Beta Ltd. spent a lot of money to hire specialised people for framing their plans and collecting important facts from the environment. The company cut down their cost by canceling the employee's trip for recreation.

The limitation of planning mentioned in the above paragraph.

Planning incurs a huge cost

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Planning leads to rigidity

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Little or no space of using creativity

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Planning is never permanent

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Solution

The correct option is A
Planning incurs a huge cost

The limitation of planning mentioned in the above paragraph is planning involves huge cost.

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Q. Alpha Ltd. spent a lot of money to hire specialised people for framing their plans and collecting important facts from environment. The company cut down their cost by cancelling the employee's trip for recreation.
(i) Name the limitation of planning mentioned in above para
(ii) Name the value overlook by management.

Q. ABC Ltd. decided to develop the plan for upcoming year in such a manner that weaker section of society can be given job opportunities and make use of eco friendly method of production. For this it hired leading consultancy firm and paid high fees. ABC Ltd. invited suggestions from lowest level also and involve employees working at different level to develop this plan. Company spent lot of money on fees and research work to collect various facts.
(a) State the limitation of planning referred in above para.
(b) Identify the concept of organising being discussed above.
(C) Identify the values ABC Ltd. desire to achieve.

Q. Alpha Ltd. has a plan of increasing profit by 20%. The company spent lot of time and money to frame and implement this plan. The competition starts increasing, so it could not modify its plan to beat its competitors because huge amount of money is already spent. The plan failed and company suffered huge loss.
State any two limitations of planning.

Santo Ltd. has to develop its organisational, plan for the current year and for this purpose they hire professional consultants from the United States. These consultants incurred a lot of money in a collection of facts, figures, surveys, etc., including the salaries of the consultants. This whole process of planning has already proved to be a very costly affair and the eventual total cost may exceed the gains expected from the plan. In addition, the top management did not involve a middle and supervisory level of management during the planning process. These two levels of management are neither allowed to deviate from their plans nor are they permitted to act on their own. They keep thinking along the same lines as others so that nothing new or innovative gets added to the process.

(i) Should Santo Ltd, continue with existing planning with consultants from the United States? Explain with reasons. Also explain, which limitation of planning is reflected in this case?

(ii) Which limitation of planning is reflected when top management does not involve a middle and supervisory level of management during the planning process the above case? What remedial steps can Santo Ltd., take to overcome this limitation?

Q. Bhuvan Ltd is a garment manufacturing company, the company regularly scan business environment and constantly adapts itself to the changes in environment. With all these efforts also it became difficult for company to foresee future trends. Competition in the market effects the financial plan of the company, sales targets have to be revised which in turn effect the cash budget.
(i) Name and explain the limitation of planning highlighted in the above para
(ii) Identify the two types of plans mentioned in above para

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Beta Ltd. spent a lot of money to hire specialised people for framing their plans and collecting important facts from the environment. The company cut down their cost by canceling the employee's trip for recreation. The limitation of planning mentioned in the above paragraph.

The correct option is A Planning incurs a huge cost The limitation of planning mentioned in the above paragraph is planning involves huge cost.

Beta Ltd. spent a lot of money to hire specialised people for framing their plans and collecting important facts from the environment. The company cut down their cost by canceling the employee's trip for recreation.

The limitation of planning mentioned in the above paragraph.

The correct option is A
Planning incurs a huge cost

The limitation of planning mentioned in the above paragraph is planning involves huge cost.