Chapter 8: Planning Change

Question 1

What are the benefits of corporate plans?

Answer 1

They offer clarification on the direction in which the business aims to take
They clarift the role of each department in contributing to meeting overall aims and objectives
It allows for better coordination of activities

Question 2

What factors influence the success rate of corporate plans?

Answer 2

Whether it is the right plan for the business in its present circumstances
Whether there are adequate resources to implement the plan
The actions and reactions of competitors

Question 3

What is SWOT analysis?

Answer 3

SWOT analysis is a technique that allows a business to assess its overall position.

Question 4

What does SWOT analysis consist of?

Answer 4

An internal audit

An external audit

Question 5

What is an internal audit?

Answer 5

An internal audit is the assessment of the strenghts and weaknesses of the business in relation to its competitors. It represents the present position of the business.

Question 6

What is an external audit?

Answer 6

An external audit is an assessment of the opportunities and threats the business faces in the general business environment. It represents the future potential of the business.

Question 7

What are the advantages proposed by SWOT?

Answer 7

• Highlights current and potential changes in the market and encourages an outward looking approach
• Encouages firms to develop and build upon existing strengths
• Relates the present position to the future potential of a business
• By determining the organisations, it influences the stratergy that will be employed in order to achieve the organisations aims and objectives

Question 8

What are the disadvantages of SWOT?

Answer 8

It can be time consuming

Internal and external factors change rapidly

Question 9

What is a contingency plan?

Answer 9

A contingency plan is the preoeration for unexpected and, usually, unwelcomed events that are reasonably predictable and quantifiable.

Question 10

What is crisis management?

Answer 10

Crisis management means responding to a sudden event that poses a significant threat to a firm.

Question 11

What are corporate plans?

Answer 11

Corporate plans are strategies detailing the aims and objectives a firm hopes to achieve in a period of time.