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Subjects

Business Studies

Limitations of planning

In Class 12 Business Studies, this topic explains why planning, although essential for setting objectives and guiding business activities, cannot guarantee success. Students learn how planning may create rigidity, involve significant time and cost, delay action, and become ineffective when circumstances change rapidly. The topic also highlights that plans are based on assumptions about the future and may not work as expected in a dynamic business environment. Understanding these limitations helps students evaluate planning realistically while studying the broader chapter on Planning.

Expert · Level 1 · 25 questions

Practice questions

01A company made a fixed three-year sales plan, but after six months customers shifted toward digital buying. Which limitation of planning is best shown here?

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02If the production department continues producing the same quantity despite lower demand because of a fixed plan, which limitation is clear?

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03A company's profit estimate became wrong due to a new competitor's aggressive pricing policy. This is related to which limitation?

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04If planning requires expensive surveys, consultants and many trials, but gives limited benefit, which limitation applies?

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05If experienced employees cannot give a new solution to a customer's special problem due to fixed procedures, this is an example of which limitation?

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06A company planned assuming stable raw material prices, but costs rose due to a global supply crisis. Which limitation is shown?

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07If a plan assumes only the best situation and has no alternative arrangement, what will be the main problem when it fails?

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08Why is it risky to prepare a product plan for a new generation based on old consumer data?

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09If head office approval is required for every small decision and local opportunities are lost, which limitation is it?

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10The government suddenly made environmental standards stricter and the old production plan became unsuitable. This is an example of what?

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11If managers apply a previously successful plan in a new market without modification, what is the main risk?

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12If a plan gives sales targets beyond employees' capacity, which problem is most likely?

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13When a plan remains only a written document and no real action happens, which conclusion is correct?

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14If managers keep rejecting new customer suggestions because of an existing plan, which limitation is shown?

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15If a plan is too detailed and even a minor change becomes expensive, which combined effect is shown?

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16Due to economic slowdown, buyers' purchasing power fell and sales targets remained unfulfilled. This relates to which limitation?

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17If new technology reduces production cost quickly but the company remains tied to the old plan, what loss will occur?

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18If an organisation becomes so dependent on planning that managers do not take situational decisions, which limitation appears?

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19If a plan limits employees to only following orders, what may be the long-term effect on the organisation?

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20If an export plan is made assuming stable policy in a foreign country and import duty suddenly rises there, what is clear?

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21When the planning process becomes so long that the opportunity deadline passes, what is the main limitation?

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22If a plan has risk analysis, yet an unexpected earthquake stops the project, which statement is correct?

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23If a plan focuses only on quantitative targets and ignores customer satisfaction, what is the risk?

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24A company did not estimate sudden viral negative reaction and its promotion plan failed. This is an example of which limitation?

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25If implementing employees were not included and they resist the plan, which limitation is shown?

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