Management Activities 1: Planning

Question 1

Planning

Answer 1

Planning occurs when management looks to the future and sets specific goals for the business.

Question 2

Smart plans

Answer 2

1. Specific: Plan must clearly state its goal.
2. Measurable: Should be evidence the goal was achieved.
3. Achievable : The goal must be realistic.
4. Relevant: Goal must be relevant to the overall business goal.
5. Timed: This is the target date when the goal should be achieved.

Question 3

Steps in the planning process

Answer 3

1. Assess the current situation: To assess the current situation in the
   business, managers should conduct a swot analysis.
2. Set a Goal: Written statement that sets out the firms overall goal for the
   lifetime of the business
3. Create a plan: To help the business achieve its statements.
4. Implement the plan: Management chooses the plans to be implemented
   and communicates this info closely to employees
5. Review the plan: Regular review meetings should take place to ensure
   that the plans are progressing.

Question 4

Benefits of Planning

Answer 4

1. Anticipates problems: Planning helps to anticipate problems in future and put plans to solve them.
2. Identifies strengths, weakness, opportunities and threats: A swot analysis helps a business to identify and exploit its strengths and opportunities.
3. Benchmarking: Business monitors it’s progress by comparing its planned targets with actual results
4. Improves motivation: Planning ensures that employees know the future goals of the business.
5. Finance: Financial planning helps the business to obtain finance.

Question 5

Strategic plan

Answer 5

Breaks down the mission statement into long-term business plans

Question 6

Tactical plan

Answer 6

Breaks down strategic plans into short term business plans.

Question 7

Operational plan

Answer 7

Plans for the day to day running of the business

Question 8

Contingency plan

Answer 8

Back up plans used to deal with unforeseen
events.