CAIB 4 Chapter 1 Questions and Answers
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Explain what is meant by the simplicity of a plan. The plan must be kept simple and the
outcome should be capable of being communicated in a simple way. It should also be capable of
being implemented by employees without extensive training while they continue to do their
day-to-day responsibilities.
Explain what is meant by the practicality of a plan. A plan must be realistic in order for it
to work. Even a well constructed plan will be doomed to failure if it is impossible to implement.
Explain what is meant by the severability of a plan. The finished plan is the collection of
its parts. These parts must be separate and identifiable so that each business unit can see how
they apply to their specific area of responsibility to enable them to create goals and activities to
help achieve the plan.
Explain what is meant by the flexibility of a plan. A good plan must allow for
modification, as it is not realistic to assume that the environment in which the brokerage
competes will not change. changing business conditions, loss of key employees, or change to
, insurance regulations can affect implementation. Planners should provide flexibility so that mid-
plan corrections can be made.
Strategic plans applying to the brokerage as a whole and extend to a period of 3 to 5 years.
Identifying the purpose of the strategic plan. • Consider alternative courses of action in
response to changing environmental conditions
• Assess the future impact of the current decision and actions
• Provide a structure for dealing with business risk and uncertainty
• Incorporate a process for determining the brokerages purpose, direction and expected results
To develop a strategic plan management must have a Clear picture of the role of the
brokerage today and the historical factors that created it.
Management must be fully aware of The strengths and weaknesses of the brokerage and
the opportunities and threats facing it
Management must decide upon The characteristics of the brokerage they want at the
end of the planning. The final strategic plan will define the corporate focus
Verified by Experts
Explain what is meant by the simplicity of a plan. The plan must be kept simple and the
outcome should be capable of being communicated in a simple way. It should also be capable of
being implemented by employees without extensive training while they continue to do their
day-to-day responsibilities.
Explain what is meant by the practicality of a plan. A plan must be realistic in order for it
to work. Even a well constructed plan will be doomed to failure if it is impossible to implement.
Explain what is meant by the severability of a plan. The finished plan is the collection of
its parts. These parts must be separate and identifiable so that each business unit can see how
they apply to their specific area of responsibility to enable them to create goals and activities to
help achieve the plan.
Explain what is meant by the flexibility of a plan. A good plan must allow for
modification, as it is not realistic to assume that the environment in which the brokerage
competes will not change. changing business conditions, loss of key employees, or change to
, insurance regulations can affect implementation. Planners should provide flexibility so that mid-
plan corrections can be made.
Strategic plans applying to the brokerage as a whole and extend to a period of 3 to 5 years.
Identifying the purpose of the strategic plan. • Consider alternative courses of action in
response to changing environmental conditions
• Assess the future impact of the current decision and actions
• Provide a structure for dealing with business risk and uncertainty
• Incorporate a process for determining the brokerages purpose, direction and expected results
To develop a strategic plan management must have a Clear picture of the role of the
brokerage today and the historical factors that created it.
Management must be fully aware of The strengths and weaknesses of the brokerage and
the opportunities and threats facing it
Management must decide upon The characteristics of the brokerage they want at the
end of the planning. The final strategic plan will define the corporate focus
