Page 340 - Business Principles and Management

Chapter 13 • Planning and Organizing

Operational plans are based on the business’s strategic plan and are devel-
oped after the strategic plan is completed. Operational plans determine what
resources will be required and how they will be used. Therefore, operational
planning influences the amount and type of equipment and supplies needed,
the number of employees and the training they require, work schedules, pay-
roll, operating budgets, and many other factors. Operational plans direct the
day-to-day activities of a business and largely determine whether the strategic
plan of the business will be successful or not. The tools and procedures for
completing operational planning are discussed in the next lesson.

CHECKPOINT
What is the difference between strategic and operational
planning?

13.1 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Determine the best answer for each of the following questions.
1. Planning provides all of the following benefits to a company except
a. encouraging managers to be more specific and objective in
their decisions
b. helping managers to determine whether the business is making
progress
c. ensuring a business will be successful and profitable
d. Planning provides all these benefits.
2. The internal and external analysis completed by businesses as a
part of planning is often referred to as
a. PERT
b. SWOT
c. ABCD
d. KISS

THINK CRITICALLY
Answer the following questions as completely as possible.
3. Why should top executives in a company be responsible for strate-
gic planning but involve lower-level managers and employees in
the planning process?
4. How can a clear and meaningful vision and mission statement help
increase employee motivation and enthusiasm
for a business plan?

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