CLASS XII CHAPTER 8
: CONTROLLING- CASE STUDIES
CASE 1
Asha was running a business of producing and selling pickles, murabbas and papad etc. She was earning a good profit for the last many years. Now, she wanted to add some new products in her product line. Seeing the growing demand of millets, she decided to add some millet products. After doing a lot of market research, she found out that the demand for millet noodles, pasta and ready to eat millet cereals was increasing day-by-day. To give a different taste and to have uniqueness in her products, she prepared a new tasty herb based sauce for cooking these products and decided to launch this along with millet products in the market. For this Asha hired 10 additional women workers specially trained for the same. However, despite adding more workers, to her surprise, production was not upto the mark. Concerned about this and to ensure that the activities were performed as per the plans, and that the resources were being used effectively and efficiently for the achievement of predetermined goals, Asha appointed a supervisor Nabita. Nabita monitored the activities and discovered that two of the newly hired workers were spending their whole day gossiping and distracting the other workers. As a result the production was low.
(i) Identify and state the function of management discussed above.
(ii) State any five points of importance of the function identified in (i) above.
(ii) State any five points of importance of the function identified in (i) above.
(i) Controlling: It is the process of ensuring that actual activities conform to planned activities.
(ii) Importance of Controlling:
1. Accomplishing organizational goals.
2. Judging accuracy of standards.
3. Making efficient use of resources.
4. Improving employee motivation.
5. Ensuring order and discipline.
(ii) Importance of Controlling:
1. Accomplishing organizational goals.
2. Judging accuracy of standards.
3. Making efficient use of resources.
4. Improving employee motivation.
5. Ensuring order and discipline.
CASE 2
Ramesh was running a small business of manufacturing handmade candles. His candles were quite popular in the local market and he was earning good profits. During the festive season, he decided to expand his product range by introducing decorative scented candles. After studying the market demand, he purchased new moulds, fragrances and decorative materials for producing these candles.
Ramesh also hired eight additional workers who were trained in making decorative candles. However, after a few weeks, he noticed that the production of candles was much lower than what he had planned. This worried him because the festive season was approaching and he had already received many orders from shopkeepers.
To find out the reason behind the low production, Ramesh appointed a supervisor named Sunita to closely observe the work being done in the production unit. Sunita carefully monitored the activities of workers and discovered that some workers were wasting raw materials and not following the proper production methods. She immediately informed Ramesh and took corrective actions to ensure that work was carried out according to the plans. Soon the production improved and orders were completed on time.
(i) Identify and explain the function of management discussed in the above case.
(ii) State any four points of importance of this function for an organisation.
(ii) State any four points of importance of this function for an organisation.
(i) Controlling: It involves comparing actual performance with the planned standards, finding out the deviations, and taking corrective actions.
(ii) Importance:
1. Making efficient use of resources (preventing wastage).
2. Accomplishing organizational goals (completing orders on time).
3. Ensuring order and discipline.
4. Improving employee motivation.
(ii) Importance:
1. Making efficient use of resources (preventing wastage).
2. Accomplishing organizational goals (completing orders on time).
3. Ensuring order and discipline.
4. Improving employee motivation.
CASE 3
Controlling Process: Steps in the Process
Meena owned a bakery named Sweet Bites. Her bakery was well known for cakes, cookies and pastries. Due to increasing demand, she decided to introduce a new range of healthy oat biscuits in her bakery. She purchased new baking equipment and hired several workers to produce the new product.
After a few weeks, Meena realised that the quantity of biscuits produced every day was much less than what she had expected. She was also receiving complaints from customers about inconsistent quality. This made her concerned because she had planned to expand the sale of these biscuits to nearby towns.
To ensure that the work was being performed according to the plan, Meena appointed a quality supervisor named Kavita. Kavita regularly checked the baking process, compared the actual production with the planned targets and carefully examined the quality of the biscuits. During her inspection, she found that some workers were not following the standard recipe and baking time, which affected both production and quality. She corrected the mistakes and ensured that the workers followed proper procedures.
