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GNDU Queson Paper 2025
Bachelor of Commerce (B.Com) 2nd Semester
FUNCTIONAL MANAGEMENT
Time Allowed: 3 Hours Maximum Marks:100
Note: Aempt Five quesons in all, selecng at least One queson from each secon. The
Fih queson may be aempted from any secon. All quesons carry equal marks.
SECTION-A
1. Dene Management. Give characteriscs. Explain the funconal areas of management.
2. 'Management is both a science and an art'. Explain this statement.
SECTION-B
3. Dierenate between recruitment and selecon. Explain the sources of recruitment.
4. Write notes on:
(i) Job evaluaon.
(ii) Workers Parcipaon in Management
SECTION-C
5. Dene Markeng. Explain in detail the funcons of markeng.
6. Write notes on:
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(i) Adversing vs Salesmanship
(ii) Process of markeng research.
SECTION-D
7. What is producon planning and control? Explain the steps involved.
8. What is the need of strategic management? Highlight and discuss the role of Chief
Execuve Ocer in strategic management.
GNDU Answer Paper 2025
Bachelor of Commerce (B.Com) 2nd Semester
FUNCTIONAL MANAGEMENT
Time Allowed: 3 Hours Maximum Marks:100
Note: Aempt Five quesons in all, selecng at least One queson from each secon. The
Fih queson may be aempted from any secon. All quesons carry equal marks.
SECTION-A
1. Dene Management. Give characteriscs. Explain the funconal areas of management.
Ans: 1. What is Management? (Simple Definition)
Management is the process of getting things done through people in an organized and
efficient way to achieve specific goals.
In simple words, management is like guiding a team to reach a destination. Just like a
captain directs a ship, a manager directs people and resources to achieve success.
A popular definition says:
“Management is the art of getting work done through others.”
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2. Understanding Management Through a Simple Example
Imagine you want to organize a college fest:
• You decide what activities to include → Planning
• You assign tasks to friends → Organizing
• You guide and motivate them → Leading
• You check if everything is going well → Controlling
All these together form Management.
3. Characteristics of Management
Management has some important features that make it unique. Let’s understand them in a
simple and relatable way:
1. Goal-Oriented
Management always focuses on achieving goals.
Example: A company aims to increase profits or a student aims to pass exams.
2. Universal Process
Management is needed everywhere:
• Business
• Schools
• Hospitals
• Government offices
• Even at home!
Wherever people work together, management is required.
3. Continuous Process
Management never stops. It keeps going.
Planning, organizing, leading, and controlling happen again and again.
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4. Group Activity
Management involves working with people.
A manager cannot work alone—he/she needs a team.
5. Dynamic Nature
Management changes according to situations.
If market conditions change, managers must adapt.
6. Multidimensional
Management deals with:
• People
• Work
• Resources
It is not just about tasks but also about handling people and relationships.
7. Intangible Force
You cannot see management directly, but you can feel its impact.
Good management = smooth work
Poor management = confusion
8. Integrative Process
Management brings all resources together:
• Human
• Financial
• Physical
It combines everything to achieve goals efficiently.
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4. Functional Areas of Management
Management is not just one task—it has different functional areas or departments that
handle different types of work.
Let’s understand them step-by-step:
Diagram: Basic Functions of Management
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This diagram shows the continuous cycle of management functions.
5. Main Functional Areas of Management
1. Planning
Planning means deciding in advance what to do and how to do it.
It answers questions like:
• What is our goal?
• How will we achieve it?
Example:
A company plans to launch a new product.
2. Organizing
Organizing means arranging resources and assigning tasks.
It includes:
• Dividing work
• Assigning responsibilities
• Creating structure
Example:
Assigning marketing work to one team and production to another.
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3. Staffing
Staffing means selecting the right people for the right job.
It includes:
• Hiring employees
• Training them
• Developing skills
Example:
Recruiting teachers for a school.
4. Directing (Leading)
Directing means guiding, motivating, and supervising employees.
It includes:
• Giving instructions
• Motivating workers
• Leadership
Example:
A manager encouraging employees to meet targets.
5. Controlling
Controlling means checking whether work is going as planned.
It includes:
• Comparing actual performance with plans
• Taking corrective actions
Example:
Checking sales reports and improving strategies if needed.
6. Other Important Functional Areas (Departments)
Apart from basic functions, management also includes different specialized areas:
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1. Financial Management
It deals with money and funds.
Activities:
• Budgeting
• Investment decisions
• Managing expenses
2. Human Resource Management (HRM)
It focuses on people in the organization.
Activities:
• Recruitment
• Training
• Employee welfare
3. Marketing Management
It deals with selling products and understanding customers.
