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The function of strategic planning is to

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The function of strategic planning is to [#permalink] New post 15 Sep 2012, 13:31
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The function of strategic planning is to position a company for long term growth and expansion in a variety of markets by analyzing its strengths and weaknesses and examining current and potential opportunities. Based on this information, the company develops strategy for itself. That strategy then becomes the basis for supporting strategies for its various departments.
This is where all too many strategic plans go astray-at implementation. The recent business management surveys show that most CEOs who have a strategic plan are concerned with the potential breakdown in the implementation of the plan. Unlike nineteen eighties and nineties corporations that blindly followed their five year plans even when they were misguided, today’s corporations tend to second guess.

An outsider can help facilitate the process, but in the final analysis, if the company doesn’t make the plan, the company won’t follow the plan. This was one of the problems with strategic planning in the nineteen eighties. In that era, it was an abstract, top down process involving only a few top corporate officers and hired guns. Number crunching experts came into a company and generated tome-like volumes filled with a mixture of abstruse facts and grand theories which had little to do with the day to day realities of the company. Key middle managers were left out of the planning sessions, resulting in lost opportunities and ruffled feelings.

However, more hands-on strategic planning can produce startling results. A recent surveys queries over a thousand small to medium sized business to compare companies with
the strategic plan to companies without one. The survey found that companies with strategic plans had annual revenue growth of 6.2 percent as opposed to 3.8 percent for the
other companies.

Perhaps most importantly, a strategic plan helps companies anticipate – and survive – change. New technology and the mobility of capital mean that markets can shift faster than ever before. Some financial analysts wonder why they should do the planning two years ahead when market dynamics may be transformed by next quarter. The fact is that it is the very pace of change that makes planning so crucial. Now, more than ever, companies have to stay alert to the marketplace. In an environment of continual and rapid change, long range planning expands options and organizational flexibility.
The primary purpose of the passage is to
(A) refute the idea that change is bad for a corporation’s long-term health
(B) describe how long-term planning, despite some potential pitfalls, can help a corporation to grow
(C) compare and contrast two styles of corporate planning
(D) evaluate the strategic planning goals of corporate America today
(E) defend a methodology that has come under sharp attack
[Reveal] Spoiler:
B


It can be inferred from the passage that, in general, strategic planning during the 1980s had all of the following shortcomings EXCEPT
(A) a reliance on outside consultants who did not necessarily understand the nuts and bolts of the business
(B) a dependence on theoretical models that did not always perfectly describe the workings of the company
(C) an inherent weakness in the company’s own ability to implement the strategic plan
(D) an excess of information and data that made it difficult to get to key concepts
(E) the lack of a forum for middle managers to express their ideas
[Reveal] Spoiler:
C


The author most likely mentions the results of the survey of 1,000 companies in order to
(A) put forth an opposing view on strategic plans so that she can then refute it
(B) illustrate that when strategic planning is “hands-on,” it produces uninspiring results
(C) give a concrete example of why strategic planning did not work during the 1980s
(D) support her contention that strategic planning, when done correctly, can be very successful
(E) give supporting data to prove that many companies have implemented strategic plans
[Reveal] Spoiler:
D


The passage suggests which of the following about the “financial analysts” mentioned in lines 41–44 ?
(A) They believe that strategic planning is the key to weathering the rapid changes of the marketplace.
(B) They are working to understand and anticipate market developments that are two years ahead.
(C) Their study of market dynamics has led them to question the reliability of short-term planning strategies.
(D) They might not agree with the author that one way to survive rapidly changing conditions comes from long-range planning.
(E) They consider the mobility of capital to be a necessary condition for the growth of new technology.
[Reveal] Spoiler:
D





A really nice passage :) Sorry but I have only a screenshot but is clear OA after some discussion. Thanks
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Strategic.png
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Re: Strategic Planning [#permalink] New post 15 Sep 2012, 18:21
My take

1. B
2. D
3. D
4. D


Answers please
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Re: Strategic Planning [#permalink] New post 16 Sep 2012, 00:37
My Answers :
1.B
2.C
3.D
4.D
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Re: Strategic Planning [#permalink] New post 16 Sep 2012, 03:01
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Re: The function of strategic planning is to [#permalink] New post 18 Sep 2012, 09:01
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The primary purpose of the passage is to

(A) refute the idea that change is bad for a corporation’s long-term health
(B) describe how long-term planning, despite some potential pitfalls, can help a corporation to grow-->The entire passage talks about the benefits of long term planning .
(C) compare and contrast two styles of corporate planning
(D) evaluate the strategic planning goals of corporate America today
(E) defend a methodology that has come under sharp attack

It can be inferred from the passage that, in general, strategic planning during the 1980s had all of the following shortcomings EXCEPT

(A) a reliance on outside consultants who did not necessarily understand the nuts and bolts of the business
(B) a dependence on theoretical models that did not always perfectly describe the workings of the company
(C) an inherent weakness in the company’s own ability to implement the strategic plan--> this seems to be the best possible answers.This answer can also be challenged because the companies brought in experts from outside to do the analysis.Though this is the best answer.
(D) an excess of information and data that made it difficult to get to key concepts
(E) the lack of a forum for middle managers to express their ideas

The author most likely mentions the results of the survey of 1,000 companies in order to

(A) put forth an opposing view on strategic plans so that she can then refute it
(B) illustrate that when strategic planning is “hands-on,” it produces uninspiring results
(C) give a concrete example of why strategic planning did not work during the 1980s
(D) support her contention that strategic planning, when done correctly, can be very successful-->The whole passage tells us about the benefits of startergic planning
(E) give supporting data to prove that many companies have implemented strategic plans

The passage suggests which of the following about the “financial analysts” mentioned in lines 41–44 ?

