small case study on planning in management

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.

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Strategic Plan Examples: Case Studies and Free Strategic Planning Template

By Anthony Taylor - May 29, 2023

As you prepare for your strategic planning process, it's important to explore relevant strategic plan examples for inspiration.

In today's competitive business landscape, a well-defined strategic plan holds immense significance. Whether you're a private company, municipal government, or nonprofit entity, strategic planning is essential for achieving goals and gaining a competitive edge. By understanding the strategic planning process, you can gain valuable insights to develop an effective growth roadmap for your organization.

In this blog, we will delve into real-life examples of strategic plans that have proven successful. These examples encompass a wide range of organizations, from Credit Unions that have implemented SME Strategy's Aligned Strategy process to the Largest Bank in Israel. By examining these cases, we can gain a deeper understanding of strategic planning and extract relevant insights that can be applied to your organization.

• Strategic Plan Example (Global Financial Services Firm)
• Strategic Plan Example (Joint Strategic Plan)
• Strategic Plan Example: (Government Agency)
• Strategic Plan Example (Multinational Corporation)
• Strategic Plan Example: (Public Company)
• Strategic Plan Example (Non Profit)
• Strategic Plan Example: (Small Nonprofit)
• Strategic Plan example: (Municipal Government)
• Strategic Plan Example: (Environmental Start-up)  

When analyzing strategic plan examples, it is crucial to recognize that a strategic plan goes beyond being a mere document. It should encapsulate your organization's mission and vision comprehensively while also being actionable. Your strategic plan needs to be tailored to your organization's specific circumstances, including factors such as size, industry, budget, and personnel. Simply replicating someone else's plan will not suffice.

Have you ever invested significant time and resources into creating a plan, only to witness its failure during execution? We believe that a successful strategic plan extends beyond being a static document. It necessitates meticulous follow-through, execution, documentation, and continuous learning. It serves as the foundation upon which your future plans are built.

It is important to note that a company's success is not solely determined by the plan itself, but rather by how effectively it is executed. Our intention is to highlight the diverse roles that a company's mission, vision, and values play across different organizations, whether they are large corporations or smaller nonprofits.

Strategic plans can vary in terms of their review cycles, which can range from annual evaluations to multi-year periods. There is no one-size-fits-all example of a strategic plan, as each organization possesses unique needs and circumstances that must be taken into account.

Strategic planning is an essential process for organizations of all sizes and types. It assists in setting a clear direction, defining goals, and effectively allocating resources. To gain an understanding of how strategic plans are crafted, we will explore a range of examples, including those from private companies, nonprofit organizations, and government entities.

Throughout this exploration, we will highlight various frameworks and systems employed by profit-driven and nonprofit organizations alike, providing valuable insights to help you determine the most suitable approach for your own organization.

Watch: Examples of Strategic Plans from Real-Life Organizations 

Strategic Plan Example  - The Bank Hapoalim Vision:  To be a leading global financial services firm, with its core in Israel, focused on its clients and working to enhance their financial freedom.

Bank Hapoalim, one of Israel's largest banks with 8,383 branches across 5 different countries as of 2022, has recently provided insights into its latest strategic plan. The plan highlights four distinct strategic priorities:

• Continued leadership in corporate banking and capital markets
• Adaptation of the retail banking operating model
• Resource optimization and greater productivity
• Differentiating and influential innovation

Check out their strategic plan here: Strategic Plan (2022-2026)

We talked to Tagil Green, the Chief Strategy Officer at Bank Hapoalim, where we delved into various aspects of their strategic planning process. We discussed the bank's strategic planning timeline, the collaborative work they engaged in with McKinsey, and the crucial steps taken to secure buy-in and ensure successful implementation of the strategy throughout the organization. In our conversation, Tagil Green emphasized the understanding that there is no universal template for strategic plans. While many companies typically allocate one, two, or three days for strategic planning meetings during an offsite, Bank Hapoalim recognized the significance of their size and complexity. As a result, their strategic plan took a comprehensive year-long effort to develop. How did a Large Global Organization like Bank Hapoalim decide on what strategic planning timeline to follow?

