CAIB 4 Study Guide Questions with Correct
Answers
One of the tools that you would use in the scan of your external environment is
profiling, discuss 3 focus areas (6 marks)
Competitor profiling, client profiling, market profiling
Competitor Profiling
Size, financial condition, staffing, product range, quality of service
Client Profiling
How old, monoline, multiline, location
Market Profiling
What is out there to buy, who is out there to buy
What are the characteristics of a plan?
Simplicity, practicality, severability, flexibility
What are the components of a Strategic Plan? (SAMDDDS)
Scanning the external environment. Analyzing the internal environment and assessing current
position. Matching strengths and weaknesses with threats and opportunities. Defining a
corporate focus. Developing strategies. Developing objectives. Developing Goals
What is the top-down approach?
Management is in charge of decision making, all changes come from them.
What is the bottom up approach?
The plan is provided by management but carried out through employees
,What are the characteristics of a vision statement?
What are we aiming for. What does the future look like.
What are the characteristics of a value statement?
Are our values fixed or long term. What defines our values.
What are the characteristics of a mission statement?
Organization's purpose of existence. Organizations long-term direction and point of reference
for all employees of the brokerage.
What are the characteristics of a goal?
Specific. Measurable. Action-oriented. Realistic. Timely
What are the steps to implement a plan?
Controlling implementation, program or progress report. Linking budgets to strategies,
objectives and goals. Motivating for implementation
Give examples of near environment.
No ability to control, must be aware. Taxes, immigration, aging population.
Give examples of distant environment.
May have a degree of influence. Clients, prospects and direct competitors.
Define action plan.
Typically have one year timeline and contains specific activities to achieve the strategic plan.
Define strategic plan.
, States the long-term goals or purpose of brokerage and establishes the strategies, objectives
and goals to achieve it.
How would you motivate & ensure successful implementation?
Link corporate and individual goals, higher correlation better success. Linking budgets to
strategies, goals, and objectives. Control and monitor implementation.
What are the elements of effective organizing?
Creating organizational structure. Defining employee relationships. Establishing position
descriptions.
Organizational Structure.
Skeleton upon which the brokerage grows. Defines who has authority and responsibility for
tasks. Select the form best suited to attain mission and achieve the strategies, objectives, and
goals.
Describe Line organization.
Best suited to a smaller brokerage. Authority flows vertically downward from most senior.
Responsibility flows upward to most senior.
Advantages of Line organization.
Simple, delegation of authority, quick decision making.
Disadvantages of Line organization.
Line managers must be fully knowledgeable on all topics. Limits growth for employees.
Power is concentrated at the top.
Describe Functional organization.
Answers
One of the tools that you would use in the scan of your external environment is
profiling, discuss 3 focus areas (6 marks)
Competitor profiling, client profiling, market profiling
Competitor Profiling
Size, financial condition, staffing, product range, quality of service
Client Profiling
How old, monoline, multiline, location
Market Profiling
What is out there to buy, who is out there to buy
What are the characteristics of a plan?
Simplicity, practicality, severability, flexibility
What are the components of a Strategic Plan? (SAMDDDS)
Scanning the external environment. Analyzing the internal environment and assessing current
position. Matching strengths and weaknesses with threats and opportunities. Defining a
corporate focus. Developing strategies. Developing objectives. Developing Goals
What is the top-down approach?
Management is in charge of decision making, all changes come from them.
What is the bottom up approach?
The plan is provided by management but carried out through employees
,What are the characteristics of a vision statement?
What are we aiming for. What does the future look like.
What are the characteristics of a value statement?
Are our values fixed or long term. What defines our values.
What are the characteristics of a mission statement?
Organization's purpose of existence. Organizations long-term direction and point of reference
for all employees of the brokerage.
What are the characteristics of a goal?
Specific. Measurable. Action-oriented. Realistic. Timely
What are the steps to implement a plan?
Controlling implementation, program or progress report. Linking budgets to strategies,
objectives and goals. Motivating for implementation
Give examples of near environment.
No ability to control, must be aware. Taxes, immigration, aging population.
Give examples of distant environment.
May have a degree of influence. Clients, prospects and direct competitors.
Define action plan.
Typically have one year timeline and contains specific activities to achieve the strategic plan.
Define strategic plan.
, States the long-term goals or purpose of brokerage and establishes the strategies, objectives
and goals to achieve it.
How would you motivate & ensure successful implementation?
Link corporate and individual goals, higher correlation better success. Linking budgets to
strategies, goals, and objectives. Control and monitor implementation.
What are the elements of effective organizing?
Creating organizational structure. Defining employee relationships. Establishing position
descriptions.
Organizational Structure.
Skeleton upon which the brokerage grows. Defines who has authority and responsibility for
tasks. Select the form best suited to attain mission and achieve the strategies, objectives, and
goals.
Describe Line organization.
Best suited to a smaller brokerage. Authority flows vertically downward from most senior.
Responsibility flows upward to most senior.
Advantages of Line organization.
Simple, delegation of authority, quick decision making.
Disadvantages of Line organization.
Line managers must be fully knowledgeable on all topics. Limits growth for employees.
Power is concentrated at the top.
Describe Functional organization.
