Question:

Greener Organic is a company producing eco-friendly fertilizers and soil boosters. With the growing interest in organic farming, the company is planning to expand its operations across India. Greener sets its target to increase its sales by 25% in the next year. This gave all departments – sales, production, marketing and logistics – a common target to work. To achieve this, Greener made a comprehensive plan to enter Tier-2 and Tier-3 cities by working with local farmer groups. They also plan to promote their brand through on-line campaigns focused on eco-friendly farming. The company also laid down broad parameters within which the managers could function. All raw materials used had to be certified organic and preferably sourced from local farmers. This would improve quality, support local people and build trust with customers. The company allocated ` 50 lakhs for marketing, which included funds for regional newspaper advertisements, digital marketing, promotional events and dealer incentives. By quantifying future facts and figures, the company planned to control costs and evaluate performance. Identify and explain any four type of plans discussed in the above case.

Show Hint

Remember: Objective = End goal (Sales +25%); Strategy = The master plan to win (Enter Tier 2/3); Policy = The boundaries for action (Only organic raw materials); Budget = Numbers and money (₹50 lakhs).
Updated On: Jun 25, 2026
Show Solution
collegedunia
Verified By Collegedunia

Correct Answer: 4

Solution and Explanation

Step 1: Concept
Types of Plans.

Step 2: Meaning
Organizations formulate different types of plans—ranging from overarching goals to specific numerical budgets—to navigate their operational environment effectively.

Step 3: Analysis

Objective: An objective is the specific end result that management seeks to achieve by its operations within a certain timeframe. It is usually measurable.
Case context: "Greener sets its target to increase its sales by 25% in the next year."

Strategy: A strategy is a comprehensive plan designed to achieve the organization's objectives, usually involving determining long-term courses of action and allocating resources.
Case context: "...made a comprehensive plan to enter Tier-2 and Tier-3 cities by working with local farmer groups."

Policy: Policies are general statements or broad parameters that guide thinking or channel energy towards a particular direction for managerial decision-making.
Case context: "The company also laid down broad parameters... All raw materials used had to be certified organic and preferably sourced from local farmers."

Budget: A budget is a statement of expected results expressed in numerical terms (quantifying future facts and figures) for a definite period in the future.
Case context: "The company allocated ₹ 50 lakhs for marketing... By quantifying future facts and figures, the company planned to control costs..."


Step 4: Conclusion
Greener Organic systematically deployed Objectives, Strategies, Policies, and Budgets to ensure a coordinated and financially sound expansion.
Was this answer helpful?
0
0

Top CBSE CLASS XII Planning Questions

View More Questions