadlaunchedaweb-basedapplication 5
55/190
which willprovide as opportunity to allthe industries dealing in
hazardouswastetoapplyonlineandgetonlinepermissionsforimport
andexportofcertaincategoriesofwaste,whichisforreuse,recyclingor
recoverywhileitwillalso helpauthoritiesinweb-basedprocessing,
generation and grant of various types of permissions to the
entrepreneurs and industries.Itis also aimed atimplementing the
conceptofpaperlessandgreenofficeandprovideinformationregarding
numberauthorizationsorconsentordergrantedbytheStatePollution
controlBoards(SPCBs).
Identifythevariousdimensionsofbusinessenvironmentbeingreferred
intheabovecase.
58 Bharatisrunninganicecream parlourinalocalmarket.Keepinginmind 6
thechangingperceptionsabouthealthamongthepeople,oneofhis
employeeAbhirajsuggeststohim thattheyshouldintroducearangea
flavouredyogurt.Bharatacceptshissuggestionasaresultboththe
imageandtheprofitabilityofhisbusinessincreases.
Inthecontextoftheabovecase:
1.Identifythefeatureofmanagementwhichisbeinghighlighted.
2.Statetherelateddimensionofthebusinessenvironment.
3.Nameandexplaintherelatedprincipleofgeneralmanagement.
59 TheGovernmentofIndiaannounced‘Demonetisation‘ofRs.500and 5
Rs.1,000currencynoteswitheffectfrom themidnightofNovember8,
2016.Asaresult,theexistingRs500andRs.1,000currencynotes
ceasedtobelegaltenderfrom thatdate.Newcurrencynotesof
denominationofRs500andRs2,000issuedbyRBIafter
announcement.Discuss“demonetisation”inlightofthelegaland
economicenvironment.
60 Withchangeintheconsumptionhabitsofpeople,Neeleshwhowas 6
56/190
runningasweetsshopshiftedtochocolatebusiness.Ontheeveof
Diwaliheofferedchocolatesinattractivepackagesatreasonable
prices.Heanticipatedhugedemandandcreatedawebsite
chocolove.com fortakingordersonline.Hegotlotofordersonlineand
earnedhugeprofitsbysellingchocolates.Identifyandexplainthe
dimensionsofbusinessenvironmentdiscussedintheabovecase.
ANSWERS
Q.No. Answers Mark
s
1 (d) (ii)False 1
2 (a) 1
3 (i) True 1
4 (c) 1
5 (d) 1
6 (d) 1
7 (b) 1
8 (c) 1
9 (d) 1
10 (a) 1
57/190
11 (d) 1
12 (d) 1
13 (c) 1
14 (a) 1
15 (c) 1
16 (a) 1
17 (a) 1
18 (a) 1
19 LegalRegulatoryEnvironment 1
20 Privatisationasareform isthereasonforthischangeinthegovernment 1
policy.
21 •“ComestoIndiatostartanewbusiness...launchesanewproductine- 3
learningforSeniorsecondaryschoolstudentsinCommercestream.”
1.Ithelpsinassistinginplanningandpolicyformulation.2.Ithelpsthe
firm toidentifyopportunitiesandgetthefirstmoveradvantage.
•“HisbusinessstartsflourishinginIndia.”
1.Ithelpsinimprovingperformance.
•“NowmoreIndiancompaniesenteredintothemarketwithdifferent
subjectsalso.”
1.Ithelpsthefirm toidentifythreatsandearlywarningsignals.
22 Riseinstockmarketindex(Sensex)iseconomicenvironment.But 3
Politicalenvironment(declarationofLokSabhaElections2014results))
ledtothisrise.
Twootherdimensionsofbusinessenvironment:
58/190
1.LegalEnvironment:2.Technologicalenvironment:
23 1.Legalenvironment:2.Socialenvironment:3.Technological 3
environment:4.Economicenvironment:5.Politicalenvironment:
24 Technological. 3
25 Liberalization 1
26 Telecommunications,airlines,banking,insurance,etc. 1
27 1.Legalenvironment:2.Socialenvironment:3.Politicalenvironment:4. 4
Technologicalenvironment:5.Economicenvironment:
28 Theterm „BusinessEnvironment‟meansthesum totalofallindividuals, 4
institutionsandotherforcesthatareoutsidethecontrolofabusiness
enterprisebutthatmayaffectitsperformance.2.Theterm „threats‟
referstotheexternalenvironment,trendsandchanges
thatwillhinderafirm’sperformance.
“Throughananalysisreportofthebusinessenvironment,ithasbeen
broughttohisnoticethatinthecomingyears,shoppingatamallwillnot
beanecessityforthebuyersaspurchasescanbemadeonlinefrom
anywhereandatanytimewitheaseandattheconsumer’s
convenience.Hence,mallswillhavetoprovidemuchmorethan
shoppingtobeabletoattractcustomers.”
Theterm „opportunities‟referstothepositiveexternalorchangesthat
willhelpafirm toimproveitsperformance.
“Asaresult,thecompanygainsenormouslybygettingthefirstmover
advantage.”
29 ThemajorcomponentsofNewEconomicPolicyof1991thatarebeing 4
referredtoareasfollows:
59/190
•Liberalization:Theeconomicreformssignaledtheendofthelicence-
permit-quotarajandwereaimedatliberalizingtheIndianbusinessand
industryfrom allunnecessarycontrolsandrestrictions.
“Moreover,beforetheinitiativewaslaunched,thelimitsofforeigndirect
investmentinvarioussectorshasbeenrelaxed.Theapplicationfor
licenceswasmadeavailableonlineandthevalidityoflicenceswas
increasedtothreeyears.Variousothernormsandprocedureswerealso
relaxedbythegovernment.”
•Globalization:Globalizationmeanstheintegrationofthevarious
economiesoftheworldleadingtowardstheemergenceofacohesive
globaleconomy.
“TheZEDmodelaimstomakeIndiathemanufacturinghuboftheworld
andpreventtheproductsdevelopedinIndiafrom beingrejectedbythe
globalmarket.”
30 Thevariousdimensionsofbusinessenvironmentbeingreferredtointhe 5
abovecaseareasfollows:
1.PoliticalEnvironment:2.TechnologicalEnvironment:3.Social
Environment:
31 (i)Socialenvironmentwhichincludessocialforceslikecustomsand 5
traditions,
valuestrendsetc.
‘thiswasbecauseofincreaseinthenumberofworkingwomenandnon-
availabilityofhygienichome-cookedfood.’
(ii)Remunerationofemployees,whichstatesthattheoverallpayand
compensationshouldbefairtobothemployeesandtheorganization.
‘Thecompanywaspayinggoodsalaryandperkstoitsemployees.The
wageswerewithinthepayingcapacity...standardofliving.’
60/190
(iii)Valuesbeingcommunicatedbythecompanytothesocietyare:(Any
two)
1.Goodworkculture2.Goodbehaviourinhumaninteraction3.Concern
fortheemployees4.Respectforlaw
32 (i)Managementisadynamicfunction.
(ii)1.Initiative
Thisprincipleindicatesthatthesubordinatesshouldbeencouragedto
givesuggestionsandmakeandexecuteplanswithintheprescribed
limitsofauthority.
2.Spiritdecorps
Thisprinciplesuggeststhatmanagementshouldpromoteateam spirit
ofunityandharmonyamongtheemployees.
(iii)Benefitsofbusinessenvironment:
1.Ithelpsinassistinginplanningandpolicyformulation.
„...takesintoaccountthechangestakingplaceinbusinessenvironment
whiledeterminingplans.‟
2.Ithelpsinimprovingperformance.
„Heacceptschangesreadilyandgivesusefulsuggestionstohis
superior,whichresultsinreductionofcosts.Asaresult,company’s
profitsincrease.‟
(iv)Value:
•Team work
•Adaptability
61/190
33 Relativityistherelevantfeatureofbusinessenvironmentwhichisbeing 3
discussedabove.
34 1.Inter-relatednessistherelevantfeatureofbusinessenvironment 5
whichis
beingdiscussedabove.2.Thethreepointswhichhighlightedthe
importanceofbusinessenvironment
anditsunderstandingbymanagersaredescribedbelow:
1.Itenablesthefirm toidentifyopportunitiesandgettingthefirstmover
advantage:Thedynamicbusinessenvironmentprovidesnumerous
opportunitiesforabusinesstoevolveasperthechangingneeds.
