Chapter 10-Planning

Question 1

SMART

Answer 1

Specific
Measurable
Achievable
Relevant
Timed

Question 2

SWOT

Answer 2

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Question 3

SWOT-Strength

Answer 3

Business should exploit it
Competitive advantage
Examples:Wide product range
Loyal customers

Question 4

SWOT-Weakness

Answer 4

Makes it hard for a business to achieve their goals.
Gives business a competitive disadvantage.
Examples:High price point
Bad Rep

Question 5

SWOT-Opportunities

Answer 5

Enable the business to grow and increase.
Business should take advantage.
Example:Increased demand
New product features

Question 6

Steps for planning

Answer 6

Assess the situation
Set a Goal
Create a plan
Implement the plan
Review the plan

Question 7

SWOT-Threats

Answer 7

Obstacles that can reduce a business profits and market share
Examples:Rapid changes
High competition

Question 8

Strategic plans

Answer 8

1-5 years
Senior management
Breaks down mission statement into long term plans.

Question 9

Tactical plans

Answer 9

1-2 years
Middle management
Breaks down strategic plans into short term plans.
Helps to achieve strategic plans.

Question 10

Strategic plans Example

Answer 10

Samsung wants to increase their profit by €354 million

Question 11

Tactical plans examples

Answer 11

Samsung will launch a new smart phone with new features

Question 12

Operational Plans

Answer 12

0-1 year
All levels of management
Plans for the day to day running of a business

Question 13

Operational Plans Example

Answer 13

Samsung creates a worldwide campaign when it launches a new product

Question 14

Mission statement

Answer 14

Description of what a business does and outlines its purpose.
Values and beliefs

Question 15

Contingency plans

Answer 15

0-1 year
All levels of management
Back up plans for unforeseen events and emergencies

Question 16

Contingency plans Example

Answer 16

Samsung has another supplier when the main supplier cannot supply certain materials

Question 17

Manpower planning

Answer 17

0-1
Human resource management
Ensures a business has the correct amount of employees with correct skills and qualifications

Question 18

Manpower planning Example

Answer 18

Samsung fills job vacancies

Question 19

Financial plans

Answer 19

0-1year
Financial manager
Prepare cash flow forecasts and predict how much money they’ll receive and spend.

Question 20

Financial plans Example

Answer 20

Samsung use cash flow formats to let shareholders know if they are able to pay their annual dividend

Question 21

Planning-Advatages

Answer 21

Reduce future problems
Increase motivation
Benchmarking ((compare their planned targets with actual results let’s business know what changes you make))
Gives a business a sense of direction

Question 22

Delegation

Answer 22

When a manager passes authority to a subordinate to carry out tasks or projects for them

Question 23

Management activities

Answer 23

Planning
Organising
Controlling

Question 24

Management skills

Answer 24

Leadership
Communication
Motivation

Question 25

Advantages of delegation

Answer 25

Workload management -reduces the stress of manager and frees up their time to focus on more important tasks Employee motivation -increased moral and productivity as employees feel trusted. Decrease labour turnover.

Question 26

Delegation disadvantages

Answer 26

Training- Additional training may be required as employees may be unfamiliar with certain tasks Skills and qualifications- if employee lacks skills , the tasks may be not completed at a good standard.

Question 27

Autocratic style

Answer 27

Manager makes decisions Little to no input from employees Work supervised very closely Motivation through rewards

Question 28

Autocratic advantages

Answer 28

Little mistakes -Work closely monitored leaves little room for any mistakes Increased productivity -work gets done faster. Employee comply to demands without their input needed

Question 29

Autocratic disadvantages

Answer 29

Employee moral -Employee feels like input is not valued in the business, may cause them to not do their jobs well Lack of communication -One way communication between manger and employee. Employee may have valuable input

Question 30

Democratic leadership

Answer 30

Manger consults employees but overall makes the decision for the benefit of the business Delegates tasks 2 way communication Managed has strong skills

Question 31

Democratic leadership advantages

Answer 31

Employee morale -Employees feel like input is valued as a result Communication - Employees may have valuable input regarding customer service. Can improve business

Question 32

Demographic leader disadvantages

Answer 32

Productivity -May be slower due to manger asking for employee input Management Resentment -Mangers maybe dislike empowering employees as it reduces their control. May ignore employees input