Unit 2: Planning Tools & Techniques

Question 1

Define forecasting

Answer 1

Forecasting is the process of predicting what will happen in the future

Question 2

State and explain the different types of forecasting.

Answer 2

Qualitative forecasting uses expert opinions to predict the future. Quantitative forecasting uses mathematical models and statistical analyses of historical data and surveys to predict future events.

Question 3

What is contingency planning?

Answer 3

Contingency planning identifies alternative courses of action to take when things go wrong.

Question 3

Why should managers be cautious of forecasting?

Answer 3

Managers should be cautious of forecasting because forecasts rely on human judgements and they can be wrong.

Question 4

Define scenario planning.

Answer 4

Identifies alternative future scenarios and makes plans to deal with each one.

Question 5

Define benchmarking. Provide your own example. (Research required)

Answer 5

Uses external and internal comparisons to plan for future improvements. For example, you can compare the customer satisfaction of a competitor’s product to yours.

Question 6

State the pros and cons of using a staff planner

Answer 6

Pros:

• Better productivity
• Reduces costs
• Greater alignment with organizational goals

Cons:
- Communication gap to develop between staff planners and line managers
- People may lack commitment to implement the plans, no matter how good they are

Question 7

What is a staff planner?