FUNDAMENTALS OF MANAGEMENT AND ENTREPRENEURSHIP

(Note: While evaluation of the answer sheet, test the students understanding level and give marks)
PART - A

1a) . Examine the skill required for a manager

To be an effective manager, it is necessary to possess many skills. Not all managers have all the skills that would make
them the most effective manager. As technology advances and grows, the skills that are needed by managers are
constantly changing. Different levels of management in the organizational structure also require different types of
management skills. Generally, however, managers need to have communication skills, human skills, computer skills,
time-management skills, and technical skills.
Communication Skills Communication skills fall into the broad categories of oral and written skills, both of which
managers use in many different ways. It is necessary for a manager to orally explain processes and give direction to
workers. It is also necessary for managers to give verbal praise to workers. Managers are also expected to conduct
meetings and give talks to groups of people.
Human Skills Relating to other people is vital in order to be a good manager. Workers come in about every
temperament that can be imagined. It takes a manager with the right human skills to manage this variety of workers
effectively. Diversity in the workplace is commonplace. The manager must understand different personality types and
cultures to be able to supervise these workers. Human skills cannot be learned in a classroom
Computer Skills Technology changes so rapidly it is often difficult to keep up with the changes. It is necessary for
managers to have computer skills in order to keep up with these rapid changes. Many of the processes that occur in
offices, manufacturing plants, warehouses, and other work environments depend on computers and thus necessitate
managers and workers who can skilfully use the technology.
Time-Management Skills Because the typical manager is a very busy person, it is important that time be managed
effectively. This requires an understanding of how to allocate time to different projects and activities. A manager's
time is often interrupted by telephone calls, problems with workers, meetings, others who just want to visit, and other
seemingly uncontrollable factors.
Diagnostic Skills
Diagnostic skills include the ability to determine by analysis and examination the nature and circumstances of
particular conditions. It is not only the ability to specify why something happened but also the ability to develop
certain possible outcomes.
Technical Skills are different from computer skills, technical skills are more closely related to the tasks that are
performed by workers. A manager must know what the workers who are being supervised are doing on their jobs or
assistance cannot be provided to them.

1b). Discuss the levels of management

Every business organisation, irrespective of its size, has many managerial positions in its structure. These
positions are created through the process of delegation of authority from top to lower levels. Each position is
marked by authority, responsibility, functions, roles and relationships.
The contents and nature vary, depending in the level at which the position lies. As one moves upward in the
organisation, the managerial position plays an important role, larger the contribution, greater the authority
and higher the responsibility. These managerial positions lying in the chain of command may be classified
into various groups or levels of management.
Broadly speaking, an organisation has two important levels of management, namely functional and
operative.
The functional level is concerned with the process of determining primary objectives, formulating basic
policies, making vital decisions and controlling and coordinating activities of personnel.
The operative level of management is related to implementation of plans and decisions, and pursuit of basic
policies for achieving the objectives of the organisation.
People in all of the organization operate and work in a dynamic environment. But they do not operate at the
same level. They operate at different level. The hierarchy of the operation in the organization is known as the
levels of Management.
There are three levels of management: Top level of management, Middle level of management, Lower level
of management
First-line Managers: responsible for day-to-day operation. They supervise the people performing the
activities required to make the good or service.
Middle Managers: Supervise first-line managers. They are also responsible to find the best way to use
departmental resources to achieve goals
Top Managers: Responsible for the performance of all departments and have cross-departmental
responsibility. They establish organizational goals and monitor middle managers.

1c) Define span of control

The span of management refers to the number of subordinates who report directly to the superior. It is also
known as the number of subordinates who are efficiently managed by a single superior manager. If the
subordinates who report to a superior are more in number, it is called the ‘wide span’ and the vice versa is
called the 'narrow span.' The wide span results in a less number of levels in the organisation hierarchy (flat
organisation) and thereby expedites the communication process. But this span is challenging to a manager as
the manager has to supervise, direct, control a number-of subordinates performing different types of
activities. On the other hand, narrow span results in close and personalized relationships between the
manager and his subordinates and it leads to tall organisations.
Narrow Span , Wider Span

1d) What is the Delegation of Authority

Just as no one person in an enterprise can do all the tasks necessary for accomplishment of goals so it is
impossible, as an enterprise grows, for one person to exercise all the authority for making decisions. Once
this limit is passed, authority must be delegated to subordinates, who will make decisions within the area of
their assigned duties. Then the question is how authority is delegated when decision-making power is vested
in a subordinate by his superior. Clearly, superiors cannot delegate authority they do not have. It is equally
clear that superiors cannot delegate all their authority without, in effect, transferring their position to their
subordinates. The entire process of delegation involves four steps.
1 The determination of results expected from persons in a position
2 The assignment of tasks to persons;
3 The delegation of authority for accomplishing these tasks;
4 The holding of people responsible for the accomplishment of these tasks. Thus, delegation is the process
that a manager follows in dividing the work assigned to him so that he performs that part, which because of
his position he can perform . effectively.
1e) Summarise Autocratic Leadership styles
. Authoritarian Leadership: Authoritarian leadership styles allow a leader to impose expectations and define
outcomes. It is a leadership style characterized by individual control over all decisions and little input from group
members. One person show can turn out to be successful in situations when a leader is the most knowledgeable in the
team. Although this is an efficient strategy in time-constrained periods, creativity will be sacrificed since input from
the team is limited. The authoritarian leadership style is also used when team members need clear guidelines.

Advantages:
 Time spent on making crucial decisions can be reduced.
 Chain of command can be clearly emphasized.
 Mistakes in the implementation of plans can be reduced.
 Using authoritarian leadership style creates consistent results.
Disadvantages:
 A very strict leadership style can sometimes lead to employee rebellion.
 It kills employee creativity and innovation.
 It reduces group synergy & collaboration.
 Group input is reduced dramatically.
 Authoritarian leadership increases employee turnover rate.

1f) Examine the situational leadership

Sometimes the success of a leader does not depend upon the qualities, traits and behaviour of a leader alone.
The context in which a leader exhibits her/his skills, traits and behaviour matters, because same style of
functioning may not be suitable for different situations.
Thus, the effectiveness of leadership also depends upon situations. Several research studies, when analysing
the reason for inconsistent results in differing conditions with the same leadership style, laid their focus on
situational variables. This theory views leadership in terms of a dynamic interaction between a number of
situational variables like the leader, the followers, the task situation, the environment, etc.
Some of the noteworthy studies on situational contexts that gained wide recognition include
 Fiedler’s model,
 Hersey Blanchard’s Situational theory,
 Leader-Member Exchange theory,
 Path-Goal theory and Leader-Participation model

1g) Who is entrepreneur?