Therefore,earlyidentificationoftheforthcomingopportunitieshelpsan
enterprisetobethefirsttoexploitthem insteadoflosingthem tothe
competitors.2.Ithelpsthefirm toidentifythreatsandearlywarning
signals:sometimesthe
changesintheexternalenvironmentmayposeasathreatandhindera
firm‟sperformance.Anawarenessaboutthebusinessenvironment
helpsthemanagerstoidentifysuchthreatsontimeandtakenecessary
decisionsandaction.3.Ithelpsintappingusefulresourcesasthe
enterprisedesignspoliciesthat
allowittogettheresourcesthatitneedssothatitcanconvertthose
resourcesintooutputsthattheenvironmentdesires.
35 (a)Businessenvironmenthelpsintappingusefulresources. 5
„Itassembledvariousinputslikefinance,machines,rawmaterials,etc.
from itsenvironment.‟
(b)(i)Socialenvironment
„...ithasbeendumpingitsuntreatedpoisonouswasteontheriverbank
whichhascreatedmanyhealthproblemsforthepeople.‟
62/190
(ii)Legalenvironment
„...thecourtpassedanordertosealthemanufacturingunitofthe
company.‟
1.Valueoverlooked.
•Environmentprotection
•Concernforhumanlife
•Respectforlawandorder
•Socialresponsibility
36 1.Technological 6
environment
Itincludesforcesrelatingtoscientificimprovementsandinnovations
whichprovidenewwaysofproducinggoodsandservices,andnew
methodsandtechniquesofoperatingabusiness.2.Business
environmenthelpsafirm toimproveits
performance.
„Itresultedingrowthandprofitabilityofthecompany.‟3.Value
conservationofenergy
37 Featuresofbusinessenvironment: 6
1.Dynamicnature:„fashionandtasteoftheconsumersischangingata
fast
pace.‟2.Uncertainty:„Itisverydifficultforthecompanytopredict
futurehappening.‟3.Complexity:„Itisdifficulttoknowtheextentofthe
relativeimpactofthesocial,economic,political,technologicalorlegal
factorsondecreaseindemandofitsproductsinthemarket.
1.Toplevelmanagement2.Impactofgovernmentpolicychangeson
63/190
business:
1.Increasingcompetition:„Newcompetitorshaveenteredthemarket
withnew
designs.‟2.Moredemandingcustomers:„Customers‟demandis
increasing.‟3.Marketorientation:„itwasdecidedthattheywouldstudy
andanalyzethemarketfirsttoidentifycustomertastesandfashionand
thenmanufacturegarmentsaccordingly.Itwasalsodecidedtoincrease
expenditureonadvertising,after-salesservices,etc.‟
1.Businessenvironmenthelpsthemanagerincopingwithrapid
changes
38 1.Thefeaturesofbusinessenvironmentbeingreferredtointheabove 6
case
areasfollows:
•Dynamicnature:Itisdynamicinnatureandkeepsonchangingdueto
technologicalupgradations,shiftsinconsumerpreferencesorincrease
incompetitioninthemarket.
•Inter-relatedness:Alltheelementsofbusinessenvironmentareclosely
interrelated.Therefore,anychangeisoneelementmaynecessitate
correspondingchangesintheotherelementsaswell.
2.Thevariouscomponentsofgeneralforceswhichhaveledtoagrowth
intheorganicfoodmarketareasfollows:
1.Social:“risinghealthconsciousness,changinglifestyles”2.Economic:
“increaseindisposableincome”3.Technological:“growingavailability
oforganicfoodproductsinshoppingmalls,retailoutletsandonline.”
39 1.Thevariousdimensionsofbusinessenvironmentbeingreferredtothe 6
inthe
abovecaseareasfollows:
64/190
•Technologicalenvironment:Technologicalenvironmentincludes
forcesrelatingtoscientificimprovementsandinnovationswhich
providenewwaysofproducinggoodsandservicesandnewmethods
andtechniquesofoperatingabusiness.
•Legalenvironment:Legalenvironmentincludesvariouslegislations
passedbytheGovernmentadministrativeordersissuedbygovernment
authorities,courtjudgmentsaswellasthedecisionsrenderedby
variouscommissionsandagenciesateverylevelofthegovernment–
centre,stateorlocal.
•SocialEnvironment:Socialenvironmentincludesthesocialforceslike
customsandtraditions,values,socialtrends,society‟sexpectations
from business,etc.
1.ThetwovalueswhichtheCerebraIntegratedTechnologieswantsto
convey
throughthisinitiativeare:
1.Sustainabledevelopment2.Concernforenvironment.
40 1.ThedifferentstylesofmanagementinpracticeadoptedbyArunand 6
his
fatherreflectthatmanagementisanart.2.„Harmony,NotDiscord‟is
therelatedprincipleofscientificmanagement.3.Therelated
dimensionsofthebusinessenvironmentare:
•EconomicEnvironment:
•SocialEnvironment:
•TechnologicalEnvironment:
41 1.ThetwofunctionsofmanagementthatRishabhwillhavetoperform 3
inorder
65/190
tomanagehisbusinesssuccessfullyarePlanningandOrgnising.2.The
principleofmanagementwhichisbeingviolatedbyRishabhisEquity.3.
Therelateddimensionsofthebusinessenvironmentare:
1.LegalEnvironment2.PoliticalEnvironment3.EconomicEnvironment
4.SocialEnvironment5.TechnologicalEnvironment
42 1.Liberalization2.Othertworeforms:PrivatizationandGlobalization. 6
43 1.Explainrecentchangesinvariousenvironmentheads,i.e.,economic, 3
social,political,legalandtechnological.2.Explainthetopic,impactof
changeingovernmentpolicy/economicpolicy.
44 1.Featurehighlightedin.........‟relativity‟.2.Thedimensionis 5
........‟socialenvironment‟.
45 1.“Afterwiningelection.....campaignofSwachhBharat.” 5
PoliticalEnvironment
1.“Peopleinsociety.....aroundtheirarea.”2.SocialEnvironment3.“A
newservicetax.....started.”
EconomicEnvironment
1.“Importnewtechnology....Garbage.”
TechnologicalEnvironment
46 PoliticalEnvironment. 1
47 PoliticalEnvironment. 1
48 1.EconomicEnvironment2.SocialEnvironment 3
3.TechnologicalEnvironment4.PoliticalEnvironment.
49 Thevariousdimensionsofbusinessenvironmentbeingreferredtointhe 3
abovecasesareasfollows:
66/190
1.Socialenvironment:2.Technologicalenvironment.
50 Thevariousdimensionsofbusinessenvironmentbeingreferredtointhe 3
abovecaseareasfollows:
1.PoliticalEnvironment:2.TechnologicalEnvironment.
51 Thevariousdimensionsofbusinessenvironmentbeingreferredtothein 5
theabovecaseareasfollows:
1.LegalEnvironment:”AsperthedirectionsissuedbytheSupreme
Court.‟2.PoliticalEnvironment:“Thegovernmentpassedanorderto
banthesaleof
tobaccoproductswithintheareaof200metersofalleducational
institutions.”3.SocialEnvironment:“Itsconsumptionisinjuriousto
healthandpeopleare
becomingmoreconsciousabouthealthandfitness.”
52 1.Thevariousdimensionsofbusinessenvironmentbeingreferredtoin 3
the
abovecaseareasfollows:
1.PoliticalEnvironment:2.TechnologicalEnvironment:3.Economic
Environment:
1.ThetwovalueswhichtheGovernmentofIndiawantstoconvey
throughthis
initiativeare:
1.Highqualitystandards2.Concernforenvironment
53 Thecomponentsofspecificforcesdiscussedintheaboveparagraph 5
arethecustomersandcompetitors.
Thecomponentsofgeneralforcesdiscussedintheaboveparagraphis
thesocialandtechnologicalconditions.
67/190
54 Thevariousdimensionsofbusinessenvironmentbeingreferredtointhe 6
abovecaseareasfollows:
1.Technologicalenvironment:2.Socialenvironment.
