planning case study pdf class 12

CBSE Class 12 Case Studies In Business Studies – Planning

PLANNING Planning: Definition Planning is deciding in advance what to do, how to do, when to do and who has to do it. Thus, it involves setting objectives and developing an appropriate course of action to achieve those objectives.

Features of Planning

• Planning focuses on achieving objectives by deciding upon the activities to be undertaken.
• Planning is a primary function as it precedes all functions of management i.e. organising, staffing, directing& controlling.
• Planning is pervasive as it is required at all the levels of management but its scope may vary.
• Planning is continuous as plans need to be made on a continuous basis till an organisation exists.
• P lanning is futuristic as it seeks to meet future events effectively to the best advantage of an organisation. Planning is, therefore, called a forward looking function.
• Planning involves decision-making as it involves rational thinking to choose the best alternative among the various available alternatives in order to achieve the desired goals efficiently and effectively.
• Planning is a mental exercise as it is based on intellectual thinking involving foresight, visualisation and judgement rather than guess work.

Importance of Planning

• Planning provides direction as it acts as a guide for deciding what course of action should be taken to attain the organisational goals.
• Planning reduces the risk of uncertainty arising due to the dynamic nature of business environment as it enables a manager to anticipate and meet changes effectively.
• Planning reduces overlapping & wasteful activities as it serves as the basis for coordinating the activities and efforts of different divisions and individuals.
• Planning promotes innovation as it encourages new ideas that can take shape of concrete plans.
• Planning facilitates decision making as it enables a manager to choose the best alternative course ‘of action among the various available alternatives in light of present and future conditions.
• Planning establishes standards for controlling. Planning provides standards against which the actual performance is measured and timely corrective actions the taken.

TYPES OF PLANNING On the basis of use and duration

• Single use plans are the ones that are formulated to deal with new or non-repetitive situations that may arise in an organisation from time-to-time. For example- programmes, budgets and projects.
• Standing plans refer to the another type of plans which once formulated may be used for a long period of time in similar or repetitive situations that may prevail in an organisation. For example—objectives, strategies, policies, methods, procedures and rules.

On th basis of what a plan seeks to achieve

• Objectives are the end results of the activities that an organisation seeks to achieve through its existence.
• A strategy is a comprehensive plan for achieving the objectives of the organisation.
• Policy is a set of general guidelines that help in managerial decision making and action.
• Method refers to the prescribed ways or manner in which a task has to be performed considering the objective.
• Procedure refers to a series of specific steps to be performed in a chronological order to carry out the routine activities.
• Budget refers to a financial plan that is expressed in numerical terms.
• Rule is a specific statement relating to the general norms in terms of Do’s and Don’ts that guide the behaviour of people. It commands strict obedience and a penalty is likely to be imposed on its violation.
• Programme is a comprehensive plan that contains detailed statements about a project which outlines the objectives, policies, procedures, rules and method and the budget to implement any course of action.

Steps Involved in the Planning Process

• Setting clear, specific and measurable objectives for the entire organisation and each department or unit within the organisation.
• D eveloping Premises which reflect the assumptions about the future that the manager is required to make since the future is uncertain.
• Identifying alternative courses of action through which the desired goals can be achieved.
• Evaluating alternative courses to analyse the relative pros and cons of each alternative in light of their feasibility and consequences.
• Selecting an alternative or a combination of plans which appears to be most feasible.
• Implement the plan with the help of a strategy.
• Follow up action in order to monitor the plans to ensure that the desired objectives are achieved efficiently and effectively.

Limitations of Planning

• Planning leads to rigidity as plans are drawn in advance and managers may not be in a position to change them in the light of changed conditions.
• Planning may not work ina dynamic environment as through planning, everything cannot be foreseen.
• Planning reduces creativity as the top management undertakes planning of various activities whereas the middle managers are neither allowed to deviate from plans nor are they permitted to act on their own.
• Planning involves huge costs in terms of time and money required to undertake scientific calculations and sometimes it may not justify the benefits derived from it.
• Planning is a time consuming process and sometimes there is not much time left for implementation of the plans.
• Planning does not guarantee success because it is not always essential that if a plan has worked before, it will work again, as things may change. This kind of complacency and false sense of security may actually lead to failure instead of success of a business.

LATEST CBSE QUESTIONS

Question 1. State any three points of importance of planning function of management. (CBSE, Delhi 2017) Answer: The three points indicating the importance of planning is described below:

• Reduces the risk of uncertainty: Planning relates to deciding in advance about the tasks to be performed in future. This enables a manager to anticipate changes and devise the way to deal with changes and uncertain events effectively.
• Planning promotes innovative ideas: Planning 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. It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the business.
• Avoiding overlapping and wasteful activities: Planning ensures clarity in thought and action and serves as the basis of coordinating the activities and efforts of different individuals and departments. Therefore, by curtailing useless and redundant activities it helps in smooth working of the organisations work is without interruptions. Moreover, it makes detection of inefficiencies easier so that timely corrective measures may be taken to avoid them in future.

Question 2. Give the meaning of ‘objectives’ and ‘budget’ as types of plans. (CBSE, Delhi 2017) Answer:

• Objectives: Objectives are the end results of the activities that an organisation seeks to achieve through its existence. All other activities within the organisation are directed towards achieving these objectives. Objectives are based on the mission or philosophy of the organisation. Objectives are determined by top level management. For example, the objectives of a newly started business is to earn 30% profit gn the amount invested in the first year.
• Budget: A budget refers to a financial plan that is expressed in numerical terms. For example, the marketing manager prepared an area wise sales target for different products for the forthcoming quarter. It is a type of single use plan.

Question 3. State any three limitation of planning. (CBSE, Delhi 2017) Answer: The three limitations of planning are described below:

• Planning may not work in a dynamic environment: The business environment is dynamic in nature. Every organisation has to constantly adapt itself to changes in its environment in order to survive and grow. However, it difficult to anticipate all the likely future changes in the environment with utmost accuracy. Hence, even with planning everything cannot be foreseen.
• Planning reduces creativity: The top management undertakes planning of various activities whereas the other members are expected to merely implements these plans. This restricts the creativity of the middle managers as they are neither allowed to deviate from plans nor are they permitted to act on their own.
• Planning involves huge costs: The process of planning involves huge cost in terms of time and money as detailed planning is based on a series of scientific calculations. Moreover it may include a number of related costs as well, like expenses on boardroom meetings, discussions with professional experts and preliminary investigations to find out the viability of the plan. As a result the expenses on planning may turn out to be much more than benefits derived from it.

Question 4. Give the meaning of ‘procedure’ and ‘rule’ as types of plans. (CBSE, Delhi 2017) Answer:

• Procedure: A procedure contains a series of specific steps to be performed in a chronological order to carry out the routine activities. It is determined by lower and middle level management. It is a specific statement. There is no scope for managerial discretion. Procedure is framed to implement a policy. It is a type of standing plan.
• Rule: A rule is a specific statement relating to the general norms in terms of Do’s and Don’ts that guide the behaviour of people. It commands strict obedience and a penalty is likely to be imposed on its violation. Rules help to maintain discipline. Rules are both specific and rigid. For example, No smoking, No Parking. It is a type of standing plan.

Question 5. State any three features of planning. (CBSE, Delhi 2017) Answer: The three features of planning are described below:

• Planning is pervasive: Planning is not an special function, is equally essential at all levels of management. But the scope of planning varies at different levels and among different departments.
• Planning involves decision-making: Planning essentially involves*-application of rational thinking to choose the best alternative among the various available alternatives in order to achieve the desired goals efficiently and effectively.
• Planning is a primary function: Planning precedes all the functions of management i.e. organizing, staffing, directing and controlling. This refers to primacy of planning. Planning provides basis of all other functions.

Question 6. Give the meaning of ‘policy’ and ‘strategy’ as type of plans. (CBSE, Delhi 2017) Answer:

• Policy: Policy are general statements that guide managerial decision making. If is determined by top level management. It is a general statement. It provides scope for managerial discretion. Policies are framed to achieve the objectives of an organisation. They all guides in implementing the strategy. It is a type of standing plan.
• Strategy: A strategy is a comprehensive plan prepared for winning over the given challenge or problem. A strategy is based on the objectives of the organisation. A strategy may be determined by top level or middle level management.

Question 7. Give the meaning of ‘ Objective’ and ‘Procedure’ as types of plans. (CBSE, OD 2017) Answer:

• Objectives: Objectives are the end results of the activities that an organisation seeks to achieve through its existence. All other activities within the organisation are directed towards achieving these objectives. Objectives are based on the mission or philosophy of the organisation. Objectives are determined by top level management. For example, the objectives of a newly started business is to earn 30% profit on the amount invested in the first year.

Question 8. Give the meaning of ‘Strategy’ and ‘Rule’ as types of plans. (CBSE, OD 2017) Answer:

• Strategy: A strategy is a comprehensive plan prepared for winning over the given challenge or problem. It is based on the objectives of the organisation. It may be determined by top level or middle level management.
• Rule: Rules are specific statements that tell people what should or should not be done. Violation of Rules may lead to imposition of penalties. Rules help to maintain discipline. Rules are both specific and rigid. For example, No smoking, No Parking. It is a type of standing plan.

Question 9. Super Fine Rice Ltd. has the largest share of 55% in the market. The company’s policy is to sell only for cash. In 2015, for the first time company’s number one position in the industry has been threatened because other companies started selling rice on credit* also. But the managers of Super Fine Rice Ltd. continued to rely on it’s previously tried and tested successful plans which didn”t work because the environment is not static. This led to decline in sales of Super Fine Rice Ltd. The above situation is indicating two limitations of planning which led to decline in it sales. Identify these limitations. (CBSE, Sample Paper, 2017) Answer: The two limitations of planning which led to decline in it sales are:

• Planning does not guarantee success.
• Planning may not work in dynamic environment.

Question 10. State the main aspects in the concept of planning. (CBSE, Sample Paper, 2017) Answer: The concept of planning primarily involves three aspects namely;

• Setting objectives in clear specific and measurable terms for a given period of time.
• Identifying the various alternative courses of action which may be adopted to achieve the objectives.
• Selecting the best possible alternative course of action from among the various courses of action available.

Question 11. Laxmi Chemicals Ltd., a soap manufacturing company, wanted to increase its market share from 30% to 55% in the long-run. A recent report submitted by the Research & Development Department of the company had predicted a growing trend of herbal and organic products. On the basis of this report, the company decided to diversify into new variety of soaps with natural ingredients having benefits and fragrances of Jasmine, Rose, Lavender, Mogra, Lemon Grass, Green Apple, Strawberry etc. The Unique Selling Proposition (USP) was to promote eco-friendly living in the contemporary life style. The company decided to allocate t 30 crores to achieve the objective. Identify the type of one of the functions of management mentioned above which will help the company to acquire dominant position in the market. (CBSE, Sample Paper 2016) Answer: Strategy is the type of plan which will help the company to acquire dominant position in the market.

Question 12. Suhasini, a home science graduate from a reputed college, has recently done a cookery course. She wished to start her own venture with a goal to provide ‘health food’ at reasonable prices. She discussed her idea with her teacher (mentor) who encouraged her. After analysing various options for starting her business venture, they short listed the option to sell ready made and ‘ready to make’ vegetable shakes and sattu milk shakes. Then, they weighed the pros and cons of both the short listed options.

• Name the function of management being discussed above and give any one of its characteristics.
• Also briefly discuss any three limitations of the function discussed in the case. (CBSE, Sample Paper 2016)
• Planning is the function of management which is being discussed above. Planning involves decision-making: Planning essentially involves application of rational thinking to choose the best alternative among the various available alternatives in order to achieve the desired goals efficiently and effectively.
• Planning may not work in a dynamic environment: The business environment is dy¬namic in nature. Every organisation has to constantly adapt itself to changes in its environment in order to survive and grow. However, it is difficult to anticipate all the likely future changes in the environment with utmost accuracy. Hence, even with planning, everything cannot be foreseen.
• Planning reduces creativity: The top management undertakes planning of various activities whereas the other members are expected to merely implement these plans. This restricts the creativity of the middle level managers as they are neither allowed to deviate from plans nor are they permitted to act on their own.
• Planning involves huge costs: The process of planning involves huge cost in terms of time and money as detailed planning is based on a series of scientific calculations. Moreover, it may include a number of related costs as well, like expenses on boardroom meetings, discussions with professional experts and preliminary investigations to find out the viability of the plan. As a result, the expenses on planning may turn out to be much more than benefits derived from it.