Entrepreneurship is a process of actions of an entrepreneur who is a person always in search of something

new and exploits such ideas into gainful opportunities by accepting the risk and uncertainty with the
enterprise.
An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of
the rewards. The process of setting up a business is known as entrepreneurship. The entrepreneur is
commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.
WHO IS AN ENTREPRENEUR?
  An entrepreneur is a person who buys factor services at certain price with a view of selling its
Products at uncertain price.
 Entrepreneur is an individual or associations and Entrepreneurs assemble and then integrate all the
resources needed (the money, the people, The Business model, there strategy) to transform an
invention or an idea into a viable business.
Definition of Entrepreneur: According to Adam Smith: “Entrepreneur as a person who only provides capital
without taking active part in the leading role in the enterprise”.
Peter E Drucker defines an entrepreneur as one who always searches for change, responds to it, and exploits
it as an opportunity. Innovation is the basic tool of entrepreneurs, the means by which they exploit change as
an opportunity for a different business or service.

1h) Explain about sole trader

SOLE PROPRIETORSHIP: The sole proprietor invests own and borrowed funds and uses own skills and
abilities in the management of affairs of his of her firm. The proprietor is the only persons who has the legal
rights or exclusive title to all the assets of his or her business and is solely responsible for its operations. He
takes all the profits and bears all risks alone. This form of organization is also called sole trading concern
sole ownership, and single entrepreneur business. It is also the simplest and most natural. It is the most
convenient and effective form of business organization.

1j). Extend creativity of a business idea

Definitions of Creativity
 Creativity is defined as the tendency to generate or recognize ideas, alternatives, or possibilities that
may be useful in solving problems, communicating with others, and entertaining ourselves and
others.
 Creativity is the ability to produce new ideas and to identify new and different ways of looking at a
problem and opportunities.
 A process of assembling ideas by recombining elements already known but wrongly assumed to be
unrelated to each other.
STEPS IN THE CREATIVE PROCESS: The creative process is the evolution of an idea into its final
form through a progression of thoughts and actions. The creative process involves critical thinking and
problem-solving skills.
1. Opportunity or Problem Recognition: A person discovers that a new opportunity exists, or a problem
needs resolution.
2. Immersion: The individual concentrates on the problem and becomes immersed in it. He will recall and
collect information that seems relevant, dreaming up alternatives without refining or evaluating them.
3. Incubation: The person keeps the assembled information in mind for a while. He does not appear to be
working on the problem actively; however, the subconscious mind is still engaged. While the information is
simmering it is being arranged into meaningful new patterns.
4. Insight: The problem-conquering solution flashes into the person's mind at an unexpected time, such as
on the verge of sleep, during a shower, or while running. Insight is also called the Aha! Or Eureka!
Experience.
5. Verification and Application: The individual sets out to prove that the creative solution has merit.
Verification procedures include gathering supporting evidence, using logical persuasion, and
experimenting with new ideas.

1j) What is feasibility in marketing plan

The Marketing Plan: The written document that describes your advertising and marketing efforts for
the coming year; it includes a statement of the marketing situation, a discussion of target markets and
company positioning, and a description of the marketing mix you intend to use to reach your
marketing goals.
 A marketing plan considers the value proposition of a business. The value proposition is the
overall promise of value to be delivered to the customer and is a statement that appears front and
centre of the company website or any branding materials.
 The value proposition should state how a product or brand solves the customer's problem, the
benefits of the product or brand, and why the customer should buy from this company and not
another. The marketing plan is based on this value proposition to the customer.
 The marketing plan identifies the target market for a product or brand. Market research is often the
basis for a target market and marketing channel decisions.
 The marketing plan details the strategy that a company will use to market its products to customers.
 The plan identifies the target market, the value proposition of the brand or the product, the campaigns
to be initiated, and the metrics to be used to assess the effectiveness of marketing initiatives.
 The marketing plan should be adjusted on an ongoing basis based on the findings from the metrics.
PART - B

2. a Examine the importance of scientific theory in management

Taylor's Scientific Management

Frederick Taylor believed that organizations should study tasks and develop precise procedures. As an
example, in 1898, Taylor calculated how much iron from rail cars Bethlehem Steel plant workers could be
unloading if they were using the correct movements, tools, and steps. The result was an amazing 47.5 tons
per day instead of the mere 12.5 tons each worker had been averaging. In addition, by redesigning the
shovels the workers used, Taylor was able to increase the length of work time and therefore decrease the
number of people shovelling from 500 to 140. Lastly, he developed an incentive system that paid workers
more money for meeting the new standard. Productivity at Bethlehem Steel shot up overnight. As a result,
many theorists followed management.
He tried to diagnose the causes of low efficiency in industry and came to the conclusion that much of waste
and inefficiency is due to the lack of order and system in the methods of management. He found that the
management was usually ignorant of the amount of work that could be done by a worker in a day as also
the best method of doing the job. As a result, it remained largely at the mercy of the workers who
deliberately shirked work. He therefore, suggested that those responsible for management should adopt a
scientific approach in their work, and make use of "scientific method" for
achieving higher efficiency. The scientific method consists essentially of
(a) Observation (b) Measurement
(c) Experimentation and (d) Inference.
2b) Define the nature and scope of management

According to Koontz & O’ Donnelly management is

"the art of getting things done through and with people in formally organized groups, it is the art of creation
and maintenance of an internal environment in an organized group where individuals, working in groups ,
can perform effectively and efficiently towards the attainment of group goals.”
According to Mc Farland defines management in more elaborate form:
“It is the process by which managers create, direct, maintain and operate purposive organizations through
systematic, coordinated, cooperative human effort.”
An important term in this definition is “Process”. This term emphasis the dynamic or ongoing nature of
management, an activity over varying span of time. The dynamic nature implies that change is reality of
organizational life.
Thus, management is the sum-total of activities which lay-down plans, policies, purpose & men, machine,
money & material required for the completion purposes, put all of them into operations, supervise and
provide incentives to them.
Nature of Management: The study and application of management techniques in managing the affairs of
the organization have changed its nature over the period of time
1. Multidisciplinary
2. Dynamic nature of principles/ flexible principle
3. Relative but not absolute principles
4. Management is a science or art
5. Management as profession
6. Universality of management
7. It is goal oriented
8. Management is a factor of production
Scope of the Management
It is very difficult to precisely state the scope of management. However, management includes the following
aspects:-
1. Subject-matter of Management: Management is considered as a continuing activity made up of
basic management functions like planning, organizing, staffing, directing and controlling. These
components form the subject-matter of management.
2. Functional Areas of Management: Management covers the following functional areas:-
Financial Management: Financial management includes forecasting, cost control, management accounting,
budgetary control, statistical control, financial planning etc.

