Mr. Dhaniram Singh was worried; to reduce his worry he thought he should write down his difficulties on paper and then start thinking what he could do about these problems. Primarily his listing included the following:- i. His largest competitor has reduced the prices by 10%.ii. He is short on raw material. iii. His liquidity position is not very sound due to slow receivables. iv. Bankers do not give him any more credits since they feel he should be able to manage within his existing credit limit and that is sufficient for his present turnover. He was thinking that this position has recently come up and is unable to find reason. His assistant Mr. Nehra feels all this has been happening because he does not have any information useful to arrive at actions. Another problem he raised is that there is no planning and he is taking too many days to take decisions. Answer the following questions:- a) If Mr. Singh starts planning, will it be sufficient to solve all his above problems? b) If not, what are the limitations of his planning?
Mr. Dhaniram Singh was worried; to reduce his worry he thought he should write down his difficulties on paper and then start thinking what he could do about these problems. Primarily his listing included the following:- i. His largest competitor has reduced the prices by 10%.ii. He is short on raw material. iii. His liquidity position is not very sound due to slow receivables. iv. Bankers do not give him any more credits since they feel he should be able to manage within his existing credit limit and that is sufficient for his present turnover. He was thinking that this position has recently come up and is unable to find reason. His assistant Mr. Nehra feels all this has been happening because he does not have any information useful to arrive at actions. Another problem he raised is that there is no planning and he is taking too many days to take decisions. Answer the following questions:- a) If Mr. Singh starts planning, will it be sufficient to solve all his above problems? b) If not, what are the limitations of his planning?
Foundations of Business - Standalone book (MindTap Course List)
4th Edition
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section: Chapter Questions
Problem 5DQ
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Mr. Dhaniram Singh was worried; to reduce his worry he thought he should write down
his difficulties on paper and then start thinking what he could do about these problems.
Primarily his listing included the following:-
i. His largest competitor has reduced the prices by 10%.ii. He is short on raw material.
iii. His liquidity position is not very sound due to slow receivables.
iv. Bankers do not give him any more credits since they feel he should be able to
manage within his existing credit limit and that is sufficient for his present
turnover.
He was thinking that this position has recently come up and is unable to find reason. His
assistant Mr. Nehra feels all this has been happening because he does not have any
information useful to arrive at actions. Another problem he raised is that there is no
planning and he is taking too many days to take decisions.
Answer the following questions:-
a) If Mr. Singh starts planning, will it be sufficient to solve all his above problems?
b) If not, what are the limitations of his planning?
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