Activities:
• Advertising
• Market research
• Pricing
4. Production/Operations Management
It focuses on creating goods and services.
Activities:
• Manufacturing
• Quality control
• Process management
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5. Office/Administrative Management
It ensures smooth day-to-day operations.
Activities:
• Record keeping
• Communication
• Office coordination
7. How All Functions Work Together
Think of management like a machine:
• Planning is the blueprint
• Organizing builds the structure
• Staffing brings people
• Directing drives the system
• Controlling ensures everything runs correctly
If one part fails, the whole system is affected.
8. Conclusion
Management is an essential part of every organization and even our daily lives. It is not just
about giving orders—it is about planning wisely, organizing resources, guiding people, and
ensuring success.
Its characteristics show that it is:
• Continuous
• Goal-oriented
• People-focused
And its functional areas ensure that:
• Work is done efficiently
• Resources are used properly
• Goals are achieved successfully
In short, management turns ideas into reality through proper planning and teamwork.
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2. 'Management is both a science and an art'. Explain this statement.
Ans: Imagine you’re running a school event—say, a cultural fest. You need to plan the
budget, assign responsibilities, schedule performances, and make sure everything runs
smoothly. That’s management in action. Now, here’s the twist: when you manage
something, you’re not just following rigid formulas like in math, nor are you just painting
freely like an artist. You’re doing a bit of both. That’s why people say management is both a
science and an art.
Management as a Science
Science is about principles, facts, and systematic knowledge. Think of physics: gravity works
the same way everywhere. In management, there are also principles that guide behavior
and decision-making. For example:
• Planning: Every project needs a plan.
• Organizing: Resources must be arranged properly.
• Leading: People need direction and motivation.
• Controlling: Progress must be monitored.
These are universal principles—like formulas—that managers can apply in different
situations. Just as a doctor uses medical science to treat patients, a manager uses
management science to solve organizational problems.
Example: If a company wants to increase sales, management science suggests analyzing
data, studying consumer behavior, and applying proven marketing strategies. These are
systematic, evidence-based steps.
Management as an Art
But here’s the catch: science alone doesn’t guarantee success. Art comes into play because
management involves human beings, and humans are not predictable like machines. Art is
about creativity, intuition, and personal skill.
• A manager needs to motivate employees—and motivation isn’t a formula.
• They must resolve conflicts—which requires empathy and tact.
• They must inspire trust and loyalty—which depends on personality and
communication style.
This is where management becomes an art. Two managers may apply the same scientific
principle, but their results differ because of their personal touch—just like two painters
using the same colors but creating very different paintings.
Example: Imagine two teachers using the same lesson plan (science). One delivers it in a
dull, mechanical way, while the other adds humor, stories, and energy (art). The second
teacher’s class will likely learn better. That’s the art of management.
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The Blend of Science and Art
So, management is not only science or only art—it’s a blend. Science provides the
foundation (principles, theories, techniques), while art provides the application (creativity,
judgment, skill). Without science, management would be guesswork. Without art, it would
be lifeless and robotic.
Think of it like cooking:
• Science is the recipe (measurements, ingredients, steps).
• Art is the chef’s creativity (presentation, flavor balance, improvisation). Together,
they make a delicious dish.
Diagram to Visualize the Concept
Here’s a simple diagram to help you see the balance:
MANAGEMENT
/ \
SCIENCE ART
(Principles, facts) (Creativity, skill)
| |
Provides knowledge Provides application
| |
Ensures efficiency Ensures effectiveness
Another way to picture it is a two wheels of a bicycle:
• One wheel = Science (rules, methods, systems)
• Other wheel = Art (judgment, intuition, creativity) If either wheel is missing, the
bicycle (management) won’t move forward.
Real-Life Examples
1. Steve Jobs (Apple)
o Science: Used market research, technology principles, and systematic
planning.
o Art: His vision, design sense, and ability to inspire people made Apple iconic.
2. Hospital Management
o Science: Scheduling surgeries, maintaining patient records, following medical
protocols.
o Art: Comforting patients, motivating staff, handling emergencies with
calmness.
3. School Principal
o Science: Timetables, exam schedules, budgets.
o Art: Inspiring teachers, encouraging students, resolving conflicts with parents.
Why This Statement Matters
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Understanding management as both science and art helps students and professionals in two
ways:
• It reminds us that knowledge alone isn’t enough—we must develop soft skills like
communication, empathy, and creativity.
• It also reminds us that intuition alone isn’t enough—we must rely on tested
principles and systematic methods.
In short, a good manager is like a musician who knows the theory of music (science) but also
plays with emotion and style (art).
Conclusion
Management is a science because it relies on established principles, theories, and
systematic knowledge. It is an art because it requires personal skills, creativity, and
judgment to apply those principles effectively in real-life situations. The best managers are
those who can balance both—using the science of management as a foundation and the art
of management to bring it alive.
