Question

After studying Entrepreneurship in Class XII, Neel completed a baking course and started a bakery, 'Cakes and Bakes'. He set a target of earning a modest 10% return on investment in the first year. As he was supplying healthy bakery products, the demand kept increasing. 'Cakes and Bakes' became a famous bakery in a year. He now wanted to develop a plan to define the direction and scope of 'Cakes and Bakes' for the long run. He made a marketing plan to decide if he could charge higher price to improve his return on investment, how to advertise the products, etc.
Quoting lines from the above paragraph, identify and explain two types of plans discussed in the above case.

Hint:

Objectives are specific, measurable goals, while strategies are broader plans designed to achieve these objectives over the long term.

Answer 1

Two types of plans discussed in the case:
(i) Objective:
"He set a target of earning a modest 10% return on investment in the first year."
An objective is a specific goal set by the organization to be achieved within a set time period. In this case, the target return on investment is a clear objective.
(ii) Strategy:
"He now wanted to develop a plan to define the direction and scope of 'Cakes and Bakes' for the long run."
A strategy outlines a broad course of action that is designed to achieve long-term goals and objectives, such as improving ROI and advertising products effectively.