55 1.Thevariousdimensionsofbusinessenvironmentbeingreferredtoin 6
the
abovecaseareasfollows:
1.PoliticalEnvironment:2.Legalenvironment:
1.ThetwovalueswhichtheStateGovernmentofKeralawantsto
convey
throughthisinitiativeare:
1.Highqualitystandards2.Goodhealth
56 1.Economicenvironmentisthedimensionofbusinessenvironmentof 5
India
beingreferredhere.2.Thethreefactorswhichbroadlyaffectthe
economicenvironmentofIndia
arestatedbelow;
1.Stageofeconomicdevelopmentofthecountry.2.Theeconomic
structureintheform ofmixedeconomywhichrecognizesthe
roleofbothpublicandprivatesectors.3.Economicplanning,including
fiveyearplans,annualbudgets,andsoon
57 1.Thevariousdimensionsofbusinessenvironmentbeingreferredtothe 6
inthe
abovecaseareasfollows:
1.PoliticalEnvironment:2.TechnologicalEnvironment:3.Legal
Environment:4.SocialEnvironment:5.EconomicEnvironment:
68/190
58 1.ThefeatureofmanagementwhichisbeinghighlightedisDynamic.2. 5
TherelateddimensionofthebusinessenvironmentisSocial.3.The
relatedprincipleofgeneralmanagementisInitiative.
Initiativemeanstakingthefirststepwithself-motivation.Theworkers
shouldbeencouragedtodevelopandcarryouttheirplansfor
improvement.Suggestionsystem shouldbeadoptedintheorganization.
59 Meaningofdemonetisationincontextoflegalandeconomic 6
environment.
60 Dimensionsofbusinessenvironmentdiscussedhereare: 6
(i) SocialEnvironment:“withthechange………………..atreasonable
prices.”
Thesocialenvironmentofbusinessincludessocialforceslike
:(i)Customsandtraditions(ii)Socialtrends(iii)society’s
expectations(iv)Values(v)attitudesandbeliefs.
Forexample:Socialtrendsprovidesopportunitiesandthreatstothe
businessorganisations.
(ii) TechnologicalEnvironment:“Heanticipatedhuge
demand……..takingordersonline.
Technologicalenvironmentincludesforcesrelatingto:(i)Scientific
improvementsandinnovationswhichprovidesnowwaysof
producinggoodsandservices.(ii)Newmethodsandtechniquesof
operatingabusiness.
69/190
UNIT4-PLANNING
Q.No. Questions Marks
1 Explaintheterm planningpremises. 1
2 Whichfunctionofmanagementisconsideredasthebaseofallotherfunctions? 1
3 ‘ABCLtd’decidestoadvertisetheirproductonT.V.andradio.Whattypeofplan 1
shoulditprepare?
4 Namethetypeofplanisinwhichminutesdetailsareworkedout,i.e.,procedures, 1
rules
budgets,etc.
a.Objective b.Programme
c.Strategy d.Policy
5 “SwachchBharatAbhiyaan”startedbygovernmentofIndiaisanexampleof…….of 1
70/190
plan. 1
1
6 ABCLtd.givespromotiononthebasisofseniority.Whichtypeofplanisit? 1
1
7 Planningleadstorigidityis: 1
1
i. Methodofplanning 1
ii. Characteristicofplanning
iii. Importanceofplanning
iv. Limitationofplanning
8 Whattodoandhowtodoisconcernedwith:
i. Controlling
ii. Staffing
iii. Planning
iv. Directing
9 Nosmokinginthefactorycomesunder:
i. Objectives
ii. Policies
iii. Methods
iv. Rules
10 Estimatedcashinflowsandoutflowsare:
i. Programme
ii. Procedure
iii. Budgets
iv. Rules
11 Increasingsalesby15%is:
i. Planning
ii. Method
iii. Rule
iv. Objective
12 Thefirststepofplanningis:
71/190
i. Setting-uptheobjective 1
ii. Follow-up
iii. Selectinganalternative
iv. Developingpremises
13 Planningis:
i. Uselessfunction
ii. Physicalexercise
iii. Mentalexercise
iv. Onetimeprocess
14 Actualperformancecanbecomparedwithstandardperformancethrough: 1
i. Programme 1
ii. Staffing
iii. Budget
iv. Noneofthese
15 Planscanbeimplementedafterthe:
i. Developingpremises 1
ii. Settingobjective
iii. Selectinganalternative
iv. Follow-upaction
16 Therearetwotypesofplans:
i. TraditionalplanandModernplan 1
ii. SingleuseplanandStandingplan
iii. Shortterm planandLongterm plan
iv. SingleuseplanandDoubleuseplan
17 Indicatewhetherthefollowingstatementsare‘True’or‘False’:
(i) Objectivesaretargetsofplanningbuttheyarepartandparcelofplanning.
(ii) Arulerequiresthataspecificanddefiniteactionbetakenornotwith
respecttoasituation.
72/190
(iii) Planningisthebeginningandendofallmanagerialactivities. 3
18 Identifythetypeofplaninthefollowingstatements:
a)Theyareendswhichtheorganizationwantstoachievebyitsoperations.
b)Girlswillbegivenarebateof5percentcutoffforadmissioninthe
college.
c)Itfacilitatescomparisonofactualresultswiththeplannedresults.
d)Librarywillissueatonetimeonly4booksfor15days.
e)Anyemployeefoundloggingtoanysocialnetworkingsiteintheofficewill
bepunished.
f) Cocacolareducepricesofitsproductsinresponseofpricecutbythe
Pepsi.
19 Whichtypeofplanhastheleastflexibilityandwhy? 1
20 AftercompletingB.Techinelectricalengineering,RockysetsaunittoproduceLED 3
bulbs.Duetogovernmentsupportfortheprojectheisabletogetfinanceata
reasonablerateofinterest.Rockyhastheabilitytoforeseeandplanhisoperations
verywell.Hiscompanydoeswellandneedstoappointamanagertohelphim.
Kishorjoinshisbusinessastheproductionmanager.Kishorisverypooratplanning
theactivitiesanddoeshisworkinaveryhaphazardmanner.Duetothistheirorders
gotdelayedandcustomersstartedtogetdissatisfied.Thegoodwillearnedbythe
Rockyovertheyearsbegantodecline.
OnthebasisofthegiveninformationaboutRocky,answerthefollowingquestions:
(a)IdentifyandexplainthefunctionofmanagementwhichKishorfailedtoperform
byquotinglinesfrom theparagraph.
(b)Describebrieflyanytwofeaturesofthefunctionofmanagementasidentifiedin
part(a).
21 Mrs.SonuDhaliwal,theSeniorManagerof‘BharatLimited’heldameetingwiththe 4
SalesManagerinordertofixthetargetofsalesforthefollowingyear.Forthis
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purposeshestudiedthesalestrendoftheprevious3years.Shecametoknowthe
company’ssaleswereincreasingattherateof20%everyyear.Forthisshedidthe
marketsurveyalso.From thisshelearntthatthemaincompetitorofthecompany
wasrunninginloss,wasplanningtoentersomeotherventure.Takingthis
informationasbase,Mrs.Dhaliwaldoubledthetargetfrom thepreviousyear.Allthe
DepartmentalManagersweredirectedtomaketheirrespectivepreparationsto
achievethistarget.Thesalesmanagerkeptaclosewatchoverthesalesrateofhis
companyandtheactivitiesofthecompetingcompanyaswell.Aftersometime,she
cametoknowthatthecompetingcompanywasnotleavingitscurrentbusiness,
butwasplanningforimprovementinit.TheGeneralManagercalledaurgent
meetingofalltheDepartmentalManagerssoastomakechangesinhisplans.
Identifythedifferentstagesofplanningprocessdescribedintheparagraphgiven
above.Quotetherelevantlinestodoso.
22 IshuistheC.E.O.ofStarLtd.Heinaccordancewiththeotherboardmembers 4
decidestoformulateageneralstatementwhichwillbeguidingthethinkingof
employees.Hefurthergoesontoformulatemanysuchstatementsinthenextsix
months.Thesestatementscouldbedividedintotwocategories.
(a)Identifyandstatethetypeofplanhighlightedabove.
(b)Alsogivetwotypesofthisplans.