Human Resource Management: Personnel / Human Resource Management covers the various aspects
relating to the employees of the organisation such as recruitment, training, transfers, promotions, retirement,
terminations, remuneration, labour welfare and social security, industrial relations etc.

Marketing Management: Marketing management deals with marketing of goods, sales promotion,
advertisement and publicity, channels of distribution, market research etc.

Production Management: Production Management includes production planning, quality control and
inspection, production techniques etc.
Material Management: Material management includes purchase of materials, issue of materials, storage of
materials, maintenance of records, materials control etc.
Purchasing Management: Purchasing management includes inviting tenders for raw materials, placing
orders, entering into contracts etc.
Maintenance Management: Maintenance Management relates to the proper care and maintenance of the
buildings, plant and machinery etc.
Office Management: Office management is concerned with office layout, office staffing and equipment of
the office.
3. Management is an Inter-Disciplinary Approach: Though management is regarded as a separate
discipline, for the correct application of the management principles, study of commerce, economics,
sociology, psychology, and mathematics is very essential. The science of management draws ideas and
concepts from several disciplines making it a multi-disciplinary subject.

4. Principles of Management: The principles of management are of universal application. These principles
are applicable to any group activity undertaken for the achievement of some common goals.

5. Management is an Agent of Change: The techniques of management can be improved by proper

research and development.

6. The Essentials of Management: The essentials of management include scientific method, human
relations and quantitative techniques.

3a) Evaluate the importance of management functions in detail

 According to Mc Farland defines management in more elaborate form: “It is the process by which
managers create, direct, maintain and operate purposive organizations through systematic,
coordinated, cooperative human effort.”
Thus, management is the sum-total of activities which lay-down plans, policies, purpose & men,
machine, money & material required for the completion purposes, put all of them into operations,
supervise and provide incentives to them.
According to G.R. Terry ‘Management is a distinct process consisting of planning, organizing,
actuating and controlling, performed to determine and accomplish stated objectives by the use of
human beings and other resources’’
 Management is considered a continuing activity made up of basic management functions which are
Planning , Organising, Staffing, Directing and Controlling. The managers must perform all these
functions in order to achieve the desired organizational goals.
1. Planning: It is a process of precocious determination of future course of actions. Deciding
what needs to happen in the future (today, next week, next month, next year, over the next 5 years,
etc.) and generating plan or action. This step involves mapping out exactly how to achieve a
particular goal.
 Laying down objectives, Developing planning premises, Search alternative course of actions
 Evaluation of alternative, Formulation of policies and Procedure, Preparing schedules,
programmes, and budgets

2. Organizing: It is a process of dividing the total work into workable packages and assigning
the work to the individual positions. (Implementation) making optimum use of the resources
required to enable the successful carrying out of plans. After a plan is in place, a manager needs to
organize their team and materials according to their plan. Assigning work and granting authority
are two important elements of organizing.
 Identifying the activities involved in achieving objectives
 Grouping, Assigning actives
 Delegation of authority & Responsibilities
 Coordinating and communicating the activates
3. Staffing: The individual positions identified (through organization structure) in the organization
are to be filled by human resources. Job Analysing, recruitment, and hiring individuals for
appropriate jobs.
 Manpower planning
 Recruitment and selection of the suitable personal
 Placement, Training and development actives
 Evaluation of Employees
 Transfer, promotion, termination, and lay off employees

4. Directing / Leading: Directing is concerned with the initiation of organized action and
stimulating people to work. It involves issuance of orders, instructions and leading and motivating
the employees to execute them. Directing is the inter-personal aspect of management which deals
directly with influencing, guiding, supervising and motivating the subordinates for the
accomplishment of pre-determined objectives. Planning, organizing, staffing are merely preparations
for doing the work, but the work actually initiates through directing function.

5. Controlling: Monitoring: Motivating: the process of stimulating an individual to take action that
will accomplish a desired goal and checking progress against plans, which may need modification
based on feedback. Continuously check results against goals and take any corrective actions
necessary to make sure that the plans remain on track. All managers at all levels of every
organization perform these functions, but the amount of time a manager spends on each one depends
on both the level of management and the specific organization.

3b) Elucidate the behavioural approach in management

As management research continued in the 20th century, questions began to come up regarding the
interactions and motivations of the individual within organizations. Management principles developed
during the classical period were simply not useful in dealing with many management situations and could
not explain the behavior of individual employees. In short, classical theory ignored employee motivation and
behaviour. As a result, the behavioral school was a natural outgrowth of this revolutionary management
experiment.
The Hawthorne experiment were first conducted in November,1924 at Western Electric Company’s
Hawthorne plant in Chicago. The initial tests were sponsored by The National Research Council (NRC) of
the National Academy of Sciences. In 1927, a research team from Harvard Business School was invited to
join the studies after the illumination test drew unanticipated results. A team of researchers led by George
Elton Mayo from the Harvard Business School carried out the studies. The researchers and scholars
associated with the Hawthorne experiments were Elton Mayo, Fritz Roethlisberger, T.N. Whitehead and
William Dickson. The National Research Council sponsored this research in cooperation with the Western
Electric Company. The study was started in 1924 by Western Electric’s industrial engineers to examine the
impact of illumination levels on worker productivity. Eventually the study was extended through the early
1930s
Phase1: Illumination experiments:(1924-1927)
These experiments were conducted to determine the effects of different levels of illuminations on
productivity of labor. At last, they concluded that factors other than light were important.
Phase2:Relay assembly test room study(1927-28):
It was concluded that social or human relationship among workers exercised greater influence on
productivity than working conditions.
Phase3:mass interviewing programme (1928-30):
By interviewing 21000 employees to find out the reasons for increasing the productivity, the programme
revealed that if people are permitted to talk freely about things that are important to them the productivity
will be increased.
Phase4:Bank wiring observation room experiment(1930-32):

According to this a worker pay was made dependent on the performance of group as a whole. It was
expected that more efficient workers would put pressure on less efficient workers to increase output.

