question_answer

ABC Ltd is facing a problem of declining market share due to increased competition in the market. In order to retain its share in the market, what logical steps should be followed by a manager?

Answer:

Steps to be followed by a manager are enumerated below: Step 1 Setting Objectives This is the first step in planning, objectives should be established for the entire enterprise and for each and every department. Step 2 Developing the Planning Premises A business premises is an assumption on which the plans are based. Management makes assumptions for everything it plans. Step 3 Search for Alternatives This involves collection of right type of data and its anaylsis. Step 4 Evaluation of Alternatives After developing alternative courses, the management will evaluate the merits and demerits of various alternatives in the light of the objectives of the business and planning premises. Step 5 Selection of Best Course of Action This is the stage of decision-making. Quantitative techniques may also be used to choose the best course of action. Step 6 Follow up Planning provides the future course of action. Future is uncertain, A system of continuous evaluation of the plan may be designed and implemented.