Management Activities Unit 3

Question 1

What is planning?

Answer 1

• involves selecting organisational goals/objectives and setting out ways to achieve them
• plans reduce risk and uncertainty

Question 2

Benefits of Planning

Answer 2

• Finance
• Anticipates Problems
• Identifies SWOT
• Benchmarking

Question 3

Benefits of Planning
(Finance)

Answer 3

• Financial planning helps the business obtain finance e.g. loans
• It shows banks and investors the business can repay its loans

Question 4

Benefits of Planning
(Anticipates Problems)

Answer 4

• Planning helps to anticipate FUTURE problems
• Can help put plans into place to overcome these problems before they arise

Question 5

Benefits of Planning
(Identifies SWOT)

Answer 5

• SWOT analysis helps a business exploit its strengths and opportunities
• It helps remove/minimise weaknesses and threats

Question 6

Benefits of Planning
(Benchmarking)

Answer 6

• Business can monitor its progress by comparing its planned targets with ACTUAL results
• It helps identify what changes are needed to achieve its targets

Question 7

What is Forecasting?

Answer 7

• The anticipation of a probable event, involving the use or foresight and judgement
• Plans are developed from forecast e.g. change in economic trends, new technology

Question 8

What are Objectives?

Answer 8

• Objectives of a business are its aims

Question 9

Types of Plans

Answer 9

• Strategic Plan
• Tactical Plan
• Mission Statement
• Contingency Plan
• Financial Plan
  -Manpower Plan

Question 10

What is a Strategic Plan?

Answer 10

• Long-term plan (1-5 yrs)
• Written up by senior
  managers
• SWOT analysis

Question 11

What is a Tactical Plan?

Answer 11

• Short-term plan (1-2 yrs)
• Written up by middle management
• Action planning (more doing than thinking e.g. hiring new staff)

Question 12

What is a Contingency Plan?

Answer 12

• Short-term (0-1 yrs)
• Backup plan
  (emergency situation)
• Ensures survival of the business

Question 13

What is a Manpower Plan?

Answer 13

• Ensures there is enough staff with the right skills and qualities to do all the jobs needed in the business

Question 14

What is a Financial Plan?

Answer 14

• Cashflow forecasts
• Estimates income coming in and the expenditure going out

Question 15

What is a Mission Statement?

Answer 15

• Grand strategic plan
• Sets out business objectives

Question 16

What is Organising?

Answer 16

• Organising the formal structure of a business is the agreed method by which its activities are coordinated so that it has the best chance to reach its objectives

Question 17

What is an Organisation Chart?

Answer 17

• Shows how an organisation
  expects to get things done
• Structure starts with those in charge moving downwards to each lower levels of responsibility

Question 18

Types of Organisation Charts

Answer 18

• Functional Organisation
• Line and Staff Organisation

Question 19

Functional Organisation

Answer 19

• Organisation that is divided into different departments made up of 5 activities i.e