Question

Two years ago, Maggie completed her degree in food technology. She worked for sometime in a company that manufactured chutneys, pickles and murabbas. She was not happy in the company and decided to have her own organic food processing unit for the same. She laid down the objectives and the targets and formulated an action plan to achieve the same. One of her objectives was to earn 10% profit on the amount invested in the first year. It was decided that raw materials like fruits, vegetables, spices, etc. will be purchased on three months credit from farmers cultivating only organic crops. She also decided to follow the steps required for marketing of the products through her own outlets. She appointed Mark as the Production Manager who decided the exact manner in which the production activities were to be carried out. Mark also prepared a statement showing the number of workers that will be required in the factory throughout the year. Maggie informed Mark about her area-wise sales target for different products for the forthcoming quarter. While working on the production table, a penalty of ₹ 100 per day for not wearing caps, gloves and apron was announced.

1. Quoting lines from the above paragraph identify and explain the different types of plans discussed.
2. With reference to types of plans, identify the following types of plans:
   1. A statement of expected results
   2. In-depth statement that outlines a company’s policies, rules, objectives, procedures, etc.
   3. The business environment is the main consideration while formulating this type of plan.

Answer 1

1. The different types of plans discussed above are listed below:
   1. Objectives: “One of her objectives was to earn 10% profit on the amount invested in the first year.”
   2. Policy: “It was decided that the raw materials like fruits, vegetables, spices, etc. will be purchased on three months credit from farmers cultivating only organic crops.”
   3. Method: “The exact manner in which the production activities are to be carried out.”
   4. Procedure: “She also decided to follow the steps required for marketing of the products through her own outlets.”
   5. Rule: “While working on the production table, a penalty of ₹ 100 per day for not wearing caps, gloves and aprons was announced.”
2. Types of plans:
   1. Budget
   2. Programme
   3. Strategy