Question

After studying Entrepreneurship in Class XII, Neel completed a baking course and started a bakery. He set a target of earning a modest 10 percent 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 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 paragraph, identify and explain two types of plans discussed in the above case.

Hint:

Objectives set the ‘what to achieve’, while strategies or programmes define ‘how to achieve it’.

Answer 1

Two types of plans discussed in the above case are: 1. Objective: Quoted line: “He set a target of earning a modest 10% return on investment in the first year.” This indicates Neel's objective, which is a desired result that he wants to achieve. Objectives are end goals toward which all activities are directed. This ROI goal is specific, measurable, and time-bound, which defines the organization's purpose clearly. 2. Strategy (or Programme): Quoted line: “He made a marketing plan to decide if he could charge higher price to improve his return on investment, how to advertise the products...” This line indicates the formulation of a comprehensive strategy or programme to achieve the objective. A strategy is a broad plan developed to achieve organizational goals in a competitive environment. Here, Neel plans to implement pricing and advertising tactics, which shows strategic thinking and planning. These two plans—setting clear objectives and developing strategic actions—help guide a business effectively toward success.
Final Answer: Objective and Strategy/Programme