4a). Define organization structure, explain its types and functions

Meaning of Organizational Structure
An organizational structure is a system that outlines how certain activities are directed in order to achieve the
goals of an organization. These activities can include rules, roles, and responsibilities.
The organizational structure also determines how information flows between levels within the company. For
example, in a centralized structure, decisions flow from the top down, while in a decentralized structure,
decision-making power is distributed among various levels of the organization.
The shape of the organization structure depends on the span of management that organizations preferred.
March and Simon have stated that-"Organisation structure consists simply of those aspects of pattern
of behaviour in the organisation that are relatively stable and change only slowly.“
Determining the kind of Organisation Structure
According to Peter F Drucker-"Organisation is not an end in itself, but a means to the end of business
performance and business results. Organisation structure is an indispensable means; and the wrong structure
will seriously impair business performance and may even destroy it.
Peter Drucker has pointed out three specific ways to find out what kind or structure is needed to attain the
objectives of a specific business:
Activities Analysis: The purpose of 'activities analysis' is to discover the primary activity of the proposed
organisation, for it is around this that other activities will be built. It may be pointed out that in every
organisation; one or two functional areas of business dominate.
Decision Analysis: At this stage, the manager finds out what kinds of decisions will need to be made to
carry on the work of the organisation. What is even more important, he has to see where or at what level
these decisions will have to be made and how each manager should be involved in them. This type of
analysis is particularly important for deciding upon the number of levels or layers in the organisation
structure.
Relations Analysis: Relations Analysis will include an examination of the various types of relationships that
develop within the organisation. These relationships are vertical, lateral and diagonal. Where a superior-
subordinate relationship is envisaged, it will be a vertical relationship.
Types of Organizational Structures
Functional Structure
The functional structure is based on an organization being divided up into smaller groups with specific tasks
or roles. For example, a company could have a group working in information technology, another in
marketing and another in finance.
Each department has a manager or director who answers to an executive a level up in the hierarchy who may
oversee multiple departments. One such example is a director of marketing who supervises the marketing
department and answers to a vice president who is in charge of the marketing, finance and IT divisions

Divisional or Multidivisional Structure

Larger companies that operate across several horizontal objectives sometimes use a divisional organizational
structure. This structure allows for much more autonomy among groups within the organization. One
example of this is a company like General Electric. GE has many different divisions including aviation,
transportation, digital and renewable energy, among others.
Under this structure, each division essentially operates as its own company, controlling its own resources
and how much money it spends on certain projects or aspects of the division.

Matrix Structure: A hybrid organizational structure, the matrix structure is a blend of the functional
organizational structure and the projectized organizational structure.
In the matrix structure, employees may report to two or more bosses depending on the situation or project.
For example, under normal functional circumstances, an engineer at a large engineering firm could work for
one boss, but a new project may arise where that engineer’s expertise is needed. For the duration of that
project, the employee would also report to that project’s manager, as well as his or her boss for all other
daily tasks. The matrix structure is challenging because it can be tough reporting to multiple bosses and
knowing what to communicate to them. That’s why it’s very important for the employees to know their
roles, responsibilities and work priorities

LINE ORGANISATION STRUCTURES

Line organizations can be designed in two ways.
1. PURE LINE ORGANISATION: Under this form similar activities are performed at a particular
level. Each group of activities is self contained units and is able to perform the assigned activities
without the assistance of others.
DEPARTMENTAL LINE ORGANISATION: Under this form, entire activities are divided in to different
departments on the basis of similarity of activities. Each department is placed under one departmental
superintendent. Al persons in the department are subjected to control by department head.
LINE AND STAFF ORGANISATION STRUCTURES
Line and staff organizations refer to the pattern in which staff specialists advise line managers to perform
their duties. When the work of an executive increases, the performance requires the service of specialists
which he himself cannot provide because of his limited capabilities on these fronts. Such advice is provided
by the line managers by staff personals who are generally specialists in their fields. The staff positions or
departments are purely of advisory in nature. They have the right to recommend but have no authority to
enforce their preference on departments.
In actual practice sometimes it is difficult to determine which are line and staff. The problem can usually be
solved by classifying activities within a line or staff. The problem can usually be solved by classifying an
organization in two ways.
1. Which is substantive or directive
2. Which is objective or indirect in its contribution.

4b) Summarize the importance of planning and its process

Planning means looking ahead. It is deciding in advance what is to be done. Planning includes
forecasting. When management is reviewed as a process, planning is the first function performed by
a manager. The work of a manager begins with the setting of objectives of the organisation and goals
in each area of the business. This is done through planning.
Planning is an activity, it can be considered as consisting of a process, hence various sub-
actives. Plan is a commitment to a particular course of action believed necessary to achieve
specific results.
A plan is a predetermined course of action to accomplish the set objectives. It is today's
projection for tomorrow's activity. Planning includes objectives, strategies, policies, procedures,
programmes, etc. As it involves making choices, decision-making is the heart of planning.
Definitions of Planning:
According to Koontz O'Donnel - "Planning is an intellectual process, the conscious determination
of courses of action, the basing of decisions on purpose, acts and considered estimates".
According to Terry “Planning is the selection and relating of facts and making and using of
assumptions regarding the future in the visualization and formalization of proposed activities
believed necessary to achieved desired result.
Planning Process:
1. Perception of Opportunities
 Provides information for formulation of plans
 It is a primary look at opportunities & ability
 This provides an opportunity to set the objectives for the environment

2. Establishing Objectives
 The objectives specify the result expected and indicated the end point (What, Where,
When)
 The objectives are specified in all key result areas
 Organizational objectives give direction to the nature major plans

3.Planning Premises
  At this stage the conditions under which planning actives will be undertaken are determined
( Planning Assumptions)
 The external and internal conditions/ factors are considered
 PP is differ at different levels of planning
4. Identification of Alternatives
 Based on org. objectives and PP various alternatives can be identified
 They suggest that a particular objectives can be achieved through various actions in a
specified premises
5. Evaluation of Alternatives
 An attempt is made to evaluate how each alternative contributes to the org. objectives in the
light of its resources and constraints.
 Alternatives are considered feasible in terms of preliminary criteria
6. Choice of Alternatives
 Selecting the course of action is the point at which the plan is adopted. It is the real point of
decision-making
 Planner may choose more than one and keep another one as contingency plan
7. Formulation of Supporting Plans
 After the basic plan various plans are derived so as to support the mail plan
 These derivative plans support the main plan implementation.
8. Establishing sequence of Activities and Formulation of Action Plan
 Planner has work out its details and formulate the steps in full sequences
 Planner decides who will do, what and when; budgets are prepared for concrete meaning
for implementation
9. Reviewing the planning process : Feedback mechanism, an attempt is made to secure that
which was originally planned. To do this we have to compare the actual performance with the
plan and then we have to take necessary corrective action to ensure that actual performance is as
per the plan.

5a) Determine the importance of decision making and its process

Decision Making

The word decision has been derived from the Latin word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives between those that are desirable and those that are not desirable.
Decision is a kind of choice of a desirable alternative.

A few definitions of decision making are given below: In the words of George R. Terry, "Decision-making is
the selection based on some criteria from two or more possible alternatives".

According to SHULL : Decision making is a conscious and human process , involving both individual &
social phenomenon based upon factual & value premises , which concludes with a choice of one behavioural
activity from among one or more alternatives with the intention of moving towards some desired state of
affairs.

