What are the requisites for successful strategic planning?
What will be an ideal response?
First, wholehearted support of the chief executive officer is essential. Second, planning must be kept simple, in agreement with the managerial style, and unencumbered by detailed numbers and fancy equations. Third, planning is a shared responsibility, and it would be wrong to assume that the president or vice president of planning, staff specialists, or line managers could do it single-handedly. Fourth, the managerial incentive system should give due recognition to the fact that decisions made with long-term implications may not appear good in the short-run. Fifth, the goals of planning should be achievable without excessive frustration and workload and with widespread understanding and acceptance of the process. Sixth, overall flexibility should be encouraged in order to accommodate changing conditions.
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Faye forges Greta’s signature on a check “payable to the order of Faye” drawn on Greta’s account in Home Bank. Most likely, if the bank pays the check
A. the Federal Reserve will reimburse all parties for their costs. B. the loss will be apportioned among all of the bank’s customers. C. Greta will be liable for the amount. D. the bank will have to recredit Greta’s account.
Which statement is not true about regression analysis?
A) The terms dependent or criterion variables, and independent or predictor variables in regression analysis do not imply that the criterion variable is dependent on the independent variables in a causal sense. B) Regression analysis can be used to determine if color preference is related to product size and price. C) Regression can be used to predict the values of the dependent variable. D) Regression analysis is a powerful and flexible procedure for analyzing associative relationships between a metric dependent variable and one or more independent variables.
Interpreting financial analysis should be considered in light of conditions peculiar to the industry and the general economic conditions
Indicate whether the statement is true or false
A company is trying to decide which of two new product lines to introduce in the coming year. The company requires a 12% return on investment. The predicted revenue and cost data for each product line follows: ? Product A Product BUnit sales25,00020,000Unit sales price$ 30$ 30Direct materials$15,000$8,000Direct labor$120,000$80,000Other cash operating expenses$30,000$25,000New equipment costs$2,500,000$1,500,000Estimated useful life (no salvage)5 years5 yearsThe company has a 30% tax rate and it uses the straight-line depreciation method. The present value of an annuity of 1 for 5 years at 12% is 3.6048. Compute the net present value for each piece of equipment under each of the two product lines. Which, if either of these two investments is acceptable?
What will be an ideal response?