a. Sigma Limited made the annual plan for the ensuring year on the assumption that the sales of its product will rise in near future. Subsequently, the major development took place when a new technology came in the market and also some new competitors with low priced quality prod

Question

a. Sigma Limited made the annual plan for the ensuring year on the assumption that the sales of its product will rise in near future. Subsequently, the major development took place when a new technology came in the market and also some new competitors with low priced quality product extended the market. These two unexpected development were found to negatively affect the sales of Sigma Limited.
i) Which function of management is considered above and write the meaning? 2
ii) Should Sigma Limited continue with same plan? 1
iii) Explain any three limitations of management function which is considered in (i). 3
Or
b. Explain the following features of planning:
i) Planning is pervasive. (2)
ii) Planning is continuous. (2)
iii) Planning is futuristic. (2)

Accepted Answer

>

> [!TLDR]
> This case illustrates the **Planning** function of management and its real
> limitations when unexpected environmental change (new technology, new competitors)
> upsets the original forecast.
>
> **a.**
>
> i) **Function of management**: **Planning** — the process of deciding in advance what
> is to be done, how it is to be done, and determining the best course of action from
> several alternatives to achieve the set objective (here, the expected rise in sales).
>
> ii) **Should Sigma Limited continue with the same plan?** No. Since the assumptions on
> which the original plan was based (steady/rising sales) have been overtaken by new
> technology and low-priced competition, blindly sticking to the old plan would be
> unwise. Sigma Limited should revise its plan to adapt to the new market reality —
> planning should remain flexible enough to respond to a changed environment.
>
> iii) **Three limitations of planning** (any three):
> 1. **Planning may not work in a dynamic environment**: the business environment is
>    constantly changing (as seen here — new technology, new competitors) and a plan
>    based on earlier assumptions can quickly become outdated.
> 2. **Planning leads to rigidity**: once a plan is set, managers may hesitate to depart
>    from it even when circumstances demand change, reducing responsiveness.
> 3. **Planning does not guarantee success**: a plan only provides a tested, logical
>    course of action — it does not assure success if the environment changes
>    drastically, as happened to Sigma Limited.
> 4. (Also acceptable) Planning involves huge costs in time, money and effort to gather
>    and analyse information, and is a time-consuming process that can delay action.
>
> **b. Features of planning:**
>
> i) **Planning is pervasive**: planning is required at every level of management (top,
> middle, lower) and in every department/function of the organisation — it is not the
> job of top management alone, though the scope

Concept understanding — Planning Direction Setting

Planning Direction Setting — A First Look

The Everyday Intuition

The Precise Meaning

Why It Matters

What the NCERT Textbook Says

Why these statements connect

Evaluating the relationship

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