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 importance can be associated with the above case study?

Options:

Planning provides directions

Planning reduces overlapping and wasteful activities

Planning establishes standards for controlling

Planning facilitates decision making

Correct Answer:

Planning facilitates decision making

Explanation:

The correct answer is option 4 i.e. Planning facilitates decision making.

Planning helps the manager to look into the future and make a choice from amongst various alternative courses of action. The manager has to evaluate each alternative and select the most viable proposition. Planning involves setting targets and predicting future conditions, thus helping in taking rational decisions. In the above case study, the decision of keeping the products at a lower price was taken and also, their future PLANS which included starting a factory with the aid of the National Innovation Foundation at IIM Ahmedabad and making a MittiCool house depicts that planning facilitates decision making.