Mr. Chirag is promoted to the post of General Manager of Krishna Garments. The company Krishna Garments is facing the problem of decline in market share due to severe competition in the market. To overcome this problem Mr. Chirag decided to explore foreign market where he can get big order but at low price. In order to enter in foreign market and to face competition the company decided to reduce its price. From the foreign market he gets a big order of 10000 units to be manufactured within one week. He accepts that order and delegates the work to production manager without discussing it with him. He firmly tells him that if the task is not completed within given time period a strict action will be taken against him.
At the end of the given time period, Mr. Chirag discovers that production target of 10000 units is not achieved by production manager.
(a) Identify and explain the type of plan followed by company.
(b) Who is responsible in above situation for not achieving the targets? Give arguments in support of your answer.

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Solution

(a)- Strategic plans are designed with the entire organization in mind and begin with an organization's mission. Top-level managers, such as CEOs or presidents, will design and execute strategic plans to paint a picture of the desired future and long-term goals of the organization. Essentially, strategic plans look ahead to where the organization wants to be in three, five, even ten years. Strategic plans, provided by top-level managers, serve as the framework for lower-level planning.
(b)- Mr. Chirag as in this company power is not transferred, hence Mr chirag is responsible..

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