BUSINESS STUDIES

CLASS-XII

1. Voltech India Ltd. is manufacturing LED bulbs to save electricity and

running under heavy losses. To revive from the losses, the
management thought of shifting the unit to a backward area where
labour is available at a low cost. The management also asked the
workers to work overtime without any additional payment and
promised to increase to wages of the workers after achieving its
mission. Within a short period the company started earning profits
because both the management and the workers honoured their
commitments.
State the principle of management described in the above para.

2. Sanchit, after completing his entrepreneurship course from Sweden

returned to India and started a coffee shop ‘AromaCoffeeCan’ in a
famous mall in New Delhi. The speciality of the coffee ship was the
special aroma of coffee and a wide variety of flavours to choose from.
Somehow, the business was neither profitable nor popular. Sanchit was
keen to find out the reason. He appointed Sandhya, an MBA from a
reputed college, as a Manager to find out the causes for the same.
Sandhya took feedback from the clients and found out that though they
loved the special unique aroma of coffee but were not happy with the
long waiting time being taken to process the order. She analysed and
found out that there were many unnecessary obstructions in between
which could be eliminated. She fixed a standard time for processing the
order.
She also realised that there were some flavours whose demand was not
enough. So, she also decided to stop the sale of such flavours. As a
result within a short period Sandhya was able to attract the customers.
Identify and explain any two techniques of scientific management used
by Sandhya to solve the problem. 

3. Radhika opens a jewellery showroom in Jaipur after completing a

course in jewellery designing. She has employed eleven persons in her
showroom. For greater productivity, she divides the work into small
tasks and each employee is trained to perform his/her specialised job.
The salespersons are allowed to close a deal with a buyer by giving a
maximum of 10% discount, whereas the decision to give any further

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discount rests with Radhika as the final authority. In the earlier days of
starting of the business, five of her employees were asked to put in
extra hours of work. In return she had promised to give them a special
incentive within a year. Therefore, after six months when the business
was doing well, she awarded a cash bonus to each of these employees
to honour her commitment. However, when it comes to settling the
conflicts among her employees, she tends to be more biased towards
her female employees.
In context of the above case:

1. Identify and explain the various principles of management that are

being applied by Radhika by quoting lines from the paragraph.
2. Identify and explain the principle of management which is being
violated by Radhika by quoting lines from the paragraph.
3. State any one effect of the violation of the principle of management
by Radhika as identified in part(b) of the question.

4. Naman and Govind after finishing their graduation under vocational

stream decided to start their own travel agency which will book Rail
Tickets and Air Tickets on commission basis. They also thought of
providing tickets within ten minutes through the use of internet.
They discussed the idea with their Professor Mr. Mehta who liked the
idea and suggested them to first analyse the business environment
which consists of investors’, competitors and other forces like social,
political etc. that may affect their business directly or indirectly. He
further told them about the technological improvements and shifts in
consumer preferences that were taking place and hence they should
be aware of the environmental trends and changes which may hinder
their business performance. He emphasised on making plans keeping
in mind the threat posed by the competitors, so that they can deal
with the situation effectively. This alignment of business operations
with the business environment will result in better performance.

1. Identify and state the component of business environment

highlighted in the above Para.

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2. State any two features of business environment as discussed by

Professor Mehta with Naman and Govind.
3. Also state two points of importance of business environment as
stated by Professor Mehta in the above situation.

5. As per the directions issued by the Supreme Court, the government

passed an order to ban the sale of tobacco products within the area of 200
meters of all educational institutions as:

1. Its consumption is injurious to health.

2. People are becoming more conscious about health and fitness. This
indicates the government’s attitude towards this business.
Identify the business environment under three different dimensions
by quoting from above paragraph.

6. Two years ago, Madhu completed her degree in food technology. She
worked for some time 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 set 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 Mohan as the
Production Manager who decided the exact manner in which the
production activities were to be carried out. Mohan also prepared a
statement showing the number of workers that will be required in the
factory throughout the year. Madhu informed Mohan about her area wise
sales target for different products for the forthcoming quarter. While
working on the production table, a penalty of Rs. 100 per day for not
wearing caps, gloves and apron was announced.
Quoting lines from the above paragraph, identify and explain the different
types of plans discussed.

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7. Agile Ltd.’ is a well-known automobile manufacturing company in India.

The company plans to increase the sale of its sedan cars by 20% in the next
quarter. In order to achieve the desired target, the marketing team of the
company considers the impact of policy of the government towards diesel
vehicles and the level of competition in this segment of cars. They explore
the various available options like offering more discount to dealers and
customers, providing more customer friendly finance options, lucky draws
on test drives, increasing advertising, offering more of free accessories on
the purchase of the car, etc. A thorough analysis of the various available
options is done keeping in view the relative viability of each option. The
company decides to pursue the option of offering more discount to dealers
and customers in order to boost the sale of sedan cars. In order to
implement the plan, they determine the various discount packages and
communicate the same to their product dealers. To make the prospective
consumers aware about the new available benefits, advertisements are
made through various sources of print and electronic media. The market
analysts of the company keep a close watch on the revenue from the sedan
cars to study the effect of new initiatives by the company to promote its
sales.
In context of the above case:

1. Name the function of management described in the above paragraph.

2. Identify and explain the various steps involved in process the
function of management as identified in part (a) by quoting lines from
the paragraph.