GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 21 Jan 2019, 08:42

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel
Events & Promotions in January
PrevNext
SuMoTuWeThFrSa
303112345
6789101112
13141516171819
20212223242526
272829303112
Open Detailed Calendar
  • GMAT Club Tests are Free & Open for Martin Luther King Jr.'s Birthday!

     January 21, 2019

     January 21, 2019

     10:00 PM PST

     11:00 PM PST

    Mark your calendars - All GMAT Club Tests are free and open January 21st for celebrate Martin Luther King Jr.'s Birthday.
  • The winners of the GMAT game show

     January 22, 2019

     January 22, 2019

     10:00 PM PST

     11:00 PM PST

    In case you didn’t notice, we recently held the 1st ever GMAT game show and it was awesome! See who won a full GMAT course, and register to the next one.

The function of strategic planning is to position a company for long-

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

 
Board of Directors
User avatar
P
Joined: 01 Sep 2010
Posts: 3279
The function of strategic planning is to position a company for long-  [#permalink]

Show Tags

New post 15 Feb 2016, 12:15
1
Question 1
00:00
A
B
C
D
E

based on 56 sessions

68% (02:54) correct 32% (02:33) wrong

HideShow timer Statistics

Question 2
00:00
A
B
C
D
E

based on 57 sessions

49% (01:15) correct 51% (01:16) wrong

HideShow timer Statistics

Question 3
00:00
A
B
C
D
E

based on 53 sessions

85% (00:57) correct 15% (01:19) wrong

HideShow timer Statistics

Question 4
00:00
A
B
C
D
E

based on 51 sessions

82% (00:55) correct 18% (01:09) wrong

HideShow timer Statistics

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 a strategy for itself. That strategy becomes the basis for supporting strategies for the company’s various departments. This implementation strategy is where all too many strategic plans go astray. 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 corporations in the 1980s that blindly followed their 5-year plans, even when they were misguided, today’s corporations tend to second-guess their long-term plans.

Outsiders can help facilitate the process, but in the final analysis, if the company does not make the plan, the company will not follow the plan. This was one of the problems with strategic planning in the 1980s. In that era, strategic planning 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 planning sessions, resulting in lost opportunities and ruffled feelings.

However, more hands-on strategic planning can produce startling results. A recent survey queried more than a thousand small-to-medium sized businesses to compare companies with a 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 important, a strategic plan helps companies anticipate—and survive— change. New technology and the mobility of capital means that markets can shift faster than ever before. Some financial analysts wonder why companies should bother planning two years ahead when market dynamics might be transformed by next quarter. However, it is this 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.

1. 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
Spoiler: :: OA
B


2. It can be inferred from the passage that 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
Spoiler: :: OA
C


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 which is later refuted
(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 the contention that strategic planning can be very successful when done correctly
(E) give supporting data to prove that many companies have implemented strategic plans
Spoiler: :: OA
D


4. The passage suggests which of the following about the “financial analysts” mentioned in the highighted text?

(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.
Spoiler: :: OA
D



NOTE: passage from official GRE Material.

_________________

COLLECTION OF QUESTIONS AND RESOURCES
Quant: 1. ALL GMATPrep questions Quant/Verbal 2. Bunuel Signature Collection - The Next Generation 3. Bunuel Signature Collection ALL-IN-ONE WITH SOLUTIONS 4. Veritas Prep Blog PDF Version 5. MGMAT Study Hall Thursdays with Ron Quant Videos
Verbal:1. Verbal question bank and directories by Carcass 2. MGMAT Study Hall Thursdays with Ron Verbal Videos 3. Critical Reasoning_Oldy but goldy question banks 4. Sentence Correction_Oldy but goldy question banks 5. Reading-comprehension_Oldy but goldy question banks

SC Moderator
User avatar
D
Joined: 13 Apr 2015
Posts: 1687
Location: India
Concentration: Strategy, General Management
GMAT 1: 200 Q1 V1
GPA: 4
WE: Analyst (Retail)
GMAT ToolKit User Premium Member
Re: The function of strategic planning is to position a company for long-  [#permalink]

Show Tags

New post 19 Feb 2016, 20:25
1
1. The primary purpose of the passage is to
(A) refute the idea that change is bad for a corporation’s long-term health - Incorrect - Passage does not refute the idea that change is bad
(B) describe how long-term planning, despite some potential pitfalls, can help a corporation to grow - Correct
(C) compare and contrast two styles of corporate planning - Incorrect - Passage explains about Strategic Planning. Compare and contrast is not seen here
(D) evaluate the strategic planning goals of corporate America today - Incorrect - Corporate America?
(E) defend a methodology that has come under sharp attack - Incorrect - Passage doesn't try to defend any methodology.

