Speedo Ltd. Is one of the largest two-wheeler manufacturer in India. It has a market share of
about 51% in the two-wheeler category. The company had witnessed almost a 35% drop in thebooking as the shortage of cash was prompting people to withhold new purchases due to
demonetization. Therefore the production manager of the company had decided to align production
to factor which have less sales in the market. Manager of Speedo Ltd continued to rely on its
previously tried and tested successful plan which didn’t work because the environment is not static.
This let to decline in sale of Speedo Ltd. Which limitations of the function of management as
identified in part (A) of the question was the production manager trying to overcome due to
demonetization?
(A) Rigidity (B) Planning may not work in dynamic environment
(C) Lack of accuracy (D) Both (A) and (B)
