unit 3 management activities - planning

Question 1

what is planning ?

Answer 1

the setting down of specific goals and objectives and putting in strategies that allow the firm to chieve them

Question 2

what is a mission statement ?

Answer 2

sets out the vision of the business

Question 3

what is a contingency plan ?

Answer 3

a back up plan to take account of unforeseen events, to prevent the closure of the business, or disruption to supply

Question 4

what is a strategic plan ?

Answer 4

a long term plan for the major objectives of the business. prepared by senior management to ensure the long term profitability of the firm. it involves taking the mission statement and backing it up with plans

Question 5

what is a tactical plan ?

Answer 5

the strategic plan is broken down into smaller tactical short term plans, devised by middle management. these plans achieve operations which makes the strategic plans goals possible

Question 6

what is manpower planning ?

Answer 6

a plan for the HR’s of business. sets out the number of staff required, type of staff. putting the right number of people, with the right skills in the right place, at the right time to achieve the goals of the business

Question 7

what is a SWOT analysis

Answer 7

a strategic planning technique. used to assess the business in terms of strengths, weaknesses, opportunities and threats

Question 8

SWOT - strength

Answer 8

internal attributes and resources that support successful outcomes of a business, which can be developed into competitive advantages

eg USP, brand name, product design, product features, price , social media presence, market share, skilled employees/ workforce

Question 9

SWOT- weakness

Answer 9

internal aspects of a business which are under developed and could damage the success of the business, which may mean that they are behind some of their competitors in some aspects

eg high input costs, lack of skilled workers, limited product range , poor brand recognition, no online presence , poor customer service, lack of investment in R&D

Question 10

SWOT - opportunity

Answer 10

external factors which a business could use to its advantage, which have the ability to benefit the business

eg changes in legislation , larger trading blocs/removal of trade barriers, changes in consumer demand, change in trends , changing exchange rate

Question 11

SWOT - threat

Answer 11

external factors that could jeopardise the business

eg new competitors entering the market, changes in legislation, shortages in important raw materials, changes in exchange rates, changes in taxation laws, more trade barriers

Question 11

importance of planning - SWOT analysis

Answer 11

the initial step in the planning process. THE aim of a business is to maximise its strengths and opportunities while minimising its weaknesses and threats

Question 12

importance of planning- mission statement

Answer 12

a visionary statement outlining who the business is, what it does and where it is going. An insight to the stakeholders into core values and the culture of the business

Question 13

importance of planning- strategic planning

Answer 13

a long term plan covering over 5 years, drawn up by senior management, outlines how the long term goals of the business are to be achieved

Question 14

importance of planning- tactical planning

Answer 14

short term plan which breaks down the strategic plan into shorter more manageable periods. deals with the now part of the plan

Question 15

importance of planning- contingency plan

Answer 15

back up plan to cope with emergencies. benefits the business by preventing loss of profits and business collapse

Question 16

what are the smart principles of making a good plan - specific, measurable, agreed, realistic, timed

Answer 16

1.specific- a plan should have clear goals rather than broader outlines of objectives
eg “ to improve sales by10% this June compared to last June” rather than “ to improve sales “

2.measurable - goals should be tangible and easy to clarify if the goal has been met or not
eg if the plan is “to improve sales by 10% this June compared to last June” , the business can see if the strategies they put in place accomplish the goal

3.agreed - management and staff should set the goals together so that they support the goal and are working in harmony, rather than goals being imposed on parties
eg the sales staff and manager should have input in to the goal of improving sales by 10% to increase buy-in and focus

4.realistic - it must be possible to achieve the goals set out given the resources and time available to the business
eg if there is no budget available for an advertising campaign to boost sales, it might not be realistic to increase sales by 10%.

5.timed - a plan should have a timeline attached rather than being open ended.

eg trying to improve sales by 10% in June compared to last June can be measured in July to see if it was accomplished, rather than having a general goal of improving sales by 10% with no finishing time set in place- a business should know when it wants a plan completed by