Case Study – Chapter Controlling

Case Study for chapter – Controlling

Especially for Class 12 – CBSE Business Studies Students

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Q1: Managers at Virginia city import-export company suspected Corporate Defence Strategies od Maywood New jersey advised the firm to install a software program that could secretly log every single stroke of the suspect’s computer Keys and send an encrypted e-mail report to CDS. Investigator revealed that two employees were deleting orders from the corporate books after processing them, pocketing the revenue and building their own company with in. In the above one of the important functions of management is performed.

(a) Identify the function

 (b) and identify one of the importance of this function corresponding to above case.

(c) explain any other two importance of identified function.

Answer: (a) Controlling and (b)controlling helps in maintaining order and discipline.

Q2:  FedEx operates an $ 23 billion delivery system from its London and six international based hubs. An important part of FedEx system was their ability to track customers parcels at each stage of collection, shipment and delivery also at FedEx its system helps in identify which customers generate maximum profits and which eventually end up costing the company. FedEx closes the accounts that are not profitable to serve.

(a): In the above case identify the function of management by quoting the lines which helped in identifying above function.

(b) Also identify two steps of above function by quoting the lines from above case study.

Answers: (a) Controlling, Quoted line: An important part………..profitable to serve

(b):  Measuring actual performance.” An important…….shipment and delivery”. Comparing actual performance with standards, ” its system…………costing the company”.

Taking corrective action ” FedEx closes the accounts……………to serve.

 

Q3: Raman and Aman are working as planning department and quality check department in their organisation respectively. Raman is of the view that quality check is not possible without standards and Aman is of the view that standards for coming year cannot be made without the help of quality check department. Who among them is correct? Give conceptual reason for your answer.

Answers: Both are correct.

For reason explain the relation between Planning and Controlling

Q4: Smith Courier System based in Switzerland is a provider of same day delivery services. although Smith may do everything right to meet its delivery commitments, it relies on commercial airlines to transport its parcels and occasionally fails to meet its deadlines. Delays are usually a result of packages being misplaced in airlines tracking systems. Such incidents are beyond Sterling’s control. But from the customer’s vantage point, the failure is smith’s problem. To control the damage created by such delays, Smith had to take some rectification measures. for example, for several months in 1990 and early 1991 several S deliveries disappeared in transit. The packages turned up later, but customer has already suffered financial losses. Yet because the packages were eventually recovered, neither insurance company nor the airlines was liable. The decision of the president Glenn was whether to compensate the customers for their losses or simply not to charge them for the shipments, Glenn concluded that not charging for the shipment was inadequate response given the suffered downtime. but paying the $30,000 in losses would push the then five-year-old $6 million company to losses for the quarter. Glenn’s decision was to pay out the $30,000 in gratis service, the customer stayed, and Smith continue to grow.

(a) Identify one of the important management functions performed by Glenn which helped Smith Courier System to survive and grow.

 

(b) Also identify the steps of Process of function identified in (a) by quoting the lines from above case.

Answers: (a) Controlling

(b) Line quoted: ‘Smith Courier………..delivery commitments’.

Step: Setting performance standards

Line quoted: It relies………its deadlines”

Step: measurement of actual performance

Line quoted: “Delays are…….Tracking system”.

Step: Analysing deviations

Line quoted: “Glenn’s decision……to grow”.

Step: Taking corrective Action.

Q5: At Sam defines lack of quality had created a crisis, When the government shut it down because it was not meeting quality standards, Sam brought back a TQM programme that had restored quality. Although Sam’s weapons worked well, the government questions the company’s quality practices and policies. To solve these problems Sam defence went through an organisational transformation. The key elements were: (I) to minimise the dishonest behaviour on the part of the employees by keeping a close check on their activities.(ii) Empowering employees by giving them responsibility and accountability of their performance.(iii) To provide common direction to all activities,

Explain the importance of controlling highlighted in above key elements.

Ans: (I) Ensuring order and discipline.

(ii) Improving employee’s motivation.

(iii) facilitating coordination in action.