SECTION-B
3. Dierenate between recruitment and selecon. Explain the sources of recruitment.
Ans: Suppose you open a new café . You need workers—like a cashier, chef, and cleaner.
• First, you announce jobs and invite people → This is Recruitment
• Then, you choose the best candidates from those who applied → This is Selection
So, recruitment and selection are two steps of the same hiring process—but they are very
different in purpose.
1. Meaning of Recruitment and Selection
Recruitment
Recruitment is the process of searching for and attracting candidates to apply for a job.
It is about creating a pool of applicants.
Selection
Selection is the process of choosing the best candidate from the applicants.
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It is about picking the right person.
2. Difference Between Recruitment and Selection
Here is a simple and clear comparison:
Basis
Recruitment
Selection
Meaning
Attracting candidates
Choosing candidates
Objective
To get maximum applications
To select the best one
Nature
Positive process (inviting)
Negative process (rejecting unsuitable)
Stage
First step
Second step
Focus
Quantity of candidates
Quality of candidates
Process
Advertising, job posting, referrals
Interviews, tests, verification
Outcome
Large pool of applicants
Final selected employees
Diagram: Recruitment vs Selection Process
Job Vacancy
↓
RECRUITMENT
(Attract candidates)
↓
Large Pool of Applicants
↓
SELECTION
(Filter & choose best)
↓
Final Employee Selected
Easy Way to Remember
• Recruitment = “Come and apply”
• Selection = “You are chosen”
3. Sources of Recruitment
Now let’s move to the second part of the question—Where do companies find employees?
These are called sources of recruitment.
They are mainly divided into two types:
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A. Internal Sources of Recruitment
This means filling vacancies from within the organization.
Types of Internal Sources
1. Promotion
Employees are moved to higher positions.
Example: A clerk becomes a manager.
2. Transfer
Employees are shifted from one department to another.
Example: Sales department → Marketing department
3. Internal Job Posting
Companies announce job openings internally.
Employees can apply for new roles.
4. Re-employment of Former Employees
Sometimes old employees are rehired.
Useful if they left on good terms.
Advantages of Internal Sources
• Boosts employee morale
• Saves time and cost
• Employees are already familiar with work
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Disadvantages
• Limited talent pool
• No fresh ideas
• Internal conflicts may arise
B. External Sources of Recruitment
This means hiring people from outside the organization.
Types of External Sources
1. Advertisements
Jobs are advertised in newspapers, websites, social media.
Example: “Job vacancy” posts online
2. Employment Exchanges
Government agencies that help people find jobs.
3. Campus Recruitment
Companies visit colleges to hire students.
4. Placement Agencies
Private agencies help companies find suitable candidates.
5. Employee Referrals
Current employees recommend candidates.
Very common and effective method
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6. Walk-in Interviews
Candidates directly come for interviews without prior appointment.
7. Online Recruitment (E-Recruitment)
Using job portals like Naukri, LinkedIn, etc.
Advantages of External Sources
• Fresh talent and new ideas
• Larger pool of candidates
• Better chances of finding skilled people
Disadvantages
• Time-consuming
• Expensive
• Requires training for new employees
Diagram: Sources of Recruitment
Sources of Recruitment
|
-----------------------------------
| |
Internal Sources External Sources
| |
Promotion Advertisements
Transfer Campus Recruitment
Job Posting Placement Agencies
Re-employment Employee Referrals
Online Recruitment
4. Which Source is Better?
There is no single “best” source.
Companies choose depending on:
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• Type of job
• Urgency
• Budget
• Required skills
✔ For quick hiring → Internal
✔ For new skills → External
Conclusion
Recruitment and selection are two important steps in hiring:
• Recruitment brings people into the process
• Selection chooses the best among them
Both are essential for building a strong workforce.
Similarly, sources of recruitment—internal and external—help organizations find the right
people in different ways.
4. Write notes on:
(i) Job evaluaon.
(ii) Workers Parcipaon in Management
Ans: Part I: Job Evaluation
What is Job Evaluation?
Imagine you’re part of a company where there are many different jobs—like a receptionist,
an engineer, a sales executive, and a manager. Each job is different in terms of
responsibility, skill, and importance. Now, the big question is: how do we decide what
salary each person should get?
That’s where job evaluation comes in. It’s a systematic process of comparing jobs to
determine their relative worth in an organization.
Why is it Needed?
Without job evaluation, salaries might be decided randomly or based on favoritism. That
can cause dissatisfaction and conflict. Job evaluation ensures fairness by linking pay to the
value of the job, not just the person doing it.
