Nature and Significance of Management — Business Studies STD 12 Commerce — Question

Explain the role of universities and schools in consumer protection.

Firm 'Ragya' making Desi ghee was set up by Mihir, with an investment of ₹ 2 crore. Now his task is to communicate about his product to the consumer. He first want's to market his product in his own state, i.e. Uttar Pradesh.

1. Identify the decision area of marketing, regarding which Mihir is thinking about.
2. Give any two ways in which he can inform the customers and persuade them to buy his products.

“Zero Defect Zero Effect” (ZED) is a slogan coined by the Prime Minister of India, Narendra Modi with reference to the Make in India initiative launched by the government. The slogan reflects the efficiency of production processes, i.e. the products have no defects and the process through which the product is made has zero adverse environmental and ecological effects. The ZED model aims to make India the manufacturing hub of the world and prevent the products developed in India from being rejected by the global market. Moreover, before the initiative was launched, the limits of foreign direct investment in various sectors had been relaxed. The application for licences was made available online and the validity of licences was increased to three years. Various other norms and procedures were also relaxed by the government. In the light of the above paragraph, identify and explain the major component of New Economic Policy of 1991 that are being referred to by quoting lines from the paragraph.

A ready-to-eat food manufacturing company uses lead in excess of the prescribed limits in its products. The usage of an excess quantity of lead in the products could cause severe health issues to the consumers.
a. Identify and explain the consumer right violated by the company.
b. Identify any two values overlooked by the company.

State the objective of Financial Management.

Explain the meaning of 'Capital Market', 'Primary Market' and 'Secondary Market'.

Metlapp Networks and Technologies Ltd. is a leader in technology innovation in the United States, creating products and solutions for connecting the world. It has,, a large research and development team which invented the first smart watch, named as W-7. The watch besides showing the time, also monitors few health parameters like heart beat, blood pressure etc.
While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India.
It set up its office in Jamnagar with a view to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market. Competition resulted in reduction in prices, thereby benefiting the customers.

1. In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain these concepts.
2. Also, explain briefly any three impacts of these concepts on Indian business and industry.

Suresh works in a bulb manufacturing company. Each bulb which is manufactured is of standard size and quality. Further, if there is any unrequired type of bulb manufactured then its production is stopped. Last month when the company came to know that 10 watt bulbs were no more liked by customers, their production was stopped. He works in the purchase department. His job is to purchase the filaments required to make bulbs. This time when he purchases the filament he gets the instruction from the seller that some special care needs to be taken in the first hour of fixing the filaments inside the bulb. Suresh knows this information should be given immediately to the production department before the assembling process starts. However he finds that his company's policies only allow him to give the message to his immediate boss who will further pass this message to his boss. The passing of this message will continue till it reaches the desired person in the production department.

1. Which technique of management is followed here?
2. Also, state the principle of management followed here by the company.

Case 1: Suresh, a member of NGO, is involved in educating the consumers as there is widespread ignorance among them about their rights and reliefs available to them.
Case 2; Mahesh is trading in cereals and pulses for the last ten years. He assumes the moral duty of his business to take care of consumer's interest and avoids any form of their exploitation like adulteration, black marketing etc. Due to this, he has earned a good reputation in the market.

1. Which importance of consumer protection is depicted by Suresh and Mahesh?
2. Name the act which seeks to protect and promote the consumer's interest through speedy and inexpensive redressal of their grievances.

Mr Sourabh, who is an M.B.A., has been appointed at the post of General Manager in Sa-re-ga-ma Ltd. Company. Just after his appointment, he took a decision to set up a chemical plant near a residential colony. (The chosen location to set up the plant was favourable for many reasons to the company). After some time, another important decision to the amount of charity been given annually to educational institutions and religious institutions was withdrawn giving the justification that it was an unnecessary burden on the company. More emphasis was given to the share of company in the market and in search of modern procedures. Apart from this, a long time labour-dispute was resolved by taking a balanced decision.

1. Tell whether Mr Sourabh is at fault?
2. If yes, the fault is in which context?
3. How can the mistake be amended?