Question 13. Two years ago, Madhu completed her degree in food technology. She worked for sometime in a company that manufactured chutneys, pickles and murabbas. She was not happy in the company and decided to have her own organic food processing unit for the same. She set the objectives and the targets and formulated an action plan to achieve the same. One of her objectives was to earn 10% profit on the amount invested in the first year. It was decided that raw materials like fruits, vegetables, spices, etc. will be purchased on three months credit from farmers cultivating only organic crops. She also decided to follow the steps required for marketing of the products through her own outlets. She appointed Mohan as the Production Manager who decided the exact manner in which the production activities were to be carried out. Mohan also prepared a statement showing the number of workers that will be required in the factory throughout the year. Madhu informed Mohan about her area wise sales target for different products for the forthcoming quarter. While working on the production table, a penalty of ? 100 per day for not wearing caps, gloves and apron was announced. Quoting lines from the above paragraph, identify and explain the different types of plans discussed. (CBSE, Delhi 2016) Answer: The different types of plans discussed above are listed below:

• Objectives: Objectives are the end results of the activities that-an organisation seeks to achieve through its existence. All other activities within the organisation are directed towards achieving these objectives. “One of her objectives was to earn 10% profit on the amount invested in the first year.”
• Policy: A policy is a set of general guidelines that helps in managerial decision making and action. “It was decided that the raw materials like fruits, vegetables, spices, etc. will be purchased on three months credit from farmers cultivating only organic crops.”
• Procedure: A procedure contains a series of specific steps to be performed in a chronological order to carry out the routine activities. “She also decided to follow the steps required for marketing of the products through her own outlets.” “The exact manner in which the production activities are to be carried out.”
• Rule: A rule is a specific statement relating to the general norms in terms of Do’s and Dont’s that guide the behaviour of people. It commands strict obedience and a penalty is likely to be imposed on its violation. “While working on the production table, a penalty of ? 100 per day for not wearing caps, gloves and aprons was announced.”
• Budget: A budget refes to a financial plan that is expressed in numerical terms. “Mohan also prepared a statement showing the number of workers different products for the forthcoming quater.”

Question 14. Two years ago, Mayank obtained a degree in food technology. For some time, he worked in a company that manufactured bread and biscuits. He was not happy in the company and decided to have his own bread and biscuits manufacturing unit. For this, he decided the objectives and the targets, and formulated an action plan to achieve the same. One of his objectives was to earn 50% profits on the amount invested in the first year. It was decided that raw materials like flour, sugar, salt, etc. will be purchased on two months credit. He also decided to follow the steps required for marketing the products through his own outlets. He appointed Harsh as the Production Manager who decided the exact manner in which the production activities were to be carried out. Harsh also prepared a statement showing the requirement of workers in the factory throughout the year. Mayank informed Harsh about his are a wise sales target for different products, for the forthcoming quarter. While working on the production table, a penalty of ?150 per day was announced for not wearing the helmet, gloves and apron by the workers. Quoting lines from the above paragraph, identify and explain the different types of plans discussed. (CBSE, OD 2016) Answer: The different types of plans discussed above are listed below:

• Objectives: Objectives are the end results of the activities that an organisation seeks to achieve through its existence. All other activities within the organisation are directed towards achieving these objectives. “One of her objectives was to earn 50% profit on the amount invested in the first year.”
• Policy: A policy is a set of general guidelines that help in managerial decision making and action. “It was decided that the raw materials like flour, wheat, sugar, etc. will be purchased on two months credit.”
• Method: A method refers to the prescribed ways or manner in which a task has to be performed considering the objective. “..decided the exact manner in which production activities were to be carried out.”
• Procedure: A procedure contains a series of specific steps to be performed in a chronological order to carry out the routine activities. “He also decided to follow the steps required for marketing of the products through his own outlets.”
• Rule: A rule is a specific statement relating to the general norms in terms of Do’s and Dont’s that guide the behaviour of people. It commands strict obedience and a penalty is likely to be imposed on its violation. “While working on the production table, a penalty of Rs. 150 per day was announced for not wearing helmets, gloves and aprons by the workers.”

Question 15. Rahul, a worker, is given a target of assembling two computers per day. Due to his habit of doing things differently, an idea struck him which would not only reduce the assembling time of computers but would also reduce the cost of production of the computers. Instead of appreciating him, Rahul’s supervisor ordered him to complete the work as per the methods and techniques decided earlier as nothing could be changed at that stage. The above paragraph describes one of the limitations of the planning function of management. Name and explain that limitation. (CBSE, Delhi Comptt. 2011) Answer: The limitation of the planning function of management described in the above paragraph is that ‘planning reduces creativity.’ The top management undertakes planning of various policies and procedures whereas the other members are expected to merely implement these plans. This restricts the creativity of the middle level managers as they are neither allowed to deviate from plans, nor permitted to act on their own.

ADDITIONAL QUESTIONS

Question 1. Josh Ltd. is a one of the largest two-wheeler manufacturer in India. It has a market share of about 42% in the two-wheeler category. The company had witnessed almost a 35% drop in the booking as the currency crunch was prompting people to withhold new purchases due to demonetisation. Therefore, the production manager of the company had decided to align production to factor in slower sales in the market. In context of the above case:

• Identify and explain the function of management being discussed in the above lines.
• Which limitations of the function of management as identified in part (a) of the question was the production manager trying to overcome due to demonetisation?
• Planning is the function of management which is being discussed in the above lines. Planning is deciding in advance what to do, how to do, when to do and who has to do it. Thus, it involves setting objectives and developing an appropriate course of action to achieve these objectives.
• Planning may not work in dynamic environment

Question 2. The term demonetisation has become a household name since the government pulled the old Rs. 500 and Rs. 1,000 notes out of circulation in November 2016. Prior to the year 2016, the Indian government had demonetised bank notes on two prior occasions—once in the year 1946 and then again in the year 1978. In both cases, the purpose was to combat tax evasion by ‘black money’. Identify the types of one of the functions of management being discussed in the above lines. Answer: Objective and Strategy

Question 3. The arrangement to demonetise the ? 500 and ?1000 bank notes began six to ten months prior to the public announcement and was kept highly confidential. The cabinet was informed about the demonetisation on 8th November 2016 in a meeting called by the Prime Minister of India, Narendra Modi. This was followed by Modi’s public announcement about the demonetisation in a televised address where he announced that currency notes with the denomination of ? 500 and ? 1000 would cease to be the legal tender from 9th of November 2016. The most interesting thing regarding the demonetisation is that people were devising various unique ways for transforming their black money in to white one by depositing money in the accounts of their poor relatives and friends, converting black money in to gold, paying a few months salaries in advance and so on. In context of the above case: Identify and explain the types of plans being discussed in the above lines with regard to demonetisation. Answer: The various types of plans being discussed in the above lines with regard to demonetisation are detailed below:

• Procedure: It is a series of chronological steps which are performed to do a particular activity.
• Rule: A rule is a specific statement relating to the general norms in terms of Do’s and Don’ts that guide the behaviour of people.

Question 4. Flipkart is an e-commerce company founded in the year 2007 by Sachin Bansal and Binny Bansal. The company is registered in Singapore, but has its headquarters in Bangaluru, India. The company seeks to increase traffic (more clicks on their products) and boost sales and revenue through integration of Mobile Apps, Display, Pay Per Click and Search Engine Optimization. In order to dispel the fear of people related to shopping online, Flipkart was the first company to implement the popular ‘Cash on Delivery’ facility. All the products sold by the company under a particular category may have different return/replacement period. Flipkart allows multiple payment options such as cash on delivery, credit or debit card transactions, net banking, e-gift voucher and card swipe on delivery. The company operates both ways when an order is received. The products for which it holds inventory are dispatched by it directly. For the products they do not store in inventory, they just send the order received by them to the supplier who ships it. The company plans to spend about ? 75 crores on e-Commerce advertising in the year 2016. Flipkart reserves the right to terminate your membership and/or refuse to provide you with access to the website if it is brought to Flipkart’s notice or if it is discovered that you are under the age of 18 years. This is because as per the Indian Contract Act, 1872, the minors, un-discharged insolvents, etc. are not eligible to use the website. In context of the above case, identify and explain the different types of plans being used by Flipkart by quoting lines from the paragraph. Answer: The different types of plans being used by Flipkart are listed below:

• Objectives: Objectives are the end results of the activities that an organisation seeks to achieve through its existence. All other activities within the organisation are directed towards achieving these objectives. “The company seeks to increase traffic (more clicks on their products) and boost sales and revenue through integration of Mobile Apps, Display, Pay Per Click and Search Engine Optimization.”
• determining long term objectives
• adopting a particular course of action
• allocating resources necessary to achieve the objective. “In order to dispel the fear of people related to shopping online, Flipkart was the first company to implement the popular ‘Cash On Delivery’ facility.”
• Policy: A policy is a siet of general guidelines that help in managerial decision making and action. “All the products sold by the company under a particular category may have different return/replacement period.”
• Method: A method refers to the prescribed ways or manner in which a task has to be performed considering the objective. “Flipkart allows multiple payment options such as cash on delivery, credit or debit card transactions, net banking, e-gift voucher and card swipe on delivery.”
• Procedure: A procedure contains a series of specific steps to be performed in a chronological order to carry out the routine activities. “The company operates both ways when an order is received. The products for which it holds inventory are dispatched by it directly. For the products they do not store in inventory, they just send the order received by them to the supplier who ships it.”
• Budget: A budget refers to a financial plan that is expressed in – numerical terms. “The company plans to spend about ? 75 crores on e-commerce advertising in the year 2016.”
• Rule: A rule is a specific statement relating to the general norms in terms of Do’s and Don’ts that guide the behaviour of people. It commands strict obedience and a penalty is likely to be imposed on its violation. “Flipkart reserves the right to terminate your membership and/or refuse to provide you with access to the Website if it is brought to Flipkart’s notice or if it is discovered that you are under the age of 18 years. This is because as per the Indian Contract Act, 1872, the minors, un-discharged insolvents etc. are not eligible to use the Website.”

Question 5. Rajender has been running a successful business of manufacturing traditional wedding wear for women including sarees and lehengas. His friend Surinder who is engaged in the business of providing web designing solutions to his clients, suggests him to explore the option of selling his products online. Rajender agrees to his suggestion and decides to venture into online business, keeping in view the various e-commerce regulations in order to avoid imposition of any penalty. In order to facilitate the sale of his products, Rajender decides to offer multiple payment options such as cash on delivery, credit or debit card transactions, net banking to the buyers etc. In context of the above case:

• Identify the two different types of plans mentioned in the above paragraph that relate to the online portal that Rajinder intends to startby quoting lines from the paragraph.
•  Distinguish between the two types of plans as identified in part (a).
• Rule: “Rajender agrees to his suggestion and decides to venture into online business keeping in view the various e-commerce regulations in order to avoid imposition of any penalty.”
• Method: “However, he decides to offer multiple payment options such as cash on delivery, credit or debit card transactions, net banking to the buyers etc.”

Question 6. Wazir Ahmed joins ‘Ashiyana Ltd.’ a company dealing in real estate, as a human resource manager. Through a series of interactions with his team during lunch breaks, he comes to know that quite a few managers at middle and senior levels have recently left the organisation as their promotions were overdue. Therefore, in order to reinstate the confidence of the staff, he lays out a clear cut plan consisting of a set of general guidelines for both time bound and performance related appraisals of the mangers at all levels. Moreover, he develops standardized processes containing a series of steps specified in a chronological order for its implementation. In context of the above case:

• Identify the two different types of plans that Wazir Ahmed proposes to implement in order to reinstate the confidence of the staff by quoting lines from the paragraph.
• Distinguish between the two types of plans as identified in part (a).
• Policy and Procedure are the two different types of plans that Wazir Ahmed proposes to implement in order to reinstate the confidence of the staff. Policy: “… he lays out a clear cut plan consisting of a set of general guidelines for both time bound and performance related appraisals of the mangers at all levels.” Procedure: “Moreover, he develops standardized processes containing a series of steps specified in a chronological order for its implementation.”
• The difference between Policy and Procedure is outlined below:

Question 7. ‘Apna Ghar/ a company dealing in consumer durables, plans to increase the sale of its products by 25% around Diwali this year. Moreover, in order to cash on the implementation of the seventh pay commission by that time, which is likely to raise the income of 47 lakh serving employees of the Central government and 52 lakh pensioners, the company has created 30 advertisement films which will be aired across 85 national and regional channels until Diwali. In context of the above case:

• Identify the two different types of plans that ‘Apna Ghar’ proposes to implement by quoting lines from the paragraph.
• Distinguish between the two types of plans as identified in part(i).
• Objective and Strategy are the two different types of plans that ‘Apna Ghar’ proposes to implement. Objective: “Apna Ghar’, a company dealing in consumer durables, plans to increase the sale of its products by 25% around Diwali this year.” Strategy: “Moreover, in order to cash on the implementation of the seventh pay commission by that time which is likely to raise the income of 47 lakh serving employees of the Central government and 52 lakh pensioners, the company has created 30 advertisement films which will be aired across 85 national and regional channels until Diwali.”
• The difference between objectives and strategy is outlined below:

Question 8. After completing a diploma in Bakery and Patisserie, Payai sets up a small outlet at Goa Airport to provide a healthy food option to the travellers. To begin with, she has decided to sell five types of patties, three types of pizzas and low sugar muffins in four flavours. Thus, by deciding in advance what to do and how to do, she is able to reduce the risk of uncertainty and avoid overlapping and wasteful activities. But sometimes her planning does not work due to some unavoidable circumstances like cancellation of flights due to bad weather conditions, government alert etc. which adversely affects her clientele. In context of the above case:

• Identify and explain the points highlighting the importance of planning mentioned in the above paragraph.
• Describe briefly the limitation of planning which adversely affects Payal’s business
• Reduces the risk of uncertainty: Planning relates to deciding in advance about the tasks to be performed in future. This enables a manager to anticipate changes and devise the ways to deal with changes and uncertain events effectively.
• Avoiding overlapping and wasteful activities: Planning ensures clarity in thought and action and serves as the basis of coordinating the activities and efforts of different individuals and departments. Therefore, by curtailing useless and redundant activities, it helps in the smooth working of the organisation’s work without interruptions. Moreover, it makes detection of inefficiencies easier so that timely corrective measures may be taken to avoid them in future.
• Planning may not work in a dynamic environment: The business environment is dynamic in nature. Every organisation has to constantly adapt itself to changes in its environment in order to survive and grow. However, it difficult to anticipate all the likely future changes in the environment with utmost accuracy. Hence, even with planning, everything cannot be foreseen.

