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Home/Practice questions/Business Studies
Business StudiesPlanning

Mitticool intends to start a factory with the aid of the National Inn…

Read the following passage and answer the question.

During the devastating earthquake of January 2001, Mansukhbhai incurred heavy loss and most of his goods were damaged. He distributed the leftover stock that was undamaged, to the quake affected masses of Kutch. This led to a photograph that was taken just after the earthquake and featured on the Sandesh Gujarati Daily in February 2001. It showed a broken water filter that was made by Mansukhbhai with a caption that said “The poor man’s broken fridge”. At that time, he met the Gujarat Grass-roots Innovation Augmentation Network (GIAN), Ahmedabad, which supported Mansukhbhai further in his endeavours. Finally after an arduous quest and several tests of soil and fridge designs, he emerged with the innovative Mitticool fridge in 2005. After that he has innovated various products using clay. The company has stuck to its policy of keeping all its products at a lower rate which will be affordable for the poor people. Their future plans include starting a factory with the aid of the National Innovation Foundation at IIM Ahmedabad and making a MittiCool house. It will be a green (eco-friendly) house with clay that will have no electricity but only renewable energy to maintain a comfortable temperature inside.

Mitticool intends to start a factory with the aid of the National Innovation Foundation at IIM Ahmedabad and to make a MittiCool house.

Which feature of planning is reflected in this?

Answer & explanation+

Correct answer: option 1

The correct answer is Option (1) → Planning is futuristic

Option (1) Planning is futuristic — Correct. Planning looks ahead and prepares for the future. A new factory and a MittiCool house are plans for the coming years.

Option (2) Planning is pervasive — Incorrect. Pervasive means planning is needed at all levels and in all departments. The line says nothing about levels.

Option (3) Planning involves decision making — Incorrect. This feature is about choosing from among alternatives. The line shows no choice between options.

Option (4) Planning is a primary function of management — Incorrect. This means planning comes before the other functions and lays their base. The line does not touch on this.

Note: The Mitticool story sits in a box beside the planning process. Boxes carry whole case studies, so give them a careful read.

NCERT (2026-27 Edition): “(v) Planning is futuristic: Planning essentially involves looking ahead and preparing for the future. The purpose of planning is to meet future events effectively to the best advantage of an organisation. It implies peeping into the future, analysing it and predicting it. Planning is, therefore, regarded as a forward looking function based on forecasting. Through forecasting, future events and conditions are anticipated and plans are drawn accordingly. …”

“(vi) Planning involves decision making: Planning essentially involves choice from among various alternatives and activities. …”

NCERT extract

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