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10 Cards in this Set
- Front
- Back
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Top down approach |
Management decides on the mission, strategies, and objectives for the brokerage and instructs the business units to achieve those objectives |
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Bottom up approach |
Management provides the mission and strategies but leaves the development of objectives, goals, and activities to the individual business units |
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4 characteristics of an effective plan |
Simplicity, practicality, sever ability and flexibility |
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Difference between a strategic plan and action plan |
Strategic plan purpose is to assess the future impact of current decisions, provide a structure for dealing with risks, and consider alternate courses of action in response to environmental conditions. Action plan is the plan that supports the strategic plan and have specific activities to support fulfillment. Operated on a shorter scale, one year. |
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Seven components of a strategic plan |
Scanning external environment, analyzing the internal environment and assess current position, match strength and weakness to the opportunity or threat(SWOT) defining a corporate focus, develop strategies, develop objectives and set goals |
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How to scan external environment |
Two aspects: distant environments which are things that are crucial to long term survival but which you have no control over (economy changes) and the near environment which are factors that the brokerage may have a degree of influence such as prospects and clients |
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How to analyze the internal environment |
Brokerage needs to know what it does better than it’s competitors, what strengths are not being used effectively, what it’s competitive weaknesses are, how strong it is financially, how strong human resource is, how strong the product line is and how cost effective it is. |
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How do you create a corporate focus statement and what is the purpose? |
Need to ask the questions...what is the vision? What are we aiming for? What words define our values and what is the organizations purpose of existence? |
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What is the purpose of a mission? |
Outlines where the brokerage is headed and what it intends to accomplish |
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How to successfully implement the plan |
Controlling implementation, linking budget to strategies, goals, and objectives and providing motivation for implementation |