"How long do you want to plan? Some said, let's think a decade ahead. Some said it's irrelevant. Let's talk about two years ahead. And we kind of negotiated into the like, five years ahead for five years and said, Okay, that's good enough, because some of the complexity and the range depends on the field that you work for. So for banking in Israel, four or five years ahead, is good enough. "  Tagil Green, Chief Strategy Officer, Bank Hapoalim 

Another important aspect you need to consider when doing strategic planning is stakeholder engagement, We asked Tagil her thoughts and how they conducted stakeholder engagement with a large employee base.

Listen to the Full Conversation with Tagil:

Strategic Planning and Execution: Insights from the Chief Strategy Officer of Israel's Leading Bank

Strategic Plan Example: Region 16 and DEED (Joint Strategic Plan)

Mission Statement: We engage state, regional, tribal, school, and community partners to improve the quality and equity of education for each student by providing evidence-based services and supports.

In this strategic plan example, we'll explore how Region 16 and DEED, two government-operated Educational Centers with hundreds of employees, aligned their strategic plans using SME Strategy's approach . Despite facing the challenges brought on by the pandemic, these organizations sought to find common ground and ensure alignment on their mission, vision, and values, regardless of their circumstances.

Both teams adopted the Aligned Strategy method, which involved a three day onsite strategic planning session facilitated by a strategic planning facilitator . Together, they developed a comprehensive 29-page strategic plan outlining three distinct strategic priorities, each with its own objectives and strategic goals. Through critical conversations, they crafted a clear three year vision, defined their core customer group as part of their mission, refined their organizational values and behaviors, and prioritized their areas of focus.

After their offsite facilitation, they aligned around three key areas of focus:

• Effective Communication, both internally and externally.
• Streamlining Processes to enhance efficiency.
• Developing Effective Relationships and Partnerships for mutual success.

By accomplishing their goals within these strategic priorities, the teams from Region 16 and DEED aim to make progress towards their envisioned future.

To read the full review of the aligned strategy process click here

Download Now Starting your strategic planning process soon? Get our free Strategic Planning Template

Strategic Plan Example: (Government Agency) - The City of Duluth Workforce Development Board

What they do:

The Duluth Workforce Development Board identifies and aligns workforce development strategies to meet the needs of Duluth area employers and job seekers through comprehensive and coordinated systems.

An engaged and diverse workforce, where all individuals, regardless of background, have or are on a path to meaningful employment and a family sustaining wage, and all employers are able to fill jobs in demand.

The City of Duluth provides an insightful example of a strategic plan focused on regional coordination to address workforce needs in various industry sectors and occupations. With multiple stakeholders involved, engaging and aligning them becomes crucial. This comprehensive plan, spanning 82 pages, tackles strategic priorities and initiatives at both the state and local levels.

What sets this plan apart is its thorough outline of the implementation process. It covers everything from high-level strategies to specific meetings between different boards and organizations. Emphasizing communication, coordination, and connectivity, the plan ensures the complete execution of its objectives. It promotes regular monthly partner meetings, committee gatherings, and collaboration among diverse groups. The plan also emphasizes the importance of proper documentation and accountability throughout the entire process.

By providing a clear roadmap, the City of Duluth's strategic plan effectively addresses workforce needs while fostering effective stakeholder engagement . It serves as a valuable example of how a comprehensive plan can guide actions, facilitate communication, and ensure accountability for successful implementation.

Read this strategic plan example here: Strategic Plan (2021-2024)

Strategic Plan Example: McDonald's (Multinational Corporation)

McDonald's provides a great strategic plan example specifically designed for private companies. Their "Velocity Growth Plan" covers a span of three years from 2017 to 2020, offering a high-level strategic direction. While the plan doesn't delve into specific implementation details, it focuses on delivering an overview that appeals to investors and aligns the staff. The plan underscores McDonald's commitment to long-term growth and addressing important environmental and societal challenges. It also highlights the CEO's leadership in revitalizing the company and the active oversight provided by the Board of Directors.

The Board of Directors plays a crucial role in actively overseeing McDonald's strategy. They engage in discussions about the Velocity Growth Plan during board meetings, hold annual strategy sessions, and maintain continuous monitoring of the company's operations in response to the ever-changing business landscape.

The McDonald's strategic plan revolved around three core pillars:

• Retention: Strengthening and expanding areas of strength, such as breakfast and family occasions.
• Regain: Focusing on food quality, convenience, and value to win back lost customers.
• Convert: Emphasizing coffee and other snack offerings to attract casual customers.

