Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Planning

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.”

Which of the following "Limitations of planning" can be judged from the above given passage?

Options:

Planning leads to rigidity

Planning does not guarantee success 

Planning reduces creativity

Planning involves huge cost

Correct Answer:

Planning does not guarantee success 

Explanation:

The correct answer is option 2 i.e. Planning does not guarantee success.

The success of an enterprise is possible only when plans are properly drawn up and implemented. Any plan needs to be translated into action or it becomes meaningless. Thus, in the above passage due to earthquake the previous planning was not implemented due to which the firm had to suffer losses.