Business Studies 2005 CBSE [ All India ] Set I

OUT OF SYLLABUS

The product concept proposes that the way to realising business goals lies in making products that are of high quality. That is, the customers favour high quality products.

Two functions of middle level management are –
(i)    Interpretation of policies framed by top management.
(ii) Preparing the organizational set up in their departments for fulfilling the objectives implied in various business policies.

Two functions of supervisor are –
(a)     Planning the work- The supervisor has to determine work schedule for even and steady flow of work.
(b)  Issuing orders- The supervisor issues orders and instructions to the workers for achieving co-ordination in his section. He tells them what to do and how to do.

Marketing helps an enterprise to position itself in the market in a firm way. Various promotional methods are used to make the good popular. The demand of customers with regards to reasonable price and quality are kept in mind. Aggressive selling efforts are made. These activities enable a firm to capture a reasonable share in the market.

Adverse affects of the following principles of management on the organisation are :
(i)    Unity of command- Sometimes it is found that it is necessary and possible that an employee should receive orders from more than one superior to perform the task properly and in time. But this principle in certain situation is the cause of delay in work. It also results in wastage of time and duplication of efforts.

(ii)   Order- It creates rigidity regarding the position of resources and manpower employed.

The importance of leadership in organisation may be derived from the following points :
 (a)    Leadership helps in guiding and inspiring employees to perform well and accomplish the goals.

(b)   It helps in persuading employees to work co-operatively and enthusiastically towards common goals of an organisation.

(c)    By his exemplary character and conduct, a leader instills confidence is subordinates and shows the right way.

(d)  Leader develops and maintains an environment conductive to maximum work effort.

Yes, I agree with the statement. Communication is the process of transmission of message, information etc. and creation of understanding between two parties. It involves sending a message to another, who receives the message and respond to it. Effective communication takes place when the received message is understood in the same sense by the receiver as the sender intends.
Importance of Communication-
(i) Communication facilitates planning- Participation of executives in planning is a pre-condition for getting the task done. This can be secured only through interaction and communication.

 (ii) Communication helps in decision-making- It is with the help of communication that management comes closer to the subordinates and is able to identify real problems and take appropriate decisions and impart the methods to solve these problems.

(iii)  Communication facilitates coordination- Communication is an aid to coordination. It is necessary for upward, downward and horizontal interactions between members at all the levels of authority. It is necessary for creating unity of purpose and action

Features of personal selling are:
(a)   Personal selling involves individual’s personal communication.
(b)   It relies on oral messages only.
(c)   It implies contact with limited number of people.

Product related factors are :

(a)  When the goods to be distributed are costly like gold jewellery or industrial machine, them shorter channels should be used and vice-versa.
(b)  Technically complex products require expert advice and counseling at the point of sale therefore, direct or short channels are more appropriate.
(c)  If the product is perishable then shorter channels would be better than longer channels.