23 New-generationlimitedisacompanymanufacturinggovernments.Whilemakingits 4
plane,thecompanytakesintoconsiderationthebusinessenvironment.Itconstantly
adaptsitselftochangesinenvironmentbymakingchangesinitsplan.However,it
becomesdifficultforthemanagersofthecompanytoaccuratelyforeseefuture
trendsintheenvironment.Competitioninthemarketupsetsitsfinancialplan;then
salestargetshavetoberevisedand,accordinglycashbudgetsalsoneedtobe
modifiedsincetheyarebasedonsalesfigures.
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(a)Nameandexplainthelimitationofplanninghighlightedintheabovepara.
(b)Identifyandexplainthetwotypesofplansmentionedintheaboveparaby
quotingthelinesfrom it.
24 ABCLtd.Amobilecompanyisfacingaproblem ofdecliningmarketsharedueto 4
competitionfrom existingandnewplayersinthemarket.Thecompetitorsare
introducinglow-pricedmodelsforprice-sensitiveconsumers.Atthesametime,for
qualityconsciouscustomers.Thecompetitorsareintroducingnewmodelswith
addedfeatures.
IdentifyandexplainthestepsABCLtd.shouldusetogainitsmarketshare.
25 In‘ChakDeIndia’movie,ShahrukhKhanbecomesthecoachofthegirl’shockey 4
team.Heknowshehastopreparethegirlsfortheinternationalhockeymatches
andbringtheworldcupafterwinning.Forthishepreparesalong-term planthinks
thewayhowtobeatthecompetitors.Hecoachesthegirlstoplayindifferentways
likedefensive,offensive,etc.attheoutsetofamatchheexplainswhowillopenthe
match,andhowtheballwillbepassedbyoneplayertoanotherstepbystep.
Identifythedifferenttypesofplansquotingthelinesfrom theabovepara.
26 NaturalLtd.isaccompanyworkingontheprincipleof‘BestoutofWaste’is 4
engagedinutilizingthewastematerials,likeusedCDs,thrownawaycardboards,
plastic,thermocoalandalmosteverythingtomakeinnovativeandusefulproducts
likepenstands,lamp,shades,decoratespieces,boxes,etc.Thecompanyhas
alreadyengagedafewuneducatedworkersforgettingsuchusefulwastematerials.
So,atnegligiblecostofprocuringrawmaterial,anduseoflabourintensive
techniqueofproduction,itisabletoobtaingoodpricesforitsproducts.
(a)Identifyandexplainthetypeofplanhighlightedintheabovepara.
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(b)Identifyanytwovaluesreflectedintheabovepara.
27 (a)“IfanyemployeeworkinginG.D.GoenkaPublicSchoolcomeslatetotheschool 4
fourtimesinamonth,his/heronedaysalaryisdeducted.”Identifyandexplainthe
typeofplanhighlightedbythisstatement.
(b)“SwachhBharatAbhiyan”startedbygovernmentofIndiaisanexampleofwhich
typeofplan?Explainit.
28 “PlanningisPervasive”.Explainbriefly. 3
29 Howisplanningforwardlooking? 3
30 Explain“Objective”and“Policy”astypesofplanusingsuitableexamples. 4
31 Whatarethemainpointsinthedefinitionofplanning? 4
32 “Planningisnotaguaranteeofsuccessofabusiness.”Comment. 3
33 ABCLtd.Announcedaplanthatnobodywouldsmokeinorganizationpremises 4
andtheyfurtheraddedthatcertainpenaltywillbeimposedon
employess,overlookingthis.
(i)Namethetypeofplannrelatedtoabovepara.
(ii)Namethefeaturesofthatplann.
(iii)Namethevaluesemphasizedbythecompany.
34 4
AlphaLtd.Spentalotofmoneytohirespecializedpeopleforfamingtheirplans
andcollectingimportantfactsfrom environment.Thecompanycutdowntheir
costbycancellingtheemployeestripforrecreation.(3)
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(i)Namethelimitationplanningmentioninabovepara.
(ii)Namethevalueoverlookbymanagement.
35 4
PKLtd.hasbeenwell-knownfordelayindecisionmakingandoverlappingof
workdone.Identifythemanagementfunctionlackingintheorganisationandstate
theimportanceofthisfunction.
36 4
Isplanningactuallyworththehugecostinvolved?Givefourreasons?
37 4
Whyisitthatorganisationsarenotalwaysabletoaccomplishalltheirobjectives?
38 4
"Planningisnotaguaranteeofasuccessofabusiness".Comment.
39 Suhasini,ahomesciencegraduatefrom areputedcollege,hasrecentlydonea 4
cookerycourse.Shewishedtostartherownventurewithagoaltoprovide‘health
food’atreasonableprices.Shediscussedherideawithherteacher(mentor)who
encouragedher.Afteranalysingvariousoptionsforstartingherbusinessventure,
theyshortlistedtheoptiontosellreadymadeand‘readytomake’vegetableshakes
andsattumilkshakes.Then,theyweighedtheprosandconsofboththeshort
listedoptions.
1.Namethefunctionofmanagementbeingdiscussedaboveandgiveanyoneofits
characteristics.
2.Alsobrieflydiscussanythreelimitationsofthefunctiondiscussedinthecase.
40 Twoyearsago,Madhucompletedherdegreeinfoodtechnology.Sheworkedfor 4
sometimeinacompanythatmanufacturedchutneys,picklesandmurabbas.She
wasnothappyinthecompanyanddecidedtohaveherownorganicfood
processingunitforthesame.Shesettheobjectivesandthetargetsandformulated
anactionplantoachievethesame.
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Oneofherobjectiveswastoearn10%profitontheamountinvestedinthefirst
year.Itwasdecidedthatrawmaterialslikefruits,vegetables,spices,etc.willbe
purchasedonthreemonthscreditfrom farmerscultivatingonlyorganiccrops.She
alsodecidedtofollowthestepsrequiredformarketingoftheproductsthroughher
ownoutlets.SheappointedMohanastheProductionManagerwhodecidedthe
exactmannerinwhichtheproductionactivitiesweretobecarriedout.Mohanalso
preparedastatementshowingthenumberofworkersthatwillberequiredinthe
factorythroughouttheyear.MadhuinformedMohanaboutherareawisesales
targetfordifferentproductsfortheforthcomingquarter.Whileworkingonthe
productiontable,apenaltyof?100perdayfornotwearingcaps,glovesandapron
wasannounced.
>>Quotinglinesfrom theaboveparagraph,identifyandexplainthedifferenttypesof
plansdiscussed.
41 JoshLtd.isaoneofthelargesttwo-wheelermanufacturerinIndia.Ithasamarket 4
shareofabout42%inthetwo-wheelercategory.Thecompanyhadwitnessed
almosta35%dropinthebookingasthecurrencycrunchwaspromptingpeopleto
withholdnewpurchasesduetodemonetisation.Therefore,theproductionmanager
ofthecompanyhaddecidedtoalignproductiontofactorinslowersalesinthe
market.
Incontextoftheabovecase:
>>Identifyandexplainthefunctionofmanagementbeingdiscussedintheabove
lines.
>>Whichlimitationsofthefunctionofmanagementasidentifiedinpart(a)ofthe
questionwasthe productionmanagertryingtoovercomeduetodemonetisation?
42 WazirAhmedjoins‘AshiyanaLtd.’acompanydealinginrealestate,asahuman 4
resourcemanager.Throughaseriesofinteractionswithhisteam duringlunch
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breaks,hecomestoknowthatquiteafewmanagersatmiddleandseniorlevels
haverecentlylefttheorganisationastheirpromotionswereoverdue.Therefore,in
ordertoreinstatetheconfidenceofthestaff,helaysoutaclearcutplanconsisting
ofasetofgeneralguidelinesforbothtimeboundandperformancerelated
appraisalsofthemangersatalllevels.Moreover,hedevelopsstandardized
processescontainingaseriesofstepsspecifiedinachronologicalorderforits
implementation.
Incontextoftheabovecase:
1.IdentifythetwodifferenttypesofplansthatWazirAhmedproposesto
implementinordertoreinstatetheconfidenceofthestaffbyquotinglinesfrom the
paragraph.