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Key Features of Job Evaluation
• It evaluates jobs, not people.
• It’s about fairness and consistency.
• It provides a basis for salary structure.
Methods of Job Evaluation
There are several methods, but let’s keep it simple:
1. Ranking Method – Jobs are ranked from highest to lowest based on importance.
o Example: Manager > Engineer > Receptionist.
2. Point Method – Each job is given points based on factors like skill, responsibility, and
working conditions.
o Example: Engineer = 200 points, Receptionist = 100 points.
3. Factor Comparison Method – Jobs are compared based on key factors like
responsibility, effort, and skill.
4. Job Classification Method – Jobs are grouped into classes or grades.
Benefits of Job Evaluation
• Ensures fair pay.
• Reduces conflict among employees.
• Helps in career planning.
• Provides a scientific basis for HR decisions.
Diagram: Job Evaluation Process
Job Evaluation
|
----------------------------
| | |
Ranking Point System Classification
| | |
Fair Pay Objective Basis Clear Grades
Think of it like weighing fruits in a market. You don’t pay the same price for apples and
mangoes unless they have the same weight/value. Similarly, jobs are “weighed” to decide
fair compensation.
Part II: Workers’ Participation in Management
What is Workers’ Participation?
Now imagine you’re working in a company where all decisions are taken only by the top
bosses. Employees just follow orders without having any say. That feels frustrating, right?
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Workers’ participation in management means employees get a voice in decision-making.
It’s about involving workers in discussions, planning, and sometimes even policy-making.
Why is it Important?
• It makes workers feel valued and respected.
• It improves morale and motivation.
• It reduces conflicts between management and workers.
• It leads to better decisions, because workers know the ground realities.
Forms of Workers’ Participation
1. Consultation – Workers are asked for opinions before decisions are made.
o Example: Asking employees how to improve safety measures.
2. Joint Committees – Workers and managers sit together in committees to discuss
issues.
3. Works Councils – Formal bodies where workers’ representatives participate in
management decisions.
4. Co-partnership/Ownership – Workers are given shares in the company, so they feel
like co-owners.
5. Board Representation – Workers have representatives on the company’s board of
directors.
Benefits of Workers’ Participation
• Builds trust between workers and management.
• Reduces strikes and disputes.
• Improves productivity because workers feel responsible.
• Creates a sense of belonging and teamwork.
Diagram: Workers’ Participation Levels
Workers' Participation
|
---------------------------------
| | |
Consultation Committees Ownership/Board
| | |
Opinions Joint Decisions Shared Responsibility
Think of it like a family decision. If parents decide everything without asking children, the
kids may feel ignored. But if children are asked for their input—say, where to go for
vacation—they feel included and happier. Similarly, workers feel more committed when
they are part of management decisions.
Real-Life Examples
1. Job Evaluation Example
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o In IT companies, software engineers are paid more than data entry clerks
because their job requires higher skill and responsibility. This difference is
determined through job evaluation.
2. Workers’ Participation Example
o In Germany, many companies have “works councils” where employees elect
representatives to discuss company policies. This has created strong
cooperation between workers and management.
Connecting the Two Concepts
Job evaluation ensures fairness in pay, while workers’ participation ensures fairness in
decision-making. Together, they create a balanced workplace where employees feel
respected both financially and emotionally.
Conclusion
• Job Evaluation is about measuring the value of jobs to ensure fair pay.
• Workers’ Participation in Management is about giving employees a voice in
decisions to ensure fairness and cooperation.
Both are essential for a healthy organization. One deals with money and fairness, the other
with voice and respect. When combined, they create a workplace where employees are
motivated, satisfied, and productive.
SECTION-C
5. Dene Markeng. Explain in detail the funcons of markeng.
Ans: Definition of Marketing
Marketing is a process through which businesses identify customer needs, create products
or services to satisfy those needs, and deliver them in a way that provides value to
customers and profit to the business.
In simple words, marketing is all about understanding what people want and giving it to
them in the best possible way.
For example, if people want affordable smartphones with good cameras, companies like
Xiaomi or Samsung study this demand, create suitable products, promote them, and make
them easily available.
Basic Marketing Process (Diagram)
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This diagram represents how marketing works as a continuous cycle—from identifying
needs to delivering satisfaction.
Understanding Marketing in a Simple Way
Think of marketing like a bridge between a company and its customers.
• Customers have needs and desires
• Companies have products and services
• Marketing connects the two
Without marketing, even the best product may fail because people don’t know about it or
can’t access it.
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Functions of Marketing (Explained in Detail)
Marketing is not just selling. It involves many important activities called functions of
marketing. Let’s understand each function in a simple and engaging way.
1. Market Research (Understanding the Customer)
This is the first and most important function.
