Planning

Question 1

What are the four types of planning?

Answer 1

Centralized planning
Decentralized planning
Operational planning
Strategic Planning

Question 2

What is centralized planning?

Answer 2

Responsibility lies within the organization’s highest level

Question 3

What is decentralized planning?

Answer 3

Responsibility lies with employees at several levels of the organization

Question 4

Strategic planning

Answer 4

Comprehensive, long range -

Sets an organization’s goals based on market trends, business needs, and resources.

Question 5

Operational Planning

Answer 5

Short term
Focused, specific
Provides direction for implementing the strategic plan

Question 6

Strategic planning - Price Penetration Strategy

Answer 6

Setting prices low to create a mass market rapidly
Attempts to increase on sales volume
Low profit margin
May sacrifice quality

Question 7

Strategic planning - Prestige strategy

Answer 7

Setting high prices on the basis of high quality or an attractive image in the market

Higher profit margin

Lower sales volume

Uses people’s perception of high price = high quality

Question 8

Strategic Planning - skimming strategy

Answer 8

Setting a high price when a product is new

Useful before competitors enter the market

Attempt to generate high profits in the short term

Question 9

Niche strategy

Answer 9

Finding a unique characteristic or selling feature

Question 10

Operational Planning - Single Use Plan

Answer 10

Specific to a defined project

Will exist for a short period of time and then becomes redundant

Question 11

Operational Planning - Standing Plan

Answer 11

A set of rules/plans/policies for recurring situations. Based on an organizations values