(i) Identify the function of management highlighted in the above case.
(ii) Explain any five points of importance of this function in managing organisational activities.
(ii) Explain any five points of importance of this function in managing organisational activities.
(i) Controlling.
(ii) Importance:
1. Accomplishing organizational goals.
2. Judging accuracy of standards.
3. Making efficient use of resources.
4. Improving employee motivation.
5. Facilitating coordination in action.
(ii) Importance:
1. Accomplishing organizational goals.
2. Judging accuracy of standards.
3. Making efficient use of resources.
4. Improving employee motivation.
5. Facilitating coordination in action.
CASE 4
Nishtha runs a chain of famous restaurants, 'Indian Kitchen', in different parts of Delhi. The restaurant chain was known for good quality food and quick service. 'Indian Kitchen' was generating good revenue and had goodwill in the market. Nishtha would take a weekly report from all the Restaurant Managers and take necessary action to resolve the problems, if any. Nishtha noticed a sudden decline in sales in one of the restaurants. She questioned the Restaurant Manager who mentioned that the restaurant is seeing a gradual decrease in the number of customers, but could not provide a clear explanation for it. So, Nishtha formed a team to find out the causes of the declining customers as this is the key area for restaurant business and is critical to the success of business. By doing this, Nishtha is performing a step of the process of a function of management.
(i) Identify and explain the function of management discussed above.
(ii) Explain the step of the function identified in (i) above, followed by Nishtha to find out the causes of declining revenue.
(iii) Explain the step Nishtha will take after she gets the report from the team formed to find out the causes of declining revenue.
(ii) Explain the step of the function identified in (i) above, followed by Nishtha to find out the causes of declining revenue.
(iii) Explain the step Nishtha will take after she gets the report from the team formed to find out the causes of declining revenue.
(i) Controlling: The process of ensuring actual activities conform to planned activities.
(ii) Step: Analysing Deviations. She is finding out the causes for the declining customers using 'Critical Point Control' (focusing on key areas critical to success).
(iii) Next Step: Taking Corrective Action. Based on the report, she will take appropriate measures to bring the operations back on track to stop the decline in customers.
(ii) Step: Analysing Deviations. She is finding out the causes for the declining customers using 'Critical Point Control' (focusing on key areas critical to success).
(iii) Next Step: Taking Corrective Action. Based on the report, she will take appropriate measures to bring the operations back on track to stop the decline in customers.
CASE 5
Memo Builders' was constructing a five star hotel for a leading hotel chain. The hotel had to be given possession by next year but the construction of the hotel was running six months behind schedule. The Chief Executive Officer of Memo Builders' was concerned as Memo Builders was known for its quality and timely completion of projects. He asked Nitin, the senior of the Project Head for a thorough investigation. Nitin investigated and reported to the Chief Executive Officer that inspite of huge absenteeism of workers, additional workers were not called. Nitin also reported to the Chief Executive Officer that three of the ten machines being used by the workers were defective. Nitin ordered for repair of the machines and asked the Project Head to appoint additional workers with attractive wages to ensure that the deadline is met.
(a) Identify the function of management. Quoting the lines from the above para, explain the steps of the process of the function of management discussed.
(b) Also explain any two points of importance of the function of management identified in (a) above.
(b) Also explain any two points of importance of the function of management identified in (a) above.
(a) Function: Controlling.
Steps with Quotes:
1. Comparing actual performance with standards: "construction of the hotel was running six months behind schedule."
2. Analysing Deviations: "Nitin investigated and reported... inspite of huge absenteeism... three of the ten machines... were defective."
3. Taking Corrective Action: "Nitin ordered for repair of the machines and asked the Project Head to appoint additional workers..."
(b) Importance: Accomplishing organizational goals and making efficient use of resources.
