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

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The function of strategic planning is to position a company for long- [#permalink]

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New post 15 Feb 2016, 13:15
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.
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: OA
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
(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: OA
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
(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

[Reveal] Spoiler: OA
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.
(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: OA
D


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Re: The function of strategic planning is to position a company for long- [#permalink]

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New post 19 Feb 2016, 21:25
1
This post received
KUDOS
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

Kudos [?]: 988 [1] , given: 874

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Kudos [?]: 44 [0], given: 49

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GPA: 4
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Re: The function of strategic planning is to position a company for long- [#permalink]

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New post 10 Apr 2017, 07:06
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 :) .

Kudos [?]: 44 [0], given: 49

Re: The function of strategic planning is to position a company for long-   [#permalink] 10 Apr 2017, 07:06
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