Arts (English Medium) इयत्ता १२ - CBSE Question Bank Solutions for Business Studies

An auto company C Ltd. is facing a problem of declining  market share due to increased competition from other new and  existing players in the market. Its competitors are introducing lower priced models for mass consumers who are price sensitive. C Ltd. realized that it needs to take steps immediately  to improve its market standing in the future . For quality  conscious consumers, C Limited plans to introduce new models with added features and new technological advancements. The company has formed a team with representatives from all  the levels of management. This team will brainstorm and will  determine the steps that will be adopted by the organisation  for implementing the above strategy. Explain the features  of Planning highlighted in the situation given below.(Hint:  Planning is pervasive, Planning is futuristic and Planning is a  mental exercise).

Identify the network of social relationships which arises spontaneously due to interaction at work.

What is ‘Financial Risk?’ Why does it arise?

What does the term ‘Span of management’ refer to?

State any two circumstances under which the functional structure will prove to be an appropriate choice.

Financial management is based on three broad financial decisions. What are these?

Draw a diagram depicting a functional structure. 

company has its registered office in Delhi, manufacturing  unit at Gurgaon and marketing and sales department at  Faridabad. The company manufactures the consumer  products. Which type of organisational structure should it adopt to achieve its target?

How does informal organisation support the formal organisation?

Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by  diversifying into leather bags as well as western formal wear  thereby making her company a complete provider of corporate  wear. This will enable her to market her business unit as the  one stop for working women. Which type of structure would  you recommend for her expanded organisation and why?

What is a divisional structure? Discuss its advantages and  limitations.

Explain the factors affecting the dividend decision.

How is a functional structure different from a divisional  structure?

A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional  organisational structure with separate departments for Production, Marketing, Finance, Human Resources and  Research and Development. Lately to use its brand name and  also to cash on to new business opportunities it is thinking  to diversify into manufacture of new range of electronic toys  for which a new market is emerging. Which organisation  structure should be adopted in this situation? Give concrete  reasons with regard to benefits the company will derive from  the steps it should take.

A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.

A company X limited manufacturing cosmetics, which has  enjoyed a pre-eminent position in business, has grown in  size. Its business was very good till 1991. But after that,  new liberalised environment has seen entry of many MNC’s  in the sector. With the result the market share of X limited  has declined. The company had followed a very centralized  business model with Directors and divisional heads making  even minor decisions. Before 1991 this business model had  served the company very well as consumers had no choice.  But now the company is under pressure to reform. What  organisation structure changes should the company bring  about in order to retain its market share? How will the  changes suggested by you help the firm? Keep in mind that  the sector in which the company is FMCG.

Explain the procedure for selection of employees.

‘Planning is looking ahead and controlling is looking back.’ Comment. 

Mr Shantanu is a chief manager of a reputed company that manufactures garments. He called the production manager and instructed him to keep a constant and continuous check on all the activities related to his department so that everything goes as per the set plan. He also suggested him to keep a track of the performance of all the employees in the organisation so that targets are achieved effectively and efficiently.

a. Describe any two features of Controlling highlighted in the above situation.(Goal Oriented, continuous and pervasive – any 2).
b. Explain any four points of importance of Controlling.

Differentiate between formal and informal organisations on the basis of

1. origin,
2. authority, and
3. flow of communication.