Steps with Quotes:
1. Comparing actual performance with standards: "construction of the hotel was running six months behind schedule."
2. Analysing Deviations: "Nitin investigated and reported... inspite of huge absenteeism... three of the ten machines... were defective."
3. Taking Corrective Action: "Nitin ordered for repair of the machines and asked the Project Head to appoint additional workers..."
(b) Importance: Accomplishing organizational goals and making efficient use of resources.
CASE 6
Sameer is a wholesaler, who deals in cricket equipment. He collects cricket equipment like bats, balls, helmets, gloves, stumps, etc. from different manufacturers and assembles them in a kit for the convenience of customers. He sets a standard target to assemble 100 kits a day. During the first week of the month the workers assembled 92-96 kits a day, which was lower than the set standard. On investigation, it was found that the variation in assembly of kits was due to an irregular supply of helmets. Workers had to wait for helmets to assemble the kits.
(i) State the function of management discussed in the above case.
(ii) State the steps of the function identified in (i) above, which are discussed in the above paragraph.
(ii) State the steps of the function identified in (i) above, which are discussed in the above paragraph.
(i) Controlling.
(ii) Steps discussed:
1. Setting performance standards ("sets a standard target to assemble 100 kits a day").
2. Measurement of actual performance ("workers assembled 92-96 kits a day").
3. Comparing actual performance with standards ("lower than the set standard").
4. Analysing deviations ("variation in assembly... due to irregular supply of helmets").
(ii) Steps discussed:
1. Setting performance standards ("sets a standard target to assemble 100 kits a day").
2. Measurement of actual performance ("workers assembled 92-96 kits a day").
3. Comparing actual performance with standards ("lower than the set standard").
4. Analysing deviations ("variation in assembly... due to irregular supply of helmets").
CASE 7
FreshFarm Dairy Ltd. is a company that produces milk and dairy products such as butter, cheese and curd. For many years, the company had been earning steady profits. However, during the last few months, the management noticed that the revenue from sales had started declining.
The Managing Director, Mrs. Kavita, became concerned about the situation. She compared the actual sales figures of the current months with the targets that had been fixed at the beginning of the year. After noticing a gap between the expected and actual sales, she decided to take immediate action.
To understand the reason behind the decline, Mrs. Kavita formed a small team consisting of marketing and production managers. She asked them to carefully study the situation and find out the reasons for the falling revenue. The team started collecting information from customers, distributors and sales records to identify the possible causes of the problem.
(i) Identify and explain the function of management discussed above.
(ii) Explain the step of the function identified in (i) above, followed by Mrs. Kavita to find out the causes of declining revenue.
(iii) Explain the step Mrs. Kavita will take after she gets the report from the team formed to find out the causes of declining revenue.
(ii) Explain the step of the function identified in (i) above, followed by Mrs. Kavita to find out the causes of declining revenue.
(iii) Explain the step Mrs. Kavita will take after she gets the report from the team formed to find out the causes of declining revenue.
(i) Controlling.
(ii) Analysing Deviations: She is identifying the exact causes (market/production issues) for the gap between actual and target sales.
(iii) Taking Corrective Action: Implementing strategies based on the report to stop the sales decline.
(ii) Analysing Deviations: She is identifying the exact causes (market/production issues) for the gap between actual and target sales.
(iii) Taking Corrective Action: Implementing strategies based on the report to stop the sales decline.
CASE 8
UrbanRide Motors manufactures electric scooters. The company had planned to achieve a significant increase in its sales during the current financial year. However, after reviewing the quarterly reports, the Sales Director, Mr. Raghav, noticed that the company’s revenue had started declining instead of increasing.
Concerned about this unexpected situation, Mr. Raghav carefully compared the actual sales figures with the sales targets that had been fixed earlier. When he realised that the company was not performing according to the planned standards, he decided to investigate the issue further.
He formed a special committee consisting of sales executives and marketing experts to examine the market conditions and analyse customer feedback. The team was asked to identify the factors responsible for the declining revenue and submit a detailed report.
