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Very Short Answer Questions · Q2

Q.A company wants to increase its market share from the present 10% to 25% to have a dominant position in the market by the end of the next financial year. Ms Rajni, the sales manager, has been asked to prepare a proposal that will outline the options available for achieving this objective. Her report included the following options — entering new markets, expanding the product range offered to customers, and using sales-promotion techniques such as giving rebates and discounts or increasing the budget for advertising activities. Which step of the planning process has been performed by Ms Rajni?

Punjab PsebTextbookSubjective· 2mImportance★★★★★
10% · 2/21 Questions
✓ Free question

Ms Rajni has performed the Developing Alternatives step of the planning process, where different possible courses of action are identified and listed before evaluation.

To understand exactly what Ms Rajni has done, we need to place her work inside the broader planning process as described in the NCERT textbook for Business Studies. Planning is not a single act of deciding; it is a sequence of logical steps. The very first step is Setting Objectives — the company has already done that by stating its goal: increase market share from 10% to 25% by the end of the next financial year. That objective is clear, measurable, and time-bound.

Once the objective is fixed, the next step is Developing Premises. This involves making assumptions about the future — what will competitors do? What will the economic conditions be? The textbook emphasises that planning is done for the future, and the future is uncertain, so managers must agree on a set of assumptions (premises) on which the plan will be based. Ms Rajni’s report does not mention these assumptions; she moves straight to listing options.

The step she has actually performed is Developing Alternatives. After the objective is set and premises are understood, the planner must identify all possible ways to achieve the objective. The NCERT textbook states that there are usually many alternatives for achieving a goal, and the planner should actively search for them. Ms Rajni has done exactly that: she has listed three distinct alternatives — entering new markets, expanding the product range, and using sales-promotion techniques like rebates, discounts, or increased advertising.

Note

Managers often fall into the trap of considering only the most obvious alternatives. A good planner, like Ms Rajni, consciously tries to develop a comprehensive list so that no promising option is overlooked.

What Ms Rajni has not done is the next step, which is Evaluating Alternatives. That would involve weighing the pros and cons of each option — for example, entering new markets might be expensive but could yield long-term gains, while discounts might give a quick boost but hurt profit margins. She has also not yet performed the final step of Selecting an Alternative (choosing the best one) or Implementing the Plan. Her report is a proposal that outlines the options available — it is a preparatory document meant to help top management decide.

Important

The key distinction is that developing alternatives is about generating possibilities, not about judging or choosing them. Ms Rajni’s work stops at the point of listing what can be done. The evaluation and selection will be done by senior management after reviewing her proposal.

So, in the sequence of the planning process — Setting Objectives, Developing Premises, Developing Alternatives, Evaluating Alternatives, Selecting an Alternative, Implementing the Plan, and Follow-up — Ms Rajni has completed the third step.

✓Final answer

Ms Rajni has performed the Developing Alternatives step of the planning process, where she identified and listed the different possible courses of action (entering new markets, expanding product range, using sales-promotion techniques) that could help the company achieve its objective of increasing market share from 10% to 25%.

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