Businesses collect information about:
• Customer needs
• Preferences
• Buying behavior
• Market trends
Example:
Before launching a new soft drink, a company studies:
• What flavors people like
• What price they can afford
• What packaging attracts them
Without research, companies are just guessing.
2. Product Planning and Development
Once the company understands customer needs, it designs and develops products
accordingly.
This includes:
• Product design
• Quality decisions
• Features
• Packaging
Example:
If customers want eco-friendly products, companies create biodegradable packaging.
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The goal is to make a product that truly satisfies customers.
3. Pricing (Setting the Right Price)
Pricing means deciding how much to charge for a product.
Factors affecting pricing:
• Cost of production
• Competition
• Customer affordability
• Demand
Example:
• Luxury brands set high prices
• Budget brands keep prices low to attract more customers
A wrong price can fail even a good product.
4. Promotion (Spreading Awareness)
Promotion means informing customers about the product.
It includes:
• Advertising (TV, social media)
• Sales promotion (discounts, offers)
• Personal selling
• Public relations
Example:
When a new movie releases, trailers, posters, and ads create excitement.
Promotion creates demand and attracts customers.
5. Distribution (Place Function)
Distribution means making the product available to customers.
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It involves:
• Warehousing
• Transportation
• Supply chain
• Retail outlets
Example:
A product is useless if it is not available in shops or online stores.
Right product + Right place = Successful sale
6. Selling (Final Exchange Process)
Selling is the actual process of transferring goods to customers.
It includes:
• Convincing customers
• Handling objections
• Closing the sale
Example:
A salesperson in a showroom explains features and helps you decide.
Selling turns interest into actual purchase.
7. Storage and Warehousing
Goods need to be stored properly until they are sold.
This function ensures:
• Continuous supply
• Protection from damage
• Availability during demand
Example:
Seasonal products like woolen clothes are stored and sold in winter.
Storage helps balance demand and supply.
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8. Transportation
Transportation moves goods from:
• Factory → Warehouse → Retailer → Customer
Example:
Fruits are transported from farms to cities.
Without transportation, products cannot reach customers.
9. Financing (Providing Funds)
Marketing activities require money:
• Production
• Advertising
• Distribution
Businesses arrange funds through:
• Banks
• Loans
• Investments
Without finance, marketing cannot function.
10. Risk Bearing
Marketing involves risks like:
• Demand fluctuation
• Price changes
• Damage or loss of goods
Businesses take these risks to operate successfully.
Example:
A company may produce goods but fail to sell them due to low demand.
Risk is unavoidable but necessary in marketing.
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11. Customer Support and Feedback
After selling, companies:
• Provide services
• Handle complaints
• Collect feedback
Example:
Customer care services, warranties, return policies.
This helps build trust and long-term relationships.
Summary of Marketing Functions
In short, marketing functions can be grouped into:
Exchange Functions
• Buying
• Selling
Physical Functions
• Transportation
• Storage
Facilitating Functions
• Financing
• Risk bearing
• Market research
Final Conclusion
Marketing is much more than just selling products. It is a complete system of activities that
starts from understanding customer needs and ends with customer satisfaction.
A successful business:
• Understands its customers
• Creates valuable products
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• Promotes them effectively
• Delivers them conveniently
• Builds long-term relationships
In today’s competitive world, marketing is the heart of every business.
6. Write notes on:
(i) Adversing vs Salesmanship
(ii) Process of markeng research.
Ans: Part I: Advertising vs Salesmanship
What is Advertising?
Advertising is like a loudspeaker. It’s a way of telling a large group of people about a product
or service. Think of TV commercials, online ads, billboards, or even a catchy jingle on the
radio. The goal is to create awareness and persuade people to consider buying.
• Nature: Impersonal, one-way communication.
• Reach: Mass audience.
• Purpose: Inform, persuade, remind.
Example: When Coca-Cola runs a TV ad showing happy families enjoying Coke, that’s
advertising. It doesn’t talk to you directly, but it plants the idea in your mind.
What is Salesmanship?
Salesmanship is more personal. It’s when a salesperson directly interacts with a customer to
convince them to buy. It’s about face-to-face persuasion and building trust.
• Nature: Personal, two-way communication.
• Reach: Individual or small group.
• Purpose: Convince and close the deal.
Example: When you walk into a car showroom, the salesperson explains features, answers
your questions, and persuades you to buy. That’s salesmanship.
Key Differences Between Advertising and Salesmanship
Aspect
Advertising
Salesmanship
Communication
One-way (mass audience)
Two-way (personal interaction)
Cost
High (TV, print, digital ads)
Moderate (salary/commission of
salespeople)
Reach
Wide, millions at once
Limited, one customer at a time
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Purpose
Create awareness, build brand
image
Persuade and close the sale
Example
Billboard of Nike shoes
Salesperson convincing you to buy
Nike shoes
Relationship Between Advertising and Salesmanship
Advertising and salesmanship are not enemies—they complement each other. Advertising
creates interest and awareness, while salesmanship converts that interest into actual
purchase.