(i) Identify and explain the function of management discussed in the above case.
(ii) Explain the step of the function identified in (i) above, followed by Mr. Raghav to find out the causes of declining revenue.
(iii) Explain the step Mr. Raghav will take after he receives the report from the committee formed to identify the causes of declining revenue.
(ii) Explain the step of the function identified in (i) above, followed by Mr. Raghav to find out the causes of declining revenue.
(iii) Explain the step Mr. Raghav will take after he receives the report from the committee formed to identify the causes of declining revenue.
(i) Controlling.
(ii) Analysing Deviations: Investigating market conditions and feedback to find the cause of the performance gap.
(iii) Taking Corrective Action: Applying solutions to fix the identified problems and improve sales.
(ii) Analysing Deviations: Investigating market conditions and feedback to find the cause of the performance gap.
(iii) Taking Corrective Action: Applying solutions to fix the identified problems and improve sales.
CASE 9
BrightStyle Garments Ltd. is a clothing manufacturing company known for its fashionable products. The management had set a target to increase its revenue through online sales. However, after a few months, the Finance Manager noticed that the revenue from online sales was decreasing instead of improving.
This situation worried the management because the company had invested heavily in online marketing. The Chief Executive Officer, Ms. Ananya, carefully examined the sales reports and compared the actual results with the targets set earlier. When she realised that the company was not achieving the desired results, she decided to take corrective action.
She formed a team of marketing and IT experts and asked them to analyse the company’s online sales system, customer reviews and marketing strategies in order to identify the reasons behind the declining revenue.
(i) Identify and explain the function of management discussed above.
(ii) Explain the step of the function identified in (i) above, followed by Ms. Ananya to find out the causes of declining revenue.
(iii) Explain the step Ms. Ananya will take after she receives the report from the team formed to find out the causes of declining revenue.
(ii) Explain the step of the function identified in (i) above, followed by Ms. Ananya to find out the causes of declining revenue.
(iii) Explain the step Ms. Ananya will take after she receives the report from the team formed to find out the causes of declining revenue.
(i) Controlling.
(ii) Analysing Deviations: Analyzing the IT system and strategies to pinpoint the root cause.
(iii) Taking Corrective Action: Making the necessary changes to the website or marketing strategy to boost online sales.
(ii) Analysing Deviations: Analyzing the IT system and strategies to pinpoint the root cause.
(iii) Taking Corrective Action: Making the necessary changes to the website or marketing strategy to boost online sales.
CASE 10
FreshFarm Foods Ltd. is a company that manufactures packaged fruit juices. Due to increasing demand, the company planned to produce 10,000 bottles of mango juice every day during the summer season. The Production Manager clearly fixed this daily production target and informed all the workers about the standard quantity to be produced.
After a few days, the manager compared the actual production with the planned target and found that the factory was producing only about 8,000 bottles per day. This difference worried him because the company had already received large orders from retailers.
To find the reason behind this shortfall, the manager carefully examined the production process and discovered that one of the filling machines was not functioning properly, which was slowing down the production. He immediately arranged for the repair of the machine and instructed the workers to increase efficiency so that the daily target could be achieved. After taking these corrective actions, the production level improved and the company was able to meet its targets.
(a) Identify the function of management discussed in the above case. Quoting the lines from the case, explain the steps in the process of this function.
(b) Explain any two points of importance of this function of management.
(b) Explain any two points of importance of this function of management.
(a) Controlling.
Steps with Quotes:
1. Setting standards: "produce 10,000 bottles of mango juice every day"
2. Comparing actual with standards: "compared the actual production... producing only about 8,000 bottles"
3. Analysing Deviations: "discovered that one of the filling machines was not functioning properly"
4. Corrective Action: "He immediately arranged for the repair of the machine"
(b) Importance: Accomplishing organizational goals and judging accuracy of standards.