Question 9. ‘Agile Ltd.’ is a well-known automobile manufacturing company in India. The company plans to increase the sale of its sedan cars by 20% in the next quarter. In order to achieve the desired target, the marketing team of the company considers the impact of policy of the government towards diesel vehicles and the level of competition in this segment of cars. They explore the various available options like offering more discount to dealers and customers, providing more customer friendly finance options, lucky draws on test drives, increasing advertising, offering more of free accessories on the purchase of the car, etc. A thorough analysis of the various available options is done keeping in view the relative viability of each option. The company decides to pursue the option of offering more discount to dealers and customers in order to boost the sale of sedan cars. In order to implement the plan, they determine the various discount packages and communicate the same to their product dealers. To make the prospective consumers aware about the new available benefits, advertisements are made through various sources of print and electronic media. The market analysts of the company keep a close watch on the revenue from the sedan cars to study the effect of new initiatives by the company to promote its sales. In context of the above case:

• Name the function of management described in the above paragraph.
• Identify and explain the various steps involved in process the function of management as identified in part (a) by quoting lines from the paragraph.
• Planning is the function of management which is being described in the above paragraph.
• Setting objectives: The planning process is initiated by setting the objectives in clear, specific and measurable terms. The objectives may be set for the organization as a whole and for each department or unit within the organization. “The company plans to increase the sale of its sedan cars by 20% in next quarter.”
• Developing Premises: Planning process is carried out keeping in view the assumptions related to the future, which is uncertain. These assumptions are called premises and may relate to government policy, interest rate, inflation, etc. Accurate forecasts are therefore essential for successful planning. “In order to achieve the desired target the marketing team of the company considers the impact of policy of the government towards diesel vehicles and level of competition in this segment of cars.” .
• Identifying alternative courses of action: The next step in the planning process involves identification of the various ways in which the goals can be achieved. “They explore the various available options like offering more discount to dealers and customers, providing more customer friendly finance options, lucky draws on test drives, increasing advertising, offering more of free accessories on the purchase of the car, etc.”
• Evaluating alternative courses: In order to select the best option, the relative positive and negative aspects of each alternative should be evaluated in the light of their feasibility and consequences. “A thorough analysis of the various available options is done keeping in view the relative viability of each option.”
• Selecting an alternative: The best plan is adopted to achieve the desired goals. Sometimes, a combination of plans may be selected instead of one best course of action. “The company decides to pursue the option of offering more discount to dealers and customers in order to boost the sale of sedan cars.”
• Implement the plan: This step is concerned with putting plans into action. “In order to implement the plan, they determine the various discount packages and communicate the same to their product dealers. To make the prospective consumers aware about the new available benefits, advertisements are made through various sources of print and electronic media.”
• Follow up action: Monitoring of plans is equally important to ensure that objectives are achieved efficiently and effectively. “The market analysts of the company keep a close watch on the revenue from the sedan cars to study the effect of new initiatives by the company to promote its sales.”

Question 10. Arush joins as a sales manager of a company dealing in naturotherapy products. Being proficient in his work, he knew that without good planning he will not be able to organise, direct, control or perform any of the other managerial functions efficiently and effectively. Only on the basis of sales forecasting, he would assist in the preparation of the annual plans for its production and sales. Besides, he will have to prepare sales plans regularly on weekly, monthly, quarterly and half yearly basis. While preparing the sales forecasts, he undertakes intellectual thinking involving foresight, visualization and issued judgement rather than wishful thinking or guess work. Most importantly, all these planning activities will be meaningful only if they will coincide with the purpose fob which the business is being carried out. In context of the above case, identify the various features of planning highlighted in the above paragraph by quoting lines from it. Answer: The features of planning highlighted in the above paragraph are explained below:

• Planning is a primary function: Planning precedes all the functions of management i.e. organizing, staffing, directing and controlling. This refers to primacy of planning. Planning provides the basis of all other functions. “… without good planning he will not be able to organise, direct, control or perform any of the other managerial functions efficiently and effectively. “
• Planning is futuristic: Planning is called a forward looking function as it enables an organization to meet future events effectively. “Only on the basis of sales forecasting, he would assist in the preparation of the annual plans for its production and sales.”
• Planning is continuous: Plans need to be continuously made, implemented and followed by another plan and so on till an organization exists “Besides, he will have to prepare sales plans regularly on weekly, monthly, quarterly and half yearly basis.”
• Planning is a mental exercise: Planning is done on the basis of rational thinking involving foresight, visualization and issued judgement rather than wishful thinking or guess work. “While preparing the sales forecasts, he undertakes intellectual thinking involving foresight, visualisation and issued judgement rather than wishful thinking or guess work.”
• Planning focuses on achieving objectives: Planning is a purposeful activity as it contributes to the achievement of predetermined goals of the organisation both efficiently and effectively. “Most importantly, all these planning activities will be meaningful only if they will coincide with the purpose for which the business is being carried out.”

Question 11. Holistic Education Public School in Bahadurgarh decides to implement the literacy programme of the government in the school. It is decided that within the year, the forty five support staff employees of the school will be made literate by the school counsellors and social workers. In order to enhance the learning process, the school decides to use audio-visual aids. To start the programme, the school has to first procure the literacy books from State Resource Centre at Jamia. Besides the curriculum, each literacy book contains a series of nine tests which the volunteers have to get completed by the learners during the programme. Moreover, by implementing the plan of ‘each one teach one’, each student of the school from classes fifth to tenth will be encouraged to make one person literate. The student volunteers may select a learner by adopting any one of the two ways; either from the slum areas adopted by the school or on their own within the vicinity of their residence. As per the norms of the Delhi Government, it is mandatory for the volunteers to send back the filled copy of only the ninth test paper in the series to the authorities as a conclusive proof of the completion of the course, else the certificate of commendation will not be awarded to them. Considering the implementation of the programme to be a part of its corporate social responsibility initiative, the school has decided to spend around Rs. 50,000 on the distribution of free stationery items, refreshments of the learners, etc. In context of the above case:

• Identify the various types of plans being used by Holistic Education Public School in order to implement the literacy programme in their school by quoting the lines from the paragraph.
• Categorise the various types of plans as identified in part (a) into single use plans and standing plans.
• Objectives: “It is decided that within the year, all the forty five support staff employees of the school will be made literate by the school counsellors and social workers.”
• Strategy: “In order to enhance the learning process, the school decides to use audio visual aids.”
• Policy: “Moreover, by implementing the plan of ‘each one teach one,’ each student of the school from classes fifth to tenth will be encouraged to make one person literate.”
• Procedure: “To start the programme the school has to first procure the literacy books from State Resource Centre at Jamia. Besides the curriculum, each literacy book contains a series of nine tests which the volunteers have to get completed by the learners during the programme.”
• Method: “The student volunteers may select a learner by adopting any one of the two ways; either from the slum areas adopted by the school or on their own within the vicinity of their residence.”
• Rule: “As per the norms of the Delhi Government, it is mandatory for the volunteers to send back the filled copy of only the ninth test paper in the series to the authorities as a conclusive proof of the completion of the course, else the certificate of commendation will not be awarded to them.”
• Budget: “Considering the implementation of the programme to be a part of its corporate social responsibility initiative, the school has decided to spend around ? 50,000 on the distribution of free stationery items, refreshments of the learners, etc.”
• Single use plans are the ones that are formulated to deal with new or non-repetitive situations that may arise in an organisation from time to time. This includes programmes, budgets and projects. Standing plans refer to the types of plans which once formulated may be used for a long period of time in similar or repetitive situations that may prevail in an organisation. These include objectives, strategies, policies, procedures methods and rules.

Case Studies in Business Studies Business Studies Case Studies Business Studies Commerce

Make up your mind through different businesses one after one like the nr7 pattern follows.

CBSE NCERT Solutions

NCERT and CBSE Solutions for free

Case Study Chapter 4 Planning

Please refer to Chapter 4 Planning Case Study Questions with answers provided below. We have provided Case Study Questions for Class 12 Business Studies for all chapters as per CBSE, NCERT and KVS examination guidelines. These case based questions are expected to come in your exams this year. Please practise these case study based Class 12 Business Studies Questions and answers to get more marks in examinations.

Case Study Questions Chapter 4 Planning

Read the source given below and answer the following questions : Anupam joins as a sales manager of a company dealing with garment manufacturing. Being professional in his approach, he knew that without good planning he will not be able to organise or perform any other managerial function effectively or efficiently. Only on the basis of sales forecast, he can prepare annual plan for its production or sales, besides he will have to prepare sales plan regularly on weekly, monthly, quarterly and half yearly basis. While preparing the sales forecast, he undertakes intellectual thinking, involving foresight visualisation rather than guess work and he has to make sure that all these planning activities coincide with the purpose for which business is being carried out.

Question. “He has to make sure that all these ………… business is being carried out.” This indicates which feature of planning? (a) Planning is goal oriented. (b) Planning is continuous. (c) Planning is pervasive. (d) Planning is futuristic.

Question. “He knew that without good planning ………… any other managerial function.” This line indicates which feature of planning? (a) Planning is futuristic (b) Planning is a mental exercise (c) Planning is pervasive (d) Planning is primary function of management

Question. “He will have to prepare sales plan regularly ………… half yearly basis.” This is related to which feature of planning? (a) Planning is primary function (b) Planning is continuous (c) Planning is mental exercise (d) Planning is pervasive

Question. “While preparing the sales forecast, he undertakes intellectual thinking involving ………… guess work.” This indicates which feature of planning? (a) Planning is continuous. (b) Planning is pervasive. (c) Planning is mental exercise. (d) Planning is primary function.

Read the source given below and answer the following questions : After completing the diploma in bakery, Priya started an outlet in food court of a mall. She decided to sell five types of pizzas and low sugar muffins with proper planning. She was ready to face the uncertainties and also there was no duplication of work. In short period only her business got a name in the market.

Question. “There was no duplication of work.” This is indicating which importance of planning? (a) Planning provides direction. (b) Planning reduces overlapping and wasteful activities. (c) Planning promotes innovative idea. (d) Planning facilitates decision making.

Question. Identify the function of management indicated in above para. (a) Planning (b) Organising (c) Staffing (d) Directing

Question. “With proper planning, she was ready to face the uncertainties.” This indicates which importance of planning? (a) Planning provides direction (b) Planning reduces the risk of uncertainties (c) Planning promotes innovative idea (d) Planning facilitates decision making

Question. Is it worth spending money on planning? (a) Yes (b) No (c) Partially true (d) None of the above

Read the source given below and answer the following questions : Super Fine Rice Ltd. has the largest share of 55% in the market. The company’s policy is to sell only for cash. In 2015, for the first time, company’s number one position in the industry has been threatened because other companies started selling rice on credit also. But the managers of Super Fine Rice Ltd. continued to rely on its previously tried and tested successful plans which didn’t work because the environment is not static. This led to decline in sales of Super Fine Rice Ltd.

Question. “For the first time, company’s ………… been threatened.” This is related to which limitation of planning? (a) Planning reduces creativity. (b) Planning leads to rigidity. (c) Planning is a time consuming process. (d) Planning does not guarantee success.

Question. Planning gives guarantee of success. (a) True (b) False (c) Partially true (d) None of the above

Question. “Manager of super fine rice continued ………… successful plan.” This is related to which limitation of planning? (a) Planning leads to rigidity. (b) Planning reduces creativity. (c) Planning involves huge cost. (d) Planning does not guarantee success.

Question. “Environment is not static.” This is related to which limitation of planning? (a) Planning does not guarantee success. (b) Planning reduces creativity. (c) Planning may not work in dynamic environment. (d) Planning involves huge cost.

Read the source given below and answer the following questions : Simplex limited had been taken over by Mundhra Group immediately following India’s independence. Since then it enjoys a rich record of industry presence and experience. In 2005, with the aim to accelerate growth the company had gone through several rounds of meetings and discussions before launching ERP system to attract large projects. The management had done effective forecast and critical thinking regarding allocation resources to reduce wastage. For this purpose the company had laid down multiple courses of action to meet the challenge of adverse situations. In 2008, the company suffered loss in many projects due to the great recession despite taking many cost cutting measures. The management had taken utmost care regarding the possible outcome and timely review of the plans to achieve the set target during that hard time. In 2010 the system implemented successfully which subsequently helped the company to execute numerous projects with precision and timeliness. 

