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CBSE Std.

XII Business Studies Test for Case Studies


Q-1 Mr. Rajiv is the owner of ‘Laxmi Dairy.’ He is producing various milk products. He always tests
various ways of producing different products and chooses the best and most economical way of
production. He is also very particular about fixing a place for everything and he makes sure that all the
employees are given a fixed place so that there is no wastage of time and delay in production. 1. Which
technique of scientific management is applied by Mr. Rajiv? 2. Which principle of Henry Fayol is
followed by him? (2 Marks)
Q-2 Dheerj is working as ‘Operations Manager’ in Tifco Ltd. Name the managerial level at which he is
working. State any four functions he will perform as ‘Operations Manager’ in this company. (5 marks)
Q-3 Rishabh, a manager, very often speaks to people at all levels, passing on instructions regarding his
department and also the other departments. Which principle of management is being overlooked? (1
mark)
Q-4 “Our assets walk out of the door each evening, we have to make sure that they come back the next
morning.” This statement relates to which function of management. Explain the importance of this
function. (5 Marks)
Q-5 Two year ago, Madhu completed her degree in food technology. She worked for sometime in a
company that manufactured chutneys, pickles and murabbas. She was not happy in the company and
decided to have her own organic food processing unit for the same. She set the objectives and the
targets and formulated an action plan to achieve the same. One of her objectives was to earn 10% profit
on the amount invested in the first year. It was decided that raw materials like fruits, vegetables, spices,
etc. will be purchased on three months credit from farmers cultivating only organic crops. She also
decided to follow the steps required for marketing of the products through her own outlets. She
appointed Mohan as the Production Manager who decided that exact manner in which the production
activities were to be carried out. Mohan also prepared a statement showing the number of workers that
will be required in the factory throughout the year. Madhu informed Mohan about her area wise sales
target for different products for the forthcoming quarter. While working on the production table, a
penalty of Rs. 100 per day for not wearing caps, gloves and apron was announced. Quoting lines from
the above paragraph, identify and explain the different types of plans discussed. (5 Marks)
Q-6 A company manufacturing consumer goods has grown in size. It was a market leader but with changes
in economic environment and with the entry of MNCs its market share is declining. The company was
following a centralized business model as even the minor decisions were in the hands of top level.
Before 1991 this model was suitable for company but now the company is under pressure to reform.
What changes should the company bring about in order to retain its market share? Give its three points
of importance. (5 marks)
Q-7 Yash Ltd. is facing a lot of problems these days. It manufactures electronic goods like washing
machines, microwave ovens, refrigeration and air-conditioners. The company’s margins are under
pressure and the profits and market marketing department blames production department for producing
goods, which are not of good quality to meet customers’ expectations. The finance department blames
both production and marketing departments for declining return on investment and bad marketing. 1.
What quality of management do you think the company is lacking? Justify your answer. 2. State the
importance of the concept identified in (a). (5 marks)
Q-8 Ramesh is working under the guidance of Harsh, a carpenter for the last three years to learn the different
skills of this job. Name the method of training Ramesh is undergoing. (1 mark)
Q-9 “Every time I travelled, people asked me to bring them chips, khakra and pickles from all over the
country,” says Anoushka. Finally, she and her colleague, Sumemet, decided to make out of it. They
launched a face book bags, asked people what they wanted, and they came up with a list of about 100
places and tried up with two dozen vendors to begin with. They were servicing people from Jaipur who
wanted spices from Kerala, people form Panipat who wanted halwa from Jammu and people from Delhi
who ordered for fresh tea leaves form Darjeeling. Through their business they wished to bridge the gap
between sellers nd buyers. The business is now worth millions. Explain any two important activities
that Anoushka and Sumeet will have to be involved in for making the goods available to the customers
at the right place, in the right quantity and at the right time. (4 Marks)
Q-10 Blue Birds Ltd. Offers to its employees issue of shares at a price which is less than the market price. (i)
Name and explain the type of incentive offered to the employees. (ii) Explain one more incentive of the
same category. (2 Marks)
Q-11 Ms. Snigdha, Production Manager and Mr. Sarthak, Marketing manager of an electronics company are
not on talking terms with each other. Because of that they do not transfer complete information to each
other. (a) Identify the element of directing which becomes ineffective due to the behavior of the
managers. (b) Also, explain the factor which led to their such behavior. (3 Marks)
Q-12 D & D Ltd. is a large manufacturing unit. Recently, the company has conducted the ‘time’ and
‘motion’ studies and concluded that on an average a worker could produce 120 units per day. However,
it has been noticed that average daily production of a worker is in the range of 80-90 units. Which
function of management is needed to ensure that the actual performance is in accordance with the
performance as per ‘time’ and ‘motion ‘studies? State four features of this function of management. (5
marks)
Q-13 ‘Ganesh Steel Ltd.’ is a large and credit-worthy company manufacturing steel for the Indian market. It
now wants to cater to the Asian market and decides to invest in new hi-tech machines. Since the
investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The
issue of equity shares involves huge floatation cost. To meet the expenses of floatation cost the
company decides to tap the money-market. 1. Name and explain the money-market instrument the
company can use for the above purpose. 2. What is the duration for which the company can get funds
through this instrument? 3. State any other purpose for which this instrument can be used. (3 Marks)
Q-14 Incorporated in 1990. Raju Dairy Ltd., is one of the leading manufacturers and marketers of dairy-
based branded foods in India. In the initial years, its operations were restricted only to collection and
distribution of milk. But, over the years it has gained a reasonable market share by offering a diverse
range of dairy based products including fresh milk, flavoured yogurt, ice creams, butter milk, cheese,
ghee, milk powders etc. in order to raise capital to finance its expansion plans. Raju Dairy Ltd. has
decided to approach capital market through a mix of Offer for sale of Rs. 4 crore shares and a public
issue of Rs. 2 crore shares. In context of the above case: 1. Name and explain the segment of capital
market being approached by the company. 2. Identify the two methods of floatation used by the
company to raise the required capital. Give one difference between them. (2 Marks)
Q-15 Zoom Udyog, a car manufacturing Co., has started its business with Zoom 800 and slowly launched
Zoom-1000, Wagon-Z, Swy-fy etc. and offered various services like after sale services, availability of
spare parts etc. Identify the element of marketing mix referred here. (1 mark)
Q-16 Tanya purchased some household goods from a ‘General store’. After reaching home she found a face
cream which she had not billed for. After checking the date of expiry and other details, she started using
it. Her face burnt due to the use of the cream. Where should Tanya file a complaint? Justify. Under
Consumer Protection Act, 1986 who can file a complaint? (3 mark)
Q-17 Mansi, a shoe manufacturer for school students, decided to maximize her profit by producing and
distributing at large scale and thereby reducing the average cost of production. Identify the marketing
management philosophy adopted by Mansi. (1 Mark)
Q-18 Harish purchased a medicine from ‘Hari Govind Medical Stores’ for his son who had high fever. Even
after giving the medicine his son’s condition did not improve and he had to be hospitalized. Doctor
informed Harish that the medicine given to his son was spurious. Harish complained about this to ‘Hari
Govind Medical Stores’. As a result, ‘Hari Govind Medical stores’ decided to file a complaint against
the manufacturer in the consumer court. Give your opinion to the medical store owner. (1 mark)