Think of advertising as inviting people to a party, and salesmanship as welcoming them at
the door and making them stay.
Diagram: Advertising vs Salesmanship
Marketing Communication
/ \
Advertising Salesmanship
| |
Creates awareness Converts into sales
Mass audience Personal interaction
Part II: Process of Marketing Research
What is Marketing Research?
Imagine you want to open a new café in your city. Before investing money, wouldn’t you
want to know:
• What kind of coffee people prefer?
• How much they’re willing to pay?
• Where competitors are located?
That’s exactly what marketing research does. It’s the systematic process of collecting,
analyzing, and interpreting information about markets, customers, and competitors to make
better decisions.
Steps in Marketing Research
1. Defining the Problem
This is the starting point. You must be clear about what you want to know.
• Example: “Why are sales of our product declining?”
• Without a clear problem, research becomes directionless.
2. Developing the Research Plan
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Here, you decide:
• What information is needed?
• How will you collect it (surveys, interviews, observation)?
• What resources (budget, time, manpower) are required?
It’s like planning a road trip—you need a map before you start driving.
3. Collecting Data
This is the most time-consuming step. Data can be:
• Primary Data: Collected firsthand (surveys, interviews, experiments).
• Secondary Data: Already available (reports, government publications, online
databases).
Example: A company may survey 1,000 customers to know their preferences.
4. Analyzing Data
Raw data is like uncut diamonds—it needs polishing. Analysis involves:
• Sorting information.
• Identifying patterns and trends.
• Using statistical tools.
Example: If surveys show that 70% of customers prefer eco-friendly packaging, that’s a clear
insight.
5. Presenting Findings
The results must be communicated clearly to decision-makers. Usually, this is done through
reports, charts, and presentations.
Example: A report may say: “Customers prefer smaller packs at lower prices. Competitors
are offering discounts. We should introduce a 200ml pack.”
6. Decision Making and Implementation
Finally, management uses the research findings to make decisions.
• Example: Launching a new product, changing pricing, or improving customer service.
Benefits of Marketing Research
• Helps understand customer needs.
• Reduces business risks.
• Identifies market opportunities.
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• Improves decision-making.
• Builds competitive advantage.
Diagram: Marketing Research Process
Marketing Research Process
--------------------------
1. Define Problem
2. Develop Plan
3. Collect Data
4. Analyze Data
5. Present Findings
6. Make Decisions
Think of it like detective work:
• Problem = Mystery to solve.
• Plan = Strategy.
• Data = Clues.
• Analysis = Connecting the dots.
• Findings = Solution.
• Decision = Action taken.
Real-Life Examples
1. Advertising vs Salesmanship
o Apple runs sleek advertisements showing iPhones (advertising).
o But when you enter the Apple Store, a salesperson explains features and
helps you choose (salesmanship).
2. Marketing Research
o Before Netflix entered India, it researched viewing habits, internet
penetration, and pricing preferences. That’s why it introduced cheaper
mobile-only plans.
Connecting the Two Topics
Advertising and salesmanship are tools to sell products, while marketing research is the tool
to understand markets.
• Without research, advertising may target the wrong audience.
• Without advertising, salesmanship may not get enough customers to talk to.
• Without salesmanship, advertising may create interest but fail to convert it.
Together, they form the backbone of marketing success.
Conclusion
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• Advertising vs Salesmanship: Advertising is about mass communication and
awareness, while salesmanship is about personal persuasion and closing deals. They
complement each other.
• Marketing Research Process: It’s a systematic journey—define the problem, plan,
collect data, analyze, present findings, and make decisions. It reduces risks and
guides businesses toward success.
So, in simple terms:
• Advertising is like casting a wide net.
• Salesmanship is like pulling the fish out of the net.
• Marketing research is like studying the river before you even start fishing.
SECTION-D
7. What is producon planning and control? Explain the steps involved.
Ans: Production Planning and Control (PPC): Simple Explanation
Imagine you are running a small factory that makes school bags. Every day, you need to
decide:
• How many bags to produce
• Which materials to use
• Who will do which task
• When each step should happen
If you don’t plan properly, you may run out of material, workers may sit idle, or orders may
get delayed. This is where Production Planning and Control (PPC) comes in.
What is Production Planning and Control?
