CBSE Class 12 Planning Case Study Questions with Answers
Free CBSE Class 12 Business Studies Planning case study questions with answers: planning process, limitations, objectives, strategy, policy, procedure, method, rule, programme and budget.
Board: CBSE · Class: 12 · Subject: Business Studies · Access: Free
Case-study preparation
Planning explains how managers decide objectives and courses of action before work begins. The chapter covers its importance, limitations, process and the different standing and single-use plans that guide organisational decisions.
The interactive page presents an original application case. Focus on identifying the concept from facts rather than copying a definition.
- Be ready to apply Meaning, features and importance of planning to a short business situation.
- Be ready to apply Limitations of planning to a short business situation.
- Be ready to apply Steps in the planning process to a short business situation.
- Be ready to apply Objectives, strategy, policy and procedure to a short business situation.
- Be ready to apply Method, rule, programme and budget to a short business situation.
Answering strategy
- Write planning steps in the correct sequence.
- Distinguish policy, procedure, method and rule.
- Support limitations such as rigidity and uncertain environments with examples.
ANSWER-FIRST PRACTICE
Solved case study: Planning
A retail company wants to increase online sales by 20% during the next quarter. Managers first define the target, study different promotional alternatives, compare their likely cost and reach, choose a plan and set a budget for implementation.
Q1. Which planning step is shown first?
Answer: Setting objectives. The company first states a measurable target: increasing online sales by 20% during the next quarter.
Planning case-study clue map
Spot the clue before writing the concept
- Target or desired result → Objective.
- Broad long-term direction → Strategy.
- General guideline for decisions → Policy.
- Sequence of steps → Procedure.
- One prescribed way of doing a task → Method.
- No discretion / must or must not → Rule.
- One-time coordinated set of activities → Programme.
- Plan expressed in numbers → Budget.
More solved Planning case studies
Case 1 — Planning process
A school-supplies company wants to increase institutional sales by 15%. Managers collect information about schools, develop three sales approaches, compare their likely cost and reach, select one approach and create supporting schedules.
Answer: The case shows setting objectives, developing/evaluating alternatives, selecting an alternative and implementing the plan. In an exam answer, identify the exact step from the sentence given in the question.
Case 2 — Planning may create rigidity
A retailer follows a fixed annual promotion plan even after customer demand suddenly shifts toward a different product category. Managers refuse to change the plan because the activities were approved months earlier.
Answer: This illustrates the limitation that planning may create rigidity. A plan should guide action, but excessive attachment to it can reduce flexibility when conditions change.
Case 3 — Policy, procedure and rule
A firm says customer complaints should be handled fairly. It also gives employees a sequence for recording, checking and resolving each complaint, and states that no customer data may be shared outside the firm.
Answer: “Handled fairly” is a policy; the sequence for resolving complaints is a procedure; “no customer data may be shared” is a rule.
Case 4 — Strategy and objective
A food company sets a target to raise its market share to 12% within two years. To reach it, management decides to enter smaller cities through local distributors and launch lower-priced pack sizes.
Answer: The measurable 12% target is the objective. Entering smaller cities through distributors and changing pack sizes forms part of the strategy for achieving that objective.
Case 5 — Programme and budget
For a one-time product launch, a company combines advertising, dealer meetings, staff training and launch events into one coordinated plan. Management also fixes ₹4 lakh as the maximum promotional spending.
Answer: The coordinated one-time set of activities is a programme. The ₹4 lakh numerical spending plan is a budget.
Case 6 — Planning does not guarantee success
A company prepares a detailed expansion plan based on current demand. Soon after implementation, a major technological change makes the original assumptions less useful and sales remain below expectations.
Answer: This shows that planning does not guarantee success. Plans are based on assumptions about the future, and unexpected external changes can affect results.
All cases above are original practice material prepared for learning; they are not presented as official CBSE questions.
Q2. What happens when managers compare promotional alternatives?
Answer: They are evaluating alternative courses of action before selecting the most suitable plan.
Q3. Why does the budget matter?
Answer: A budget is a numerical plan. It expresses expected expenditure or results in quantitative terms and supports implementation and control.
These are original learning questions prepared by Smit Sir Commerce, not claimed official CBSE questions.
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Practice material is original unless a source is explicitly identified. Original questions are not represented as official CBSE or previous-year questions.
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