Question. “In 2008, the company suffered loss in many projects due to the great recession despite taking many cost cutting measures.” Which limitation of the management process is indicated here? (a) It fails to cope with sudden changes (b) It involves huge cost (c) It requires critical thinking (d) Need to construct multiple action plans

Question. “In 2005, with the aim to accelerate growth the company had gone through several rounds of Meetings and discussions.” What is the objective mentioned here according to the process stated here? (a) Developing Premises (b) Growth & development (c) Launching IT enabled system (d) Cost cutting

Question. “The management had taken utmost care regarding the possible outcome and timely review of the Plans to achieve the set target during that hard time.” Which is the last step of the Process mentioned here ? (a) Implementation of plan (b) Timely execution of projects (c) Follow up (d) To prepare alternative course of action

Question. State whether the given statement is True or False: “The management had done effective forecast and critical thinking regarding allocation of resources to reduce wastage.”

Read the source given below and answer the following questions : The CEO of ABC limited, auto mobile enterprise dreams of his company becoming the best player in future for which he sets the objectives, forecast the future and develops various courses of action.He has also made a statement indicating sales volume for the next financial year to achieve the desired sales as highlighted in the statement. He decided to advertise in all the leading newspapers is in every state of India for the next six months, so he also wants to train his employees for achieving his sales target. As a part of the training programme for newly appointed sales executive, CEO fixes responsibility of sales managers as mentors to take the executives for visit to their existing customers and help them learn on the job.

Questions :

Question. Which function of management is highlighted in the first line of the given extract? (a) Planning (b) Controlling (c) Staffing (d) None of these 

Question. Changes and events cannot be eliminated but they can be anticipated and managerial response to them can be developed. Which importance of planning is highlighted in the above statement? (a) Planning provides direction. (b) Planning reduces overlapping and wasteful activities. (c) Planning reduces the risk of uncertainty. (d) Planning facilitates decision making.

Question. Sales Forecasting is the basis on which a business firm prepares its annual plan for production and sales. Which feature of planning is highlighted in the above case? (a) Planning focuses on achieving objectives. (b) Planning is continuous. (c) Planning is the primary function of management. (d) Planning is futuristic.

Read the source given below and answer the following questions : Mona inherited a 30-acres ancestral land from her grandparents. She decided to venture into agriculture, for this purpose she set out specific goals, objectives.Everything was a challenge because she was not aware about farming. She learned every activity and, in the process, thought of assisting other farmers as well. She eventually launched her own company Agro limited.She wanted to be sure that the activities effectively met the best interest of the company and the farmers.Hence, she prepared an annual plan for production, sales and marketing, through sales forecasting she’ll I realized that farmers were growing only one or two crops. On account of this the land remained idle for the rest of the year. she identified and evaluated different alternatives through which the farms could be utilized throughout the year.She used her foresight and systematic thinking,based on analysis of all fixed analysis of all the facts and examined and evaluated all the alternatives. She presented a plan to the Farmers Union, where after harvesting the primary crops, seasonal vegetables and foods could be grown.

Question. Hence she prepared an annual plan for production sales and marketing through sales forecasting. Which feature of planning is depicted in this statement? (a) Planning is continuous (b) planning is futuristic (c) planning involves decision-making (d) planning is a mental exercise

Question. For this purpose she set out specific goals objectives and activities which feature of planning is depicted in this statement? (a) Planning focuses on achieving objectives (b) planning is a primary function of management (c) planning involves decision-making (d) planning is a mental exercise 

Question. Thus, she identified and evaluated different alternatives through which the farms could be utilized throughout the year. Which feature of planning is depicted here? (a) Planning is pervasive (b) planning is continuous (c) planning his futuristic (d) planning involves decision-making 

Question. She used her foresight and logical and systematic thinking based on analysis of all facts and examined and evaluated all the alternatives. which feature of planning is depicted here? (a) Planning focuses on achieving objectives (b) planning is a primary function of management (c) planning is mental exercise (d) planning involves decision-making

Read the source given below and answer the following questions : After completing a diploma in Bakery and Patisserie, Julie sets up a small outlet at Goa Airport to provide a healthy food option to the travellers. To begin with, she has decided to sell five types of patties, three types of pizzas and low sugar muffins in four flavours. Thus, by deciding in advance what to do and how to do, she is able to reduce the risk of uncertainty and avoid overlapping and wasteful activities. But sometimes her planning does not work due to some unavoidable circumstances like cancellation of flights due to bad weather conditions, government alert etc. which adversely affects her business. In context of the above case:

Question. Identify points highlighting the importance of planning mentioned in the above paragraph. (a) Reduces the risk of uncertainty: (b) Avoiding overlapping and wasteful activities (c) a and b  (d) None of these.

Question.  The limitation of planning which adversely affects Payal’s business is: (a) Planning may not work in a dynamic environment: (b) Planning may not guarantee success. (c) Planning involves huge costs (d) None of these.

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Home » 12th Class » Class 12 Business Studies Notes for Planning (PDF) – Study Material

Class 12 Business Studies Notes for Planning (PDF) – Study Material

Class 12 Business Studies Planning – Get here the Notes, Question & Practice Paper of Class 12 Business Studies for topic Planning Notes. Planning Notes for Class 12 Business Studies are here. You can download the Planning Notes PDF to study all the topics in this chapter. Moreover the class 12 Business Studies notes include chapter summary, definitions, examples, and key pointers for Planning . Thus if you are studying class Business Studies (व्यवसाय अध्ययन), then the  Planning notes  will help you easily understand the topic and ace it.

Class 12 Business Studies Notes for Planning

Planning is a critical part in the study of Business Studies . In India, it is taught in class. Therefore the class 12 Notes for Business Studies topic Planning have been compiled by teachers and field experts. They explain the complete chapter of Planning in one-shot . Whether you are studying the topic Planning to complete your class syllabus, or for any competitive exam like JEE , NEET , UPSC, you can simply refer these notes to complete the chapter in one-shot!

Planning Notes Download Link – Click Here to Download PDF

Planning Notes for Class 12 Business Studies PDF

The PDF of Planning class 12 notes is as follows. You can view the document here and also download it to use it anytime for future reference whenever you want to brush up your concepts of Business Studies.

Candidates who are ambitious to qualify the Class 12 with good score can check this article for Notes, Study Material, Practice Paper. Above we provided the link to access the Notes , Important Question and Practice Paper of Class 12 Business Studies for topic Planning.

All Topics Class 12 Business Studies Notes

Chapter wise notes for Business Studies (व्यवसाय अध्ययन) are given below.

• Business Environment
• Consumer Protection
• Controlling
• Financial Management
• Financial Markets
• Marketing Management
• Nature and Significance of Management
• Principles of Management

Class 12 Notes for All Subjects

• Class 12 Biology Notes
• Class 12 Business Studies Notes
• Class 12 Chemistry Notes
• Class 12 Economics Notes
• Class 12 English Notes
• Class 12 Geography Notes
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NCERT Solutions for Class 12 Business Studies Planning

The Planning notes here help you solve the questions and answers . Also, you can complete the class 12 Planning worksheet using the same. In addition you will also tackle CBSE Class 12 Business Studies Important Questions with these class 12 notes .

However if you still need help, then you can use the NCERT Solutions for Class 12 Business Studies Planning to get all the answers. Planning solutions contain questions, answers, and steps to solve all questions.

Notes for All Classes

• Class 7 Notes
• Class 8 Notes
• Class 9 Notes
• Class 10 Notes
• Class 11 Notes
• Class 12 Notes

Planning Notes for Class 12 Business Studies – An Overview

Class 12 Planning Notes for All Boards

You can use the class 12 Business Studies notes of Planning for all boards.

The education boards in India for which Planning notes are relevant are – CBSE, CISCE, AHSEC, CHSE Odisha, CGBSE, HBSE, HPBOSE, PUE Karnataka, MSBSHSE, PSEB, RBSE, TBSE, UPMSP, UBSE, BIEAP, BSEB, GBSHSE, GSEB, JAC, JKBOSE, KBPE, MBOSE, MBSE, MPBSE, NBSE, DGE TN, TSBIE, COHSEM, WBCHSE .

Therefore you can refer to these notes as CBSE, CISCE, AHSEC, CHSE Odisha, CGBSE, HBSE, HPBOSE, PUE Karnataka, MSBSHSE, PSEB, RBSE, TBSE, UPMSP, UBSE, BIEAP, BSEB, GBSHSE, GSEB, JAC, JKBOSE, KBPE, MBOSE, MBSE, MPBSE, NBSE, DGE TN, TSBIE, COHSEM, WBCHSE notes for class Class 12 / Class / Business Studies for the topic Planning.

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Planning Class 12 Notes PDF (Handwritten & Short Notes)

Students who have opted commerce stream, need to understand better and score well in questions regarding the chapter Planning. Class 12 students can smoothly perform better with the help of Planning Class 12 notes. Accordingly students can also understand other chapters of Class 12 Business Studies in a better way. 

Students can also practise some sort of questions from the Planning Class 12 notes. Practising Planning questions on a regular basis can help students to increase their accuracy level. Accordingly, students can also improve their inner confidence in attempting questions of the chapter Planning. Inner confidence is a must for all students to decrease the level of stress while giving the Class 12 Business Studies board exam. Therefore, here we provide the Planning Class 12 Notes in PDF file format.

Planning Notes Class 12 PDF

The Planning notes Class 12 PDF are one of the important study materials while preparing for the chapter. Students generally refer to the notes after completing the chapter Planning. Class 12 notes is a collection of short summaries of sub-topics, topics and key points. With the help of these summaries, students can remember the important points on their fingertips. 

How to Download the Planning Notes Class 12 in PDF?

All students studying in Class 12, need to have easy and free access to the Planning notes Class 12 in PDF. Steps to download the Class 12 Business Studies Notes are:

• Open the Selfstudys website on any of the electronic devices. 
• Bring the arrow towards NCERT Books & Solutions which can be seen in the navigation bar. 
• Drop-up menu will appear, select NCERT notes from the list.

• A new page will appear, select Class 12th from the list of classes.

• Now select Business Studies from the list of subjects.

• Again a new page will appear, now select Planning from the list of chapters. 

Features of the Planning Notes Class 12

Features of Planning notes Class 12 are considered to be an important and noticeable part. Those important features of Class 12 Business Studies notes are: 

• Number of the Unit is Given: Inside the Class 12 Planning notes, the number of the unit is given. Accordingly students can easily identify the chapter name with the help of unit number of Class 12 Business Studies. 
• All Concepts are Completed: In the Class 12 Planning notes, all the concepts are completed. Students can get a brief knowledge about the chapter Planning. 
• Questions are Given: On the last page of the Class 12 Business Studies notes, different questions regarding the chapter Planning are given to practise. Accordingly students can also improve their comprehensive skill for the chapter Planning. 
• Chapter Name is Included: The chapter name of Planning is mentioned inside the Class 12 Planning notes. Through the notes, students can get a brief idea about the chapter Planning. 
•  Provided in a Simple Language: The Planning Class 12 notes are provided in a simpler language. Through this, students can easily understand all complex topics in a simpler manner. 
• For CBSE Board And State Boards: It is generally created for students studying in Class 12; thus, CBSE board as well as state board students can use the Planning Class 12 Notes as it is suitable for them.

Benefits of Planning Notes Class 12

The Planning notes Class 12 has been associated with many benefits which includes helps to pay attention, helps in remembering the topics, etc. Through these students can easily score well in Class 12 Business Studies board exam papers. 

• Helps in Paying Attention: Class 12 Planning notes can help students to pay attention and to stay alert throughout the preparation. Accordingly, Class 12 students can easily discover and cover different types of topics and concepts in a creative way. 
• Helps in Revising the Topics: With the help of Planning notes Class 12, students can smoothly revise all the topics. According to which, students can boost their preparation for the chapter The Planning and can perform well. 
• Can Attract Many Students as Eye-Catching Format of Notes is Given: The Class 12 notes of the chapter Planning in the PDF have an eye-catching format. This format can attract many Class 12 students to complete the chapter The Planning. 
•  Can Increase Comprehensive Skill: The Class 12 notes of the chapter The Planning can aid students to increase their comprehensive skill. According to these skills, students can easily score well in the questions of the chapter The Planning. 
• Helps Students to be Active During the Preparation: It is a must for all students to remain active and alert while preparing for the chapter The Planning. Students can be active and alert with the help of Class 12 Planning notes. Accordingly students can cover and revise each and every concept included in the Business Studies chapter The Planning. 
• All Topics Are Covered: Inside the Class 12 Planning notes, all topics are covered in a perfect manner so that students can easily complete the whole chapter. 