Production Planning and Control (PPC) is a system that helps a business plan, organize, and
control its production activities so that goods are produced:
• In the right quantity
• At the right time
• With minimum cost
• And maximum efficiency
In simple words:
Production Planning decides WHAT, HOW, and WHEN to produce, while Production
Control ensures that everything happens as planned.
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Why is PPC Important?
Without proper planning and control:
• Production may be delayed
• Resources may be wasted
• Costs may increase
• Customer satisfaction may fall
But with PPC:
• Work becomes smooth and organized
• Deadlines are met
• Resources are used efficiently
• Profit increases
Steps Involved in Production Planning and Control
Let’s understand the process step-by-step in a very simple and logical way.
1. Routing (Deciding the Path of Work)
Routing means deciding the exact path or sequence through which production will take
place.
Example:
To make a school bag, the steps may be:
1. Cutting fabric
2. Stitching
3. Adding zippers
4. Quality checking
5. Packing
So, routing answers:
“What steps should be followed and in what order?”
2. Scheduling (Deciding the Time)
Scheduling means deciding when each task should start and finish.
Example:
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• Cutting: 9 AM – 11 AM
• Stitching: 11 AM – 3 PM
• Packing: 3 PM – 5 PM
So, scheduling answers:
“When should each activity happen?”
3. Loading (Assigning Work to Machines/Workers)
Loading means assigning work to machines or workers based on their capacity.
Example:
• Machine A: 100 bags/day
• Machine B: 150 bags/day
You assign work accordingly so no machine is overloaded or idle.
It answers:
“Who will do the work and how much?”
4. Dispatching (Starting the Work)
Dispatching means giving instructions to start the production process.
It includes:
• Issuing work orders
• Providing materials
• Giving instructions to workers
Think of it as:
“Execution starts here!”
5. Follow-up (Monitoring Progress)
Follow-up means checking whether work is going as planned.
Example:
• Are workers completing tasks on time?
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• Is production meeting targets?
• Any delays or problems?
It answers:
“Is everything going according to plan?”
6. Inspection (Quality Checking)
Inspection ensures that the product meets quality standards.
Example:
• Checking stitching quality
• Checking durability
• Ensuring no defects
It answers:
“Is the product good enough?”
7. Corrective Action (Fixing Problems)
If something goes wrong, corrective action is taken.
Example:
• Machine breakdown → repair immediately
• Worker delay → adjust schedule
• Poor quality → retrain workers
It answers:
“What should we do to fix problems?”
Simple Diagram of PPC Process
Here is a clear and easy flow of Production Planning and Control:
Production Planning and Control Process
PLANNING STAGE
-------------------------
Routing → Scheduling → Loading
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↓
CONTROL STAGE
-------------------------
Dispatching → Follow-up → Inspection → Corrective Action
Real-Life Example to Understand Better
Let’s take a real-life example of a bakery making cakes:
1. Routing → Decide steps (mixing → baking → decorating)
2. Scheduling → Cake ready by 5 PM
3. Loading → Assign work to bakers and ovens
4. Dispatching → Start baking process
5. Follow-up → Check if baking is on time
6. Inspection → Taste and check quality
7. Corrective Action → Adjust if cake burns or delays
This ensures the cake is ready on time and tastes perfect!
Difference Between Planning and Control
Basis
Production Planning
Production Control
Meaning
Deciding future production activities
Ensuring plans are followed
Focus
What, how, when
Monitoring and correcting
Stage
Before production
During production
Example
Making schedule
Checking delays
Key Objectives of PPC
• Ensure smooth production flow
• Minimize production cost
• Use resources efficiently
• Avoid delays and wastage
• Maintain product quality
• Meet customer demand on time
Conclusion
Production Planning and Control is like the brain and nervous system of a factory.
• Planning is like thinking ahead and preparing everything
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• Control is like keeping an eye on everything and correcting mistakes
Together, they ensure that production runs smoothly, efficiently, and profitably.
8. What is the need of strategic management? Highlight and discuss the role of Chief
Execuve Ocer in strategic management.
Ans: Part I: The Need for Strategic Management
What is Strategic Management?
Imagine you’re the captain of a ship. You don’t just sail randomly—you study the weather,
plan the route, and prepare for storms. That’s what strategic management is in business: it’s
about planning, monitoring, analyzing, and implementing strategies to achieve long-term
goals.
It’s not about day-to-day operations (like fixing a machine or handling a customer
complaint). It’s about the big picture—where the company wants to go in the next 5, 10, or
20 years.
Why Do We Need Strategic Management?
1. Direction and Purpose
Without strategy, a company is like a ship without a compass. Strategic management gives a
clear direction.
• Example: Apple’s strategy is innovation and design excellence. That’s why they keep
launching products that look sleek and feel premium.
2. Adapting to Change
Markets change constantly—new technologies, new competitors, new customer
preferences. Strategic management helps companies adapt.
