Management Activities 1: Planning

Question 1

What is planning?

Answer 1

Occurs when management looks to the future and sets specific goals for the business

Question 2

What is a SMART plan?

Answer 2

S-specific 
M-measurable 
A-achievable
R-relevant 
T-timed

Question 3

What is a SWOT analysis?

Answer 3

S-strengths
W-weaknesses
O-opportunities
T-threats

Question 4

What is a mission statement?

Answer 4

Short written statement that sets out the firm’s overall goal for the lifetime of the business

Question 5

List the steps in the planning process (in order)

Answer 5

1. Assess the current situation
2. Set a goal
3. Create a plan
4. Implement the plan
5. Review the plan

Question 6

Explain what a strategic plan is

Answer 6

1-5 years
Written by senior management
Breaks down the mission statement into long term business plans

Question 7

Explain what a tactical plan is

Answer 7

1-2 years
Written by middle management
Breaks down strategic plans into short-term plans
Helps the business to achieve the strategic plan

Question 8

Explain what an operational plan is

Answer 8

0-1 year
Written by all management levels
Plans for the day to day running of a business

Question 9

Explain what a contingency plan is

Answer 9

0-1 year
Written by all management levels
Back up plans used to deal with unforeseen events or emergencies

Question 10

Explain what a human resource(manpower) plan is

Answer 10

0-1 year
Written by the HR manager
Ensures that the business has the correct number of employees with the correct skills and qualifications to fill all roles in the firm

Question 11

Explain what a financial plan is

Answer 11

0-1 year
Written by the finance manager
Businesses prepare cash flow forecasts to predict the amount of income they will receive and spend in a particular period of time