Strategy Tips to Cover the Chapter Planning  

It is a must for Class 12 students to follow some strategy tips to cover The Planning. Important strategy tips are: 

• Finish off the Chapter: First and foremost tip is to finish off the chapter The Planning in a proper and accurate way. 
• Routine Practise of Questions: After completing the chapter Planning, students need to have a routine practice of questions. Regular practice can help students to improve their accuracy level in attempting questions. 
• Jot Down The Mistakes: While analysing the questions, students can get to know their flaws. After identification, it is very important that students jot down their mistakes. Through this step, students can easily remove their earlier mistakes while attempting Planning questions. 
• Try to Study During the Day: Many students prefer studying during the night but it is good to study during the day. As students would have a higher ability to concentrate in the chapter The Planning. There are many benefits other than this, those are: natural daylight is better than artificial light, both friends and teachers are contactable to clear doubts. 
• Remain Focused: Throughout the preparation of the chapter Planning, students are advised to remain focused. Accordingly, students can cover various topics whether it is easy, moderate, or difficult. 
• Revise Within a Day: After starting the revision process of Class 12 Planning it is very important to complete the revision within a day otherwise the extension in revision will not aid much value in the preparation.
• Take Constant Breaks: It is a must to take constant breaks while preparing for the chapter Planning. As students can lose their track of preparation if proper short breaks are not taken.  
• Try to Remain Calm: Class 12 students need to remain calm while preparing for the chapter Planning in order to try to remove their exam stress and anxiety. 

Why Is It Important To Go Through The Planning Class 12 Notes? 

It is a must to go through the Planning Class 12 notes as it is considered as important study material. In this Class 12 Business Studies notes, topics and concepts are explained in a brief manner. Through this study material, students can understand all Planning topics in an effective manner. These notes can be generally used during the last minute revision that help students memorise all topics of Planning easily and help them solve questions in a better way. 

What Are Class 12 Planning Notes and Why Is It Popular? 

The Class 12 Planning notes are short and compressed content which includes all topics and concepts brief in an organised manner, better presentation and easier explanations. These notes help students to improve their grip for the chapter Planning. Strong foundation for the chapter Planning can help students to improve their score and because of these reasons the revision notes of Class 12 Planning is popular among students.

Is Planning Class 12 Notes Relevant to Exam Preparation?

Yes, the Planning Class 12 notes are very much relevant during the preparation. The Class 12 Accountancy content is very accurate and contains relevant topics for students to study. Accordingly, students don’t need to search for various important topics here and there. Accordingly, students can easily study relevant content of the Class 12 Business Studies chapter Planning if they refer to the NCERT Class 12 Business Studies Notes. 

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NCERT Solutions for Class 12 Business Studies Chapter 4:Planning; Available for free download

This article from jagran josh presents complete ncert solutions for class 12 business studies chapter 4, planning. also find some important topics from the chapter for upcoming cbse board examinations 2024..

NCERT Solutions for Class 12 Business Studies Chapter 4 : Find complete NCERT Solutions for Class 12 Business Studies Chapter 4, Planning. This article also provides free PDF Download link for complete NCERT Solutions of the chapter mentioned above. All the solutions have been prepared by our subject experts as per Revised CBSE Syllabus 2023-2024.

NCERT Exercises are prepared from important topics present in the chapter. Practise of these NCERT Solutions can clear your concepts of important topics and help you practically implement the knowledge gained through the chapter. Most importantly it plays a crucial role in scoring good marks in academics.

• Importance of Planning
• Features of Planning
• Limitations of Planning
• Planning process
• Types of Plan

 CBSE Class 12 Business Studies Revised Syllabus 2023-2024 (PDF)

CBSE Class 12 Business Studies Sample Paper 2023-2024(PDF)

NCERT Solutions for Class 12 Business Studies Chapter 4, Planning are present below:

Very Short Answer Type

 1 .How does planning provide direction?

Answer . Planning is the pre-decided order or work for fulfilling objectives smoothly. Since, planning governs our course of action and tells us what to do next in order to achieve your goal, it can be said that planning provides direction.

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?

Answer.  Ms Rajni has performed third step of the planning process i.e identifying alternative courses of action because in this case, Ms Rajni is jotting down every possible alternative to fulfill the objectives of the organization which will then be decided on account of feasibility, profitability and accessibility.

3.Why are rules considered to be plans?

Answer.  Rules are inflexible statements that have to be adhered to and direct the course of our action. Since, planning too directs our action, rules can be considered to be simplest type of plan, with only difference being that plans are flexible and rules aren’t.

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

Answer.  Rama Stationery Mart has adopted ‘Policy’. Policy is a general statement that guides or channelizes energies in a particular direction. In this case, the organization has adopted a direction of payment, i.e. Through e-transfers. Hence, policy has been used in the above case.

5.Can planning work in a changing environment? Give a reason to justify your answer.

Answer.  No, I don’t think planning can work in a changing environment because a plan is made on premises of a particular situation, influenced by a particular business environment, if that changes than the same plan might not work. Different plans has to be created in different situations.

Short Answer Type

1. What are the main aspects in the definition of planning?

• Setting Objectives
• Time period
• Alternatives for action
• Selection of the best alternative

2.If planning involves working out details for the future, why does it not ensure success?

Answer.  Yes, planning involves working out details for the future but future is uncertain. It is impossible to determine what future holds. Thus, accurate prediction of future is impossible. Plans are mere execution of predictions aimed at fulfilling goals and objectives. Though it does not ensure success but it can stop you from wandering around and ensure you move ahead in the right direction.

3.What kind of strategic decisions are taken by business organisations?

Answer . Strategy is a comprehensive plan for accomplishing an organization’s objectives. This comprehensive plan will include three dimensions:

(i) determining long term objectives

(ii) adopting a particular course of action

 (iii) allocating resources necessary to achieve the objective. 

Company’s take major strategic decisions like:

(i) Determining whether the business should function in the same line of business or not

(ii) Determining new lines of activity with the existing business.

(iii) How to seek the dominant position in the market.

(iv) Determining your target audience, customers, consumers etc

(v) Observing demand for product

(vi) Finding out best channel of distribution

(vii) Checking out the pricing policy

(viii) Product advertising

4.Planning reduces creativity. Critically comment.(Hint: both the points - Planning promotes innovative ideas and planning reduces creativity – will be given).

Answer. Planning is a laid-out direction of what is to be done and how it is to be done. It is determined after looking at all aspects of fulfilling a goal that any change in them can lead to failure of the plan and most importantly unfulfillment of objectives. Thus, it does reduce the scope of creativity since a plan has to be made considering what can constitute to achieve a goal. But, planning does not limit your scope for innovation. Infact, innovative plans often lead to successful plans and pose an organization as a market leader. For example: if an organization brings up an innovative idea of promoting chocolate by showing that chocolates act as a comfort between couples and can be shared in different emotions like joy, sadness etc. It is an innovative plan which can benefit the company but it can limit your creativity in terms of language to be used, and creatives in the ad to be used, as a whole. So, yes planning reduces creativity because they are laid out on account of formal execution determined to achieve certain goals but it can never disrupt your innovative thinking.

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Chapter 4 (Part 2) Planning, CBSE, Class 12, Business Studies PDF Download

Chapter 4 (Part 2) Planning

CASE STUDIES 1. Anjali, a home science graduate from a reputed college, has recently done a cookery course. She wished to start her own venture with a goal to provide 'health food' at reasonable prices. She discussed her idea with her teacher (mentor) who encouraged her. After analysing various options for starting her business venture, they short listed the option to sell ready made and 'ready to make' vegetable shakes and sattu milk shakes. Then, they weighed the pros and cons of both the short listed options. a. Name the function of management being discussed above and give anyone of its characteristics. b. Also briefly discuss any three limitations of the function discussed in the case Answer: a. Planning is the function of management which is being discussed above. Planning involves decision-making: Planning essentially involves application of rational thinking to choose the best alternative among the various available alternatives in order to achieve the desired goals efficiently and effectively. b. The limitations of planning are described below: (i) Planning may not work in a dynamic environment: The business environment is dynamic in nature. Every organisation has to constantly adapt itself environment in order to survive and grow. However, it is difficult to anticipate all the likely future changes in the environment with utmost accuracy. Hence, even with planning, everything cannot be foreseen. (ii) Planning reduces creativity: The top management undertakes planning of various activities whereas the other members are expected to merely implement these plans. This restricts the creativity of the middle level managers as they are neither allowed to deviate from plans nor are they permitted to act on their own. (iii) Planning involves huge costs: The process of planning involves huge cost in terms of time and money as detailed planning is based on a series of scientific calculations. Moreover, it may include a number of related costs as well, like expenses on boardroom meetings, discussions with professional experts and preliminary investigations to find out the viability of the plan. As a result, the expenses on planning may turn out to be much more than benefits derived from it. 2. Rahul, a worker, is given a target of assembling two computers per day. Due to his habit of doing things differently, an idea struck him which would not only reduce the assembling time of computers but would also reduce the cost of production of the computers. Instead of appreciating him, Rahul's supervisor ordered him to complete the work as per the methods and techniques decided earlier as nothing could be changed at that stage. The above paragraph describes one of the limitations of the planning function of management. Name and explain that limitation. Answer: The limitation of the planning function of management described in the above paragraph is that 'planning reduces creativity.' The top management undertakes planning of various policies and procedures whereas the other members are expected to merely implement these plans. This restricts the creativity of the middle level managers as they are neither allowed to deviate from plans, nor permitted to' act on their own. 3. During partition, Rahul Yadav came to Mumbai from Lahore with a lot of wealth. Keeping in view his innate ability to visualise and create things, he decided to work as a junior assistant in a film studio. Over a period of time, as he gained experience and his work was well acclaimed, he decided to set up his own film studio. Initially he was himself looking into every aspect of the business, but as his work increased manifolds and his own productivity reduced with age, he hired Naveen as manager. Naveen being immature in his work started giving bookings for the studio haphazardly. He would never decide anything in advance or do any kind of forecasting of events. This led to lot of confusions and conflicts. As a result, the goodwill earned by Rahul Yadav over the years began to decline. In context of the above case: a. Identify and explain the function of management which Naveen failed to perform by quoting lines from the paragraph. b. Describe briefly any two features of the function of management as identified in part (a). Answer: a. Planning is the function of management which Naveen failed to perform. Planning is deciding in advance what to do, how to do, when to do and who has to do it. It is one of the basic managerial functions. Thus, it involves setting objectives and developing an appropriate course of action to achieve those objectives. b. The two features of the planning function of management are as follows: (i) Planning is pervasive: Planning is not a special function of the top level management, it is equally essential at all levels of management. However, the scope of planning varies at different levels and among different departments. (ii) Planning involves decision-making: Planning essentially involves the application of rational thinking to choose the best alternative among the various 

available alternatives in order to achieve the desired goals efficiently and effectively. 4. After completing a diploma in Bakery and Patisserie, Anjali sets up a small outlet at Goa Airport to provide a healthy food option to the travellers. To begin with, she has decided to sell five types of patties, three types of pizzas and low sugar muffins in four flavours. Thus, by deciding in advance what to do and how to do, she is able to reduce the risk of uncertainty and avoid overlapping and wasteful activities. But sometimes her planning does not work due to some unavoidable circumstances like cancellation of flights due to bad weather conditions, government alert etc. which adversely affects her clientele. In context of the above case: a. Identify and explain the points highlighting the importance of planning mentioned in the above paragraph. b. Describe briefly the limitation of planning which adversely affects Anjali’s business. Answer: a. The points highlighting the importance of planning mentioned in the above paragraph are described below: (i) Reduces the risk of uncertainty: Planning relates to deciding in advance about the tasks to be performed in future. This enables a manager to anticipate changes and devise the ways to deal with changes and uncertain events effectively. (ii) Avoiding overlapping and wasteful activities: Planning ensures clarity in thought and action and serves as the basis of coordinating the activities and efforts of different individuals and departments. Therefore, by curtailing useless and redundant activities, it helps in the smooth working of the organisation's work without interruptions. Moreover, it makes detection of inefficiencies easier so that timely corrective measures may be taken to avoid them in future. b. The limitation of planning which adversely affects Anjali's business is: (i) Planning may not work in a dynamic environment: The business environment is dynamic in nature. Every organisation has to constantly adapt itself to changes in its environment in order to survive and grow. However, it difficult to anticipate all the likely future changes in the environment with utmost accuracy. Hence, even with planning, everything cannot be foreseen. 5. 'TATA Ltd.' is a well-known automobile manufacturing company in India. The company plans to increase the sale of its sedan cars by 20% in the next quarter. In order to achieve the desired target, the marketing team of the company considers the impact of policy of the government towards diesel vehicles and the level of competition in this segment of cars. They explore the various available options like offering more discount to dealers and customers, providing more customer friendly finance options, lucky draws on test drives, increasing advertising, offering more of free accessories on the purchase of the car, etc. A thorough analysis of the various available options is done keeping in view the relative viability of each option. The company decides to pursue the option of offering more discount to dealers and customers in order to boost the sale of sedan cars. In order to implement the plan, they determine the various discount packages and communicate the same to their product dealers. To make the prospective consumers aware about the new available benefits, advertisements are made through various sources of print and electronic media. The market analysts of the company keep a close watch on the revenue from the sedan cars to study the effect of new initiatives by the company to promote its sales. In context of the above case: a. Name the function of management described in the above paragraph. b. Identify and explain the various steps involved in process the function of management as identified in part (a) by quoting lines from the paragraph. Answer: a. Planning is the function of management which is being described in the above paragraph. b. The various steps involved in the planning process are explained below: (i) Setting objectives: The planning process is initiated by setting the objectives in clear, specific and measurable terms. The objectives may be set for the organization as a whole and for each department or unit within the organization. "The company plans to increase the sale of its sedan cars by 20% in next quarter." (ii) Developing Premises: Planning process is carried out keeping in view the assumptions related to the future, which is uncertain. These assumptions are called premises and may relate to government policy, interest rate, inflation, etc. Accurate forecasts are therefore essential for successful planning. "In order to achieve the desired target the marketing team of the company' considers the impact of policy of the government towards diesel vehicles and level of competition in this segment of cars." (iii) Identifying alternative courses of action: The next step in the planning process involves identification of the various ways in which the goals can be achieved. "They explore the various available options like offering more discount to dealers and customers, providing more customer friendly finance options, lucky draws on test drives, increasing advertising, offering more of free 