Answer: B

3. The author most likely mentions the results of the survey of 1,000 companies in order to - We have to refer to the following lines in the passage "A recent survey queried
more than a thousand small-to-medium sized businesses to compare companies with a 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." - Clearly the author mentions these lines to show that companies perform better with Strategic Planning.

Answer: D

4. The passage suggests which of the following about the “financial analysts” mentioned in lines 44–47 ? - We have to refer the following lines in the passage "Some financial analysts wonder why companies should bother planning two years ahead when market dynamics might be transformed by next quarter." - indicates that Financial Analysts are against long term plans - Option D highlights this explanation

Answer: D
SC Moderator
User avatar
D
Joined: 13 Apr 2015
Posts: 1687
Location: India
Concentration: Strategy, General Management
GMAT 1: 200 Q1 V1
GPA: 4
WE: Analyst (Retail)
GMAT ToolKit User Premium Member
Re: The function of strategic planning is to position a company for long-  [#permalink]

Show Tags

New post 16 Jan 2017, 22:39
1
First paragraph - Discusses about Strategic Planning.
Second paragraph - Presents reasons for the failure of strategic planning in 1980's.
Third paragraph - Advantages of strategic planning.
Fourth paragraph - Reasons for why strategic planning is needed

The primary purpose of the passage is to

(A) refute the idea that change is bad for a corporation’s long-term health - Incorrect. Opposite.
(B) describe how long-term planning, despite some potential pitfalls, can help a corporation to grow - Correct.
(C) compare and contrast two styles of corporate planning - Incorrect. Only one concept is discussed in the passage.
(D) evaluate the strategic planning goals of corporate America today - Incorrect. We are not evaluating the goals (of strategic planning).
(E) defend a methodology that has come under sharp attack - Incorrect. Too harsh. Strategic planning is not criticized.

Answer: B.

It can be inferred from the passage that 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 - Incorrect. True.
(B) a dependence on theoretical models that did not always perfectly describe the workings of the company - Incorrect. True.
(C) an inherent weakness in the company’s own ability to implement the strategic plan - Correct. Not stated in the passage.
(D) an excess of information and data that made it difficult to get to key concepts - Incorrect. True.
(E) the lack of a forum for middle managers to express their ideas - Incorrect. True.

Answer: 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 which is later refuted - Incorrect. Opposite.
(B) illustrate that when strategic planning is “hands-on,” it produces uninspiring results - Incorrect. Opposite.
(C) give a concrete example of why strategic planning did not work during the 1980s - Incorrect. Out of context.
(D) support the contention that strategic planning can be very successful when done correctly - Correct.
(E) give supporting data to prove that many companies have implemented strategic plans - Incorrect. Narrow scope.

Answer: D

The passage suggests which of the following about the “financial analysts” mentioned in lines 44–47 ?

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

Answer: D
Senior Manager
Senior Manager
User avatar
G
Status: Active
Affiliations: NA
Joined: 23 Oct 2012
Posts: 269
GMAT 1: 590 Q50 V21
GMAT 2: 600 Q48 V25
GMAT 3: 730 Q51 V37
GPA: 3.5
Re: The function of strategic planning is to position a company for long-  [#permalink]

Show Tags

New post 10 Feb 2017, 22:43
All correct but took around 10 min , not good I guess :cry:
_________________

#If you like my post , please encourage me by giving Kudos :)

Director
Director
User avatar
P
Joined: 26 Aug 2016
Posts: 610
Location: India
Concentration: Strategy, International Business
GMAT 1: 690 Q50 V33
GMAT 2: 700 Q50 V33
GMAT 3: 730 Q51 V38
GPA: 4
WE: Information Technology (Consulting)
Premium Member Reviews Badge
Re: The function of strategic planning is to position a company for long-  [#permalink]

Show Tags

New post 10 Apr 2017, 06:06
Perfect Map - took me 4 min ; total 10 min for 4 questions.
All correct
But need to improve the speed .
Can someone suggest me some improvements.
As i have changed my strategy.
My previous strategy was attacking critically - which was only 50 percent accurate in 700 lvl questions with just few minutes. much less than what it is taking now with good accuracy :) .
MBA Section Director
User avatar
V
Affiliations: GMATClub
Joined: 22 May 2017
Posts: 1931
Concentration: Nonprofit
GPA: 4
WE: Engineering (Computer Software)
GMAT ToolKit User Premium Member Reviews Badge CAT Tests
Re: The function of strategic planning is to position a company for long-  [#permalink]

