Joshi Ltd. is one of the biggest companies that make scooters in India. They usually sell about 50% of all the two-wheelers (scooters) in the country. The term demonetisation has become a household name since the government pulled the old ₹500 and ₹1,000 notes out of circulation in November 2016. Before the year 2016, the Indian government had demonetized 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’. Due to demonetization, many people were not buying new vehicles because there was not enough money around. Because of this, the production manager who is incharge of making the scooters decided to make fewer of them to match the lower demand in the market.

Which function of management is followed by the company to deal with the decreasing sales?

Planning

The correct answer is option 1- planning.

Planning is the function of management which is done by the company. The production manager who is incharge of making the scooters decided to make fewer of them to match the lower demand in the market. 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.