Business Studies 2004 CBSE [ Delhi ] Set III

Management requires series of operations to achieve the desired results for the enterprise. These operations are planning, organising, staffing, directing and controlling. In order to achieve the best possible results of the business, these functions should be performed systematically in a proper sequence. Thus, management is a process involving various functions.

Supervision is made up of two words- Super and vision. Super means over and Vision means the art of looking over or seeing the objects.
Supervision means overseeing the subordinates at work by their superiors. In other words, supervision implies looking after the work of subordinates from a higher level. A supervisor guides his subordinates so that they produce the desired quantity of work within the desired time.

Marketing Management is that functional area of business management which is concerned with the marketing of the products and services. It involves planning, organising, directing and controlling the activities relating to the marketing of goods and services to satisfy the needs of the customers.

Management is a human activity that plans, controls, directs and organises the efforts of all employees in the best interest of the organisation and society.  For this the human and physical resources should be integrated in such a way that there is minimum waste of material, time and energy.

Following are the common barriers to effective communication:
1.      Poor listening skills
2.      Semantic problems
3.      Creditability of sources
4.      Complex organisational structure
5.      Pre-disposition
6.      Difference in status

Following are the three features of personal selling:

•   Personal in nature: Personal selling is a direct method of selling the product. It is a personal form of presenting information regarding a product or a service. Personal selling is addressed to an individual buyer and not to a group of people.
•   Company sponsored: Personal selling is mainly controlled and sponsored by the company itself.
•  Recurring Nature: Personal selling relies on oral messages only. Hence it is of recurring nature. Personal selling is frequently repeated to create a memorising value.

Following are the three techniques of sales promotion:
1.     Sample: A sample is the small quantity of a product given to a customer in order to promote the sales of the product. This helps a consumer to verify the quality of the product. Free samples are distributed to promote the sales of soaps, medicines, tooth pastes etc.
2.     Coupons: A coupon is a certificate that enables the customer to make  a specified saving on the purchase of a product. Coupons are given directly to the customers.
3.  Price-off Offers: Under this offer, the products are offered for sale at a price lower than the normal price of the product. This offer is intended to stimulate the sales during a slump period.

The principle violated here is Unity Of Command. This principle implies that an employee should receive orders from only one superior. If he gets orders from more than one superior at a time, then he will be confused as to which superior’s order should be carried out first.

Following are the three factors that are considered while fixing the price of a product:
1. Cost: It is an important factor that is to be considered before fixing the price of a product. The price must enable the businessman to cover his total cost including a reasonable profit.
2.Competition: Competition is another important factor. If there is no competition the business firm can fix the price freely. But if there are competitors in the market the firm must consider the factor before fixing the price.
3.Government Control: Sometimes the government may announce a policy about pricing of goods or may specifically fix and control the prices of goods. Under such circumstances, a seller has little or no control over the prices.