CAIB 4 - Book Practice Questions
What are the similarities between a strategic plan and an action plan? - Answer-They are both critical
steps in the success of a brokerage
They both flow from the mission statement
They both use the same process (top down/bottom up)
What are the differences between a strategic plan and an action plan? - Answer-strategic plans are for
three to five years;
action plans are for one year
strategic plans apply to the brokerage as a whole; action plans apply to a particular business unit
action plans are much more detailed than strategic plans
Explain the advantages and disadvantages of top-down and bottom-up approaches to planning. -
Answer-Top-Down Approach
o Management is firmly in control
o May fail because employees don't buy into it
, Bottom-Up Approach
o Employees set the plan - buy-in
o Management feel that they are not in control
The combination of both approaches, with open communication throughout the process, is the key to
effective and successful planning.
When evaluating an operating affiliation why would the following be an important consideration?
a) Exclusivity
b) Fees - Answer-Exclusivity;
Many of the organizations with which a brokerage can affiliate are in one way or another exclusive.
Often it is this exclusivity that makes the organization attractive to the brokerage.
It is important that the following questions be asked;
How many other brokerages in the immediate marketing area will be permitted to join?
What is the legal nature of the exclusivity?
How tight is the contract in describing the rights of an affiliated brokerage to a particular territory?
What is the reputation of those brokerages already participating in the program?
If the brokerage is seeking prestige and image from the affiliation, this can be derived only if others
participating are up to the standards described by the sponsoring organization.
When evaluating an operating affiliation why would the following be an important consideration?
a) Exclusivity
b) Fees - Answer-Fees;
What are the similarities between a strategic plan and an action plan? - Answer-They are both critical
steps in the success of a brokerage
They both flow from the mission statement
They both use the same process (top down/bottom up)
What are the differences between a strategic plan and an action plan? - Answer-strategic plans are for
three to five years;
action plans are for one year
strategic plans apply to the brokerage as a whole; action plans apply to a particular business unit
action plans are much more detailed than strategic plans
Explain the advantages and disadvantages of top-down and bottom-up approaches to planning. -
Answer-Top-Down Approach
o Management is firmly in control
o May fail because employees don't buy into it
, Bottom-Up Approach
o Employees set the plan - buy-in
o Management feel that they are not in control
The combination of both approaches, with open communication throughout the process, is the key to
effective and successful planning.
When evaluating an operating affiliation why would the following be an important consideration?
a) Exclusivity
b) Fees - Answer-Exclusivity;
Many of the organizations with which a brokerage can affiliate are in one way or another exclusive.
Often it is this exclusivity that makes the organization attractive to the brokerage.
It is important that the following questions be asked;
How many other brokerages in the immediate marketing area will be permitted to join?
What is the legal nature of the exclusivity?
How tight is the contract in describing the rights of an affiliated brokerage to a particular territory?
What is the reputation of those brokerages already participating in the program?
If the brokerage is seeking prestige and image from the affiliation, this can be derived only if others
participating are up to the standards described by the sponsoring organization.
When evaluating an operating affiliation why would the following be an important consideration?
a) Exclusivity
b) Fees - Answer-Fees;