2.Distinguishbetweenthetwotypesofplansasidentifiedinpart(a).Thedifference
betweenPolicyandProcedureisoutlinedbelow:
43 Arushjoinsasasalesmanagerofacompanydealinginnaturotherapyproducts. 4
Beingproficientinhiswork,heknewthatwithoutgoodplanninghewillnotbeable
toorganise,direct,controlorperform anyoftheothermanagerialfunctions
efficientlyandeffectively.Onlyonthebasisofsalesforecasting,hewouldassistin
thepreparationoftheannualplansforitsproductionandsales.Besides,hewill
havetopreparesalesplansregularlyonweekly,monthly,quarterlyandhalfyearly
basis.Whilepreparingthesalesforecasts,heundertakesintellectualthinking
involvingforesight,visualizationandissuedjudgementratherthanwishfulthinking
orguesswork.Mostimportantly,alltheseplanningactivitieswillbemeaningfulonly
iftheywillcoincidewiththepurposefobwhichthebusinessisbeingcarriedout.
Incontextoftheabovecase,identifythevariousfeaturesofplanninghighlightedin
theaboveparagraphbyquotinglinesfrom it.
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44 Acompanyismanufacturinggarments.Themanagerwantstoincreaseprofitsby 5
purchasingnewhighspeedmachinesorincreasingthesalepriceorusingwaste
materialsinmanufacturingstuffedtoys.Hedecidedthat"usingwastematerial"is
thebestsolutionforhim.
(a)Indentifytheconceptofmanagmentinvolved.
(b)Mentionthestepsinvolvedintheaboveprocessbyquotingthelinesfrom the
question.
45 "KOHINOORFOODSltd.hasbannedsmokinginthefactorypremises". 5
(a)Identifytheplanstatedintheabovelines
(b)Statethefeatureofthisplan.
(c)Differentbetweenpolicyandthisplan.
46 Suhasini,ahomesciencegraduatefrom areputedcollege,hasrecentlydonea 5
cookerycourse.Shewishedtostartherownventurewithagoaltoprovide‘health
food’atreasonableprices.Shediscussedherideawithherteacher(mentor)who
encouragedher.Afteranalysingvariousoptionsforstartingherbusinessventure,
theyshortlistedtheoptiontosellreadymadeand‘readytomake’vegetableshakes
andsattumilkshakes.Then,theyweighedtheprosandconsofboththeshort
listedoptions.
1.Namethefunctionofmanagementbeingdiscussedaboveandgiveanyone
ofitscharacteristics.
2. Alsobrieflydiscussanythreelimitationsofthefunctiondiscussedinthe
case.
80/190
47 5
Twoyearsago,Madhucompletedherdegreeinfoodtechnology.Sheworkedfor
sometimeinacompanythatmanufacturedchutneys,picklesandmurabbas.She
wasnothappyinthecompanyanddecidedtohaveherownorganicfood
processingunitforthesame.Shesettheobjectivesandthetargetsand
formulatedanactionplantoachievethesame.
Oneofherobjectiveswastoearn10%profitontheamountinvestedinthefirst
year.Itwasdecidedthatrawmaterialslikefruits,vegetables,spices,etc.willbe
purchasedonthreemonthscreditfrom farmerscultivatingonlyorganiccrops.
Shealsodecidedtofollowthestepsrequiredformarketingoftheproducts
throughherownoutlets.SheappointedMohanastheProductionManagerwho
decidedtheexactmannerinwhichtheproductionactivitiesweretobecarried
out.Mohanalsopreparedastatementshowingthenumberofworkersthatwill
berequiredinthefactorythroughouttheyear.MadhuinformedMohanabouther
areawisesalestargetfordifferentproductsfortheforthcomingquarter.While
workingontheproductiontable,apenaltyof?100perdayfornotwearingcaps,
glovesandapronwasannounced.
Quotinglinesfrom theaboveparagraph,identifyandexplainthedifferenttypesof
plansdiscussed.
48 5
Twoyearsago,Mayankobtainedadegreeinfoodtechnology.Forsometime,he
workedinacompanythatmanufacturedbreadandbiscuits.Hewasnothappyin
thecompanyanddecidedtohavehisownbreadandbiscuitsmanufacturingunit.
Forthis,hedecidedtheobjectivesandthetargets,andformulatedanactionplan
toachievethesame.
Oneofhisobjectiveswastoearn50%profitsontheamountinvestedinthefirst
year.Itwasdecidedthatrawmaterialslikeflour,sugar,salt,etc.willbe
purchasedontwomonthscredit.Healsodecidedtofollowthestepsrequiredfor
marketingtheproductsthroughhisownoutlets.HeappointedHarshasthe
ProductionManagerwhodecidedtheexactmannerinwhichtheproduction
activitiesweretobecarriedout.Harshalsopreparedastatementshowingthe
requirementofworkersinthefactorythroughouttheyear.Mayankinformed
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Harshabouthisareawisesalestargetfordifferentproducts,fortheforthcoming
quarter.Whileworkingontheproductiontable,apenaltyof?150perdaywas
announcedfornotwearingthehelmet,glovesandapronbytheworkers.
Quotinglinesfrom theaboveparagraph,identifyandexplainthedifferenttypesof
plansdiscussed.
49 5
Rahul,aworker,isgivenatargetofassemblingtwocomputersperday.Duetohis
habitofdoingthingsdifferently,anideastruckhim whichwouldnotonlyreduce
theassemblingtimeofcomputersbutwouldalsoreducethecostofproduction
ofthecomputers.Insteadofappreciatinghim,Rahul’ssupervisororderedhim to
completetheworkasperthemethodsandtechniquesdecidedearlierasnothing
couldbechangedatthatstage.Theaboveparagraphdescribesoneofthe
limitationsoftheplanningfunctionofmanagement.Nameandexplainthat
limitation,Andstate4morelimitation.
50 JoshLtd.isaoneofthelargesttwo-wheelermanufacturerinIndia.Ithasamarket 5
shareofabout42%inthetwo-wheelercategory.Thecompanyhadwitnessed
almosta35%dropinthebookingasthecurrencycrunchwaspromptingpeopleto
withholdnewpurchasesduetodemonetisation.Therefore,theproductionmanager
ofthecompanyhaddecidedtoalignproductiontofactorinslowersalesinthe
market.
Incontextoftheabovecase:
1.Identifyandexplainthefunctionofmanagementbeingdiscussedintheabove
lines.
2.Whichlimitationsofthefunctionofmanagementasidentifiedinpart(a)of
thequestionwastheproductionmanagertryingtoovercomedueto
demonetisation?
51 Flipkartisane-commercecompanyfoundedintheyear2007bySachinBansaland 5
BinnyBansal.ThecompanyisregisteredinSingapore,buthasitsheadquartersin
Bangaluru,India.Thecompanyseekstoincreasetraffic(moreclicksontheir
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products)andboostsalesandrevenuethroughintegrationofMobileApps,Display,
PayPerClickandSearchEngineOptimization.Inordertodispelthefearofpeople
relatedtoshoppingonline,Flipkartwasthefirstcompanytoimplementthepopular
‘CashonDelivery’facility.Alltheproductssoldbythecompanyunderaparticular
categorymayhavedifferentreturn/replacementperiod.Flipkartallowsmultiple
paymentoptionssuchascashondelivery,creditordebitcardtransactions,net
banking,e-giftvoucherandcardswipeondelivery.Thecompanyoperatesboth
wayswhenanorderisreceived.Theproductsforwhichitholdsinventoryare
dispatchedbyitdirectly.Fortheproductstheydonotstoreininventory,theyjust
sendtheorderreceivedbythem tothesupplierwhoshipsit.Thecompanyplansto
spendabout?75croresone-Commerceadvertisingintheyear2016.Flipkart
reservestherighttoterminateyourmembershipand/orrefusetoprovideyouwith
accesstothewebsiteifitisbroughttoFlipkart’snoticeorifitisdiscoveredthatyou
areundertheageof18years.ThisisbecauseaspertheIndianContractAct,1872,
theminors,un-dischargedinsolvents,etc.arenoteligibletousethewebsite.
Incontextoftheabovecase,identifyandexplainthedifferenttypesofplansbeing
usedbyFlipkartbyquotinglinesfrom theparagraph.