• Example: Netflix shifted from DVD rentals to online streaming because its strategy
was flexible and forward-looking.
3. Competitive Advantage
Every company wants to stand out. Strategic management helps identify what makes a
company unique.
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• Example: Starbucks focuses on customer experience, not just coffee. That’s its
competitive edge.
4. Efficient Resource Allocation
Resources (money, people, time) are limited. Strategic management ensures they are used
wisely.
• Example: A company may decide to invest more in digital marketing rather than
traditional print ads because research shows better returns.
5. Long-Term Sustainability
It’s not enough to make profits today. Companies need to survive tomorrow. Strategic
management ensures long-term sustainability.
• Example: Toyota invests heavily in hybrid and electric cars to stay relevant in the
future.
Benefits of Strategic Management
• Provides clarity of vision.
• Improves decision-making.
• Reduces risks.
• Encourages innovation.
• Builds strong organizational culture.
Diagram: Why Strategic Management is Needed
Strategic Management
|
------------------------------------------------
| | | |
Direction Adaptability Competitive Edge Sustainability
Think of it like a roadmap: without it, you may keep moving but never reach the right
destination.
Part II: Role of the Chief Executive Officer (CEO) in Strategic Management
Who is the CEO?
The CEO is like the captain of the ship—the highest-ranking executive who makes major
corporate decisions, manages overall operations, and acts as the main link between the
board of directors and the company.
In strategic management, the CEO plays a central role.
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Roles of the CEO in Strategic Management
1. Visionary Leadership
The CEO sets the vision. They decide where the company should go.
• Example: Elon Musk’s vision for Tesla is not just making cars—it’s about sustainable
energy and space exploration.
2. Strategy Formulation
The CEO leads the process of creating strategies. They analyze the environment, study
competitors, and identify opportunities.
• Example: Satya Nadella transformed Microsoft’s strategy by focusing on cloud
computing (Azure).
3. Decision Making
Strategic management involves tough decisions—entering new markets, launching new
products, or cutting losses. The CEO makes these calls.
• Example: When Steve Jobs returned to Apple, he decided to cut down on multiple
product lines and focus on a few innovative ones.
4. Resource Allocation
The CEO ensures that resources are allocated according to strategic priorities.
• Example: A CEO may decide to invest more in research and development rather than
advertising if innovation is the company’s strategy.
5. Building Organizational Culture
Culture is the invisible force that drives employees. The CEO shapes this culture.
• Example: Google’s culture of innovation and openness is strongly influenced by its
leadership.
6. Monitoring and Control
The CEO doesn’t just set strategies—they also monitor progress and make adjustments.
• Example: If a company’s expansion plan isn’t working, the CEO may revise the
strategy.
7. Communication and Motivation
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The CEO communicates the strategy to employees and motivates them to work toward it.
• Example: Jack Ma of Alibaba often inspired employees with speeches about vision
and perseverance.
Challenges CEOs Face in Strategic Management
• Balancing short-term profits with long-term goals.
• Managing stakeholder expectations.
• Dealing with uncertainty and risk.
• Handling global competition.
Diagram: Role of CEO in Strategic Management
CEO in Strategic Management
|
------------------------------------------------
| | | |
Vision Decision Resource Monitoring
Making Allocation & Control
Real-Life Examples
1. Apple (Steve Jobs)
o Need for strategic management: Focused on innovation and design.
o CEO role: Jobs made bold decisions, like launching the iPhone, which changed
the industry.
2. Microsoft (Satya Nadella)
o Need for strategic management: Shifted from software licensing to cloud
services.
o CEO role: Nadella’s leadership transformed Microsoft into a cloud-first
company.
3. Tesla (Elon Musk)
o Need for strategic management: Focused on sustainable energy and electric
vehicles.
o CEO role: Musk’s vision drives Tesla’s strategy of innovation and risk-taking.
Connecting Both Parts
• Need for Strategic Management: Companies require direction, adaptability,
competitive advantage, and sustainability.
• Role of CEO: The CEO ensures these needs are met by providing vision, making
decisions, allocating resources, and motivating employees.
Together, they ensure the company not only survives but thrives in a competitive world.
Conclusion
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Strategic management is essential because it gives organizations a clear direction, helps
them adapt to changes, ensures efficient use of resources, and builds long-term
sustainability. Without it, companies risk drifting aimlessly in a competitive market.
The CEO plays a pivotal role in this process. They are the visionaries, decision-makers,
motivators, and guardians of organizational culture. Their leadership ensures that strategies
are not just created but effectively implemented.
“This paper has been carefully prepared for educaonal purposes. If you noce any
mistakes or have suggesons, feel free to share your feedback.”