From the above definitions, we can conclude that, Decision Making involves the process of establishing
goals, tasks ,searching and choosing alternatives for a decision problem.

1. Better Utilisation of Resources

2. Facing Problems and Challenges
3. Business Growth
4. Achieving Objectives
5. Increases Efficiency
6. Facilitate Innovation
7. Motivates Employees

Decision making process

5b) Extend the principal of organization

Definition of Organizing

According to Sheldon, "Organisation is the process of so combining the work which individuals or groups
have to perform with facilities necessary for its execution, that the duties so performed provide the best
channels for efficient, systematic, positive and co-ordinated application of available effort.“

In the words of Chester, I Bernard, "Organisation is a system of co-operative activities of two or more
persons.“

Mc Ferland has defined organisation as, "an identifiable group of people contributing their efforts towards
the attainment of goals".

According to Louis A Allen, "Organizing is the process of identifying and grouping the work to be
performed, defining and delegating responsibility and authority, and establishing relationships for the
purpose of enabling people to work most effectively together in accomplishing objectives.
PRINCIPLES OF ORGANISATION

Consideration of unity of objectives: The objective of the undertaking influences the organisation structure.
There must be unity of objective so that all efforts can be concentrated on the set goals.

Specialization: Effective organisation must include specialisation. Precise division of work facilitates
specialisation.
Co-ordination: Organisation involves division of work among people whose efforts must be co-ordinated to
achieve common goals. Co-ordination is the orderly arrangement of group effort to provide unity of action in
the pursuit of common purpose.

Clear unbroken line of Authority: It points out the scalar principle or the chain of command. The line of
authority flows from the highest executive to the lowest managerial level and the chain of command should
not be broken.

Responsibility: Authority should be equal to responsibility i.e., each manager should have enough authority
to accomplish the task
Efficiency: The organisation structure should enable the enterprise to attain objectives with the lowest
possible cost.

Delegation: Decisions should be made at the lowest competent level. Authority and responsibility should be
delegated as far down in the organisation as possible.

Unity of Command: Each person should be accountable to a single superior. If an individual has to report to
only one supervisor there is a sense of personal responsibility to one person for results.

Span of Management: No superior at a higher level should have more than six immediate subordinates. The
average human brain can effectively direct three to six brains (i.e., subordinates).

Communication: A good communication sub-system is essential for smooth flow of information and
understanding and for effective business performance.

Flexibility: The organisation is expected to provide built in devices to facilitate growth and expansion
without dislocation. It should not be rigid or inelastic.

6a) Justify how needs hierarch theory will be suitable for employee motivation

Abraham Maslow, a U.S psychologist, first introduced his concept of a hierarchy of needs in his 1943 paper
"A Theory of Human Motivation" and his subsequent book Motivation and Personality. This hierarchy
suggests that people are motivated to fulfil basic needs before moving on to other, more advanced needs. All
motivated behaviour of man is directed towards the satisfaction of his needs. The theory postulated that
people are motivated by multiple needs, which could be arranged in a hierarchy. Maslow offers a general
theory of motivation called the 'need hierarchy theory'.
1. People have a wide range of needs which motivate them to strive for fulfilment.
2. Human needs can be categorized into five types
3. These needs can be arranged into a hierarchy. Physical needs are at the base whereas self-
actualization needs are at the apex.
4. People gratify their physical needs first, when the need is satisfied, they feel the urge for the next
higher-level need.
5. Relative satisfaction of lower-level need is necessary to activate the next higher-level need.
6. A satisfied need does not motivate human behaviour. It only triggers or activates the urge for the next
higher level of needs.
Human behavior is goal-directed. Motivation cause goal-directed behaviour. It is through motivation that
needs can be handled and tackled purposely. This can be understood by understanding the hierarchy of needs
by manager. The needs of individual serves as a driving force in human behaviour. Therefore, a manager
must understand the “hierarchy of needs”. Maslow has proposed “The Need Hierarchy Model”.
The needs have been classified into the following in order:
1. Physiological needs- These are the basic needs of an individual which includes food, clothing,
shelter, air, water, etc. These needs relate to the survival and maintenance of human life.
2. Safety needs- These needs are also important for human beings. Everybody wants job security,
protection against danger, safety of property, etc.
3. Social needs- These needs emerge from society. Man is a social animal. These needs become
important. For example- love, affection, belongingness, friendship, conversation, etc.
4. Esteem needs- These needs relate to desire for self-respect, recognition and respect from others.
5. Self-actualization needs- These are the needs of the highest order, and these needs are found in
those person whose, previous four needs are satisfied. This will include need for social service,
meditation.

6b) List out the controlling techniques with suitable example

Controlling is an important function of management. It is the process that measures current

performance and guides it towards some predetermined objectives.

Control is a primary goal-oriented function of management in an organisation. It is a process of

comparing the actual performance with the set standards of the company to ensure that activities are
performed according to the plans and if not then taking corrective action.
According to Breach - "Control is checking current performance against predetermined standards
contained in the plans, with a view to ensuring adequate progress and satisfactory performance.“

According to George R Terry - "Controlling is determining what is being accomplished i.e.,

evaluating the performance and if necessary, applying corrective measures so that the performance
takes place according to plans.“

In the words of Koontz and O'Donnell - "Managerial control implies measurement of

accomplishments against the standards and the correction of deviations to assure attainment of
objectives according to plans."
Control Process in Business Management
The control process of management ensures that every activity of a business is furthering its
goals. This process basically helps managers in evaluating their organization’s performance.
By using it effectively, they can decide whether to change their plans or continue with them
as they are.
 The control process is the functional process for organizational control that arises from the
goals and strategic plans of the organization.
Steps of Control Process are;
1. Establishing standards and methods for measuring performance.
2. Measuring performance.
3. Determining whether performance matches the standard.
4. Taking corrective action.
Techniques of Managerial Control
The various techniques of managerial control may be classified into two broad categories: traditional
techniques, and modern techniques.
Traditional Techniques: Traditional techniques are those which have been used by the companies
for a long time now. However, these techniques have not become obsolete and are still being used by
companies. These include:
(a) Personal observation
(b) Statistical reports
(c) Breakeven analysis
(d) Budgetary control
Modern Techniques: Modern techniques of controlling are those which are of recent origin and are
comparatively new in management literature. These techniques provide a refreshingly new thinking
on the ways in which various aspects of an organisation can be controlled. These include:
(a) Return on investment
(b) Ratio analysis
(c) Responsibility accounting
(d) Management audit
(e) PERT and CPM
(f) Management information system

7a) Leaders are born not made – Discuss

Leadership is the potential to influence behaviour of others. It is also defined as the capacity to influence a
group towards the realization of a goal. Leaders are required to develop future visions, and to motivate the
organizational members to want to achieve the visions.
According to Keith Davis, “Leadership is the ability to persuade others to seek defined objectives
enthusiastically. It is the human factor which binds a group together and motivates it towards goals.”
According to Chester I Barnard, "It (leadership) refers to the quality of the behaviour of the individual
whereby they guide people on their activities in organized efforts".
According to Terry, "a leader shows the way by his own example. He is not a pusher; he pulls rather than
pushes".
According to Koontz and O'Donnell - Managerial leadership is "the ability to exert inter-personal
influence by means of communication, towards the achievement of a goal. Since managers get things
done through people, their success depends, to a considerable extent upon their ability to provide
leadership".