(A) They believe that strategic planning is the key to weathering the rapid changes of the marketplace.
(B) They are working to understand and anticipate market developments that are two years ahead.
(C) Their study of market dynamics has led them to question the reliability of short-term planning strategies.
(D) They might not agree with the author that one way to survive rapidly changing conditions comes from long-range planning.-->Line 42 mentions this .
(E) They consider the mobility of capital to be a necessary condition for the growth of new technology.
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Re: The function of strategic planning is to [#permalink] New post 07 Jun 2013, 21:37
It can be inferred from the passage that, in general, strategic planning during the 1980s had all of the following shortcomings EXCEPT

(A) a reliance on outside consultants who did not necessarily understand the nuts and bolts of the business
(B) a dependence on theoretical models that did not always perfectly describe the workings of the company
(C) an inherent weakness in the company’s own ability to implement the strategic plan--> this seems to be the best possible answers.This answer can also be challenged because the companies brought in experts from outside to do the analysis.
(D) an excess of information and data that made it difficult to get to key concepts
(E) the lack of a forum for middle managers to express their ideas


In this we have confusion between C & D.

"Passage tells at line 24 that there is a bulk of information theories available that have little to do with realities of a company."

From this we can leave option D.

So C would be the best answer.
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Re: The function of strategic planning is to [#permalink] New post 09 Jun 2013, 07:28
Question number 4 why not A?

They believe that strategic planning is the key to weathering the rapid changes of the marketplace?
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Re: Strategic Planning [#permalink] New post 13 Jun 2013, 04:26
carcass wrote:
Please guys :)

Give some explanation about the answers. we could help the commuity. :roll:

OA: B C D D


BINGO!!!!!

Here are my thoughts on the passage. The passage is relatively easy and could be classified at mid range to easy difficulty levels. (600-650 or there abouts).

1) The primary purpose of the passage is to

(A) refute the idea that change is bad for a corporation’s long-term health (the passage is not refuting any idea)
(B) describe how long-term planning, despite some potential pitfalls, can help a corporation to grow (this is gist of the passage, 2nd last and last paragraph emphasized this point more).
(C) compare and contrast two styles of corporate planning (There is no compare and contrast between styles of planning. Infact author cites 1980's strategic planning to emphasize the bad practices followed then.)
(D) evaluate the strategic planning goals of corporate America today (The author does not ONLY talk about corporations today;she/he also cites 1980's corporations and their practices)
(E) defend a methodology that has come under sharp attack (This is not relevant as already mentioned above)

2) It can be inferred from the passage that, in general, strategic planning during the 1980s had all of the following shortcomings EXCEPT

(A) a reliance on outside consultants who did not necessarily understand the nuts and bolts of the business
(B) a dependence on theoretical models that did not always perfectly describe the workings of the company
(C) an inherent weakness in the company’s own ability to implement the strategic plan (This is clearly cited in the passage in Line #14,15,16. The passage clearly states the companies followed the plan diligently)
(D) an excess of information and data that made it difficult to get to key concepts
(E) the lack of a forum for middle managers to express their ideas

3) The author most likely mentions the results of the survey of 1,000 companies in order to

(A) put forth an opposing view on strategic plans so that she can then refute it
(B) illustrate that when strategic planning is “hands-on,” it produces uninspiring results
(C) give a concrete example of why strategic planning did not work during the 1980s
(D) support her contention that strategic planning, when done correctly, can be very successful (This is clearly implied from Line#34,35,36 that companies which implemented strategic planning had better growth figures than companies otherwise.)
(E) give supporting data to prove that many companies have implemented strategic plans

4) The passage suggests which of the following about the “financial analysts” mentioned in lines 41–44 ?

(A) They believe that strategic planning is the key to weathering the rapid changes of the marketplace.
(B) They are working to understand and anticipate market developments that are two years ahead.
(C) Their study of market dynamics has led them to question the reliability of short-term planning strategies.
(D) They might not agree with the author that one way to survive rapidly changing conditions comes from long-range planning. (Line#42 implies that 'financial analysts' might not necessarily agree with Author's point of view of long term planning)
(E) They consider the mobility of capital to be a necessary condition for the growth of new technology.

Hope it helps.

Thanks,
V
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Re: The function of strategic planning is to [#permalink] New post 07 Aug 2013, 23:40
very nice passage.
reading time: 0508
overall time: 0919
all correct.
answers were preety straightforward.

fozzzy wrote:
Question number 4 why not A?

They believe that strategic planning is the key to weathering the rapid changes of the marketplace?


Perhaps most importantly, a strategic plan helps companies anticipate – and survive – change. New technology and the mobility of capital mean that markets can shift faster than ever before. Some financial analysts wonder why they should do the planning two years ahead when marketdynamics may be transformed by next quarter. The fact is that it is the very pace of change that makes planning so crucial. Now, more than ever, companies have to stay alert to the marketplace. In an environment of continual and rapid change, long range planning expands options and organizational flexibility.

The passage suggests which of the following about the “financial analysts” mentioned in lines 41–44 ?
(A) They believe that strategic planning is the key to weathering the rapid changes of the marketplace.
it was not the thought of the financial analyst rather it was the reasoning given by the author in order to prove that long before planning is required.

(D) They might not agree with the author that one way to survive rapidly changing conditions comes from long-range planning.
this was the coprrect answer ==>see highlited part.
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Re: The function of strategic planning is to [#permalink] New post 12 Mar 2014, 10:21
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Re: The function of strategic planning is to [#permalink] New post 04 Jul 2014, 10:59
9:15min 4/4.

I just watched a video from my dream b school and afterward I got so energized and focused that I got all correct.

Overall passage was easy and not so convoluted to read in one breath.
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Re: The function of strategic planning is to   [#permalink] 04 Jul 2014, 10:59
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