Business Studies

Planning process

Q: If a hospital set an objective to reduce waiting time but did not estimate daily patient count, which step is weak?

Developing premises The governing concept is developing planning premises. Premises are assumptions, forecasts and expected conditions about the future that provide a basis for planning. In this case, daily patient count is a demand estimate. It affects staffing, appointment capacity, room utilisation, equipment needs and the likely waiting time. If that estimate is absent, the hospital may set a target but cannot realistically judge the resources or alternatives required to meet it. Therefore, option C is correct. Option A is not the best answer because the objective has already been set; option B concerns listing possible courses; and option D concerns choosing among evaluated courses, not forecasting patient volume.

Q: After comparing three delivery options, a company chose a mix of partner courier and pickup centres. This is an example of which step?

Selecting the best alternative The governing concept is selection of the best alternative after evaluation. A planning alternative does not have to be a single, isolated course; management may select a combination when that combination better satisfies the objective. Here, the company has already identified three delivery possibilities and compared them. Its decision to use both a partner courier and pickup centres is the final choice made from the evaluated alternatives. Therefore, option C is correct. Option A refers to forecasting future conditions before comparison, option B refers to defining the desired result, and option D refers to reviewing performance after implementation. None of those describes the actual act of choosing the delivery mix.

Q: If an alternative gives high profit but legal approval is uncertain, what should be included in evaluation?

Legal risk and feasibility The governing concept is comprehensive evaluation of alternatives. Profit is important, but it is not sufficient by itself. A manager must also examine whether the alternative is legally permissible, practically feasible, affordable, sustainable and consistent with organisational objectives. Uncertain legal approval creates compliance risk: the project may be delayed, fined, stopped or made unusable even if its projected profit is high. Therefore, option C is correct because legal risk and feasibility must be included in the comparison. Options A and D consider only one narrow factor, while option B may be relevant in some cases but ignores the decisive legal uncertainty. Evaluation should balance benefits with constraints and risks.

Q: If a manager relies only on personal experience while selecting an alternative and ignores evaluation data, what is the defect?

Selection is not based on objective analysis The governing concept is objective and evidence-based selection. Personal experience can provide useful judgement, but it should support rather than replace systematic evaluation. Data may reveal cost differences, risk, feasibility, expected returns and deviations from the objective that an individual’s memory or intuition can overlook. If the manager ignores such evidence, the chosen alternative is not based on objective analysis and may reflect bias or overconfidence. Hence option B is correct. Option A describes clarity of the objective, not the defect; option C makes an unjustified claim about premises; and option D refers to implementation, which has not been established. Sound planning combines managerial judgement with relevant evaluation evidence.

Q: If actual performance is below target and the reason is an error in market assumption, which steps should be reviewed?

Follow-up and premises revision The governing concept is the feedback loop in the planning process. Follow-up compares actual performance with the target and helps identify the cause of a deviation. Once the cause is traced to an incorrect market assumption, the relevant planning premise must be reviewed and revised using better information or a new forecast. The plan, implementation or evaluation criteria may then need adjustment. Therefore, option B is correct because it combines follow-up with premises revision. Options A and C are unrelated operational activities, while option D is too narrow: merely rewriting the objective does not correct an inaccurate market assumption or explain why actual performance fell below target.

Q: If small mistakes are caught early through monthly review, which quality of the planning process becomes stronger?

Timely follow-up and control The governing concept is follow-up as a continuing control mechanism. A monthly review compares actual progress with planned standards at regular intervals. When a small error is detected early, management can investigate its cause, take corrective action and prevent the deviation from becoming expensive or difficult to reverse. This makes the planning process more responsive and strengthens timely follow-up and control, so option A is correct. Option B would remove direction rather than improve planning; option C describes confusion, not a quality; and option D wrongly suggests that alternatives should be closed. Periodic review does not replace planning; it keeps the plan aligned with changing performance and conditions.

Q: If follow-up shows that success came only due to a temporary discount, what caution is needed in future planning?

Analyse the true reason for success The governing concept is learning through follow-up and causal analysis. A favourable result does not automatically prove that the entire plan is sound or sustainable. If success depended only on a temporary discount, future performance may fall when the discount ends, especially if customers were not retained through lasting value. Management should therefore identify the true cause, separate temporary effects from stable factors, and revise future premises, forecasts and alternatives accordingly. Option A is correct. Option B is wrong because objectives give direction; option C would make planning less realistic; and option D would unnecessarily eliminate choice. Follow-up should explain both failure and success so that future plans are based on dependable evidence.

Q: A company set a goal to reduce customer churn but did not first understand why customers were leaving. Which step of the planning process will remain weak?

Developing premises Estimating reasons for customer churn develops planning premises. In exams connect planning without causes with weak premises.

Q: If the objective is to improve delivery speed and the manager searches routes such as rail road and warehouse network which step is he in?

Identifying alternative courses of action Searching different routes is identifying alternative courses. In exams treat possible methods as alternatives.

Q: Testing three distribution alternatives on time cost reliability and control is which step?

Evaluating alternatives Checking alternatives on many criteria is evaluation. In exams connect criteria such as time cost reliability with evaluation.

This Class 12 Business Studies topic explains how organisations turn goals into practical courses of action through a systematic planning process. Students learn to set clear objectives, develop planning premises, identify alternative courses of action, evaluate those alternatives, select the most suitable plan, implement it, and follow up to assess results. The topic also shows how planning supports coordination, reduces uncertainty, improves decision-making, and guides the effective use of organisational resources.

Hard · Level 5 · 25 questions

Practice questions

01If a hospital set an objective to reduce waiting time but did not estimate daily patient count, which step is weak?

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Answer and explanation

Correct answer: C. Developing premises

The governing concept is developing planning premises. Premises are assumptions, forecasts and expected conditions about the future that provide a basis for planning. In this case, daily patient count is a demand estimate. It affects staffing, appointment capacity, room utilisation, equipment needs and the likely waiting time. If that estimate is absent, the hospital may set a target but cannot realistically judge the resources or alternatives required to meet it. Therefore, option C is correct. Option A is not the best answer because the objective has already been set; option B concerns listing possible courses; and option D concerns choosing among evaluated courses, not forecasting patient volume.

Planning process

Practice questions

16In which option is the external premise correctly identified?किस विकल्प में external premise सही पहचाना गया है?

17Which option is a correct internal premise?किस विकल्प में internal premise सही है?

20Which question is most useful in evaluation of alternatives?कौन सा प्रश्न विकल्पों के मूल्यांकन में सबसे उपयोगी है?

22If procedures are not made for a selected plan what difficulty will employees face?यदि selected plan के लिए procedures नहीं बने तो कर्मचारियों को कौन सी कठिनाई होगी?

25If reels influencer and paid ads are made as three ways for a social media campaign which step is this?यदि social media campaign के लिए reels influencer और paid ads तीन रास्ते बनाए गए तो यह कौन सा चरण है?

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Analytics choices

16In which option is the external premise correctly identified?

17Which option is a correct internal premise?

20Which question is most useful in evaluation of alternatives?

22If procedures are not made for a selected plan what difficulty will employees face?

25If reels influencer and paid ads are made as three ways for a social media campaign which step is this?