1. Leadership implies the existence of followers: We appraise the qualities of leadership by studying his
followers. In an organization leaders are also followers for e.g.:- Supervisor works under a branch head.
Thus, in a formal organization a leader has to be able to be both a leader as well as a follower and be able to
relate himself both upward and downward.
2. Leadership involves a community of interest between the leader and his followers: In other words,
the objectives of both the leader and his men are one and the same. If the leader strives for one purpose and
his team of workers work for some other purpose, it is no leadership.
3 Leadership involves an unequal distribution of authority among leaders and group members:
Leaders can direct some of the activities of group members, i.e., the group members are compelled or are
willing to obey most of the leader's directions. The group members cannot similarly direct the leader's
activities, though they will obviously affect those activities in a number of ways.
4. Leadership is a process of Influence: Leadership implies that leaders can influence their followers or
subordinates in addition to being able to give their followers or subordinates legitimate directions.
5. Leadership is the function of stimulation: Leadership is the function of motivating people to strive
willingly to attain organizational objectives. A successful leader allows his subordinates (followers) to have
their individual goals set up by themselves in such a way that they do not conflict with the organizational
objectives.

Leaders are born not made

A. Despite the horrors of wars, genocide, social inequities like slavery and racism, the century has
more people living in freedom than at any time in human history. The reasons are manifold, but
credit may be most due to leaders the world over who stood up for human dignity when it was
threatened by hate and fear.

B. There are many influential leaders who shepherded humanity through tumultuous and often
violent times. Mandela has been an enduring symbol of African democracy and of Gandhi’s
dream of peaceful political change. There have been many statesmen who have orchestrated the
history of their countries in a dynamic way. Equally there are many business leaders who have
exemplified leadership strength and led their businesses through recessionary periods and layoffs,
with innovative techniques

C. Are all these influential persons born with such talent? Are we all not a product of our
circumstances and history? Do people have the ability to go beyond their circumstances? Being
born a human being we have been gifted with fantastic capabilities, much of which we haven’t
explored. Yes, there are some people who are born with very high intelligence with superlative
IQ (Intelligence Quotient) but the new age is also talking about EQ- Emotional Quotient.

D. There are certain genes which will make one who he is, but to be able to enable change, to drive
transformational decisions, needs more than intelligence. There are people who have learnt this
art of navigating life with ease. They have painstakingly learnt their art through experience. They
can harmonize and control team efforts towards desired outcomes. They have gone that extra
length to know what works, what does not, understand the environment and the people working
in the circumstances, their motivations, all the time training their mind to be on top of the game.

E. Leaders may be gifted with certain intuitive insights but the drive and the inclination to put it to
use for the larger benefit of the society, are evolving traits as one progresses in life with myriad
experiences.

F. There are some people who are born with all the right attitudes, and gained the skills with the
right education, which give them an advantage; however, there is no denying that given the right
environment, leaders in their respective areas of expertise can be developed with training and
guidance. Leadership is not a privileged right held by few- those to the manor born!

7b) Distinguish between X theory and Y theory

8a) Evaluate the characteristics and skills of entrepreneur

Definition of Entrepreneur: According to Adam Smith: “Entrepreneur as a person who only provides
capital without taking active part in the leading role in the enterprise”.
Peter E Drucker defines an entrepreneur as one who always searches for change, responds to it, and
exploits it as an opportunity. Innovation is the basic tool of entrepreneurs, the means by which they exploit
change as an opportunity for a different business or service.
CHARACTERISTICS OF ENTREPRENEUR
An entrepreneur may be driven by a need to create something new or build something tangible.
Characteristics of an entrepreneur include spontaneous creativity, the ability and willingness to make
decisions in the absence of solid data and a generally risk-taking personality.
1. Mental ability: Mental ability consists of intelligence and creative thinking. An entrepreneur must
be reasonably intelligent and should have creative thinking and must be able to engage in the analysis
of various problems and situations in order to deal with them.
2. Clear objectives: An entrepreneur should have a clear objective as to the exact nature of the goods to
be produced and subsidiary activities to be undertaken.
3. Business secrecy: An entrepreneur must be able to guard business secrets.
4. Human relations ability: The most important, personality traits contributing to the success of an
entrepreneur is emotional stability, personal relations, consideration, and tactfulness.
5. Communication ability: Communication ability is the ability to communicate effectively. Good
communication also means that both sender and the receiver understand each other and are being
understood.
6. Technical knowledge: An entrepreneur must have a reasonable level of technical knowledge.
Technical knowledge is the one ability that most people can acquire if they try hard enough.
SKILLS OF ENTREPRENEUR
Many entrepreneurs believe that the most important factor that will determine their level of success with a
start-up relates to their overall experience and skills in the niche area.
1. Ambition: It is easy to give up when the going gets tough, but the most successful entrepreneurs
persist because of their ambitious nature. They want to succeed, and they thrive on reaching small
milestones that are steppingstones to their goal.
2. Willingness to Learn: Some people think that learning stops when you graduate college or earn a
special certification, but this is not the case. Education is a life-long process. Entrepreneur must stay
updated with changes in technology, the evolution of your industry, sales processes and more.
3. Ability to Listen: To manage a great team or run provide a great customer service if entrepreneur is
an effective communicator. Communication is a two-way street. To communicate outwardly in an
effective manner, Entrepreneur must pay attention to others’ motivations, hot buttons, interests and
more. Entrepreneur also must be aware of non-verbal cues, such as body language.
4. Creativity: If entrepreneur always do the same thing, you very likely will not enjoy new and better
results. entrepreneur must try new things to find what works best. He also needs to enrich their live
with new experiences regularly.
 5. Assertiveness and Confidence: While listening is important for effective communication,
entrepreneur also must know when he need to take control of the conversation and assert his
opinions and beliefs. Entrepreneur should listen to others who are making reasonable claims and
requests, but he also need to know when to say no. Be consistent yet open-minded to earn respect and
trust from those around you.
6. Perseverance: Many of the most successful business owners have suffered devastating defeats and
failures. Rather than look at these events as an end to a situation, they have looked at these events as
important learning moments. They maintained their optimism and perseverance, but they also made
calculated changes to future efforts. Remember that entrepreneur only fail when they stop trying.
Persistence is the key to success.
7. Courage and Risk Taking: In order to harness the power of creativity, entrepreneur must have the
courage to act on their great ideas and plans. While he need to research his ideas thoroughly, he must
also have the courage to take an unknown step and try things that are unfamiliar to him by accepting
the risk .
Finding a successful path in life is rarely a straight and narrow process. Many entrepreneurs must take
numerous steps to develop the right combination of skills, traits, and knowledge to be successful with
their efforts. If entrepreneur focus their attention on nurturing these traits in your own life, they may be
able to enjoy better overall success with future entrepreneurial efforts.

