Kiran Foods missed its monthly sales target. While analysing the deviation, the manager found two causes:
(i) The sales target had been set far above what the sales team could reach.
(ii) The government banned the sale of the firm’s product in plastic packets.
How should causes (i) and (ii) be described among the causes of deviations?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (i) unrealistic standards; (ii) environmental factors
Option (1) (i) unrealistic standards; (ii) environmental factors — Correct. A target set far above what the team can reach is an unrealistic standard. A government ban comes from outside the firm, so it is an environmental factor beyond the firm’s control.
Option (2) (i) unrealistic standards; (ii) structural drawbacks — Incorrect. Structural drawbacks are weaknesses in the firm’s own set-up. The ban came from the government, outside the firm.
Option (3) (i) organisational constraints; (ii) environmental factors — Incorrect. Organisational constraints are limits that come from inside the firm. Cause (i) is about the target itself being set too high.
Option (4) (i) organisational constraints; (ii) structural drawbacks — Incorrect. Both parts are wrong: cause (i) is an unrealistic standard, and cause (ii) comes from outside the firm.
NCERT (2026-27 Edition):
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