Essential of Management

Question 1

Introduction

For any human being, decision making is a daily task. There is no exception to that rule.
Decision making is both a routine and a process in commercial organisations. Successful
judgements result in profits for the business, while poor ones result in losses. The corporate
decision-making process is therefore the most important in every organisation. We select one
course of action from a set of potential alternatives throughout the decision-making process.
We can employ a wide range of resources, methods, and perspectives during the decision-
making process. Also, we have the option of choosing individually or collectively. Making a
choice is typically challenging. The majority of business decisions entail some sort of
disagreement or unhappiness with another party. A set of steps done by a person to choose
the best alternative or course of action to satisfy their needs is known as a decision-making
process. It is a collection of actions performed by managers in an organisation to identify the
intended course for business objectives and to set particular actions in motion. Business
intelligence (BI) and analytics technologies should be used to help make decisions based on a
thorough examination of relevant data.

Concept

Expanding a business is a crucial decision that requires careful consideration and a well-
planned strategy. Pino's Pizza, a pizza restaurant set up in Vashi, Navi Mumbai, is planning
to expand its business to Mumbai and Thane. In this article, we will discuss the decision-
making process that Pino's Pizza should follow to make an informed decision.

1. Market Research:

Market research is the first step in the decision-making process for expanding a business.
Pino's Pizza should conduct market research to understand the demand for pizza in Mumbai
and Thane. They should analyze the competition, target customers, and their preferences.
This information will help them to decide whether or not to expand to these locations. Market
research can be conducted through surveys, focus groups, and online research.

2. Financial Analysis:

Expanding a business requires a significant investment of capital. Pino's Pizza should conduct
a financial analysis to determine whether they have sufficient funds to expand their business.
They should also consider the cost of renting or buying a property, equipment, hiring staff,
and other expenses. They should also project their revenue and profits to ensure that the
investment will be profitable.

3. Business Plan:

A business plan is essential for any business, whether new or existing. Pino's Pizza should
develop a comprehensive business plan that includes their goals, objectives, target customers,
marketing strategy, and financial projections. A business plan will help them to evaluate the
viability of their expansion plans and make informed decisions.

4. Location Analysis:

The location of a business plays a crucial role in its success. Pino's Pizza should conduct a
location analysis to identify the best locations in Mumbai and Thane to set up their business.
They should consider factors such as foot traffic, accessibility, competition, and
demographics. The location analysis will help them to choose the right location that will
attract the most customers.

5. Legal Considerations:

Expanding a business also involves legal considerations. Pino's Pizza should ensure that they
comply with all the legal requirements for setting up a business in Mumbai and Thane. They
should obtain all the necessary licenses and permits from the local authorities. They should
also consult with a lawyer to ensure that they are aware of all the legal obligations and
liabilities.

6. Staffing:

Expanding a business also requires hiring staff. Pino's Pizza should consider whether they
have the necessary resources to hire and train new staff. They should also consider the local
labor laws and regulations, such as minimum wage, working hours, and benefits.

7. Marketing Strategy:

A well-planned marketing strategy is crucial for the success of any business. Pino's Pizza
should develop a marketing strategy that will attract customers to their new locations. They
should consider the local culture, language, and preferences when developing their marketing
strategy. They should also use social media, email marketing, and other online tools to reach
out to their target customers.

8. Testing and Launching:

Before launching their new locations, Pino's Pizza should conduct a test launch to ensure that
everything is in order. They should conduct a soft launch, which involves opening the
restaurant to a small group of people to test the food, service, and other factors. They should
also gather feedback from the customers and make necessary changes. Once everything is in
order, they can launch their new locations.

Conclusion

In conclusion, expanding a business requires careful consideration and a well-planned

strategy. Pino's Pizza should conduct market research, financial analysis, develop a business
plan, conduct a location analysis, consider legal requirements, staffing, marketing strategy,
and conduct a test launch before launching their new locations. By following these steps,
Pino's Pizza can make an informed decision and expand their business successfully.

Question 2

Introduction

The contingency approach is a management theory that suggests that there is no one-size-fits-
all approach to managing an organization. Rather, the approach suggests that management
practices should be adapted to suit the unique circumstances of the organization. The
approach holds that different organizations have different needs and challenges, and
managers must be flexible and adaptive to effectively address these challenges. The
contingency approach is particularly relevant in today's rapidly changing business
environment, where organizations face unprecedented challenges and uncertainties. By
applying the contingency approach, managers can better understand their organization's
unique needs and tailor their management practices accordingly.
One of the key benefits of the contingency approach is that it can help organizations to be
more responsive and adaptable to changing circumstances. By being flexible and adaptive,
managers can quickly respond to changes in the marketplace, such as shifting consumer
preferences or new technological developments. This can help organizations stay ahead of the
competition and maintain a competitive advantage.