8b) explain the functions of NABARD in entrepreneurship development

National Bank for Agriculture and Rural Development (NABARD)

The Indian economy post-independence was an agricultural economy. After independence, the focus was
mainly on manufacturing and trade sector of the economy to boost development. However, a major part of
the population in India live in the rural sector and so it is important to develop rural financial activities.
Therefore, the government set up NABARD.
Established on 12th July 1982, it had an initial capital of 100 crores. The bank is under the supervision of a
Board of Directors which the Government of India will appoint. The headquarters of NABARD is in
Mumbai, but it has many branches and regional divisions.
Functions of NABARD: some of the main functions of this organisation. It basically performs three
kinds of roles, i.e., credit functions, development functions, and supervisory functions.
1. Frames the policy for rural credit in the country for all financing institutions
2. NABARD will itself provide finance and refinancing facilities to the banks and rural regional banks
3. Identification of credit potential and preparation of the credit plans for all districts
4. It also helps all regional banks and institutes under its governance with the preparation of their own
credit plans
5. Helps Regional Rural Banks establish an agreement with State Governments and other Co-op Banks
and institutions
6. It will also monitor the implementation of such plans and track their progress
7. Helps banks improve their MIS system, modernize their technology, develop human resources etc
8. As per the Banking Regulation Act 1949, NABARD has to conduct the inspection of Regional Rural
Banks and other Co-op banks
9. It communicates and consults the RBI in matters such as issuing of licenses for new banks, the
opening of branches of Rural Banks etc.
10. From time to time it will also inspect the investment portfolios of Regional Rural Banks and other
State Co-op Banks

9a) List out the types of entrepreneurs in India with suitable example

TYPES OF ENTREPRENEURS: Entrepreneurs can be of different types. Some may prefer to go it alone
or share the risk in groups with others. They are found in every economic system and as well as in other
social and cultural activities. They are seen from amongst farmers, labourers, fishermen, tribals, artisans,
artists, importers, exporters, bankers, professionals, politicians, bureaucrats and so many others.
Basing on the above features C. Danhof has broadly classified entrepreneurs into four types. These are
discussed below.

1. Innovative Entrepreneur: In the early phases of economic development, entrepreneurs have initiative to
start new ventures and find innovative ways to start an enterprise. Thus, innovative entrepreneurs are
those who introduces new products, new method of production techniques, or discovers a new market
or a new service or reorganizes the enterprise. It is the innovative entrepreneurs who built the modern
capitalism. They are commonly found in developed countries. They are aggressive in nature who exhibit
cleverness in putting attractive possibilities into practice.
2. Imitative Entrepreneur: There is a second group of entrepreneurs generally referred as imitative
entrepreneurs. They usually copy or adopt suitable innovations made by innovative entrepreneurs.
They are adoptive and more flexible. They are organisers of factors of production rather than creator.
The imitative entrepreneurs are also revolutionary and important. They' contribute to the development of
underdeveloped economies.
3. Fabian Entrepreneurs: The third type of entrepreneur is Fabian Entrepreneurs. Such type of
entrepreneurs are very shy and lazy by nature. They are very cautious people. They do not venture to
take risks. They are rigid and fundamental in their approach. Usually, they are second generation
entrepreneurs in a family business enterprise. They follow the footsteps of their successors. They imitate
only when they are very clear that failure to do so would result in a loss of the relative position in the
enterprise.
4. Drone Entrepreneurs: The fourth type of entrepreneur is Drone entrepreneurs who refuse to copy or
use opportunities that come on their way. They are conventional in their approach. They are not
ready to make changes in their existing production methods even if they suffer losses. They resist
changes. They may be termed as laggards.
The above types of entrepreneurs are not comprehensive for it aims at highlighting the broad range of
entrepreneurs found in business and profession. Following are some more types of entrepreneurs listed
according to the type of business, use of technology, motivation, growth, and stages of development

9b) Describe the schemes of DIC for entrepreneurship development

Schemes of Department of Industries (DIC)

 In pursuance of the Industrial Policy-1977, a programme for setting up District Industries Centres
(DICs) was launched by the Government of India, to be operational from 1st May 1978.
 The programme provided for setting up a DIC in each district of the country, in a phased manned in
order to make the district headquarters a focal point for the development of small-scale and
cottage industries, to shift the emphasis from cities and state capitals to the district
headquarters and to provide under a single root, all services and support needed by small and
village entrepreneurs. Accordingly, the Government of lndia issued guidelines to the State
Government for setting up DIC in each district of the state.
 In each District Industries Centre, there are groups of Managers in the rank of Asst. Director of
Industries and also a number of Industrial Development officers to assist the General Manager who is
the organizational Head of the District
Objectives of District Industries Centres (DICs): The main objects of the DIC programme are firstly
to make available various assistance and clearance required under one roof and secondly to promote
rural industries.
1. Accelerate the overall efforts for industrialization of the district.
2. Rural industrialization and development of rural industries and handicrafts.
3. Attainment of economic equality in various regions of the district.
4. Providing the benefit of the government schemes to the new entrepreneurs.
5. Centralization of procedures required to start a new industrial unit and minimization- of the efforts
and time required to obtain various permissions, licenses, registrations, subsidies etc.
Following are the schemes under District Industries Centre (DIC):
1. Prime Minister’s Employment Generation Program (PMEGP):
The objective of this centrally sponsored scheme of Ministry of Micro, Small & Medium Enterprises,
Government of India being implemented since October 2008 is to provide gainful employment and self-
employment opportunities to educated unemployed persons through activity of industry, service and
business.
The scheme is implemented through agencies namely Khadi & Village Industries Commission, Khadi &
Village Industries Board and District Industries Centre (Directorate of Industries) in the state. KVIC is the
nodal agency for implementation of the scheme.
Features of the scheme :
A. ₹ 25 lakhs cost of the project under manufacturing sector and ₹ 10 lakhs under Business/ Service
sector. 90 to 95% amount will be given as loan by banks and 5 to 10% will be applicants share
B. Scheme is implemented through Nationalized Banks, Regional Rural Banks and IDBI.
2. Seed Money Scheme: The objective of the scheme is to encourage an unemployed person to take up self-
employment ventures through industry, service, and business, by providing soft loans to meet part of the
margin money to avail institutional finance.