These pillars guide McDonald's through three initiatives, driving growth and maximizing benefits for customers in the shortest time possible.

Read the strategic plan example of Mcdonlald's Velocity growth plan (2017-2020)

Strategic Plan Example: Nike (Public Company)

Nike's mission statement is “ to bring inspiration and innovation to every athlete in the world .”  

Nike, as a publicly traded company, has developed a robust global growth strategy outlined in its strategic plan. Spanning a five-year period from 2021 to 2025, this plan encompasses 29 strategic targets that reflect Nike's strong commitment to People, Planet, and Pay. Each priority is meticulously defined, accompanied by tangible actions and measurable metrics. This meticulous approach ensures transparency and alignment across the organization.

The strategic plan of Nike establishes clear objectives, including the promotion of pay equity, a focus on education and professional development, and the fostering of business diversity and inclusion. By prioritizing these areas, Nike aims to provide guidance and support to its diverse workforce, fostering an environment that values and empowers its employees.

Read Nike's strategic plan here

Related Content: Strategic Planning Process (What is it?)

The Cost of Developing a Strategic Plan (3 Tiers)

Strategic Plan Example (Non Profit) - Alternatives Federal Credit Union

Mission: To help build and protect wealth for people with diverse identities who have been historically marginalized by the financial industry, especially those with low wealth or identifying as Black, Indigenous, or people of color.

AFCU partnered with SME Strategy in 2021 to develop a three year strategic plan. As a non-profit organization, AFCU recognized the importance of strategic planning to align its team and operational components. The focus was on key elements such as Vision, Mission, Values, Priorities, Goals, and Actions, as well as effective communication, clear responsibilities, and progress tracking.

In line with the Aligned Strategy approach, AFCU developed three strategic priorities to unite its team and drive progress towards their vision for 2024. Alongside strategic planning, AFCU has implemented a comprehensive strategy implementation plan to ensure the effective execution of their strategies.

Here's an overview of AFCU's 2024 Team Vision and strategic priorities: Aligned Team Vision 2024:

To fulfill our mission, enhance efficiency, and establish sustainable community development approaches, our efforts will revolve around the following priorities: Strategic Priorities:

Improving internal communication: Enhancing communication channels and practices within AFCU to foster collaboration and information sharing among team members.

Improving organizational performance: Implementing strategies to enhance AFCU's overall performance, including processes, systems, and resource utilization.

Creating standard operating procedures: Developing standardized procedures and protocols to streamline operations, increase efficiency, and ensure consistency across AFCU's activities.

By focusing on these strategic priorities, AFCU aims to strengthen its capacity to effectively achieve its mission and bring about lasting change in its community. Watch the AFCU case study below:

Watch the Full Strategic Plan Example Case Study with the VP and Chief Strategy Officer of AFCU

Strategic Plan Example: (Small Nonprofit) - The Hunger Project 

Mission: To end hunger and poverty by pioneering sustainable, grassroots, women-centered strategies and advocating for their widespread adoption in countries throughout the world.

The Hunger Project, a small nonprofit organization based in the Netherlands, offers a prime example of a concise and effective three-year strategic plan. This plan encompasses the organization's vision, mission, theory of change, and strategic priorities. Emphasizing simplicity and clarity, The Hunger Project's plan outlines crucial actions and measurements required to achieve its goals. Spanning 16 pages, this comprehensive document enables stakeholders to grasp the organization's direction and intended impact. It centers around three overarching strategic goals, each accompanied by its own set of objectives and indicators: deepening impact, mainstreaming impact, and scaling up operations.

Read their strategic plan here  

Strategic Plan example: (Municipal Government)- New York City Economic Development Plan 

The New York City Economic Development Plan is a comprehensive 5-year strategic plan tailored for a municipal government. Spanning 68 pages, this plan underwent an extensive planning process with input from multiple stakeholders. 

This plan focuses on the unique challenges and opportunities present in the region. Through a SWOT analysis, this plan highlights the organization's problems, the city's strengths, and the opportunities and threats it has identified. These include New York's diverse population, significant wealth disparities, and high demand for public infrastructure and services.

The strategic plan was designed to provide a holistic overview that encompasses the interests of a diverse and large group of business, labor, and community leaders. It aimed to identify the shared values that united its five boroughs and define how local objectives align with the interests of greater New York State. The result was a unified vision for the future of New York City, accompanied by a clear set of actions required to achieve shared goals.

