QUESTION PAPER - 2019 -BUSINESS STUDIES (CLASS 12)CBSE

        QUESTION PAPER 2019 SET 1    SECTION C (4 MARKS EACH)

1. Mahinder Agro Ltd. started a new venture for distribution of harmful and chemical fertilizers free vegetables. They conducted a survey to find out consumer preferences for such vegetables.

They found that most of the consumers were concerned about the harmful chemicals being used in growing the vegetables. They found that 90% of the households were searching for its alternatives. The company contacted a group of agriculture experts to lay down the procedure for growing the vegetables by the farmers. They decided to train the farmers in new technology to grow chemical free vegetables according to new innovative methods. The experts also suggested soil management techniques through which farmers would be able to create an abundant and lasting harvest. Identify and explain the two dimensions of business environment

Identify and explain the two dimensions of business environment highlighted in the above para.

Social Environment

The Social Environment comprises values, the standard of living, traditions, levels of education and more. All the forces hold a significant impact on the business sector of the country. Social trends are general development of change such as Fitness and Health trends in the society. The Fitness and Health trend in society has generated a great demand for mineral waters, gyms, etc.

Technological Environment

The technological environment comprises innovations and scientific improvements which foster updated techniques, renders services, produces goods and new approaches. Here the company develops a chemical free fertilizer for growing vegetables.

2. Mega Ltd. holds an Annual Management Programme every year in the month of March in which the top managerial personnel formulate plans for the next year by analyzing and predicting the future to meet future events effectively. 

As they are responsible for providing direction to the organization, facts are thoroughly checked using scientific calculations. Detailed plans are prepared after discussion with professional experts. Preliminary investigations are also undertaken to find out the viability of the plan. Since it is an intellectual activity requiring intelligent imagination and sound judgement so it is mainly done by the top management. Usually rest of the members just implement the plans. Middle level managers are neither allowed to deviate from the plans nor are they permitted to act on their own. The top management ensures that the expenses incurred in formulating the plans justify the benefits derived from them. 

State any two limitations and any two features of planning discussed above.

Features of planning.

Planning focuses on achieving objectives: Organisations set up with general goals and specific goals along with the plans and activities to be undertaken to achieve these goals. 

Planning is futuristic: The purpose of planning is to meet future events effectively to the best advantage of an organisation. Planning involves forecasting future events and conditions and drafting the plans accordingly. 

Limitations of planning

Planning involves huge costs: Huge costs are involved in the formulation of the plan. Detailed plans require scientific calculations to a ascertain data. Sometimes costs incurred on planning doesn’t justify the benefits derived 

Planning does not guarantee success: The success of an enterprise is possible only when plans are properly drawn and implemented. Managers tend to apply the previously tried and tested plans but a plan successful before may not be successful for all situations.

3. Vinber Ltd. set up a manufacturing unit at Bhiwadi in Himachal Pradesh to manufacture electric geysers and supply them to dealers all over the country. Their production target was 500 geysers per week. It was decided by the management that variation in production upto 10 units would be acceptable.

At the end of the first week, the production was 450 geysers. The next week, production increased to 470 geysers. A week later, production was 460 geysers. On investigation, it was found that fluctuation in production was due to irregular supply of electricity.
From the above para discusses some of the steps in the process of one of the functions of management. Explain these steps.

The function of management discussed here is planning which is the primary function of management. The eight main steps involved in the planning process of an organisation. 

The steps are: 

1. Perception of Opportunities- Perception of opportunities is not strictly a part of the planning process. But this awareness of opportunities in the external environment as well as within the organisation is the real starting point for planning. It is important to take a preliminary look at possible future opportunities and see them clearly and completely.

2. Establishing Objectives - This is the second step in the planning process. The major organisational and unit objectives are set in this stage. This is to be done for the long term as well as for the short range. Objective specify the expected results and indicate the end points of what is to be done, where the primary emphasis is to be placed and what is to be accomplished by the various types of plans.

3. Planning Premises -After determination of organisational objectives, the next step is establishing planning premises that is the conditions under which planning activities will be undertaken. Planning premises are planning assumptions the expected environmental and internal conditions.

4. Identification of Alternatives- The fourth step in planning is to identify the alternatives. Various alternatives can be identified based on the organisational objectives and planning premises. The concept of various alternatives suggests that a particular objective can be achieved through various actions.

5. Evaluation of Alternatives- The various alternative course of action should be analysed in the light of premises and goals. There are various techniques available to evaluate alternatives. The evaluation is to be done in the light of various factors. Example, cash inflow and outflow, risks, limited resources, expected pay back etc., the alternatives should give us the best chance of meeting our goals at the lowest cost and highest profit. 

6. Choice of Alternative Plans- This is the real point of decision-making. An analysis and evaluation of alternative courses will disclose that two or more .ire advisable and beneficial. The fit one is selected.

7. Formulation of Supporting Plan - After formulating the basic plan, various plan are derived so as to support the main plan. In an organisation there can be various derivative plans like planning for buying equipment, buying raw materials, recruiting and training personal, developing new product etc. These derivative plans are formulated out of the basic or main plan and almost invariably required to support the basic plan.

