MAM Ltd. used to be the top dog in the market with 75% share. The company follows the policy of selling goods in cash only and set the target of achieving goal of selling rice at 30% profit.In 2018, other companies started selling rice on credit, which was different from what did (selling only for cash) before. But MAM's managers stuck to their old plans that had always worked before. Unfortunately, the world was changing, and these plans didn't fit anymore. This caused MAM's sales to go down. The story teaches us that sometimes sticking too much to old ways and not adapting to changes in the world can cause problems in business.

Which of the following limitations is highlighted in the above passage?

Both option 1 and 2

The correct answer is option 3- Both option 1 and 2.

The world was changing, and these plans didn't fit anymore- This statement shows that the planning does not work in dynamic environment.

Sometimes sticking too much to old ways and not adapting to changes in the world can cause problems in business- This statement shows that the Planning does not guarantee success.