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BST CH 1 Case Studies

Mita owns a successful ice cream business called Smartflavours. To earn higher profits, she started cutting costs which led to delays in delivery and declining demand over time as competitors entered the market. She realized she ignored an important aspect of management. The important aspect of management Mita ignored was ensuring quality and timely delivery of products to customers. By cutting costs too much in an attempt to earn higher profits, she compromised on quality and delivery, leading to loss of customers and market share.

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Maulik Thakkar
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418 views4 pages

BST CH 1 Case Studies

Mita owns a successful ice cream business called Smartflavours. To earn higher profits, she started cutting costs which led to delays in delivery and declining demand over time as competitors entered the market. She realized she ignored an important aspect of management. The important aspect of management Mita ignored was ensuring quality and timely delivery of products to customers. By cutting costs too much in an attempt to earn higher profits, she compromised on quality and delivery, leading to loss of customers and market share.

Uploaded by

Maulik Thakkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CH 1 : NATURE AND SIGNIFICANCE OF

MANAGEMENT
1. Mita has a successful ice cream business at Bikaner, namely 'Smartflavours'.
Her ice creams are utterly delicious. She makes ice creams from fresh milk and
the same are available in a wide range of flavours and packs. She sets viable
business objectives and works with the same in mind in order to ensure that
the customers will come back for purchasing. Having the first mover advantage,
her business was doing well. To earn higher profits, she started cutting down
costs. This would sometimes lead to delay in delivery and the ice cream was not
reaching the market in time. Over a period of time, the demand for her ice
cream declined and because of it the competitors entered the market. She lost
some of her market share to competitors. At the beginning of summer season,
she got back to back orders for supply of 4,000 ice cream packs of different
flavours for special occasions. To ensure that the task was completed and
orders delivered in time she hired additional workers. She was, thus able to
produce and deliver the ice cream packs but at a high production cost. While
completing activities and finishing the given task for achieving goals, Mita
realised that she was ignoring one of the important aspects of management.
Identify the aspects of management that has been ignored by Mita. Also explain
the same with the help of an example.
[CBSE 2019 (66/1/1)]

2. Chandrika Bhattacharya is working in Olax Ltd., a company manufacturing


room heaters. She is responsible for all the activities of the business and for its
impact on the society. Her job demands long hours and commitment to the
organisation.
(a) Identify the level at which Chandrika Bhattacharya is working.
(b) State three more functions required to be performed by Chandrika
Bhattacharya at this level. [CBSE (F) 2017]

3. Mega Ltd. was manufacturing water-heaters. In the first year of its operations,
the revenue earned by the company was just sufficient to meet its costs. To
increase the revenue, the company analysed the reasons of less revenues. After
analysis the company decided:
(i) to reduce the labour cost by shifting the manufacturing unit to a backward
area where labour was available at a very low rate.
(ii) to start manufacturing solar water-heaters and reduce the production of
electric water-heaters slowly. This will not only help in covering the risks,
but also help in meeting other objectives too.
Identify and explain the objectives of management discussed above. [CBSE
2011]

4. Das is the Managing Director of 'Gamut Ltd.', manufacturing different varieties


of cheese. He has an efficient team working under him consisting of Rajat the
Production manager, Vinay -the Marketing manager and Adit - the Finance
manager. They understand and interpret the policies made by Das, ensure that
their departments have adequate manpower, assign them the necessary duties
and motivate them to achieve the desired objectives. State one more function
other than those mentioned above, that this team may perform at the level they
are working. [CBSE 2019 (66/2/1)]