accessories on the purchase of the car, etc." (iv) Evaluating alternative courses: In order to select the best option, the relative positive and negative aspects of each alternative should be evaluated in the light of their feasibility and consequences. "A thorough analysis of the various available options is done keeping in view the relative viability of each option." (v) Selecting an alternative: The best plan is adopted to achieve the desired goals. Sometimes, a combination of plans may be selected instead of one best course of action. "The company decides to pursue the option of offering more discount to dealers and customers in order to boost the sale of sedan cars." (vi) Implement the plan: This step is concerned with putting plans into action. "In order to implement the plan, they determine the various discount packages and communicate the same to their product dealers. To make the prospective consumers aware about the new available benefits, advertisements are made through various sources of print and electronic media." (vii) Follow up action: Monitoring of plans is equally important to ensure that objectives are achieved efficiently and effectively. "The market analysts of the company keep a close watch on the revenue from the sedan cars to study the effect of new initiatives by the company to promote its sales." 6. Rahul joins as a sales manager of a company dealing in naturotherapy products. Being proficient in his work, he knew that without good planning he will not be able to organise, direct, control or perform any of the other managerial functions efficiently and effectively. Only on the basis of sales forecasting, he would assist in the preparation of the annual plans for its production and sales. Besides, he will have to prepare sales plans regularly on weekly, monthly, quarterly and half yearly basis. While preparing the sales forecasts, he undertakes intellectual thinking involving foresight, visualization and issued judgement rather than wishful thinking or guess work. Most importantly, all these planning activities will be meaningful only if they will coincide with the purpose for which the business is being carried out. In context of the above case, identify the various features of planning highlighted in the above paragraph by quoting lines from it. Answer: The features of planning highlighted in the above paragraph are explained below: i. Planning is a primary function: Planning precedes all the functions of management i.e. organizing, staffing, directing and controlling. This refers to primacy of planning. Planning provides the basis of all other functions. ". .. without good planning he will not be able to organise, direct, control or perform any of the other managerial functions efficiently and effectively. " ii. Planning is futuristic: Planning is called a forward looking function as it enables an organization to meet future events effectively. "Only on the basis of sales forecasting, he would assist in the preparation of the annual plans for its production and sales." iii. Planning is continuous: Plans need to be continuously made, implemented and followed by another plan and so on till an organization exists. "Besides, he will have to prepare sales plans regularly on weekly, monthly, quarterly and half yearly basis." iv. Planning is a mental exercise: Planning is done on the basis of rational thinking involving foresight, visualization and issued judgement rather than wishful thinking or guess work. "While preparing the sales forecasts, he undertakes intellectual thinking involving foresight, visualisation and issued judgement rather than wishful thinking or guess work." v. Planning focuses on achieving objectives: Planning is a purposeful activity as it contributes to the achievement of predetermined goals of the organisation both efficiently and effectively. "Most' importantly, all these planning activities will be meaningful only if they will coincide with the purpose for which the business is being carried out."

TYPES OF PLAN

1. Single-use Plan: • A single-use plan is developed for a one-time event or project. • Such a course of action is not likely to be repeated in future, i.e., they are for non-recurring situations. • The duration of this plan may depend upon the type of the project. It may span o a week or o a month or o one day or o an event or o a seminar or o conference. • These plans include budgets, programmes and projects. • They consist of details, o including the names of employees who are responsible for doing the work and contributing to the single-use plan. For example, o Programme may consist of identifying steps, procedures required for opening a new department to deal with other minor work. o Projects are similar to programmes but differ in scope and complexity. o Budget is a statement of expenses, revenue and income for a specified period.  2. Standing Plan: • A standing plan is used for activities that occur regularly over a period of time. • It is designed to ensure that internal operations of an organisation run smoothly. • Such a plan greatly enhances efficiency in routine decision-making. • It is usually developed once but is modified from time to time to meet business needs as required. • Standing plans include policies, procedures, methods and rules. o Policies are general forms of standing plans that specifies the organisations response to a certain situation like the admission policy of an educational institution. o Procedures describe steps to be followed in particular circumstances like the procedure for reporting progress in production. o Methods provide the manner in which a task has to be performed. o Rules are very clearly stated as to exactly what has to be done like reporting for work at a particular time. Single-use and standing plans are part of the operational planning process. There are other types of plans which usually are not classified as single use or standing plans. • A strategy, o part of strategic planning or management. o It is a general plan prepared by top management outlining resource allocation, priorities and takes into consideration the business environment and competition. • Objectives o set by the top management and serve as a guide for overall planning. o each unit then formulates their own objectives keeping in view the overall organisational goals. CLASSIFICATION OF PLANS 1. OBJECTIVES • The first step in planning is setting objectives. • desired future position that the management would like to reach. • very basic to the organisation and they are defined as ends which the management seeks to achieve by its operations. • an objective simply stated is what you would like to achieve, i.e., the end result of activities. For example, an organisation may have an objective of increasing sales by 10% or earning a reasonable rate of return on investment, earn a 20% profit from business. • They represent the end point of planning. • All other managerial activities are also directed towards achieving these objectives. 

• usually set by top management of the organisation and o focus on broad, general issues. • the future state of affairs which the organisation strives to realise. • serve as a guide for overall business planning. • Different departments or units in the organisation may have their own objectives. • Objectives need to be expressed in specific terms i.e., o they should be measurable in quantitative terms, o in the form of a written statement of desired results to be achieved o within a given time period. 2. STRATEGY • A strategy provides the broad Image of an organisation's business. • It will also refer to future decisions defining the organisations direction and scope in the long run. • a strategy is a comprehensive plan for accomplishing an organisation objectives. This comprehensive plan will include three dimensions, 1) determining long term objectives, 2) adopting a particular course of action, and 3) allocating resources necessary to achieve the objective. Whenever a strategy is formulated, the business environment needs to be taken into consideration. The changes in the economic, political, social, legal and technological environment will affect an organisation's strategy. Strategies usually take the course of forming the organisation's identity in the business environment. Major strategic decisions will include decisions like 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. For example, a company's marketing strategy has to address certain questions i.e., • who are the customers? • what is the demand for the product? • which channel of distribution to use? • what is the pricing policy? and • how do we advertise the product. 3. POLICY • Policies are general statements that guide thinking or channelise energies towards a particular direction. • a basis for interpreting strategy which is usually stated in general terms. • guides to managerial action and decisions in the implementation of strategy. • a policy is the general response to a particular problem or situation. For example, the company may have o a recruitment policy, o pricing policy within which objectives are set and decisions are made. • If there is an established policy, it becomes easier to resolve problems or issues. • for all levels and departments in the organisation ranging from major company policies to minor policies. o Major company policies are for all to know i.e., customers, clients, competitors etc., o Minor polices are applicable to insiders and contain minute details of information vital to the employees of an organisation. o But there has to be some basis for divulging information to others. Policies define the broad parameters within which a manager may function. The manager may use his/her discretion to interpret and apply a policy. For example, the decisions taken under a Purchase Policy would be in the nature of manufacturing or buying decisions. Should a company make or buy its requirements of packages, transport services, printing of stationery, water and power supply and other items? How should vendors be selected for procuring supplies? How many suppliers should a company make purchases from? What is the criteria for choosing suppliers. All these queries would be addressed by the Purchase Policy. 4. PROCEDURE • routine steps on how to carry out activities. • They detail the exact manner in which any work is to be performed. 

• They are specified in a chronological order. For example, there may be a procedure for requisitioning supplies before production. Procedures are specified steps to be followed in particular circumstances. • They are generally meant for insiders to follow. • The sequence of steps or actions to be taken are generally to enforce a policy and to attain pre-determined objectives. • Policies and procedures are interlinked with each other. • Procedures are steps to be carried out within a broad policy framework. 5. METHOD • Methods provide the prescribed ways or manner in which a task has to be performed considering the objective. • It deals with a task comprising one step of a procedure and specifies how this step is to be performed. • The method may vary from task to task. • Selection of proper method saves time, money and effort and increases efficiency. For example, For imparting training to employees at various level from top management to supervisory, different methods can be adopted. ▪ for higher level management orientation programmes, lectures and seminars can be organised whereas at the ▪ supervisory level, on the job training methods and work oriented methods are appropriate. 6. RULE • 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. 7. PROGRAMME • Programmes are detailed statements about a project which outlines the objectives, policies, procedures, rules, tasks, human and physical resources required and the budget to implement any course of action. • Programmes will include the entire gamut (initial syllables of successive lines) of activities as well as the organisation's policy and how it will contribute to the overall business plan. • The minutest details are worked out i.e., procedures, rules, budgets, within the broad policy framework. 8. BUDGET • A budget is a statement of expected results expressed in numerical terms. • It is a plan which quantifies future facts and figures. For example, a sales budget may forecast the sales of different products in each area for a particular mo nth. A budget may also be prepared to show the number of workers required in the factory at peak production times. • Since budget represents all items in numbers, it becomes easier to compare actual figures with expected figures and take corrective action subsequently. • a budget is also a control device from which deviations can be taken care of. • But making a budget involves forecasting, therefore, it clearly comes under planning. • It is a fundamental planning instrument in many organisations. For example, Cash Budget: The cash budget is a basic tool in the management of cash. It is a device to help the management to plan and control the use of cash. It is a statement showing the estimated cash inflows and cash outflows over a given period. Cash inflows would generally come from cash sales and the cash outflows would generally be the costs and expenses associated with the operations of the business. The net cash position is determined by the cash budget i.e., inflows minus (-) outflows = surplus or deficiency. The management has to hold adequate cash balances for various purposes. But at the same time, it should avoid excess balance of cash since it gives little or no return. The business has to assess and plan its need for cash with a degree of caution

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NCERT Solutions for Class 12 Business Studies Chapter 4 Planning

September 30, 2019 by Sastry CBSE

Short Answer Type Questions

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.

2. How does planning provide direction? 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.

Long Answer Type Questions

1. Why is it that organisations are not always able to accomplish all their objectives? Ans:  Organisations are not always able to accomplish all their objectives due to the following reasons (i) Planning Leads to Rigidity In an organisation a well defined plan is drawn up with specific goals to be achieved, with in a specific time frame. These plans then decide how the work will progress in the future and managers may not be in a position to change it. This creates a problem as flexibility is very important. Always adhering to the plan may not give us the desired results always. (ii) Planning May not Work in a Dynamic Environment The business environment is dynamic, nothing is constant. The business environment is a totality of external forces, where in some changes or the other keep on taking place. Plans decide in advance what has to be done in future. Planning cannot foresee everything and thus there may be obstacles to effective planning. (iii) Planning Reduces Creativity Planning is generally done by the top management. Usually the rest of the members just implements these plans. As a consequence, middle management and other decisions makers are neither allowed to deviate from plans nor are they permitted to act on their own, thus planning in a way reduces creativity since people tend to think along the same lines as others, there is nothing new or innovative. (iv) Planning Involves Huge Cost Planning involves huge cost in their formulation. These may be in terms of time and money. The costs incurred sometimes may not justify the benefits derived from the plans. (v) Planning is a Time Consuming Process Sometimes plans to be drawn take up so much of time that there is not much time left for their implementation and the objectives to be achieved. (iv) Planning does not Guarantee Success Any plans 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.

2. What are the main features to be considered by the management while planning? Ans:  The main features to be considered by the management while planning are (i) It Focuses on Achieving Objectives Planning is purposeful. Planning has no meaning unless it contributes to the achievement of predetermined organisational goals. (ii) It is the Primary Function Planning lays down the base for other functions of management. All other managerial functions are performed within the framework of the plans drawn. Thus, planning precedes other function. (iii) Planning is Pervasive Planning is required at all levels of management as well as in all departments of the organisations. The top management undertakes planning for the organisation as a whole. Middle management does the departmental planning. At the lowest level, day-to-day operational planning is done by supervisors. (iv) Planning is Continuous Plans are prepared for a specific period of time, may be for a month, a quarter or a year. At the end of that period, there is need for a new plan to be drawn on the basis of new requirements and future conditions. Hence, planning is a continuous process. (v) Planning is Futuristic The purpose of planning is to meet future events effectively to the best advantage of an organisation. It implies peeping into the future, analysing it and predicting it. (vi) Planning Involves Decision Making Planning essentially involves choice from among various alternatives and activities. If there is only one possible goal then there is no need for planning. The need only arises when alternatives are available. Planning thus, involves thorough examination and evaluation of each alternative and choosing the most appropriate one. (vii) Planning is a Mental Exercise Planning is basically an intellectual activity of thinking rather than doing, because planning determines the action to be taken. Planning requires logical and systematic thinking rather than guesswork or wishful thinking.