Because of its diverse stakeholder list including; council members, local government officials, and elected representatives, with significant input from the public, their strategic plan took 4 months to develop. 

Read it's 5 year strategic plan example here

Strategic Plan Example: Silicon Valley Clean Energy

Silicon Valley Clean Energy provides a strategic plan that prioritizes visual appeal and simplicity. Despite being in its second year of operation, this strategic plan example effectively conveys the organization's mission and values to its Board of Directors. The company also conducts thorough analyses of the electric utility industry and anticipates major challenges in the coming years. Additionally, it highlights various social initiatives aimed at promoting community, environmental, and economic benefits that align with customer expectations.

"This plan recognizes the goals we intend to accomplish and highlights strategies and tactics we will employ to achieve these goals. The purpose of this plan is to ensure transparency in our operations and to provide a clear direction to staff about which strategies and tactics we will employ to achieve our goals. It is a living document that can guide our work with clarity and yet has the flexibility to respond to changing environments as we embark on this journey." Girish Balachandran CEO, Silicon Valley Clean Energy

This strategic plan example offers flexibility in terms of timeline. It lays out strategic initiatives for both a three-year and five-year period, extending all the way to 2030. The plan places emphasis on specific steps and targets to be accomplished between 2021 and 2025, followed by goals for the subsequent period of 2025 to 2030. While this plan doesn't go into exhaustive detail about implementation steps, meeting schedules, or monitoring mechanisms, it effectively communicates the organization's priorities and desired long term outcomes. Read its strategic plan example here

By studying these strategic plan examples, you can create a strategic plan that aligns with your organization's goals, communicates effectively, and guides decision-making and resource allocation. Strategic planning approaches differ among various types of organizations.

Private Companies: Private companies like McDonald's and Nike approach strategic planning differently from public companies due to competitive market dynamics. McDonald's provides a high-level overview of its strategic plan in its investor overview.

Nonprofit Organizations: Nonprofit organizations, like The Hunger Project, develop strategic plans tailored to their unique missions and stakeholders. The Hunger Project's plan presents a simple yet effective structure with a clear vision, mission, theory of change, strategic priorities, and action items with measurable outcomes.

Government Entities: Government entities, such as the New York City Development Board, often produce longer, comprehensive strategic plans to guide regional or state development. These plans include implementation plans, stakeholder engagement, performance measures, and priority projects.

When creating a strategic plan for your organization, consider the following key points:

Strategic Priorities: Define clear strategic priorities that are easy to communicate and understand.

Stakeholder Engagement: Ensure your plan addresses the needs and interests of your stakeholders.

Measurements: Include relevant measurements and KPIs, primarily for internal use, to track, monitor and report your progress effectively.

Conciseness vs. Thoroughness: Adapt the level of detail in your plan based on the size of your organization and the number of stakeholders involved.

By learning from these examples, you can see that developing a strategic plan should be a process that fits your organization, effectively communicates your goals, and provides guidance for decision-making and resource allocation. Remember that strategic planning is an ongoing process that requires regular review and adjustment to stay relevant and effective.

Need assistance in maximizing the impact of your strategic planning? Learn how our facilitators can lead you through a proven process, ensuring effectiveness, maintaining focus, and fostering team alignment.

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Case Studies - Planning | Business Studies (BST) Class 12 - Commerce PDF Download

Q.1. 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, Lavendear, Mogra, Lemon Grass, Greed Apple, Strawberry etc.  The Unique Selling Proposition (USP) was to promote eco-friendly living the contemporary life style.  The company decided to allocate Rs. 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 .         (1 mark)  Ans.  Strategy

Q.2. 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 price.  She discussed her idea with her teacher (|mentor) who encouraged her.  After analyzing various options for starting her business venture, they shortlisted the option to sell ready made and ‘ready to make’ vegetable shakes and sattu milk shakes.  Then they both weighed the pros and coris of both the shortlisted optins.