Show Tags

New post 30 Dec 2018, 21:45
Intern
Intern
avatar
B
Joined: 22 Sep 2017
Posts: 25
Re: The function of strategic planning is to position a company for long-  [#permalink]

Show Tags

New post 31 Dec 2018, 00:17
Easy to comprehend passage
5 min
all correct :cool:
Manager
Manager
avatar
B
Joined: 12 Nov 2018
Posts: 69
CAT Tests
Re: The function of strategic planning is to position a company for long-  [#permalink]

Show Tags

New post 31 Dec 2018, 09:14
easy passage, got 1 wrong with 10mins total time :/
Senior PS Moderator
User avatar
P
Status: It always seems impossible until it's done.
Joined: 16 Sep 2016
Posts: 670
GMAT ToolKit User Premium Member Reviews Badge CAT Tests
Re: The function of strategic planning is to position a company for long-  [#permalink]

Show Tags

New post 31 Dec 2018, 12:01
2
3 mins 17 sec and all correct.

Easy passage with easy questions.

The author is trying to explain the importance of long term planning and how it's implementation is as important as the conception. Why corporations failed in the past and how medium and small corporations outperform competition when the engage in long term plans. Then it ends with dismissing financial analysts concerns that market is changing every quarter and hence planning has no value by proposing that long term planning is essential to survive change.


Vyshak has already explained perfectly so I will not go into the option-wise details of all the questions but give my passing comments on all of them.


1. The primary purpose of the passage is to

(A) refute the idea that change is bad for a corporation’s long-term health meh. That's not the point. Passage says that we can counter change by long term planning
(B) describe how long-term planning, despite some potential pitfalls, can help a corporation to grow Bingo - this is precisely the main point.
(C) compare and contrast two styles of corporate planning BS option. Discard
(D) evaluate the strategic planning goals of corporate America today BS option discard.
(E) defend a methodology that has come under sharp attack Sharp attack? BS option. Discard.

Detail question with a little bit trick in the options.
2. It can be inferred from the passage that 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 Bingo - there was no inherent weakness just bad implementation.
(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

Another detail question. Requires understanding the main idea and the flow of the passage
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 which is later refuted opposite. Discard
(B) illustrate that when strategic planning is “hands-on,” it produces uninspiring results. opposite. Discard
(C) give a concrete example of why strategic planning did not work during the 1980s nah. That's not what the example is about. Discard.
(D) support the contention that strategic planning can be very successful when done correctly Bingo. This gives the statistics behind support for long term planning
(E) give supporting data to prove that many companies have implemented strategic plans TRAP - this too is true. But why does the author mention this? Not just to give bland data but to support his assertion about long term planning.

Easy detail question. Just need to know that financial analysts are on the opposite side of the author.
4. The passage suggests which of the following about the “financial analysts” mentioned in the highighted text?

(A) They believe that strategic planning is the key to weathering the rapid changes of the marketplace. Opposite. Discard.
(B) They are working to understand and anticipate market developments that are two years ahead. Bs option. Discard.
(C) Their study of market dynamics has led them to question the reliability of short-term planning strategies. What? BS option. Discard.
(D) They might not agree with the author that one way to survive rapidly changing conditions comes from long-range planning. Bingo - they mention their reservations about long term planning in the volatile marketplace.
(E) They consider the mobility of capital to be a necessary condition for the growth of new technology. BS option .discard. never mentioned in the passage.

Hope all questions are clear now.

Regards,
Gladi
_________________

Regards,
Gladi



“Do. Or do not. There is no try.” - Yoda (The Empire Strikes Back)

Senior Manager
Senior Manager
User avatar
P
Joined: 24 Oct 2016
Posts: 269
GMAT 1: 670 Q46 V36
Re: The function of strategic planning is to position a company for long-  [#permalink]

Show Tags

New post 11 Jan 2019, 07:04
Took 8:48 min in total including 4 min to read the passage!

Passage Map:


1) SP
2) Use of SP before
3) Proper implementation of SP => Great results
4) Another benefit: anticipate change
_________________

Most Comprehensive Article on How to Score a 700+ on the GMAT (NEW)
Verb Tenses Simplified

If you found my post useful, KUDOS are much appreciated. Giving Kudos is a great way to thank and motivate contributors, without costing you anything.

GMAT Club Bot
Re: The function of strategic planning is to position a company for long- &nbs [#permalink] 11 Jan 2019, 07:04
Display posts from previous: Sort by

The function of strategic planning is to position a company for long-

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.