On the basis of the information given in the case, answer the next five questions.

A Maharatna Company, Indian Oil Indian Oil is India’s largest commercial organisation. It is the top-ranked Indian company in the Fortune ‘Global 500’ listings (2017). Indian Oil’s vision is driven by a group of dynamic leaders, who have made it a name to reckon with. With an over 34,000 strong workforce, a Maharatna Company, Indian Oil has been helping to meet India’s energy demands and reaching petroleum products in every part of India for over five decades. It plans to increase its business operations all around the world.

The company plans to invest 20,000 crore in 2017 – 18 acquisitions and plans to expand overseas. The company is always believed to be ahead of the demand. Last year too, IOC had invested close to 20,000 crore, including around 16,000 crore in various Indian projects and on acquisition for upstream in Russia. The company believed that if the goals are well defined, employees are aware of what the organisation has to do and what they must do to achieve those goals. Changes or events cannot be eliminated, but they can be anticipated and managerial responses to them can be developed.

Policy formation serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals. It helps in avoiding confusion and misunderstanding. Manager can look into the future and make a choice from amongst various alternative courses of action.

Q) ”Changes or events cannot be eliminated, but they can be anticipated and managerial responses to them can be developed.” Identify the significance of managerial function highlighted in this statement.