Question

. Super Fine Rice Ltd. Has the largest share of 55% in the market. The company's policy is to sell only for cash. In 2015, for the first time company's number one position in the industry has been threatened because other companies started selling rice on credit* also. But the managers of Super Fine Rice Ltd. Continued to rely on it's previously tried and tested successful plans which didn't work because the environment is not static. This led to decline in sales of Super Fine Rice Ltd. The above situation is indicating two limitations of planning which led to decline in it sales. Identify and explain these limitations

Answer 1

Answer: 1. Planning should not be rigid.

2. Planning does not guarantee success

Step-by-step explanation:

The limitations of planning which led to decline in it sales are that planning should not be rigid and that planning doesn't always guarantee success.

Planning brings about rigidity. A plan that well defined is usually Dewan along with the goals that needs to be achieved and this is used in deciding the future curse of action that'll be taken. This can bring about rigidity in the organization. In this case, the managers of Super Fine Rice Ltd. continued to rely on it's previously tried and tested successful plans which didn't work because the environment is not static.

Also, planning does not guarantee success. Success can only be achieved in a situation whereby the plans are implemented properly. A plan that isn't implemented and translated into action will become meaningless.