CAIB 4 - Book Practice
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
similarities between a strategic plan and an action plan?
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 - ✔✔- What are the
differences between a strategic plan and an action plan?
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. - ✔✔- Explain the
advantages and disadvantages of top-down and bottom-up approaches to
planning.
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
Fees;
A major factor in determining whether to affiliate is the cost of the affiliation
and whether the services offered are worth the price being charged.
All costs should be known in advance so that there will be no surprises once
the affiliation has been formed. - ✔✔- When evaluating an operating affiliation
why would the following be an important consideration?
a) Exclusivity
b) Fees
Employees will find that they have more than one boss, so that in areas of
overlapping authority they may be given conflicting or inconsistent
instructions.
When a decision is required that does not firmly belong to any manager,
decision-making can be slow. Employees may be referred by one manager to
another without any decision being made.
When there are too many managers giving instructions, employees are
frequently distracted from their primary roles of serving their clients. - ✔✔-
Some brokerages effectively structure their brokerages as a functional
organization. Discuss why it is a difficult form to implement effectively
Evaluate its existing ability to generate sales and premium growth, and
determine whether the existing human resources are capable of producing the
levels anticipated in the strategic plan. If they are not, a plan must be
established to obtain the necessary human resources and to revise the
organization structure to accommodate the anticipated growth.
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
similarities between a strategic plan and an action plan?
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 - ✔✔- What are the
differences between a strategic plan and an action plan?
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. - ✔✔- Explain the
advantages and disadvantages of top-down and bottom-up approaches to
planning.
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
Fees;
A major factor in determining whether to affiliate is the cost of the affiliation
and whether the services offered are worth the price being charged.
All costs should be known in advance so that there will be no surprises once
the affiliation has been formed. - ✔✔- When evaluating an operating affiliation
why would the following be an important consideration?
a) Exclusivity
b) Fees
Employees will find that they have more than one boss, so that in areas of
overlapping authority they may be given conflicting or inconsistent
instructions.
When a decision is required that does not firmly belong to any manager,
decision-making can be slow. Employees may be referred by one manager to
another without any decision being made.
When there are too many managers giving instructions, employees are
frequently distracted from their primary roles of serving their clients. - ✔✔-
Some brokerages effectively structure their brokerages as a functional
organization. Discuss why it is a difficult form to implement effectively
Evaluate its existing ability to generate sales and premium growth, and
determine whether the existing human resources are capable of producing the
levels anticipated in the strategic plan. If they are not, a plan must be
established to obtain the necessary human resources and to revise the
organization structure to accommodate the anticipated growth.
