Question

To achieve its goal of increased market share, Restaurant Y launched a program that awards grade-school students a free cupcake for every A they receive on their report cards. Which management function was used to create this program?a. Controllingb. Leadingc. Planningd. Organizing

Answer 1

The correct answer is C: Planning

Step-by-step explanation:

There are five primary functions of management:

1. Planning

2. Organizing

3. Staffing

4. Directing

5. Controlling

Planning is future-oriented and determines an organization’s direction to achieve an objective. It is a rational and systematic way of making decisions today that will affect the future of the company.

Peter Drucker has defined planning as follows:

“Planning is the continuous process of making present entrepreneurial decisions systematically and with best possible knowledge of their futurity, organizing systematically the efforts needed to carry out these decisions and measuring the results of these decisions against the expectations through organized and systematic feedback”.

Planning is the path to achieve a predetermined objective. In this exercise, the objective is to increase market share. To achieve this goal they need to attract more costumers. To attract more customers, Restaurant Y planned a promotion based on grade-school students.