CHAPTER 3

Question 1

refers to “the management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives

Answer 1

Planning according to Nickels and others

Question 2

the selection and sequential ordering of tasks required to achieve an organizational goal

Answer 2

planning according to Aldag and Stearns

Question 3

deciding what will be done, who will do it, where, when and how it will be done, and the standards to which it will be done

Answer 3

planning according Cole and Hamilton

Question 4

selecting the best course of action so that the desired result may be achieved

Answer 4

planning

Question 5

PLANNING AT VARIOUS MANAGEMENT LEVELS

Answer 5

1. Top management level - strategic planning
2. Middle management level - intermediate planning
3. Lower management level – operational planning

Question 6

refers to the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals

Answer 6

Strategic Planning

Question 7

The top management of any firm is involved in this type of planning

Answer 7

Strategic Planning

Question 8

refers to “the process of determining the contributions that subunits can make with allocated resources. This type of planning is undertaken by middle management.

Answer 8

Intermediate Planning

Question 9

refers to “the process of determining how specific tasks can best be accomplished on time with available resources

Answer 9

Operational Planning

Question 10

The process of planning consists of various steps

Answer 10

1. setting organizational, divisional, or unit goals
2. developing strategies or tactics to reach those goals
3. determining resources needed and
4. setting standards

Question 11

defined as the “precise statement of results sought, quantified in time and magnitude, where possible.”

Answer 11

Goals

Question 12

The ways to realize the goals

Answer 12

strategies

Question 13

defined as “a course of action aimed at ensuring that the organization will achieve its objectives”

Answer 13

strategy

Question 14

is a short-term action taken by management to adjust to negative internal or external influences

Answer 14

tactic

Question 15

defined as “a quantitative or qualitative measuring device designed to help monitor the performances of people, capital goods, or processes.”

Answer 15

standard

Question 16

3 TYPES OF PLANS

Answer 16

1.Functional Area Plans
2.Plans With Time Horizon
3.Plans According to Frequency of Use

Question 17

4 types Functional Area Plans

Answer 17

1.Marketing plan
2.Production plan
3.Financial plan
4.Human resource management plan

Question 18

this is the written document or blueprint for implementing and controlling an organization’s marketing activities related to a particular

Answer 18

Marketing plan

Question 19

this is a written document that states the quantity of output a company must produce in broad terms and by product family.

Answer 19

Production plan

Question 20

it is a document that summarizes the current financial situation of the firm, analyzes financial needs, and recommends a direction for financial activities.

Answer 20

Financial plan

Question 21

it is a document that indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the company’s strategic plan

Answer 21

Human resource management plan

Question 22

2 types of Plans With Time Horizon

Answer 22

1. Short-range plans
2. Long-range plans

Question 23

these are plans intended to cover a period of less than one year. First-line supervisors are mostly concerned with these plans.

Answer 23

Short-range plans

Question 24

these are plans covering a time span of more than one year. These are mostly undertaken by middle and top management.

Answer 24

Long-range plans

Question 25

2 types of Plans According to Frequency of Use Standing Plans

Answer 25

1.Standing Plans 2.Single-Use Plans

Question 26

These are plans that are used again and again, and they focus on managerial situations that recur repeatedly

Answer 26

Standing Plans

Question 27

These plans are specifically developed to implement courses of action that are relatively unique and are unlikely to be repeated

Answer 27

Single-Use Plans

Question 28

classification of standing plans

Answer 28

1. Policies 2. Procedures 3. Rules

Question 29

classification of Single-use plans

Answer 29

1. budgets 2. programs 3. projects

Question 30

they are broad guidelines to aid managers at every level in making decisions about recurring situations or function.

Answer 30

Policies

Question 31

they are plans that describe the exact series of actions to be taken in a given situation.

Answer 31

Procedures

Question 32

they are statements that either require or forbid a certain action

Answer 32

Rules

Question 33

according to Weston and Brigham, is "a plan which sets forth the projected expenditure for a certain activity and explains where the required funds will come from.”

Answer 33

budgets

Question 34

A program is a single-use plan designed to coordinate a large set of activities.

Answer 34

programs

Question 35

A project is a single-use plan that is usually more limited in scope than a program and is sometimes pre- pared to support a program.

Answer 35

projects

Question 36

The Contents of the Marketing Plan

Answer 36

1. The Executive Summary which presents an overall view of the marketing project and its potential. 2. Table of Contents 3. Situational Analysis and Target Market 4. Marketing Objectives and Goals 5. Marketing Strategies 6. Marketing Tactics 7. Schedules and Budgets 8. Financial Data and Control

Question 37

The Contents of the Production Plan

Answer 37

1. the amount of capacity the company must have 2. how many employees are required 3. how much material must be purchased

Question 38

The Contents of the Financial Plan

Answer 38

1. An analysis of the firm's current financial condition as indicated by an analysis of the most recent statements 2. A sales forecast 3. The capital budget 4. The cash budget 5. A set of pro forma (or projected) financial statements 6. The external financing plan

Question 39

Contents of the Human Resources Plan

Answer 39

1. personnel requirements of the company 2. plans for recruitment and selection 3. training plan 4. retirement plan

Question 40

PARTS OF THE STRATEGIC PLAN

Answer 40

1. Company or corporate mission 2. Objectives or goals 3. Strategies

Question 41

Planning may be made successful if the following are observed:

Answer 41

1. recognize the planning barriers 2. use of aids to planning

Question 42

The planning barriers, according to Plunkett and Attner, are as follows:

Answer 42

1. manager's inability to plan 2. improper planning process 3. lack of commitment to the planning process 4. improper information 5. focusing on the present at the expense of the future 6. too much reliance on the planning department 7. concentrating on only the controllable variables

Question 43

Among the aids to planning that may be used are:

Answer 43

1. Gather as much information as possible 2. Develop multiple sources of information 3. Involve others in the planning process