Steps with Quotes:
1. Setting standards: "produce 10,000 bottles of mango juice every day"
2. Comparing actual with standards: "compared the actual production... producing only about 8,000 bottles"
3. Analysing Deviations: "discovered that one of the filling machines was not functioning properly"
4. Corrective Action: "He immediately arranged for the repair of the machine"
(b) Importance: Accomplishing organizational goals and judging accuracy of standards.
CASE 11
UrbanRide Motors manufactures electric bicycles. During the festive season, the company planned to sell 3,000 bicycles in a month. The Sales Manager fixed this target and informed the sales team about the expected performance.
At the end of the month, the manager reviewed the sales reports and found that only 2,400 bicycles had been sold. He carefully analysed the situation and compared the actual sales with the planned target. After investigating the reasons for the shortfall, he discovered that sales in two cities were very low because the dealers were not promoting the product properly.
To solve the problem, the manager arranged special promotional campaigns in those cities and provided additional incentives to dealers for improving sales. These corrective steps helped the company increase its sales in the following months.
(a) Identify the function of management highlighted in the case. Quoting the relevant lines, explain the steps involved in the process of this function.
(b) Explain any two points of importance of this function for an organisation.
(b) Explain any two points of importance of this function for an organisation.
(a) Controlling.
Steps with Quotes:
1. Setting standards: "planned to sell 3,000 bicycles in a month"
2. Comparing actual with standard: "only 2,400 bicycles had been sold... compared the actual sales with the planned target"
3. Analysing Deviations: "discovered that sales in two cities were very low because the dealers were not promoting"
4. Corrective Action: "arranged special promotional campaigns... provided additional incentives"
(b) Importance: Improving employee (dealer) motivation and making efficient use of resources.
Steps with Quotes:
1. Setting standards: "planned to sell 3,000 bicycles in a month"
2. Comparing actual with standard: "only 2,400 bicycles had been sold... compared the actual sales with the planned target"
3. Analysing Deviations: "discovered that sales in two cities were very low because the dealers were not promoting"
4. Corrective Action: "arranged special promotional campaigns... provided additional incentives"
(b) Importance: Improving employee (dealer) motivation and making efficient use of resources.
CASE 12
BrightStyle Garments Ltd. is a company that manufactures fashionable clothing. The management decided that the production department should manufacture 5,000 shirts every week to meet market demand. This target was clearly communicated to the supervisors and workers in the factory.
After some time, the production manager reviewed the weekly production report and found that only 4,200 shirts were being produced. The manager compared the actual performance with the predetermined standards and realised that there was a gap between the expected and actual production.
He then carefully examined the work process and found that workers were spending too much time in adjusting the sewing machines, which slowed down production. The manager arranged training for workers to help them operate machines more efficiently and instructed supervisors to closely monitor the work. As a result, production soon reached the desired level.
(a) Identify the function of management discussed above. Quoting the lines from the case, explain the steps of the controlling process.
(b) Explain any two points of importance of the function identified in part (a).
(b) Explain any two points of importance of the function identified in part (a).
(a) Controlling.
Steps with Quotes:
1. Setting standards: "manufacture 5,000 shirts every week"
2. Comparing actual with standards: "only 4,200 shirts were being produced... compared actual performance with predetermined standards"
3. Analysing Deviations: "found that workers were spending too much time in adjusting the sewing machines"
4. Corrective Action: "manager arranged training for workers to help them operate machines more efficiently"
(b) Importance: Making efficient use of resources and ensuring order and discipline.
Steps with Quotes:
1. Setting standards: "manufacture 5,000 shirts every week"
2. Comparing actual with standards: "only 4,200 shirts were being produced... compared actual performance with predetermined standards"
3. Analysing Deviations: "found that workers were spending too much time in adjusting the sewing machines"
4. Corrective Action: "manager arranged training for workers to help them operate machines more efficiently"
(b) Importance: Making efficient use of resources and ensuring order and discipline.
© 2026-27 Business Studies Master | Authored by Rathin Kumar Bardhan
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