1.

The Manager, Mr. Rehman, strictly adheres to the organisational plan that lays down a maximum of 10 % discount to be offered to customers on sale of goods. But Mr. Rehman could not provide a 10.5 % discount on a large order to an old customer Mr. Ram when he demanded a discount. The firm lost the large order and hence incurred losses. (i) Which two limitations of planning are reflecting here? (ii) How can this limitation be overcome?

Answer»

The Manager, Mr. Rehman, strictly adheres to the organisational plan that lays down a maximum of 10 % discount to be offered to customers on sale of goods. But Mr. Rehman could not provide a 10.5 % discount on a large order to an old customer Mr. Ram when he demanded a discount. The firm lost the large order and hence incurred losses.

(i) Which two limitations of planning are reflecting here?

(ii) How can this limitation be overcome?



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