52 Rajenderhasbeenrunningasuccessfulbusinessofmanufacturingtraditional 5
weddingwearforwomenincludingsareesandlehengas.HisfriendSurinderwhois
engagedinthebusinessofprovidingwebdesigningsolutionstohisclients,
suggestshim toexploretheoptionofsellinghisproductsonline.Rajenderagreesto
hissuggestionanddecidestoventureintoonlinebusiness,keepinginviewthe
variouse-commerceregulationsinordertoavoidimpositionofanypenalty.Inorder
tofacilitatethesaleofhisproducts,Rajenderdecidestooffermultiplepayment
optionssuchascashondelivery,creditordebitcardtransactions,netbankingto
thebuyersetc.
Incontextoftheabovecase:
1.Identifythetwodifferenttypesofplansmentionedintheaboveparagraph
thatrelatetotheonlineportalthatRajinderintendstostartbyquotinglines
from theparagraph.
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2. Distinguishbetweenthetwotypesofplansasidentifiedinpart(a).
53 5
Stateanyfivepointsofimportanceofplanningfunctionofmanagement.
54 5
Stateanyfivefeaturesofplanning.
55 HolisticEducationPublicSchoolinBahadurgarhdecidestoimplementtheliteracy 5
programmeofthegovernmentintheschool.Itisdecidedthatwithintheyear,the
fortyfivesupportstaffemployeesoftheschoolwillbemadeliteratebytheschool
counsellorsandsocialworkers.Inordertoenhancethelearningprocess,theschool
decidestouseaudio-visualaids.Tostarttheprogramme,theschoolhastofirst
procuretheliteracybooksfrom StateResourceCentreatJamia.Besidesthe
curriculum,eachliteracybookcontainsaseriesofninetestswhichthevolunteers
havetogetcompletedbythelearnersduringtheprogramme.Moreover,by
implementingtheplanof‘eachoneteachone’,eachstudentoftheschoolfrom
classesfifthtotenthwillbeencouragedtomakeonepersonliterate.Thestudent
volunteersmayselectalearnerbyadoptinganyoneofthetwoways;eitherfrom the
slum areasadoptedbytheschoolorontheirownwithinthevicinityoftheir
residence.AsperthenormsoftheDelhiGovernment,itismandatoryforthe
volunteerstosendbackthefilledcopyofonlytheninthtestpaperintheseriesto
theauthoritiesasaconclusiveproofofthecompletionofthecourse,elsethe
certificateofcommendationwillnotbeawardedtothem.Consideringthe
implementationoftheprogrammetobeapartofitscorporatesocialresponsibility
initiative,theschoolhasdecidedtospendaroundRs.50,000onthedistributionof
freestationeryitems,refreshmentsofthelearners,etc.
Incontextoftheabovecase:
1.IdentifythevarioustypesofplansbeingusedbyHolisticEducationPublic
Schoolinordertoimplementtheliteracyprogrammeintheirschoolby
quotingthelinesfrom theparagraph.
2.Categorisethevarioustypesofplansasidentifiedinpart(a)intosingleuse
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plansandstandingplans.
ANSWERS
Q.No. Answers Mark
s
1 Theplannerorthemanagerisrequiredtomakeassumptionsaboutthefuture.
Theseassumptionsareknownasplanningpremises. 1
2 Planning 1
3 Strategy 1
4 Programme 1
5 Programme 1
6 Policy 1
7 iv)Limitationofplanning 1
8 (iii)Planning 1
9 (iv)Rules 1
10 iii)Budget 1
11 (iv)Objective 1
12 (i)Setting-upoftheobjective 1
13 (iii)Mentalexercise 1
14 (iii)Budget 1
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15 (iii)Selectinganalternative 1
16 (ii)SingleuseplanandStandinguseplan 1
17 (i) True (ii)True (iii)True 1
18 (a)Objectives 1
(b)Policy
(c)Budget
(d)Policy
(e)Rule
(f)Strategy
19 Rulesareenforcedrigidly.Noexceptionordeviationisallowed.Withregardto 1
rule,themanagershavenoscopefordiscretion.
20 (a)PLANNING.Quotinglines:“Kishorisverypoor………….haphazardmanner” 3
Features:
(i)pervasive(ii)goaloriented
21 .(i)DevelopingpremisesandSettingobjectives 4
“Taking,thisinformationasbase…….from thepreviousyear”
(ii)ImplementingPlans
“AlltheDepartmentalManagers…….toachievethistarget.”
(iii)Followup
“Aftersometime……..improvementinit.”
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22 (a)Policy 4
(b)(i)Major(ii)Minor
23 (a)Planningmaynotworkinadynamicenvironment 4
(b)(i)strategy(ii)Budget
24 type-Strategy 4
(a)Determininglongterm objectives
(b)Adoptingaparticularcourseofaction
(c)Allocatingnecessaryresources
25 .(a)objective 4
‘…..bringtheworldcupafterwinning’
(b)Strategy
‘forthishe……beatthecompetitors’
(c)method
‘hecoachesthegirls…….offensive,etc.
(d)Procedure
‘attheoutset…….stepbystep’
26 a)method 4
(b)Values:(i)optimum utilizationofwastematerial(ii)environmentalprotection
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(iii) recycling(iv)promotingecofriendlyproducts
27 .(a)Rule 4
(b)Programme
28 3
Planningisthepervasivefunctionofthemanagement.Itisrequiredinallthe
typesoforganisation,whetherbigorsmall,businessornon-business,social,
politicalorreligious.Itisneededinallthedepartmentsoftheorganisation.
Planningisperformedevenatalllevelsofmanagementatthetop,middleand
lowerlevel.Astoplevelmanagersplantomakeobjectivesandpoliciesforthe
organisation.Middle-levelmanagersplantoimplementpoliciesandrulesamong
theirdepartments.Lowerlevelmanagersplantocontrol,inspectandsupervise
workersinthefactory.Inthisway,planningisallpervasive.
29 3
.Planningisforward-lookingbecauseitessentiallyinvolveslookingaheadand
preparingforthefuture.Thepurposeofplanningistomeetfutureevents
effectivelytothebestpossibleadvantageoftheorganisation.Itisalwaysforthe
futureandneverforthepast.Itinvolvespeepingintothefuture,analysingand
thenpreparingplans.
30 4
Objectives: Objectivesarethoseendpointswhicheveryorganizationstrivesto
achieve.Thesearethebasicreasonforafirm’sexistence.Theseareusually
statedinmeasurableterms.Thesearetime-boundi.ethesearetobeachieved
withinagivenperiodoftime.Alltheactivitiesoftheorganisationaredirected
towardstheattainmentoftheobjectives.Theseprovidebroaddirectionto
employeesaboutwhattheyshoulddo.Fore.g.itisafirm’sobjectivetoincrease
itssalestargetsby20%.Policy: APolicyisageneralstatementthatguides
decisionmaking.Itactsasaguidetomanagerialactionsanddecisionsin
implementingstrategy.Apolicydefinestheboundarieswithinwhichdecisions
canbemadebythesubordinates.Themainpurposeofpoliciesistoprovidea
practicalshapetoobjectivesbyelaboratingthemannerinwhichgoalsaretobe
achieved.Policiesplayimportantroleinsettingtheparameterswithinwhicha
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managermayfunction.Therearedifferentpoliciesatdifferentlevelsrangingfrom
majorcompanypoliciestominorpolicies.Majorpoliciesareconcernedwiththe
market,competitors,customersandclientsetc.whereasminorpoliciesare
concernedwiththeinsiders.
accordingly.Fore.g.onthebasisofthesalesforecasts,annualplansfor
productionaredrawn.
31 InthewordsofKoontzO’Donnell,Planningisdecidinginadvancewhattodo,how 4
todoit,whentodoitandwhoisgoingtodoit.Planningbridgesthegapfrom
whereweareandwherewewanttogo.Itisatraptocapturethefuture.Main
pointsinvolvedare:
Settingobjectives
Timeperiod
Formulatingalternativescourseofaction
Selectingacourseofaction
32 3
A businessplan does notguaranteesuccess.Havinga businessplan has
become,inmany business owners'mind,aroadwayto success....Therealityis
thatthemerepossessionofa plan does not meanthatwhathasbeenplanned
willactuallyoccur.That plan thatsitsinyoursafeoronyourshelfcannotpredict
thefuture.
