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Business Studies · 2024 · 6 marks
CBSE 2024 · Region 3 · Set 1 · Q34
Nishtha runs a chain of famous restaurants, ‘Indian Kitchen’, in differentparts of Delhi. The restaurant chain was known for good quality food andquick service. ‘Indian Kitchen’ was generating good revenue and hadgoodwill in the market. Nishtha would take a weekly report from all theRestaurant Managers and take necessary action to resolve the problems,if any. Nishtha noticed a sudden decline in sales in one of therestaurants. She questioned the Restaurant Manager who mentionedthat the restaurant is seeing a gradual decrease in the number ofcustomers, but could not provide a clear explanation for it. So, Nishthaformed a team to find out the causes of the declining customers as this isthe key area for restaurant business and is critical to the success ofbusiness. By doing this, Nishtha is performing a step of the process of afunction of management.(i)Identify and explain the function of management discussed above.(ii)Explain the step of the function identified in (i) above, followed byNishtha to find out the causes of declining revenue.(iii)Explain the step Nishtha will take after she gets the report fromthe team formed to find out the causes of declining revenue.
Nishtha runs a chain of famous restaurants, ‘Indian Kitchen’, in different
parts of Delhi. The restaurant chain was known for good quality food and
quick service. ‘Indian Kitchen’ was generating good revenue and had
goodwill in the market. Nishtha would take a weekly report from all the
Restaurant Managers and take necessary action to resolve the problems,
if any. Nishtha noticed a sudden decline in sales in one of the
restaurants. She questioned the Restaurant Manager who mentioned
that the restaurant is seeing a gradual decrease in the number of
customers, but could not provide a clear explanation for it. So, Nishtha
formed a team to find out the causes of the declining customers as this is
the key area for restaurant business and is critical to the success of
business. By doing this, Nishtha is performing a step of the process of a
function of management.
(i)
Identify and explain the function of management discussed above.
(ii)
Explain the step of the function identified in (i) above, followed by
Nishtha to find out the causes of declining revenue.
(iii)
Explain the step Nishtha will take after she gets the report from
the team formed to find out the causes of declining revenue.
Marking-scheme solution
(i)
Controlling
Controlling means ensuring that activities in an
organisation are performed as per the plans.
(any other suitable meaning)
(ii)
Analysing Deviations:
Some deviation in performance can be expected in all
activities. Critical point control and management by
exception should be used by a manager in this regard.
1. Critical Point Control
Control should, therefore, focus on key result areas
(KRAs) which are critical to the success of an
organization. If anything goes wrong at the critical points,
the entire organisation suffers.
2. Management by Exception:
An attempt to control everything results in controlling
nothing. Thus, significant deviations which go beyond the
permissible limits should be brought to the notice of
management.
However, in case of major deviation from the standard
the matter has to receive immediate action of management
on a priority basis.
(iii)
Taking Corrective Action:
When the deviations go beyond the acceptable range,
especially in the important areas, it demands immediate
managerial attention so that deviations do not occur again
and standards are accomplished.
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CBSE Class 12 Business Studies past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.