Business Planning

Question 1

Planning

Answer 1

Design of a desirable future and effective ways of bringing it about

Question 2

Planning process

Answer 2

• awareness about opportunities and risks
• set objectives
• formulate plan
• develop budget

Question 3

Types of objectives

Answer 3

1. GENERAL(common to all firms)
   - survival related
   - control related
   - efficiency related
2. SPECIFIC(not common to all firms)
   - help ensure general objectives

Question 4

Mission Vision Values

Answer 4

Mission: statement of purpose

Vision: desired future situation

Values: firms I think

Question 5

Programming tasks

Answer 5

1. Break activities into stages
2. Break stages into activities
3. Stablish a hierarchy

Question 6

Kinds of activities

Answer 6

1. Continuos:
   - routine
   - frequent
   - normal functioning of the organization
2. Special:
   - sporadic
   - non frequent
   - important for management

Question 7

Advantages and Disadvantages for programming tasks

Answer 7

ADVANTAGES:

• specific
• cost already stablished
• hierarchy
• avoids concerns
• increases effectiveness
• facilitated coordination, control…

DISADVANTAGES:

• time consuming
• risks limit innovation
• rigidity to execute plans

Question 8

Peter druker: 8 key areas to set objectives

Answer 8

1. Market stability
2. Probability
3. Profitability
4. Physical and financial resources
5. Managerials performance and development
6. Workers performance and attitude
7. Public responsability
8. Innovation

Question 9

Mcgregors X and Y theories

Answer 9

THEORY X (pessimistic)
Workers:
Not motivated
Avoid responsibility 
Dislike their work

Reward/punish system
No delegation
Authoritarian approach

THEORY Y (optimistic)
Workers:
Have initiative 
Like their work
Self motivated
Involved in decision making

Question 10

Advantages and Disadvantages of MBO

Answer 10

ADVANTAGES:

• stronger motivation
• clear and specific objectives
• clear organization
• better control

DISADVANTAGES:

• applying MBO
• management must be implied
• top down system
• time consuming
• management focused on quantitative objectives

Question 11

Developing budgets

Answer 11

All elements in a monetary form
Easy to control
Easy to measure
Objectives and programmes converted into economic values
Shows feasibility