33 4
i)Ruleisthetypeofplan.
(ii)Rulesareveryrigid.
(iii)VALUES:(a)Respecttowardsenvironment.
(b)Followthedisciplineandorder
34 4
(i)Limitation:Planningenvolvehugecost.
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(ii)Valueoverlook:Psychologicalneedofemployees.
35 4
Planning
36 Yes,itiswortheveryamountspentonits.Acompanyneedstoplanbecauseof 4
thefollowingbenefits(EXPLAINfourimportanceofplanning)
-Providesdirections
-Reduceriskofuncertainty
-Promotesinnovativeideas
-Facilitatecontrolling
37 Explainany6limitationsofplanning 4
-Planningleadstorigidity
-Planningmaynotworkindynamicenvironment
-Itreducescreativity
-Planninginvolveshugecost
-Itisatimeconsumingprocess
-Planningdoesnotgiveguaranteesuccess
38 Yes,iagreewiththestatement,planningthroughanimportanttoolof
managmentisnota remedyforalltypesofproblemsbecauseitsuffers
from followinglimitations;
[Explainanyfourlimitationsofplanning]
39 1.Planningisthefunctionofmanagementwhichisbeingdiscussedabove. 4
90/190
Meaning-
Planninginvolvesdecision-making:Planningessentiallyinvolvesapplicationof
rationalthinkingtochoosethebestalternativeamongthevariousavailable
alternativesinordertoachievethedesiredgoalsefficientlyandeffectively.
2.Explainany3limitationsofplanning
40 Thedifferenttypesofplansdiscussedabovearelistedbelow: 4
Objectives:Objectivesaretheendresultsoftheactivitiesthat-anorganisation
seekstoachievethroughitsexistence.Allotheractivitieswithintheorganisation
aredirectedtowardsachievingtheseobjectives.
“Oneofherobjectiveswastoearn10%profitontheamountinvestedinthefirst
year.”
Policy:Apolicyisasetofgeneralguidelinesthathelpsinmanagerialdecision
makingandaction.
“Itwasdecidedthattherawmaterialslikefruits,vegetables,spices,etc.willbe
purchasedonthreemonthscreditfrom farmerscultivatingonlyorganiccrops.”
Procedure:Aprocedurecontainsaseriesofspecificstepstobeperformedina
chronologicalordertocarryouttheroutineactivities.
“Shealsodecidedtofollowthestepsrequiredformarketingoftheproducts
throughherownoutlets.”
“Theexactmannerinwhichtheproductionactivitiesaretobecarriedout.”
Rule:Aruleisaspecificstatementrelatingtothegeneralnormsintermsof
Do’sandDont’sthatguidethebehaviourofpeople.Itcommandsstrictobedience
andapenaltyislikelytobeimposedonitsviolation.
“Whileworkingontheproductiontable,apenaltyof?100perdayfornot
wearingcaps,glovesandapronswasannounced.”
Budget:Abudgetrefestoafinancialplanthatisexpressedinnumericalterms.
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“Mohanalsopreparedastatementshowingthenumberofworkersdifferent
productsfortheforthcomingquater.”
41 Planningisthefunctionofmanagementwhichisbeingdiscussedintheabove 4
lines.
Planningisdecidinginadvancewhattodo,howtodo,whentodoandwhohas
todoit.Thus,itinvolvessettingobjectivesanddevelopinganappropriatecourse
ofactiontoachievetheseobjectives.
2.Theproductionmanageristryingtoovercomethefollowinglimitationsof
planning:
-Rigidity
-Planningmaynotworkindynamicenvironment
42 PolicyandProcedurearethetwodifferenttypesofplansthatWazirAhmed 4
proposestoimplementinordertoreinstatetheconfidenceofthestaff.
Policy:“…helaysoutaclearcutplanconsistingofasetofgeneralguidelines
forbothtimeboundandperformancerelatedappraisalsofthemangersatall
levels.”
Procedure:“Moreover,hedevelopsstandardizedprocessescontainingaseries
ofstepsspecifiedinachronologicalorderforitsimplementation.”
[ALSOdifferentiatebetweenPOLICYandPROCEDUREwithbasis]
43 Thefeaturesofplanninghighlightedintheaboveparagraphareexplainedbelow: 4
Planningisaprimaryfunction:Planningprecedesallthefunctionsof
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managementi.e.organizing,staffing,directingandcontrolling.Thisrefersto
primacyofplanning.Planningprovidesthebasisofallotherfunctions.
“…withoutgoodplanninghewillnotbeabletoorganise,direct,controlor
perform anyoftheothermanagerialfunctionsefficientlyandeffectively.“
Planningisfuturistic:Planningiscalledaforwardlookingfunctionasitenables
anorganizationtomeetfutureeventseffectively.
“Onlyonthebasisofsalesforecasting,hewouldassistinthepreparationofthe
annualplansforitsproductionandsales.”
Planningiscontinuous:Plansneedtobecontinuouslymade,implementedand
followedbyanotherplanandsoontillanorganizationexists
“Besides,hewillhavetopreparesalesplansregularlyonweekly,monthly,
quarterlyandhalfyearlybasis.”
Planningisamentalexercise:Planningisdoneonthebasisofrationalthinking
involvingforesight,visualizationandissuedjudgmentratherthanwishfulthinking
orguesswork.
“Whilepreparingthesalesforecasts,heundertakesintellectualthinking
involvingforesight,visualisationandissuedjudgmentratherthanwishfulthinking
orguesswork.”
Planningfocusesonachievingobjectives:Planningisapurposefulactivityasit
contributestotheachievementofpredeterminedgoalsoftheorganisationboth
efficientlyandeffectively.
“Mostimportantly,alltheseplanningactivitieswillbemeaningfulonlyiftheywill
coincidewiththepurposeforwhichthebusinessisbeingcarriedout.”
44 a)planning 5
(b)stepsofplanningorplanningprocess
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45 -(a)rule 5
(b)featuresofrules:
-codeofconduct
-specifieswhattodoandwhatnottodo
-arerigid,stringentandcompulsiveinnature
-theyareusuallythesimplesttypeofplan
(c)differencebetweenPOLICYandthisPLAN
46 5
Planninginvolvesdecision-making 5
Thelimitationsofplanningaredescribedbelow:
1.Planningmaynotworkinadynamicenvironment
2.Planningreducescreativity
3.Planninginvolveshugecosts
47 Thedifferenttypesofplansdiscussedabovearelistedbelow:
1.Objectives:Objectives are the end results of the activities that-an
organisation seeksto achievethrough itsexistence.Allotheractivities
withintheorganisationaredirectedtowardsachievingtheseobjectives.
“Oneofherobjectiveswastoearn10%profitontheamountinvestedinthe
firstyear.”
2.Policy:A policyisasetofgeneralguidelinesthathelpsinmanagerial
decisionmakingandaction.
“Itwasdecidedthattherawmaterialslikefruits,vegetables,spices,etc.will
bepurchasedonthreemonthscreditfrom farmerscultivatingonlyorganic
crops.”
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3.Procedure:Aprocedurecontainsaseriesofspecificstepstobeperformed
inachronologicalordertocarryouttheroutineactivities.
“Shealsodecidedtofollowthestepsrequiredformarketingoftheproducts
throughherownoutlets.”
“Theexactmannerinwhichtheproductionactivitiesaretobecarriedout.”
4.Rule:Aruleisaspecificstatementrelatingtothegeneralnormsintermsof
Do’sandDont’sthatguidethebehaviourofpeople.Itcommandsstrict
obedienceandapenaltyislikelytobeimposedonitsviolation.
“Whileworkingontheproductiontable,apenaltyof?100perdayfornot
wearingcaps,glovesandapronswasannounced.”
5.Budget:A budgetrefestoafinancialplanthatisexpressedinnumerical
terms.
“Mohanalsopreparedastatementshowingthenumberofworkersdifferent
productsfortheforthcomingquater
48 Thedifferenttypesofplansdiscussedabovearelistedbelow: 5
1.Objectives:Objectives are the end results of the activities that an
organisation seeksto achievethrough itsexistence.Allotheractivities
within the organisation are directed towards achieving these objectives.
