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6 Cards in this Set
- Front
- Back
- 3rd side (hint)
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The two approaches to developing a plan and which one is most effective and why |
The two different approaches are the top down approach and the bottom up approach. A combination of both approaches is the best and most effective way. Top-down approach is where management decides on the mission strategies and objectivesfor the Brokerage and instructs the individual business units to achieve the establish objectives. The bottom up approach is where management still provides the mission and broad strategies but leaves the development of objectives goals and activities to the individual business units |
Top bottom |
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What are the four characteristics of an effective plan |
Simplicity-a plan should be kept simple so that it can be communicated in a simple way. Change is usually resisted and plan should not be one that increases fear of change. Practicality-a plan has to be realistic to work Severability-a finish plan is aggregate of its parts each business unit needs to see how they apply to their specific area of responsibility Flexibility-good plans allow for modification as it is not realistic to think the environment in which the brokerage is competing in will not change
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Spsf |
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What are the differences between a strategic plan and action plan |
A strategic plan applies to the brokerage as a whole and extends for a period of 3 to 5 years, it is a very broad plan.
An action plan contain specific activities to support for fulfillment of strategic plan they apply to particular business units they are generally more detailed and have one year time horizon |
Broad and specific |
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What are the seven components of the strategic plan? |
1-scanning external environment 2-analyzing internal environment and assessing the current position 3-matching strength to weaknesses and opportunities to threats 4-defining a corporate focus 5-developing strategies 6-developing objectives 7-Setting goals
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SAMDDDS |
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What is a distant environment? |
distant environment-looks at factors which are critical to the long-term survival of the brokerage over which it has no control of: Economy/hard or soft markets; social/immigration patterns; demographic forces/aging baby boomers; technological change/Internet; government action/taxes |
Have no control |
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What is a near environment? |
Looks at factors over which the brokerage may exert a degree of influence. These are things such as competitors, clients and markets. The main tool used to analyze near environments our profiles. |
Has influence |
