chapter 7 - 1. Identify and discuss the four reasons for...

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1. Identify and discuss the four reasons for planning. Answer: 1. Planning provides direction to managers and nonmanagers. 2. Planning reduces uncertainty by forcing managers to look ahead, anticipate change, consider the impact of change, and develop appropriate responses. 3. Planning minimizes waste and redundancy. 4. Planning establishes goals or standards used in controlling. 2. Differentiate between strategic plans and operational plans and give an example of each. Answer: Strategic plans apply to the entire organization, establish the organization's overall goals, and seek to position the organization in terms of its environment. Operational plans specify the details of how the overall goals are to be achieved. A strategic plan might describe how a restaurant might plan to increase its local market share in terms of pizza sales. An operational plan might be to send coupons to households within the restaurant's delivery area to encourage locals to try and continue to purchase pizza from the restaurant. 3. Identify the four elements of Management By Objective. What are some of the problems with this
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This note was uploaded on 02/14/2012 for the course FINANCE & 101 taught by Professor Mrhoang during the Spring '11 term at Shanghai Normal University.

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