Chapter 2 : Planning

The purpose and benefits of planning include having a road map to guide actions, better coordination among team members, and focusing on forward thinking to anticipate and prepare for future challenges. However, "more information" is not a purpose or benefit of planning. Planning is about making decisions and setting goals based on the available information, rather than seeking more information.

Planning is important because it helps to determine the company's opportunities. By carefully assessing the current market and internal capabilities, planning allows businesses to identify potential areas for growth and development. Additionally, when we plan, we gain a clear understanding of what is expected of us and can align our actions accordingly, making our efforts more meaningful. Furthermore, planning helps to achieve goals by providing a roadmap and direction for the organization, ensuring that everyone is working towards a common objective. It also helps to reduce overlapping activities and ensures that resources are allocated efficiently.

The purpose of an operation plan is not to move the organization from where it is to where it wants to be. An operation plan outlines the specific actions and processes that need to be implemented in order to achieve the organization's strategic objectives. It focuses on the day-to-day activities and tasks required to efficiently run the organization, rather than on long-term goals or strategic direction.

The statement is false because there are actually three levels of strategic planning, namely corporate strategy, business unit strategy, and functional strategy. Personnel strategy is not one of the levels of strategic planning. Corporate strategy focuses on the overall direction and scope of the entire organization, business unit strategy focuses on specific business units or divisions within the organization, and functional strategy focuses on specific functional areas such as marketing, finance, or operations.

The statement is true. Vision is indeed a broad declaration of an organization's purpose that identifies the organization's products and customers, and it also distinguishes the organization from its competitors.

The correct answer is "Strong cooperation from subordinates" because while strong cooperation from subordinates is actually a facilitator for effective planning, the other options listed are barriers. Demands on the manager's time can hinder effective planning as it may limit the amount of time available for planning activities. Ambiguous and uncertain operating environments can make it difficult to create effective plans as the future outcomes may be unclear. Resistance to change can also be a barrier as it may create obstacles and resistance to implementing new plans.

Encouraging strategic thinking is a way to overcome barriers to planning because it allows employees to think critically and analytically about the organization's goals and objectives. By encouraging strategic thinking, employees are able to identify potential obstacles and develop effective strategies to overcome them. This approach promotes creativity, innovation, and collaboration among employees, leading to more effective and successful planning processes.