“Oneofherobjectiveswastoearn50%profitontheamountinvestedinthe
firstyear.”
2.Policy:Apolicyisasetofgeneralguidelinesthathelpinmanagerialdecision
makingandaction.“Itwasdecidedthattheraw materialslikeflour,wheat,
sugar,etc.willbepurchasedontwomonthscredit.”
3.Method:Amethodreferstotheprescribedwaysormannerinwhichatask
hastobeperformedconsideringtheobjective.“..Decidedtheexactmanner
inwhichproductionactivitiesweretobecarriedout.”
4.Procedure:Aprocedurecontainsaseriesofspecificstepstobeperformed
inachronologicalordertocarryouttheroutineactivities.
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“Healsodecidedtofollowthestepsrequiredformarketingoftheproducts
throughhisownoutlets.”
5.Rule:Aruleisaspecificstatementrelatingtothegeneralnormsintermsof
Do’sandDont’sthatguidethebehaviourofpeople.Itcommandsstrict
obedienceandapenaltyislikelytobeimposedonitsviolation.
“Whileworkingontheproductiontable,apenaltyof Rs.150perdaywas
announcedfornotwearinghelmets,glovesandapronsbytheworkers.”
49 5
Thelimitationoftheplanningfunctionofmanagementdescribedintheabove
paragraphisthat ‘planning reduces creativity.’ The top management
undertakesplanningofvariouspoliciesand procedures whereas the other
membersareexpectedtomerelyimplementtheseplans.This restricts the
creativityofthemiddlelevelmanagersastheyareneitherallowedtodeviatefrom
plans,norpermittedtoactontheirown.
50 5
Planningisthefunctionofmanagementwhichisbeingdiscussedintheabove
lines.
Planningisdecidinginadvancewhattodo,how todo,whentodoandwho
hastodoit.Thus,it involvessettingobjectivesanddevelopinganappropriate
courseofactiontoachievethese objectives.
1.Theproductionmanageristryingtoovercomethefollowinglimitations
ofplanning:
o Rigidity
o Planningmaynotworkindynamicenvironment
51 ThedifferenttypesofplansbeingusedbyFlipkartarelistedbelow: 5
1.Objectives:Objectives are the end results of the activities that an
organisation seeksto achievethrough itsexistence.Allotheractivities
withintheorganisationaredirectedtowardsachievingtheseobjectives.
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“Thecompanyseekstoincreasetraffic(moreclicksontheirproducts)and
boostsalesandrevenuethroughintegrationofMobileApps,Display,Pay
PerClickandSearchEngineOptimization.”
2.Strategy:Astrategyisacomprehensiveplanforachievingtheobjectivesof
theorganisation.Thiscomprehensiveplaninvolves:
o determininglongterm objectives
o adoptingaparticularcourseofaction
o allocatingresourcesnecessarytoachievetheobjective.
“Inordertodispelthefearofpeoplerelatedtoshoppingonline,Flipkart
wasthefirstcompanytoimplementthepopular‘CashOnDelivery’
facility.”
3.Policy:A policyisa sietofgeneralguidelinesthathelp in managerial
decisionmakingandaction.
“Alltheproductssoldbythecompanyunderaparticularcategorymayhave
differentreturn/replacementperiod.”
4.Method:Amethodreferstotheprescribedwaysormannerinwhichatask
hastobeperformedconsideringtheobjective.
“Flipkartallowsmultiplepaymentoptionssuchascashondelivery,creditor
debitcard transactions,netbanking,e-giftvoucherand card swipe on
delivery.”
5.Procedure:Aprocedurecontainsaseriesofspecificstepstobeperformed
inachronologicalordertocarryouttheroutineactivities.
“Thecompanyoperatesbothwayswhenanorderisreceived.Theproducts
forwhichitholdsinventoryaredispatchedbyitdirectly.Fortheproducts
theydonotstoreininventory,theyjustsendtheorderreceivedbythem to
thesupplierwhoshipsit.”
6.Budget:Abudgetreferstoafinancialplanthatisexpressedin-numerical
terms.
“Thecompanyplanstospendabout?75croresone-commerceadvertising
intheyear2016.”
7. Rule:AruleisaspecificstatementrelatingtothegeneralnormsintermsofDo’s
andDon’tsthat guidethebehaviourofpeople.Itcommandsstrictobedienceanda
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penaltyislikelytobeimposedon itsviolation.
“Flipkartreservestherighttoterminateyourmembershipand/orrefusetoprovide
youwithaccesstothe Website ifitis broughtto Flipkart’s notice orifitis
discoveredthatyouareundertheageof18years. ThisisbecauseaspertheIndian
ContractAct,1872,theminors,un-dischargedinsolventsetc.arenot eligible to
usetheWebsite.”
52 5
RuleandMethodarethetwodifferenttypesofplansthatrelatetotheonlineportalthat
Rajender intendstostart.
o Rule:“Rajenderagreestohissuggestionanddecidestoventureinto
onlinebusinesskeepinginviewthevariouse-commerceregulationsin
ordertoavoidimpositionofanypenalty.”
o Method:“However,hedecidestooffermultiplepaymentoptionssuch
ascashondelivery,creditordebitcardtransactions,netbankingto
thebuyersetc.”
53 5
Anyfivepointsofimportanceofplanningfunctionofmanagement.
54 5
Anyfivefeaturesofplanning.
55 a.Objectives. 5
b.Policy.
c.Budget.
d.Policy.
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CHAPTER:ORGANISING
Q.NO. QUESTION MARKS
1 Rolesanddutiesofeachmemberareclearlydefinedwhichhelpsin 1
avoidingconfusionandduplicationofworkandeffortsininformal
organisation.(T/F)
2 Foreffectiveadministration,organisingistheprimaryfunction. 1
(T/F)
3 Organisingclarifies________and_________forresultsandlogical 1
groupingofactivities. authorityandresponsibility
4 Selectivedispersalofauthorityleadsto_______. 1
5 Rishabhhasjoinedascreativeheadinanentertainmentcompany. 1
Healwaysensuresthattheworkhasbeendividedintosmalland
manageableactivitiesandalsotheactivitiesofsimilararegrouped
together.Identifytherelatedstepinorganisingprocessmentioned
here.
(a)Identificationanddivisionofwork
(b)Departmentalisation
(c)AssignmentofDuties
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(d)EstablishingReportingRelationships
6 WhichofthefollowingisnotademeritofinformalOrganisation? 1
(a)Itleadstospreadingofrumors.
(b)Itgivesmoreimportancetostructureandwork.
(c)Itmayrestrictimplementationofchanges.
(d)Itputspsychologicalpressureonmemberstoconform to
groupexpectations,eveniftheyareagainstthefirm.
7 Beinganswerabletothefinaloutcomeisaphrasewhichcanbe 1
associatedwith:
(a)Authority
(b)Duty
(c)Responsibility
(d)Accountability
8 ‘Itisaprocessbywhichmanagersbringsorderoutofchaos, 1
removesconflictsamongpeopleoverworkandcreatesan
environmentsuitableforteamwork.’Identifyit.
9 Sunidhiisasimplegirl,whohasrecentlyjoinedanITcompanyin 1
Pune.Sheoftenobservesthatmostofhercolleaguesgofora
partyonweekendswiththeirboss.Identifythetypeoforganisation
beingdescribedinabovelines.
10 Soumyarunsachainoflow costfashionwearoutletsinvarious 1
partsofthecountry.Asthetasteandpreferenceofpeoplevary
from oneregiontoanother,shehirescompetent,capableand
resourcefulmanagersandgivesthem anopportunitytowork
independentlyatlocallevel.Atthesametimetheyareexpectedto
assumetheresponsibilityforeffectiveimplementationoftheir
decisionswithregardtovariousaspectslikecolour,texture,design
etc.Relatedtothegarments.Identifytheconcept.
11 ShinespicesLtd.’arethemanufacturesofdifferentfoodspices 1+1+1=
likeRajmaahmasala,chholemasala,paavbhazimasalaetc.Mr. 3
Raghavtheownerofthecompanyhascreateddifferent
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