5. Rishitosh Mukerjee has recently joined AMV Ltd., a company manufacturing


refrigerators. He found that his department was under-staffed and other
departments were not cooperating with his department for smooth functioning
of the organisation. Therefore, he ensured that his department has the required
number of employees and its cooperation with other departments is improved.
(a) Identify the level at which Rishitosh Mukerjee was working.
(b) Also, state three more functions required to be performed by Rishitosh
Mukerjee at this level. [CBSE (AI)
2017]
6. Ashutosh Goenka was working in 'Axe Ltd, a company manufacturing air
purifiers. He found that the profits had started declining from the last six
months. Profit has an implication for the survival of the firm, so he analysed
the business environment to find out the reasons for this decline.
(a) Identify the level of management at which Ashutosh Goenka was working.
(b) State three other functions being performed by Ashutosh Goenka.
[CBSE (D) 2017]
7. The General manager—GM of 'Alpha Kidswear Limited', The GM has divided all
the employees of his company into three levels (Top level, Middle level and
Lower level). At the Top level the General Manager and Board of Directors
themselves work. The middle level work is looked after by the four
Departmental managers like the Production Manager, Purchase Manager, Sales
Manager and Finance Manager. The Lower Level is constituted of one
supervisor of each of the four departments. These Supervisors look after the
daily activities of their subordinates. Often, it is observed that the managers of
all Levels remain busy sometimes with the planning of their respective
departments and sometimes with the comparison of the desired and actual
results. Similarly, sometimes they are busy with the Recruitment, Selection and
Training of the employees and sometimes with their motivation. Mr. Sahil
knows it very well that the job of management cannot be done by a single
person alone, but when all join hands to work together the meaning of
management is realised. This is why he makes all his efforts to effect
coordination in the activities of all his employees. All the employees are working
with the team spirit. In the above paragraph two special features of
management have been described. Identify them by quoting the relevant lines
and explain them.
8. Vivo Mobile aims to produce 20,000 mobiles in 2017. To achieve this target
production department strives for timely production, finance department
agreed for timely release of funds, purchase agreed for timely supply of raw
materials and sales department agreed to take all possible steps to sell them.
Due to combined efforts of all the departments, company can achieve its target.
(i) Which characteristic of management is highlighted in above para?
(ii) Which importance of management is highlighted here?
(iii) Which other aspect of management helps the Vivo Mobile Ltd. to achieve its
objectives?
9. Rohan, Sohan and Mohan are three friends they work in same company. One
day they were having a conversation. When Rohan said I have purchased two
new machines and it has become very difficult to motivate workers at shop floor
to use these machines. Sohan said I am facing problems in finding the exact
number and types of employees for my department. Mohan said I have to
decide the long term plans of organisation and I am responsible for the overall
welfare of the organisation.
(i) Identify different levels of management these friends belong to.
(ii) Explain any two functions of each level.

10. ABC Ltd. is running a chain of fast food restaurants in India. The business was
flourishing but over last two years they observed that the revenue and profit is
declining. The management observed that with the entry of new fast food
chains from across the world the people are shifting to these restaurants, so
the management planned to add new variety of food items in their MENU, for
that they sent their efficient employees abroad for training and imported
machines to maintain the quality of food. The company make sure only fresh
food is served to their customers, so at night they distribute left over food in
nearby slum area. To increase profit margin, the supervisors take special care
that there is minimum wastage and maximum utilisation of resources.
Identify the three points of importance from the above para by quoting lines.

11. 'Sonu Nigam' the famous playback singer always spends time for practice and
adds his creativity in his singing. Like Sonu Nigam, Rajiv, manager of
Headlines Ltd. uses his creativity and practice management principles under
different situations to manage the business. The employees are happy and
satisfied as he every day reward employees for their punctuality and efficiency.
(a) Identify the nature of management highlighted above.
(b) Name other two aspects of nature of management.

12. The management of Amaira Ltd. strongly believes that the members of the
organisation should work towards fulfilled the common organisational goals.
This requires team work and integration of efforts of all individuals
departments and specialists. This is because all the individuals and
departments depend on each other for information and resources to perform
their respective activities. Manager needs to reconcile differences in approach,
timing, efforts and interest. At the same time it should enable all its members
to grow and develop. Thus, there is a need to harmonise individual goals and
organisational goals.
(i) State the concept of management discussed above.
(ii) State any three features of the concept identified in above para.

13. XYZ Power Ltd. set up a factory for manufacturing solar lanterns in a remote
village as there was no reliable supply of electricity in rural areas. The revenue
earned by the company was sufficient day by day, so the company decided to
increase production to generate higher sales. For this they decided to employ
people from the nearby villages as very few job opportunities were available in
that area. The company also decided to provide training to their employees, for
updating their knowledge. Identify the objectives of management discussed
above by quoting lines.

14. Gemini Circus is organising shows internationally for the last thirty years.
Their shows have been successful across the globe. Of late, their shows are not
as popular as they were in past. After analysing they are thinking of bringing
necessary changes in their shows to gain popularity and get their past image of
No.1 back. (i) Identify which two characteristics of management is reflected in
above situation. (ii) Which two functions of management are indicated here?

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