Concept

The real estate market in India has been facing a challenging phase with a high level of
unsold inventory, cash crunch, and the implementation of the Real Estate Regulatory
Authority (RERA) restrictions. Rakul Developers, a real estate developer, needs to adopt a
contingency approach to mitigate these challenges and sustain their business. In this article,
we will discuss what is a contingency approach and how it can help Rakul Developers in the
current real estate market scenario.

A contingency approach is a management strategy that involves developing alternative plans

to cope with unforeseen events and circumstances that could impact the business's
performance. It is a proactive approach that helps the business to be prepared for any future
uncertainties and minimize the potential negative impact on the business. The contingency
approach involves identifying potential risks and developing strategies to mitigate those risks.

How can the contingency approach help Rakul Developers?

Rakul Developers can adopt a contingency approach to mitigate the risks and challenges in
the current real estate market scenario. The following are the steps that they can take to adopt
a contingency approach:

1. Identify potential risks and challenges:

The first step is to identify the potential risks and challenges that Rakul Developers may face
in the current real estate market scenario. The risks could include a decline in demand for
housing units, inability to secure financing, regulatory changes, and delays in obtaining
necessary approvals.

2. Develop alternative plans:

Once the potential risks have been identified, Rakul Developers should develop alternative
plans to mitigate those risks. For example, if there is a decline in demand for housing units,
they can consider diversifying into commercial real estate or offering affordable housing
units. If there is a shortage of financing, they can explore alternative sources of financing,
such as crowdfunding or peer-to-peer lending.

3. Prioritize plans:

Rakul Developers should prioritize their alternative plans based on their potential impact on
the business. They should focus on plans that will have the most significant positive impact
on the business and are the most feasible to implement.

4. Implement plans:

Once the plans have been prioritized, Rakul Developers should implement the plans in a
timely and efficient manner. They should monitor the implementation and adjust the plans as
necessary based on the feedback and results.

5. Continuously evaluate and adjust plans:

The contingency approach is an ongoing process, and Rakul Developers should continuously
evaluate and adjust their plans based on the changing market conditions. They should monitor
the effectiveness of their plans and adjust them as necessary.

Benefits of adopting a contingency approach

Adopting a contingency approach can provide several benefits to Rakul Developers, such as:

1. Minimizing potential losses:

By developing alternative plans, Rakul Developers can minimize the potential losses that
could arise from unforeseen events and circumstances.

2. Enhancing business resilience:

The contingency approach can enhance the business's resilience by enabling them to adapt to
changing market conditions and mitigate potential risks.

3. Improving decision-making:
The contingency approach can improve the decision-making process by enabling Rakul
Developers to consider potential risks and develop alternative plans before making any
critical decisions.

4. Increasing stakeholder confidence:

Adopting a contingency approach can increase stakeholder confidence in the business's

ability to manage risks and navigate challenging market conditions.

Conclusion

The real estate market in India is going through a challenging phase, and Rakul Developers
need to adopt a contingency approach to mitigate the risks and challenges. By identifying
potential risks and challenges, developing alternative plans, prioritizing plans, implementing
plans, and continuously evaluating and adjusting plans, Rakul Developers can enhance their
business resilience, minimize potential losses, and improve their decision-making process.
The contingency approach can also increase stakeholder confidence in the business's ability
to manage risks and navigate challenging market conditions.

Question 3a

Introduction

A predetermined plan is required for any company to perform in a unique manner. Planning
is crucial for a business. With the help of their skilled workers and their team of specialists,
top managers must plan their short- and long-term objectives. They must also weigh the
benefits and drawbacks of the plan, as well as the cost and return of the investment.

Concept

As a newly set up organization, it is essential for Zlender to have a well-thought-out plan to

achieve their goals effectively, we will discuss the various types of plans that Zlender can
consider for their business.
 1. Strategic Plan:

A strategic plan is a long-term plan that outlines the organization's overall direction,
objectives, and strategies to achieve those objectives. Zlender can consider developing a
strategic plan to set their long-term goals, such as increasing market share, expanding their
product line, or targeting new customer segments. A strategic plan provides a framework for
decision-making and guides the organization's actions towards achieving its long-term goals.

2. Business Plan:

A business plan is a comprehensive document that outlines the organization's goals,

strategies, and financial projections. Zlender can consider developing a business plan to set
their short-term and long-term goals and determine the resources needed to achieve those
goals. A business plan also helps in securing financing and attracting potential investors.