3. DIC Loan Scheme: The objective of the scheme is to generate employment opportunities including
self-employment to tiny units located in towns and rural areas having population of less than 1 lakh and
with investment in plant & machinery below ₹ 2 Lakhs. Such identified tiny units falling within the purview
of the Small-Scale Industries Board and Village Industries, handicrafts, handlooms, Silk & Coir Industries
are covered for financial assistance in the form of margin/seed money under the Scheme.

4. Entrepreneurship Development Training Program: This scheme was introduced with the objective of
training educated unemployed persons to take up self-employment ventures or skilled wage
employment. Entrepreneurs are given guidance related to industry/service/business activities & skill
upgradation. Entrepreneurs are also guided in respect of choice of activity, necessities of land, project report,
obtaining various no objection certificates, licences and marketing strategy.
5. District Award Schemes: In order to encourage entrepreneurs establishing small scale ventures and to
acknowledge them for their success and achievements, the State Government has started honouring
such entrepreneurs with District Award Scheme at the district level. Proprietors / Partner’s / Directors of
enterprises who have obtained EM registration with the concerned District Industries Centre at least three
years earlier and in production for two continuous years are eligible for the award.

10a) Elaborate the steps of developing day business plan

Business Plan is “a written document prepared by the entrepreneur that describes all the relevant
internal and external elements and strategies for starting a new venture”.
 It is an integration of functional plans such as marketing, finance, manufacturing, sales and human
resources.it also addresses both short- & long-term decision making for the first three years of
operation.
 The business plan should be prepared by the entrepreneur. The entrepreneur may consult with many
other sources in its preparation, such as lawyers, accountants, marketing consultants, and engineers.
Internet also provides a wealth of information as well as actual sample templates or outlines for
business planning.
 To help determine whether to hire a consultant or to make use of other resources, the entrepreneur
can make an objective assessment of his/her own skills. Through such an assessment the entrepreneur
can identify what skills are needed & where to obtain them.
 The business plan may be read by employees, investors, bankers, venture capitalists, suppliers,
customers, advisors, and consultants. Since each of these groups reads the plan for different
purposes, the entrepreneur must be prepared to address all their issues & concerns.
 Since each of these groups reads the plan for different purposes, the entrepreneur must be prepared to
address all their issues & concerns. There are three perspectives should be considered in
preparing the plan :
 Perspective of the entrepreneur:
 Marketing perspective
  Investor’s perspective
Process of Business Plan :

10b) Discuss the role of creativity in business plan

THREE REASONS WHY PEOPLE ARE MOTIVATED TO BE CREATIVE:

1. Need for novel, varied, and complex stimulation.
2. Need to communicate ideas and values.
3. Need to solve problems.
 In order to be creative, entrepreneurs need to be able to view things in new ways or from a
different perspective. Among other things, they need to be able to generate new possibilities or new
alternatives.
 Tests of creativity measure not only the number of alternatives that people can generate but the
uniqueness of those alternatives. The ability to generate alternatives or to see things uniquely does
not occur by change; it is linked to other, more fundamental qualities of thinking, such as
flexibility, tolerance of ambiguity or unpredictability, and the enjoyment of things so far
unknown.
Thus, creativity is the development of ideas about products, practices, services, or procedures that are
novel and potentially useful to the organization.

11a) Formulate the steps for marketing plan .

Marketing plan: Describes market conditions and strategy related to how the product(s) and service(s)
will be distributed, priced, and promoted. It helps in forecasting of sales, budget & appropriate controls.
Marketing planning will be an annual requirement (with careful monitoring & changes made on a weekly or
monthly basis) for the entrepreneur & should be regarded as the road map for short term decision making.
 A marketing plan considers the value proposition of a business. The value proposition is the
overall promise of value to be delivered to the customer and is a statement that appears front and
centre of the company website or any branding materials.
 The value proposition should state how a product or brand solves the customer's problem, the
benefits of the product or brand, and why the customer should buy from this company and not
another. The marketing plan is based on this value proposition to the customer.
 The marketing plan identifies the target market for a product or brand. Market research is often the
basis for a target market and marketing channel decisions.
 The marketing plan details the strategy that a company will use to market its products to customers.
 The plan identifies the target market, the value proposition of the brand or the product, the campaigns
to be initiated, and the metrics to be used to assess the effectiveness of marketing initiatives.
The marketing plan should be adjusted on an ongoing basis based on the findings from the metrics.
A. Defining the Purpose or Objectives
B. Gathering Data from Secondary Sources
C. Gathering Information from Primary Sources
D. Analysing and Interpreting the Results
E. Understanding the Marketing Plan
F.
11b) Formalist disturbs for financial plan

What Is a Financial Plan?

A financial plan is a document containing a person’s / business current money situation and long-term
monetary goals, as well as strategies to achieve those goals. The financial section of your business plan
determines whether the business idea is viable and will be the focus of any investors who may be
attracted to the business idea. The financial section is composed of four financial statements: the
income statement, the cash flow projection, the balance sheet, and the statement of shareholders'
equity. It also should include a brief explanation and analysis of these four statements.
Income Statement: An income statement is a scorecard on the financial performance of your business
that reflects a balance between sales and expenses. An income statement is calculated by combining
earnings, business expenses, capital, and inventory and raw material costs. Using these financial categories,
an income statement will show a net profit or net loss, usually over a company's fiscal year.
Cash Flow Statement: Cash flow statements show "how much cash will be needed to meet obligations,
when it is going to be required and from where it will come. It shows a schedule of the money coming
into the business and expenses that need to be paid," according to Entrepreneur website. These figures in
turn make up what is known as a profit and loss statement -- most commonly referred to as a P&L statement.
P&L statements are generated on a monthly, quarterly or yearly business during a company's operation.
Balance Sheet:
The balance sheet outlines a business' assets, liabilities and equity. Assets are cash on hand, inventory,
accounts receivable, and equipment and fixtures owned by the business. Liabilities are business loans, credit
lines and accounts payable. Equity is the amount of worth a business obtains by amortizing loans and the
worth of company issued shares or stock. The term balance is derived from the fact that assets must be equal
or balanced to the company's liability and owner's equity.
Statement of stockholders' equity: A statement of stockholders' equity is another name for the statement of
shareholder equity. This section of the balance sheet is also known as a statement of shareholders' equity or a
statement of owner's equity. It gives shareholders, investors or the company's owner a picture of how the
business is performing, net of all assets and liabilities.