Review Your Knowledge 1. Summarize the planning function of management. 2. Describe the process of establishing goals. 3. Explain each type of plan written by management. 4. Discuss research used during management planning. 5. Briefly explain two examples of data analysis used for planning purposes. 6. Summarize the strategic planning process. 7. What is the role of mission statements and vision statements in a business plan? 8. Explain the role of tactical plans in an organization. 9. What questions do operational goals ask? 10. Describe two types of operational plans. Apply Your Knowledge 1. Planning provides obvious advantages for an organization. In your own words, explain the necessity of proper planning for an organization. 2. Using the SMART-goal format, write one short-term goal and one long-term goal for a business that provides accounting services. 3. Create a Venn diagram that compares and contrasts strategic, tactical, and operational plans. In each circle, list characteristics that are unique to one type of plan. Then, list qualities shared between the plans where the circles overlap. What do they have in common? 4. Businesses need contingency plans to prepare for the unknown. Without a backup plan, an organization could collapse if an unexpected event happens. Assume you are a manager for a manufacturing company. Identify an example of a circumstance that is beyond your control. How could you prepare for this circumstance with a contingency plan? 5. One component of a market analysis is the competitive analysis. Within the competitive analysis, businesses determine their competitive advantage. Choose a company or product that you consider a favorite. Determine three competitive advantages for that company or product. 6. A business plan is needed for managerial success and managing capital resources. Discuss why you think this statement is true. 7. A PEST analysis evaluates the political, economic, social, and technological factors that may affect the success of a business. Explain why you think it is important to examine each of these factors when making plans for a business. 8. Select a project you need to complete during the school year. Using Figure 3-7 as an example, create a Gantt chart to schedule the completion of this project. Along the Y-axis of the chart, list each task that must be completed. Then, project how long it will take you to complete each task along the X-axis of the chart. 9. Create a flowchart that could be used to guide an employee of a car-rental company who must decide whether to implement a refund policy. 10. Write a procedure to describe the steps required to complete a task with which you are familiar, such as how to apply for a job or how to change a tire. Include steps needed to complete the task any resources, forms, or other documents needed and any other person or organization who must be involved in order for the task to be completed. 53 Copyright Goodheart-Willcox Co., Inc.