• Name the function of management being discussed above and give any one of its characteristics.
• Also briefly discuss any three limitations the function discussed in the case.   (5 marks)
• Planning Characteristic of planning: Planning focuses on achieving objectives
• Limitations of planning 1. Planning leads to rigidity 2. Planning reduces creativity 3. Planning is a time-consuming process

  Q.3. A company is manufacturing garments.  The manager wants to increase profits by purchasing new high speed machines or increasing the sale price or using waste material in manufacturing stuffed toys.  He decided that ‘using waste material’ to increase the profit is the best solution for him.

• Identify the concept of management involved.
• Mention the steps involved in the above process by quoting the line from the question.
• To complete the process of the concept identified in (a), what two next steps does the manager have to take?  Explain.(6 marks)

Ans.  1. The concept of management involved is planning.

2. Steps involved are:

• Setting objectives: increasing profits
• Developing planning premises: making certain assumptions about the future.
• Identifying alternative courses of action: Purchasing new high-speed machines, or Increasing the sale price, or Using waste material in manufacturing stuffed toys
• Evaluating alternatives and selecting an alternative

3. Further steps  to complete the process of planning:

• Formulating derivate plans
• Implementing the plan and follow-up-action

Q.4. Two year 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 that 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 Rs. 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.  Ans. 

The different types of plans discussed above are listed below:

• Objectives:

“One of her objectives was to earn 10% profit on the amount invested in the first year.”

“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.”

“The exact manner in which the production activities are to be carried out.”

“She also decided to follow the steps required for marketing of the products through her own outlets.”

“While working on the production Table, a penalty of Rs. 100 per day for not wearing caps, gloves and aprons was announced.”

Q.5. During partition, Kundan Lal came to Mumbai from Lahore with a lot of wealth.  Keeping in view his innate ability to visualize 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 Jummy as manager.  Jimmy 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 a lot of confusion and conflicts.  As a result, the goodwill earned by Kundan Lal over the years began to decline.

In the context of the above case:

• Identify and explain the function of management that Jimmy failed to perform by quoting lines from the paragraph.
• Describe briefly any two features of the function of management as identified in part (a).

1. Planning is the function of management which Jimmy 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.

2. The two features of the planning function of management are as follows:

• Planning is pervasive
• Planning involves decision-making

Q.6. After completing a diploma in Bakery and Patisserie, Payal 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 type of pizzas and low sugar muffins in four flavours.  Thus, by deviding 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:
• Avoiding overlapping and wasteful activities:
•   The limitation of planning which adversely affects Payal’s business is: Planning may not work in a dynamic environment.

Q.7. 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.  Rahul’s supervisor instead of appreciating him, ordered him to complete the work as per the methods and techniques decided earlier as nothing could be changed at that stage.

The above para describes one of the limitation of planning function of management.  Name that limitation.     (1 mark)

Ans.  Planning reduces creativity.

Q.8. ABC Ltd. has a plan of increasing profits by 20%.  It has devoted a lot of time and money to this plan.  But the competition starts increasing, so it could not change its plan to b eat its competitors because huge amount of money had already been devoted to the pre-decided plan.  It caused losses to the company.

Explain any two limitations of planning highlighted in the above case.  Also, quote the lines from it .   (4 marks)

• ‘ABC Ltd. has devoted a lot of time and money to its plan.’ Limitation: Planning is a time-consuming process. It also involves huge costs.
• ‘The competition starts increasing, so it could not change its plan to beat its competitors because a huge amount of money had already been devoted to the pre-decided plan.’ Limitation: Planning leads to rigidity.  Following a pre-decided plan, when circumstances change, may not turn out to be in the organization’s interest.

Q.9. In ‘Chak De India’ movie, Shahrukh Khan becomes the coach of the girls’ hockey team.  He knows that he has to prepare the girls for the international hockey matches and bring the world cup after winning.  For this he prepares a long-team plan and thinks the ways how to bet the competitors.  He coaches the girls to play in different ways like defensive, offensive, etc.  at the outset of a match he explains who will open the match, and how the ball will be passed by one player to another step by step.

Identify four types of plan that are highlighted in the above case, quoting the lines from it.      (4 marks)

• Objective ‘…bring the World Cup after winning.’
• Strategy ‘For this he prepares a long-term plan and thinks the ways how to beat the competitors.’
• Method ‘He coaches the girls to play in different ways like defensive, offensive, etc.’
• Procedure ‘At the outset of a match he explains who will open the match, and how the ball will be passed by one player to another step by step.’