3. Marketing Plan:

A marketing plan is a document that outlines the organization's marketing strategies and
tactics to reach the target market. Zlender can consider developing a marketing plan to
promote their handmade gifting articles, identify their target market, and determine their
marketing budget. A marketing plan helps in maximizing the return on investment on
marketing activities and helps in reaching the target market effectively.

4. Financial Plan:

A financial plan is a document that outlines the organization's financial goals, objectives, and
strategies to achieve those goals. Zlender can consider developing a financial plan to manage
their finances effectively, including budgeting, forecasting, and financial analysis. A financial
plan helps in identifying the financial resources needed to achieve the organization's goals
and helps in monitoring the financial performance of the organization.

5. Production Plan:

A production plan is a document that outlines the organization's production strategies and
tactics to meet customer demand. Zlender can consider developing a production plan to
manage their production process effectively, including inventory management, production
scheduling, and quality control. A production plan helps in optimizing the production process
and ensures the timely delivery of products to customers.
Conclusion

Zlender can consider developing various types of plans to achieve their goals effectively. A
strategic plan helps in setting long-term goals and provides a framework for decision-making,
while a business plan helps in securing financing and attracting potential investors. A
marketing plan helps in reaching the target market effectively, while a financial plan helps in
managing the finances effectively. A production plan helps in optimizing the production
process, while a human resource plan helps in managing the workforce effectively. Finally, a
crisis management plan helps in managing any potential crisis effectively and ensures
business continuity. By developing these plans, Zlender can ensure the effective management
of their business and achieve their goals.

Question 3b

Introduction

Planning is an essential function of management that involves setting goals, determining

strategies, and developing plans to achieve those goals. Planning is a crucial component of
every business, whether it be for long-term success or for unexpected setbacks. Organizations
that don't plan well could suffer major repercussions.

Concept

Certainly, as a consultant, I can guide Zlender through the process of planning. Planning is a
critical step in any business and it helps organizations achieve their goals and objectives
effectively and efficiently. The planning process involves several steps, and I will outline
them below.

Step 1: Identify Objectives and Goals The first step in planning is to identify the objectives
and goals that the organization wants to achieve. Zlender should have a clear understanding
of what they want to accomplish, both in the short-term and long-term. They should identify
specific, measurable, achievable, relevant, and time-bound (SMART) goals that align with
their overall vision.
Step 2: Conduct a SWOT Analysis Once the objectives and goals have been identified,
Zlender should conduct a SWOT analysis to evaluate its strengths, weaknesses, opportunities,
and threats. This analysis will help Zlender to identify potential obstacles and opportunities in
the market and develop strategies to address them.

Step 3: Develop Strategies Based on the SWOT analysis, Zlender should develop strategies to
achieve their goals. These strategies should be specific, measurable, achievable, relevant, and
time-bound (SMART). Zlender should also identify the resources required to execute these
strategies.

Step 4: Establish Action Plans After developing strategies, Zlender should establish action
plans to achieve their goals. These action plans should outline specific steps that need to be
taken, the resources required, and timelines for completion.

Step 5: Monitor and Evaluate Progress Zlender should monitor and evaluate the progress of
their plans regularly to ensure they are on track to achieve their goals. They should make
adjustments to their plans as necessary to stay on track.

Step 6: Review and Refine Plans As the business environment changes, Zlender should
regularly review and refine their plans to ensure they remain relevant and effective.

Planning is an ongoing process, and it is critical for Zlender to continuously evaluate its plans
and strategies to ensure they align with their objectives and goals.

In addition to the steps mentioned above, there are several other factors that Zlender should
consider during the planning process:

Market Research: Zlender should conduct market research to gather information about their
target market, including their preferences, buying habits, and behaviors. This information will
help Zlender to develop products that meet the needs of their target market.

Financial Planning: Zlender should develop a financial plan to ensure they have the resources
required to execute their plans. This includes developing a budget, forecasting revenues and
expenses, and identifying potential sources of funding.

Risk Management: Zlender should identify potential risks and develop strategies to manage
and mitigate these risks. This includes developing contingency plans to address unexpected
events and ensuring they have appropriate insurance coverage.
Leadership and Management: Zlender should ensure they have the right leadership and
management team in place to execute their plans effectively. This includes identifying key
roles and responsibilities, establishing clear communication channels, and developing a
strong company culture.

Conclusion

In conclusion, planning is a critical step in any business, and it is essential for Zlender to
develop a comprehensive plan to achieve their objectives and goals. By following the steps
outlined above and considering the additional factors mentioned, Zlender can develop a
robust plan that positions them for success in the highly competitive market of handmade
gifting articles.