3. What are the steps taken by management in the planning process? Ans:  The planning process involves the following steps (i) Establishing Objectives The first step in planning is to determine objectives which must be realistic, specific and clear so as to specify what is to be accomplished by the network of policies, procedures, strategies etc. (ii) Developing Premises They include assumptions or forecasts of the future and unknown conditions that will affect the operations of the plans. They provide an idea about the future which facilitates the work of planning. (iii) Identifying the Alternative Courses of Action The next step in planning is to identify the various alternatives available to achieve the objectives. (iv) Evaluating Alternative Courses The merits and demerits of different courses of actions are evaluated in the light of objectives to be achieved and their feasibility is judged i.e., how far they will be successful in helping to achieve the objective. (v) Selecting an Alternative The next step is to find out the most suitable course to be followed. The efforts are directed towards selecting that course. Which increases efficiency in the organisation by maximising output and profits at the minimum costs. (vi) Implement the Pla n At this step the best alternative chosen is put to use. (vii) Follow Up Only putting the best alternative to action is not enough. The future is uncertain and dynamic. Therefore, it becomes important to check back whether the plan is giving results or not

4. Is planning actually worth the huge costs involved? Explain. Ans:  Planning involves huge cost, when plans are drawn up huge costs are involved in their formulation. These are in terms of time, money, effort etc. Detailed plans require scientific calculations to ascertain facts and figures. The costs incurred sometimes may not justify the benefits derived from the plans. There are a number of incidental costs as well (which are indirect) like expenditures on organising a meeting, consultation fees given to professional experts, market survey etc. But despite the high cost no firm can work without proper planning if used properly.

Case Problem

Art auto company C Ltd is facing a problem of declining market share due to increased competition from other new and existing players in the maket. Its competitiors are introducing lower priced models for mass consumers who are price sensitive. For quality conscious consumers, the company is introducing new models with added features and new technological advancements. 1 . Prepare a model business plan for C Ltd to meet the existing challenge. You need to be very specific about quantitative parameters. You may specify which type of plan you are preparing. 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.

2. Identify the limitations of such plans. 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.

3. How will you seek to remove these limitations? 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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NCERT Solutions for Class 12 Business Chapter 4 - Planning

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• Chapter 4 Planning

Class 12 NCERT Solutions Business Studies - Planning - Free PDF Download

NCERT Solutions for Business Studies Class 12 Chapter 4 contains easy-to-understand and complete answers to the questions of the NCERT textbook . NCERT Answers for Class 12 Business Studies Chapter 4 have been written by our team of subject experts at Vedantu, who have ensured that the information they give is of the highest quality while remaining simple for students to access. It includes a detailed description of the solutions and is undoubtedly the finest resource for students studying for exams.

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NCERT Solutions Class 12 Business Studies Chapter 4 - Free PDF Download

1. How does planning provide direction? 

Ans: Planning provides guidance for action by defining in advance how work is to be done. Planning ensures that the goals or objectives are clearly articulated so that they may be used as a guide to decide what action to take and in which direction.

When goals are clearly defined, employees understand what the organisation as well as they must do to attain those goals. Departments and people inside the organisation can collaborate for the successful accomplishment of objectives. Employees would be working in separate directions, with no coordination if there was no planning, and the organisation would not be able to attain its planned goals.

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? 

Ans: The step of the planning process Ms. Rajni performed ‘Identification of various alternatives’. In the report, she mentioned and identified the options such as 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. After this step, proper evaluation of each alternative will be done, and one or a mixture of alternatives will be chosen by the company.

3. Why are rules considered to be plans? 

Ans: Rules are considered as plans because:

Rules are standard or specific statements that describe what should be done, whereas planning also specifies the what aspect of any action. 

Because their natures are so similar, 'Rules' are regarded to be 'Plans.' 

Rules are thought to be the most basic of designs. The goal of planning is to deliberate and decide on a future course of action. 

Similarly, rules are statements that aid in determining whether or not an action should be conducted. 

However, rules are rigorous in nature and must be followed exactly as written until a change is requested. 

Noncompliance with the rules results in disciplinary actions taken by the organisation. It indicates a managerial judgement about whether or not to pursue a specific action. 

For example, an organisation may have regulations governing employee punch-in and punch-out times, and all employees must abide by these standards. Rules serve as a guide for the general behaviour of employees in an organisation.

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. 

Ans: The type of plan used is a policy. Rama Stationery Mart has adopted a payment policy that requires all payments to be made via e-transfers only.

Policy is a broad statement that defines the boundaries within which decisions are made and directs decisions toward the achievement of goals.

5. Can planning work in a changing environment? Give a reason to justify your answer.

Ans: No, planning does not work in a dynamic environment because the business environment is constantly changing and the organisation must adapt to these changes. In a dynamic environment, planning fails when it is unable to accurately predict future trends.

6. What are the main points in the definition of planning? 

Ans: Planning is a psychological process that involves "thinking and determining ahead of time" on "what is to be done" and "how it is to be done." Thus, planning is inextricably linked to creativity and innovation. 

It is a mental activity in which the management decides on the goals to be attained and the activities to be undertaken to achieve them. It is futuristic in nature since it entails anticipating, analysing, and predicting the future. 

Planning is defined as the process of establishing goals and objectives for a specific time period, developing alternatives for the course of action to be pursued, and eventually selecting an appropriate action from the numerous choices.

The main points in the definition of planning are as follows:

a. Time Period 

The planning strategy must be devised for a specific time period.

If planning is not done in a timely manner, it may be ineffective. This is due to the fact that the business environment evolves throughout time, necessitating new strategy and activity as and when changes are encountered.

b. Setting Objectives 

Planning must be directed toward a certain goal.

There must be a specific goal for which planning is being undertaken.

c. Alternative Course of Action  

An alternative course of action must be developed to determine which action will provide the best results in minimum costs, and successful accomplishment of objectives.

d. Deciding a Course of Action 

The best alternative course of action must be chosen based on criterias like cost, time, availability, feasibility etc..

7. If planning involves working out details for the future, why does it not ensure success? 

Ans: True, planning is a forward-thinking function that is based on analysing and forecasting future aspects. However, the future is unpredictable and cannot be foretold. External forces have a variety of effects on how an organisation operates. These natural forces are complicated and ever-changing. Social trends, political situations, technology, and government rules and regulations, for example, all change on a regular basis. 

Due to such uncertainties, it is impossible to predict the success rate of the plans; instead, the plans must be constantly adjusted to adapt to the changing environment. 

Assume, for example, that a competitor's arrival diminishes demand for a company's products. The company had not anticipated such a change when planning production. As a result, the company's earlier strategies fail, and it must devise new ones in light of the change in demand. 

Similarly, imagine the government announces a loosening of the rules for foreign investment, resulting in increased market competitiveness. Domestic enterprises' sales and manufacturing plans may collapse in the face of growing competition. Thus, despite the fact that planning entails working out details for the future, it does not guarantee success.

8. What kind of strategic decisions are taken by business organisations ?

Ans: A strategy is a broad plan for an organisation's business.

It has three basic objectives: 

to establish the objectives, 

to decide on a course of action, and 

to allocate objectives appropriately in order to achieve the objectives. 

The business environment must be considered whenever a strategy is developed. The economic, political, social, legal, and technological environments all have an impact on an organisation's strategy. Typically, strategies take the form of defining the organisation's identity in the business environment.

A business organisation may make the following strategic decisions:

Choosing which line of business to pursue.

Whether or not a new line of production should be implemented.

What position should the organisation seek in the current market?

What pricing policy should be used?

Decisions on advertising policy and expenditures.

Whether to expand the business or not?

If it expands, then within the country or globally?

Which aspect should be more focussed upon, cost leadership or differentiation?

Strategies in respect to raising finance, deciding the outsourcing strategy.

If growth is to be done, should it be horizontal growth or vertical growth?

Hence, the strategies take place at various business and functional levels.

9. Planning reduces creativity. Critically comment.(Hint: both the points - Planning promotes innovative ideas and planning reduces creativity – will be given). 

Ans: Planning is a critical and difficult function because it provides direction and reduces the risk of uncertainty through forecasting. It is an intellectual process that entails coming up with better ideas and methods to accomplish a specific task. And the top management level is in charge of the planning process, with the rest of the members simply carrying it out.

They are not permitted to participate in the planning process or to act on their own. As a result, creativity and innovation suffer.

10. In an attempt to cope with Reliance Jio’s onslaught in 2018, market leader Bharti Airtel has refreshed its ` 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. ? State its three dimensions also.

Ans: The type of plan highlighted in the preceding example is known as a strategy. A strategy is a comprehensive plan for achieving organisational goals that includes three dimensions:

Establishing long-term goals.

Choosing a specific course of action.

Allocating resources required to achieve goals.

11. State the type of plan and state whether they are Single use or Standing plan: 

a. A type of plan which serves as a controlling device as well.(budget) 

Ans: The budget plan is a one-time use plan. Budge is a numerically expressed statement of expected results. It is a projection intended to define the anticipated cost and results of a single project in numerical terms.

b. A plan based on research and analysis and is concerned with physical and technical tasks. (Method)

Ans: This is a pre-existing strategy known as method. Method specifies the prescribed ways or manner in which a task must be completed while keeping the objectives in mind. It deals with a task, which could be a step in a procedure, and specifies how that step should be carried out.

12. Why is it that organisations are not always able to accomplish all their objectives?

Ans: Organisations establish plans in order to achieve their goals. Planning is a necessary activity for any organisation since it serves as the foundation for its operation. However, occasionally things do not go as planned. Unexpected changes in the corporate environment can impair the organisation's plans. Furthermore, the planning process has its own constraints that impede the achievement of all of an organisation's objectives.

The following are some of the planning limits that may lead to the abandonment of organisational goals.

Rigidity: A well-defined strategy is drawn up in an organisation with clear goals to be fulfilled within a specific time frame. These plans then determine the future course of action, which managers may not be able to change. This type of rigidity in plans may cause problems. Managers must be given certain leeway in order to adapt to changing situations. Following a predetermined plan, and practising rigidity when conditions change may not be in the best interests of the organisation.

Unable to Deal with a Dynamic Environment: The business environment is dynamic and, as a result, quite uncertain. The environment has several dimensions, including economic, political, physical, legal, and social factors. The organisation must constantly adjust to changes. However, planning cannot always accurately anticipate such changes and hence fails in times of change and uncertainty. This may result in the failure to meet objectives. An organisation's operations must adapt to a changing environment.

Extremely Expensive: Creating plans necessitates an exorbitant investment of both time and money. Because planning is dependent on future projections, it necessitates a great deal of thought and analysis. It entails scientific calculations as well as figures and facts that will be used to formulate a plan of action. This comes at a heavy cost. Furthermore, it is possible that the advantages of planning will fall short of the costs paid.

Does Not Ensure Success: Good preparation does not ensure success. Managers frequently rely on tried-and-true ideas that have proven to be effective in the past. However, it is not always true that if a strategy has been effective in the past, it will be successful again in the future. Many unanticipated changes may occur, causing the strategy to fail. Managers frequently believe that planning can prevent problems from developing; nevertheless, they fail to recognize that planning merely serves as a foundation for forecasting the future. It does not provide immediate remedies to problems.

Time Consuming: Making plans is a time-consuming activity because it requires anticipating unforeseen events. It necessitates extensive investigation and evaluation. This increases the time spent by managers, and actual actions may be delayed as a result. Also, many opportunities could be missed while planning.

Reduces Creativity: Planning is a task performed by upper management. Typically, the rest of the members just carry out their plans. As a result, middle management and other decision makers are not permitted to break from plans or act independently. As a result, much of their initiative or originality is lost or curtailed. The majority of the time, employees do not even attempt to develop strategies, they merely execute commands. Thus, planning limits creativity in certain ways since people tend to think along the same lines as others. Nothing is novel or innovative.

13. What are the steps taken by management in the planning process? 

Ans: Planning entails deciding ahead of time what will be done and how it will be done. It consists of a few logical steps.

The following are the steps that management should take when formulating plans.

Setting up the Objectives: Setting objectives and goals is the first step in the planning process. Each company or enterprise has a certain objective to achieve. Managers must articulate these objectives clearly so that the proper path can be adopted to achieve them. Furthermore, the plan's objectives must permeate all levels of the organisation. It gives direction to separate departments/units so that they can work toward the organisation's common goals. Management functions cannot be carried out unless the goals are stated.