Q.10. 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 feat of people related to shopping online, Flipkart was the first company to implement to 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 Rs. 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 iis 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 the paragraph.  Ans.  The different types of plans being used by Flipkart are listed below:

“The company seeks to increase traffic (more clicks on their products) and boost sales and revenue through the integration of Mobiles Apps, Display, Pay Per Click and Search engine Optimization.”

“In order to dispel to 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 periods.”

“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 Rs. 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.”

Q.11. An electronic company 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 price models for mass consumers who are price sensitive.  For quality conscious consumers, company is introducing new model LED TV and DVD players with added features and new technological advancements.  For this, the company raises extra funds Rs. 5 crore form banks.

Name the type of plan the company is preparing.  State the steps which the company follows to implement this plan quoting the line from the above para.  (4 marks)

Ans.  The type of plan needed to be prepared under this situation is ‘Strategy’.

The steps involved in preparing this plan are: (i) Determining long-term objectives (ii) Adopting a particular course of action (iii) Allocating resources necessary to achieve the objectives

Q. 12. Arush joins as a sales manager of a company dealing in naturotherapy produces.  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 the context of the above case, identify the various features of planning highlighted in the above paragraph by quoting lines from it.

Ans.  The features of planning highlighted in the above paragraph are explained below:

• Planning is a primary function: “… 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: “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:  “Besides, he will have to prepare sales plans regularly on a weekly, monthly, quarterly and half-yearly basis.”
• Planning is a mental exercise: “While preparing the sales forecasts he undertakes intellectual thinking involving foresight, visualization and issued judgement rather than wishful thinking or guesswork.”
• Planning focuses on achieving objectives:  “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.”

Q.13. Zyesha Ltd. is a company which manufactures leather bags.  The CEO of the company wants to increase their sales and earn more profits.  The consulted with a management consultant who suggested the top management of the company tow rok hard in thinking about the future in making business prediction and achieve the targets since the business environment keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competitors in the market.

• Identify and state the concept of management discussed in the para.
• State the characteristic feature of business environment highlighted in the above para.  (3 marks)
• Planning It involves setting objectives and developing an appropriate course of action to achieve these objectives. Dreams (e.g. increase sales, earn more profits, etc.) can be turned into reality only if business managers think in advance on what to do and how to do it.
• The business environment is dynamic as it keeps on changing.

Q.14. Lira Ltd. is a company manufacturing designer socks.  While making its plan, the company takes into consideration the business environment.  It constantly adapt itself to changes in environment by making changes in its plan.  However, it becomes difficult for the managers of the company to accurately foresee future trends in the environment.  Competition in the market upsets its financial plans; then sales targets have to be revise3d and, accordingly cash budgets also need to be modified since they are based on sales figures.

• What characteristic features of business environment are highlighted in the above lines?  State any two.
• State and explain the limitation of planning highlighted in the above lines.
• Identify any two types of plan mentioned in the above pare by quoting the lines from it.     (6 marks)

1. (i) The business environment is dynamic as it keeps on changing.

(ii) The business environment is uncertain as it is difficult for managers to accurately foresee future trends in the environment.

2. Planning may not work in a dynamic environment.

The organisation has to constantly adapt itself to changes in the environment by making changes in its plans. However, since planning cannot foresee everything, there may be obstacles to effective planning.

3. (i) Strategy – ‘While making its plan, the company takes into consideration the business environment.’

(ii) Budget – ‘Competition in the market upsets its financial plans; then sales targets have to be revised and accordingly cash budgets also need to be modified since they are based on sales figures.”

Q.15. Pan Masala and Sons is a manufacturer of tobacco products. It decided to increase profits by at least 20% in the next quarter.  It has many options:

• To increase the working hours of labourers without additional payment.
• To employ children from the local community.
• To sell its products outside the schools and colleges.

It opted for the (ii) and (iii) options to achieve the target.

• Identify the function of management described in the above para.
• State the steps of the process involved in the function of management identified in (a) quoting the lines from the above para.
• State any two values neglected by the organisation  (6 marks)
• Steps involved in the planning process: (i) Setting organizational objectives (ii) Identifying and evaluating alternative courses of action (iii) Selecting the best possible alternatives
• Values neglected:
• Child labour is banned.
• Bad effect on students’ health
• Moral values.

