Zantar Ltd. made its annual plan for the following year on the assumption that the sales of Product A, will rise in the near future. However, that same year a major technological development occured in the production of Product A and new competitors entered the market using that technology. These two incidences led to entry of low-prices and good quality competitors of Product A into the market.

(i) Which function of management is considered above ? What characteristic of this function has Zantar Ltd considered while preparing the annual plan for Product A for the following year ?

(ii) Should Zantar Ltd. continue with the same plan ?

(iii) Which limitation of management function is reflected in the above mentioned case study ?

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Solution

(i) Zantar Ltd's management practices the planning function. Their basis for the annual plan suggests that 'planning is futuristic'.

(ii) They have no choice but other than to continue with the same plan as all resources, operations and schedules are aligned on the basis of annual plan.

(iii) The Zantar Ltd's case study reflects the limitation of planning that 'planning does not work in a dynamic environment'.

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Similar questions

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