Developing the Premises: Certain assumptions about the future are made under planning. These assumptions are referred to as premises. The assumptions concern future forecasts, previous plans, and current policies and facts. Managers at all levels of the organisation who are involved in planning should adhere to the Implementation of such premises. The same assumptions apply to the follow-up action. These assumptions are critical for the organisation since they determine the course of action for future initiatives. As a result, proper premises should be proposed for successful planning.

Identification of the Alternatives: Once the objectives and assumptions have been established, it is necessary to determine the various courses of action that can be taken. There are numerous approaches that can be taken to reach a specific goal. Managers must carefully consider these many options. This requires creativity and a creative mind in order to create new solutions to achieve the goals.

Evaluation of the Alternatives: Managers must analyse the various paths of action after recognizing them. This assessment is based on the utility and consequences of the alternatives. Managers must weigh the benefits and drawbacks of each option. Each proposal's positive and negative features must be considered in light of the goal to be attained. For example, which route will be less expensive or which choice would allow you to achieve your goals in less time. In light of such considerations, the appropriate evaluation of various solutions should be carried out.

Selection of the Best: Choosing the finest choice entails going with the method that is most viable in terms of the goal. Managers should utilise their skills and knowledge to judge and select the best choice in terms of profitability, costs, and feasibility. Depending on the circumstances, a variety of multiple routes may be followed rather than simply one. Of course, the ideal strategy would be the most practical, profitable, and with the fewest bad implications.

Implementation: Implementing the alternatives necessitates the involvement of additional management departments. It entails organising and directing work in accordance with the specified course and policies. Implementation is concerned with adhering to the chosen course of action and determining how it will be employed in order to be effective.

Follow-up Action: A continual supervision of the actions is essential for assessing the overall operation and implementation of the plans. Keeping an eye on the activities to be completed is an important element of the planning process since it helps to guarantee that the plan works properly. As a result, rigorous follow-up activity improves the success of a plan and, as a result, the achievement of the objectives.

Case problem: 

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. realised 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.(Hint: Planning is pervasive, Planning is futuristic and Planning is a mental exercise).

Ans: The following planning characteristics are highlighted in the preceding example:

Planning is all pervasive: The need for planning arises in all types of organisations, at all the levels of management as well as in all departments of the organisation. It is not a top-level function; rather, it is performed by managers at all levels. Whereas top-level management creates organisational plans, the middle level creates departmental plans, and the lower level creates plans for the organisation's day-to-day operations.

Planning is futuristic: Planning is based on forecasting and is prepared for the future. The primary goal of planning is to effectively meet future events to the best advantage of an organisation. It implies looking into the future, analysing it, and making predictions about it. Thus, planning is a forward-thinking process.

Planning is a mental exercise: Planning is a mental exercise because it necessitates creativity, imagination, and higher-order thinking skills, as well as sound judgement. It is a mental intellectual activity. It necessitates logical and systematic thinking as opposed to guesswork or wishful thinking.

1. Prepare a model business plan for C Ltd to meet the existing challenge. You need to be very specific about quantitative parameters. You may specify which type of plan you are preparing.

Ans: Policies and strategies are plans that can be beneficial to the organisation in this case. Strategy give a general overview of the organization's strategies for achieving its objectives. Policies, on the other hand, serve as the foundation for understanding an organization's strategies and specify the broad areas of managerial activities.

Policies are the plans which act as a guide to managerial action and decisions in the implementation of the strategy. Policies are flexible in nature. Therefore, proper strategies and strong policies are needed for surviving in the market among competitors.

2. Identify the limitations of such plans.

Ans: Limitations of the above plans are as follows:

Plannings lead to rigidity.

Plannings might not work in a dynamic environment.

Plannings involve huge costs and it is a time-consuming process.

There shouldn’t be any dependency only on the previously tried and tested successful plans.

3. How will you seek to remove these limitations?

Ans: The below steps must be needed for removing planning limitations:

Rigidity in plans creates difficulty, so managers need to be given a certain degree of flexibility to cope with the changed circumstances.

The business environment is dynamic in nature, so it is not constant. It is very difficult to accurately predict the future trends of the business environment. Plannings cannot foresee everything, so organisations have to continuously adapt themselves to changes.

Unnecessary costs and time wastage need to be stopped during the course of planning.

Managers sometimes rely on previously tried and tested successful plans. Just because a plan has worked before, it is not always true that it will work again. There should be new plans as per the current situations and circumstances.

Our website and app make it simple to download Class 12 Chapter 4 Business Studies PDF. The study material is well-planned and arranged, so pupils do not need to exert additional effort. It provides the most comprehensive understanding of the issues covered in the defined chapter, with valuable pictures and examples that make the text engaging and self-explanatory for students who read it. Our content is still an excellent resource for rapid and effective revision.

NCERT Solutions for Class 12 Business Studies Chapters

Chapter 4 - planning.

NCERT Solution Class 12 Business Studies Chapter 4 mainly focuses on the concepts of Planning. The key concepts such as the meaning of planning, the importance of planning, features of planning, the limitations of planning, the planning process, types of plans, etc. have been well covered under this topic. These concepts have been explained in the easiest languages which will help students understand the chapter deeply. 

Class 12 Business Studies Chapter-wise Marks Weightage

Business Studies Class 12 Chapter 4 has a weightage of around 14 marks combined with Chapter 5 (Organising). It is one of the most important topics regarding the concept of planning. This chapter discusses the significance, features and limitations of planning. Our Class 12 Business Studies Chapter 4 NCERT Solutions gives a detailed overview of the planning process and well-organised information about single-use and standing plans. The questions from the chapter keep iterating every year in the board examinations and hence students will find our content handy while preparing for their examinations.

Why are Class 12 Business Studies Chapter 4 NCERT Solutions Important?

The solutions provided cover entire topics and impart a deep knowledge to students who don’t find the particular topic comprehensible.

Our easy-to-grasp answers are helpful for students to learn and explore the topic completely.

The solutions have been arranged and stated systematically to reduce the effort and precious time of students.

NCERT Class 12 Business Studies Chapter 4 Solutions have been prepared and compiled by our team of subject experts who have made sure that the content remains short, crisp yet fulfilling.

NCERT Solutions for Class 12 Business Studies Chapter 4 comes with key points, definitions and instances that reduce the effort before the examination and make it a great tool for quick revision.

NCERT Solutions for Class 12 Business Studies - Other Chapters

Chapter 1 - Nature and Significance of Management

Chapter 2 - Principles of Management

Chapter 3 - Business Environment

Chapter 5 - Organising

Chapter 6 - Staffing

Chapter 7 - Directing

Chapter 8 - Controlling

Chapter 9 - Financial Management

Chapter 10 - Financial Markets

Chapter 11 - Marketing

Chapter 12 - Consumer Protection

Chapter 13 - Entrepreneurship Development

Other Related Links

CBSE Class 12 Business Studies Syllabus

Revision Notes for CBSE Class 12 Business Studies

Important Questions for CBSE Class 12 Business Studies

Class 12 Business Studies Previous Year Questions Papers

Sample Papers for CBSE Class 12 Business Studies

Chapter 4 - NCERT Answers for Class 12 Planning Business Studies is an essential chapter for students since it tackles one of the fundamental managerial responsibilities, planning. To be self-sustaining, all government and commercial organizations/companies require appropriate planning. Our specialists give step-by-step answers to all of the problems presented in this solution. 

Students who are having problems grasping the topics of the chapter can consult the Chapter 4 answers pdf to resolve their questions. Students will have a thorough understanding of the chapter's important topics as a result of these solutions, and their scores in Business Studies will increase. For more information about NCERT Solutions for Class 12 Business Studies study materials, visit Vedantu's website or download the app for the finest learning experience.

FAQs on NCERT Solutions for Class 12 Business Chapter 4 - Planning

1. What are the Features of Planning?

The planning function of management has certain types of special features which throw light on its scope and nature:

Planning is continuous: Plans extend for a specific period. After the completion of the period, there is a need to renew the plan based on the requirements and new conditions. Hence, planning is a continuous process.

Planning involves decision making: Thorough examination and judgment of all the available alternatives are involved in planning.

Planning is pervasive: Planning is an essential part of all levels and departments of an organization.

2. What is the Significance of Planning?

Planning is an absolute necessity at all levels in an organization. The significance of planning are as follows:

Planning promotes innovative ideas: New creative ideas transform into concrete plans for an organization leading to the growth of the organization.

Planning reduces risks of uncertainty: Planning involves deciding the course of action for the future and steps to be taken in advance. In this way, the organization can anticipate the possible risks and deal accordingly.

Planning establishes standards: Planning involves the establishment of goals beforehand against which the actual performance can be measured. Planning provides the basis of control.

3. What concepts can I learn using the NCERT Solutions for Class 12 Business Studies Chapter 4?

NCERT Solutions for Class 12 Business Studies, Chapter 4, covers all important concepts of Planning. In terms of creating proper sustainable planning, all companies and organisations, including private and business organisations or companies, need to have a concrete plan. Chapter 4 of Class 12 Business Studies explains the importance of planning. All the concepts covered in Chapter 4 of the Class 12 Business Studies are very important for the students to learn and understand from the examination point of view.

4. How to learn Chapter 4 of Class 12 business studies for exams?

To learn Chapter 4 of Class 12 Business Studies , there are easy-to-understand questions and answers from the chapter on Vedantu. The subject experts at Vedantu make it easier for students to understand Chapter 4 of Class 12 Business Studies. They ensure that the study materials provide easy explanations to help students learn and understand the chapter easily for the exams.

5. Which topics in Class 12 Business Studies Chapter 4 are important for the exams?

Chapter 4 of Class 12 Business Studies has a total weightage of 14 marks in the final CBSE board examinations. This chapter has some of the most important topics in terms of the concept of business planning. Some of the most important questions and examples in Class 12 Business Studies of Chapter 4 are asked from topics such as the importance of planning, types of business planning, and features of planning. The solutions can be downloaded for free of cost from the Vedantu mobile app as well.

6. How to learn and understand Planning in Class 12 Business Studies Chapter 4?

Chapter 4 of Class 12 Business Studies is about planning. Planning can be understood by students by learning its definition, importance, features, limitations, process, and even by comprehending different types of business plans. Vedantu provides students with all this information. Chapter 4 consists of important topics from the examination point of view, and students can refer to the NCERT Solutions for Class 12 Business Studies Ch 4 on Vedantu for their preparation.

7. What are the basics of the Planning Chapter in Class 12 Business Studies?

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Skowhegan Craft Brew Festival set for Saturday

The celebration of local beer and other products is expected to draw people from around the country to sample beverages from 24 Maine producers.

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A crowd gathers Sept. 2, 2023, along the Kennebec River, behind Water Street businesses, for the Skowhegan Craft Brew Festival in downtown Skowhegan. Morning Sentinel file

SKOWHEGAN — Beer lovers from around the country are expected to head to Skowhegan on Saturday for the town’s annual Labor Day weekend brew festival.

The Skowhegan Craft Brew Festival is set to feature more than 100 Maine-made craft beers, wines, ciders and spirits from 24 beverage producers, along with local food vendors and four musical acts, according to an announcement from the event’s organizer, the nonprofit organization Main Street Skowhegan.

The festival, which began in 2016, is expected to draw people from Maine, 13 other states and Canada, according to the announcement. So far, people from as far away from Texas, Arizona and Nevada have bought tickets, the organization said.

“We’re thrilled to draw people from near and far to Skowhegan for our annual brew festival,” Kristina Cannon, president and CEO of Main Street Skowhegan, said in the statement. “Not only do events showcase our growing community and all that we have to offer visitors, but they also bring people to town who spend money at our locally owned businesses. Brew fest, in particular, brings people back again and again to our community.”

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Tickets are required to attend the brew festival, and can be purchased online at skowhegancraftbrewfest.com . A $50 general admission ticket includes unlimited beverage samples from 3 to 7 p.m. and a souvenir tasting glass. “Designated driver” tickets for those who do not wish to drink alcohol are $10.

Ticket prices increase by $5 the day of the festival, so organizers suggest buying tickets by 6 p.m. Friday. Advertisement

A “VIP hour” at 2 p.m., featuring free food samples, other goodies and live entertainment, is sold out.

The brew festival is to be held along the Kennebec River in downtown Skowhegan, where the event moved last year from its previous location on Water Street .

Skowhegan Craft Brew Festival draws hundreds of beer drinkers to new location

Organizers said last year that the move was intended to help promote ongoing economic revitalization efforts along the town’s waterfront, including the planned River Park. Other events, such as the annual River Fest in August , are intended to achieve that goal, too.

With a contractor on board and the permitting process in its final stages, construction of the in-river whitewater park portion of the overall development is expected to begin in spring 2025 , Cannon said recently.

Construction of Skowhegan whitewater River Park delayed until 2025

Main Street Skowhegan uses proceeds from the brew festival to support its ongoing economic development efforts, according to organizers. The event is sponsored by more than a dozen local businesses and organizations.

The festival is expected to take place no matter the weather. As of Thursday, the National Weather Service was predicting mostly cloudy skies in Skowhegan on Saturday, with high temperatures in the mid-70s, and a 50% chance of rain showers after 2 p.m.

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