Q.16. A reputed car manufacturing company in NCR is facing the problem of a decline in its market share due to its internal mismanagement.  Therefore it has planned to increase its production capacity at its Gurgaon plant by manufacturing low-price eco-friendly cars for price-sensitive consumers and introducing new models with added features for quality conscious consumers.  For this, the company issues shares to the public and raises Rs. 150 crore.

The company purchases more machinery required to increase production.

• Identify the type of plan the company is preparing.
• State the steps involved in this plan quoting the lines from the above case.
• State any one value that the company wants to communicate to society.   (5 marks)
• The steps involved in preparing a strategy are: (i) Determining long-term objectives (ii) Adopting a particular course of action (iii) Allocating resources necessary to achieve the objectives
• Sensitivity towards environment
• Socially responsible behaviour

Q.17. ‘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 the 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 discounts 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 discounts 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 prospective consumers aware of 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.

• Name the function of management described in the above paragraph.
• Identify and explain the various steps involved in the process of the function of management as identified in part (a) by quoting lines from the paragraph.
• Planning is the function of management which is described in the above paragraph.
• The various steps involved in the planning process are explained below: 1. Setting objectives:     “The company plans to increase the sale of its sedan cars by 20% in the next quarter.” 2. Developing Premises: “In order to achieve the desired target the marketing team of the company considers the impact of the policy of the government towards diesel vehicles and the level of competition in this segment of cars.” 3. Identifying alternative courses of action: “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 case, etc.” 4. Evaluating alternative courses:  “A thorough analysis of the various available options is done keeping in view the relative viability of each option.” 5. Selecting an alternative: “The company decides to pursue the option of offering more discounts to dealers and customers in order to boost the sale of sedan car.” 6. Implement the plan:  "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 of the newly available benefits, advertisements are made through various sources of print and electronic media.” 7. Follow-up action: “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.”

Q.18. Palvinder, is working as a supervisor in Alpha Ltd. To achieve the target he wants to try a new method and different way of allocating the work.  His superior did not permit him and forced him to do the work strictly as per the plan.

(i) Name the limitation of planning indicated in above case.

(ii) Name the value overlook by Palvinder’s superior.

• ‘Planning reduces creativity.’
• Value of motivating and encouraging employees to increase initiative level.

Q.19. The management of ABC Ltd. set up the target of selling 10,000 units per week and made all their plans based on this target.  But due to change in technology adapted by competitors which reduced their cost, the ABC Ltd. could not achieve their target.

(i) Identify the limitation of planning discussed in the above para.

(ii) State any other two limitations.

(i) Planning may not work in a dynamic environment.

(ii) Any two limitations:  1. Planning reduces creativity  2. Planning involves huge costs.

Q.20. Alpha Ltd. spent a lot of money to hire specialized people to frame their plans and collect important facts from the environment.  The company cut their cost by cancelling the employee’s trip for recreation.

(i) Name the limitation of planning mentioned in the above para.

(ii) Name the value overlooked by management.

• Limitation:  Planning involves huge costs.
• Value overlook: The psychological needs of employees are often overlooked.

Q.21. ABC Ltd. announced a plan nobody would smoke in the organisation's premises and they further added that certain penalties will be imposed on employees, overlooking this. 

(i) Name the type of plan related to the above para.

(ii) Name the feature of that plan.

(iii) Name the values emphasized by the company.

(i) ‘Rule’ is the type of plan.

(ii) Rules are very rigid.

(iii) Values:  (a) Respect towards the environment (b) Follow discipline and order.

Q.22. Alpha Ltd. has a plan of increasing profit by 20%.  The company spent lot of time and money to frame and implement this plan.  The competition start increasing, so it could not change its plan to beat its competitors because huge amount of money is already spent.  State any two limitations of planning.

(i) Planning involves huge costs. (ii) Planning is time-consuming. (iii) Planning may not work in a dynamic environment.

Q.23. ‘Natural disasters like floods in Gujarat has been responsible for failure of production and sales plans of Jindal Textile Industry.’ Which limitations of planning is highlighted in the given statement?  State any three such limitations.                       (3)

Ans.  External limitations of planning:

• Changes in government policies (e.g. tax rates, bank rates, etc.) may lead to failure of planning.
• Changes in the strategies of competitors also lead to failure in planning many tasks.
• Rapid technological changes may affect planning.

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