Question

Mukesh opened the first fast food joint in Rohini. His burgers are very

famous in that area. He got the first mover advantage and his business is

doing very well. To earn higher profits, he started cutting the costs. He

reduced the number of cooks and delivery boys. As a result, there would be

a delay in delivery of food to customers.

Over a period of time,as more competitors entered the market, the demand

for his food declined.

Whenever he would get orders which his staff could not handle, he

outsourced the staff to complete the orders on time. This resulted in an

increase in the cost of food.

Identify the aspects of management ignored by Mukesh. Explain this

aspect with the help of an example​

Answer 1

Efficiency:

Efficiency means doing the task correctly and with minimum cost.

Example:

Suppose a company's target production is 5,000 units in a year. The manager wants to achieve the production target by cutting down costs. He was able to cut down costs but could not achieve the target production. In this case, the manager was efficient but not effective.

Hope this helps $\mathtt{~}$