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Question : 14
Total: 40
Mita has a successful ice cream business at Bikaner, namely 'Smartflavours'. Her ice creams are utterly delicious. She makes ice creams from fresh milk and the same are available in a wide range of flavours and packs. She sets viable business objectives and works with the same in mind in order to ensure that the customers will come back for purchasing. Having the first mover advantage, her business was doing well. To earn higher profits, she started cutting costs. This would sometimes lead to delay in delivery and the ice cream was not reaching the market in time. Over a period of time, the demand for her ice cream declined and because of it the competitors entered the market. She lost some of her market share to competitors.
At the beginning of summer season, she got back to back orders for supply of 4,000 ice cream packs of different flavours for special occasions. To ensure that the task was completed and orders delivered in time she hired additional workers. She was, thus able to produce and deliver the ice cream packs but at a high production cost. While completing activities and finishing the given task for achieving goals, Mita realised that she was ignoring one of the important aspects of management.
Identify the aspects of management that has been ignored by Mita. Also explain the same with the help of an example.
At the beginning of summer season, she got back to back orders for supply of 4,000 ice cream packs of different flavours for special occasions. To ensure that the task was completed and orders delivered in time she hired additional workers. She was, thus able to produce and deliver the ice cream packs but at a high production cost. While completing activities and finishing the given task for achieving goals, Mita realised that she was ignoring one of the important aspects of management.
Identify the aspects of management that has been ignored by Mita. Also explain the same with the help of an example.
Solution:
The aspect of management that has been ignored by Mita is 'efficiency'.
Efficiency means doing task correctly and with minimum cost.
Example : If more workers are hired by the manager to get task completed in time, it is effective but if more workers are hired and as a result, the cost increases, then it is not efficient. On the other hand, if the task is carried out with the same number of worker without increasing cost then it is efficient but if same task is carried out with the same number of workers and there is a delay in the completion of work then it is not effective.
Efficiency means doing task correctly and with minimum cost.
Example : If more workers are hired by the manager to get task completed in time, it is effective but if more workers are hired and as a result, the cost increases, then it is not efficient. On the other hand, if the task is carried out with the same number of worker without increasing cost then it is efficient but if same task is carried out with the same number of workers and there is a delay in the completion of work then it is not effective.
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