8. Establishing Sequence of Activities- After formulating basic and derivative plans, the sequence of activities is determined so those plans are put into action. After decisions are made and plans are set, budgets for various periods and divisions can be prepared to give plans more concrete meaning for implementation. 

(b) Also, state the step(s) that have not been discussed in the above para. 

Identification and evaluation of an Alternate plan is not discussed in the para. Electric fluctuation is a technical hitch which requires an alternate solution.

3. Organising involves a series of steps that need to be taken in order to achieve the desired goal. Explain these steps.

Organising as a process involves following steps:

(i) Identification and Division of Work: The first step in the organising process is identifying and dividing the whole work into manageable activities, so that duplication of work can be avoided and the burden of work can be reduced. 

(ii) Departmentation: Departmentation refers to the process of grouping the activities of similar nature under the same department. Departmentalisation can be done on the basis of function, type of product, territory etc. It facilitates specialization in an organisation. 

(iii) Assignment of Duties: This implies assigning duties to the workers according to their abilities and competencies. For getting best results, a proper match should exist between the nature of work and ability of the individual. 

(iv) Establishing Reporting Relationships: Next step is to allocate authority and responsibility among employees in such a way that each person knows who is reposting to whom and for what, etc

OR 

Explain any four points of importance of ‘Organising’. 

Benefits of specialization: Work is divided into smaller tasks and each task is performed by those employees who possess the required skills. Performing similar tasks leads to specialization.

Clarity in working relationships: It removes ambiguity and miscommunication as working relationships are clearly stated.

Optimum utilization of resources: It avoids duplication and overlapping of work which leads to minimum wastage of resources.

Adaptation to change: It tries to incorporate the changes in the business environment by modifying organizational structures and revising interrelationship at managerial levels as and when required.

Effective administration: Clarity in working relationships and proper execution of work brings effective administration.

Development of personnel: Proper delegation reduces employer’s burden, stimulates creativity and motivates them to complete tasks efficiently.

Expansion and growth: It helps in growth and expansion by incorporating changes in the business environment.

4. Stock exchange acts as a regulator of the securities market. It creates a continuous market where the securities are bought and sold. It gives investors the chance to disinvest and reinvest. Through this process of disinvestment and reinvestment, savings get channelized into their most productive investment avenues. To ensure that the investing public gets a safe and fair deal in the market, the membership of the stock exchange is well regulated and its dealings are well defined according to the existing legal framework. It also ensures wider share of ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments.

Various functions performed by the Stock Exchange are discussed in the above para. By quoting lines from the above para, state any four functions of stock exchange. 

The basic objective of SEBI is to protect the interests of investors and to promote the development of stock exchange and regulate the securities market.
Following are the objectives of SEBI:
(i) To regulate stock exchange and securities markets to promote their orderly functioning.
(ii) To protect the rights of investors and ensuring safety to their investment.
(iii) To prevent fraudulent and malpractices by balancing between self-regulation of business and its statutory regulations.
(iv) To regulate and develop a code of conduct and fair practices by intermediaries like brokers, merchant bankers, etc. So, that they become competitive and professional.

5. Explain any four points of difference between ‘Marketing’ and ‘Selling’.
1. Concept
Marketing: It is a strategy based on a mix of activities aimed at boosting sales.
Selling: It is the strategy of satisfying the needs in an opportunistic, individual method driven by human interaction.

2. Cost
Marketing: The consumers determine the price; the price determines the cost.
Selling: Cost defines the price.

3. Efforts
Marketing: It makes an effort such that the consumers want to purchase the products in their interest.
Selling: The company makes the product first and then figures a way to sell and make a profit.

4. Orientation
Marketing: It involves external market orientation.
Selling: It involves internal production orientation.

5. Motive
Marketing customer satisfaction is the basic motive.
Selling: Sales are the main motives.

6. Reach
Marketing: It is a comprehensive, composite, and worldwide scope
Selling: It is a narrow reach related to buyer, seller, and production

7. Beginning
Marketing: It starts much before the production of goods and services.
Selling: It comes after creation and ends with delivery and collection of payment.

8. Scope
Marketing: It has a broader connotation and covers many research activities.
Selling: It is a part of marketing.

9. Mindset
Marketing: The mindset is “Satisfy the customers.”
Selling: The mindset is “Hook the customers.”

10. Job
Marketing: The main function is to find the right products for the customers.
Selling: The main job is to discover the customers for the products.
Conclusion: The marketing concept is surely a comparatively wider term than the selling concept

OR

Explain the following functions of marketing : Product designing and development ; and Standardisation and Grading 

Product development is a complete cycle from product design to the launch of new products to the customer i.e, from conceptualization to product deployment. The new products play an important role in the market by attracting more consumers and increasing the market share and growth of the business.

Standardization or standardisation is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups, standards organizations and governments.

Grading is the procedure of categorization of products into dissimilar groups, on the source of some of its significant characteristics such as quality, size, etc. Products of diverse qualities should be divided into groups or lots and related quality products are put into a grade.