CAIB 4 - Book Practice Questions with Correct Answers

CAIB 4 - Book Practice Questions with Correct Answers What are the similarities between a strategic plan and an action plan? - Correct 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? - Correct 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. - Correct 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 operati