CAIB 4 CHAPTER 1 EXAMINATION TEST
COMPLETE QUESTIONS AND SOLUTIONS
●● 1-2 2- What affects the quality of management?
Answer: Quality of leadership is an overriding factor- affecting quality
of management.There is one overriding factor quality of leadership you
provide of your organization.
●● 1-2 3- The contents and purpose of plans are based on their scope
and length of the time
they encompasses. Identify two types of plans, the time period of each,
and the
extent of detail expected.
Answer: 1) Strategic Plans are long term plans, usually three to five
years long and encompassing the entire brokerage. they are not detailed,
but general in nature. 2) Action plans are short term, usually less than a
year and apply to a specific business unit. They are more detailed than a
strategic plan.
●● 1-2 4- Describe two approaches used in planning efforts.
Answer: 1) Top Down approaches- In top down approach management
decides, unilaterally on the mission, strategies, and objectives for the
brokerage and instructs the individual units to achieve the established
objectives. 2) Bottom Up. Approaches- bottom up planning occurs when
,the management establishes its mission and strategics but avoids
designation.
●● 1-2 5-Planning should not be difficult. There are four main
characteristics of an effective
plan. Identify these and give a brief description of each
Answer: 1) Simplicity- Communication should be in a simple way easy
to communicate. 2) Practicality- Plans must be Realistic. 3) Severability-
Plans are the sum of their parts. Each business unit must see how their
work connects to the plan several parts 4) Flexibility- Plans must be able
to change as conditions change.Modification
●● 1-2 6- List seven major components/steps to developing strategic
plans. Give the main purpose of each.
Answer: 1) Scanning the external environment. 2) Internal analysis and
assessing the current position. 3) Matching strengths and weakness to
the opportunities and threats(Using SWOT Analysis). 4) Define
corporate focus. 5) Developing Strategies. 6) Developing Objectives. 7)
Setting Goals.
●● 1-2 7- What is accomplished in conducting an external
environmental scan?
Answer: Identifying competitive threats and opportunities outside
brokerage.
, ●● 1-2 8- Describe the differences between scanning a "distant"
environment and a "near" environment
Answer: Distant environmental scanning views critical survival factors
over which the brokerage has no ability to influence. Near
environmental scanning views factors over which brokerages may exert
a degree of influence. Profiling competitors, market and clients is an
important component of near environmental scanning.
●● 1-2 9- How can we develop a meaningful information when
analyzing a brokerage's internal environment?
Answer: To ensure meaning internal analysis the brokerage internal
environment they should analyze the internal environment based on the
customer's point of view.
●● 1-2 10- What is accomplished with an S.W.O.T. analysis?
Answer: SWOT analysis begins to develop areas of future change to
ensure the survival of brokerages.
●● 1-2 11-What purposes are served by developing a corporate focus
statements?
Answer: Vision tells brokerages what targets they are aiming for, what
their future holds and what is special in brokerage,s future. Value
statements define brokerage long term values and belief's. Mission
statements express purpose of brokerage and provide long term direction
of brokerage.
COMPLETE QUESTIONS AND SOLUTIONS
●● 1-2 2- What affects the quality of management?
Answer: Quality of leadership is an overriding factor- affecting quality
of management.There is one overriding factor quality of leadership you
provide of your organization.
●● 1-2 3- The contents and purpose of plans are based on their scope
and length of the time
they encompasses. Identify two types of plans, the time period of each,
and the
extent of detail expected.
Answer: 1) Strategic Plans are long term plans, usually three to five
years long and encompassing the entire brokerage. they are not detailed,
but general in nature. 2) Action plans are short term, usually less than a
year and apply to a specific business unit. They are more detailed than a
strategic plan.
●● 1-2 4- Describe two approaches used in planning efforts.
Answer: 1) Top Down approaches- In top down approach management
decides, unilaterally on the mission, strategies, and objectives for the
brokerage and instructs the individual units to achieve the established
objectives. 2) Bottom Up. Approaches- bottom up planning occurs when
,the management establishes its mission and strategics but avoids
designation.
●● 1-2 5-Planning should not be difficult. There are four main
characteristics of an effective
plan. Identify these and give a brief description of each
Answer: 1) Simplicity- Communication should be in a simple way easy
to communicate. 2) Practicality- Plans must be Realistic. 3) Severability-
Plans are the sum of their parts. Each business unit must see how their
work connects to the plan several parts 4) Flexibility- Plans must be able
to change as conditions change.Modification
●● 1-2 6- List seven major components/steps to developing strategic
plans. Give the main purpose of each.
Answer: 1) Scanning the external environment. 2) Internal analysis and
assessing the current position. 3) Matching strengths and weakness to
the opportunities and threats(Using SWOT Analysis). 4) Define
corporate focus. 5) Developing Strategies. 6) Developing Objectives. 7)
Setting Goals.
●● 1-2 7- What is accomplished in conducting an external
environmental scan?
Answer: Identifying competitive threats and opportunities outside
brokerage.
, ●● 1-2 8- Describe the differences between scanning a "distant"
environment and a "near" environment
Answer: Distant environmental scanning views critical survival factors
over which the brokerage has no ability to influence. Near
environmental scanning views factors over which brokerages may exert
a degree of influence. Profiling competitors, market and clients is an
important component of near environmental scanning.
●● 1-2 9- How can we develop a meaningful information when
analyzing a brokerage's internal environment?
Answer: To ensure meaning internal analysis the brokerage internal
environment they should analyze the internal environment based on the
customer's point of view.
●● 1-2 10- What is accomplished with an S.W.O.T. analysis?
Answer: SWOT analysis begins to develop areas of future change to
ensure the survival of brokerages.
●● 1-2 11-What purposes are served by developing a corporate focus
statements?
Answer: Vision tells brokerages what targets they are aiming for, what
their future holds and what is special in brokerage,s future. Value
statements define brokerage long term values and belief's. Mission
statements express purpose of brokerage and provide long term direction
of brokerage.
