6: Planning Techniques And Tools

Question 1

• most widely used planning tool

Answer 1

Break Even Analysis (BEA)

Question 2

• analyzing the effect on profits of different pricing strategies

Answer 2

Break Even Analysis

Question 3

Assumptions about the future

Answer 3

Forecasting models

Question 4

Primary purpose: To maximize profits or minimize costs

Answer 4

Linear programming (LP)

Question 5

Mathematical representation

Answer 5

Simulation models

Question 6

Particularly useful for complex situations with numerous interrelated variables.

Answer 6

Simulation models

Question 7

It is used at the department level to set and evaluate performance objectives. (Micro-level: Superior and subordinate)

Answer 7

Management by Objectives (MBO)

Question 8

Making predictions about the future events based on past and present data.

Answer 8

Forecasting

Question 9

Involves developing alternative plans to address potential risks or unexpected events.

Answer 9

Contingency planning

Question 10

Creating hypothetical future scenarios.

Answer 10

Scenario planning

Question 11

Comparing a company’s practices to other organizations.

Answer 11

Benchmarking

Question 12

Emphasizes the environment of multiple stakeholders in the decision making process.

Answer 12

Participatory planning

Question 13

Primary goal: to involve the community in planning.

Answer 13

Participatory planning

Question 14

What are the 5 planning techniques?

Answer 14

1. Forecasting
2. Contingency planning
3. Scenario planning
4. Benchmarking
5. Participatory planning

Question 15

What are the 5 planning tools?

Answer 15

1. Break Even Analysis
2. Forecasting models
3. Linear Programming
4. Simulation models
5. Management by Objectives