CAIB 4 Exam Questions with Correct Answers
What are the two approaches to planning? Explain each - Answer-1) Top Down Planning - Management provides the mission, strategies, and objectives for the brokerage
2) Bottom Up Planning - Management provides the mission and broad strategies. Leaves th...
CAIB 4 Exam Questions with Correct Answers What are the two approaches to planning? Explain each - Answer -1) Top Down Planning - Management provides the mission, strategies, and objectives for the brokerage 2) Bottom Up Planning - Management provides the mission and broad strategies. Leaves the objectives, goals and activities to business units. What are the advantages and disadvantages of top down planning? - Answer -
Advantages: Management feels in control and in charge of decision making. Disadvantages: hard to get buy -in from employees What are the advantages and disadvantages of bottom up planning? - Answer -
Advantages: business units have ownership and buy in. Disadvantages: Management feels less in control, there may be resistance to changes made to the plan by management. Why is Top Down planning not suitable for a small organization. - Answer -Stifles innovation, slows decisions, managers need to know too much, What are the four characteristics of a plan? - Answer -1) Simplicity 2) Practicability 3) Severability 4) Flexibility Explain Simplicity (2 points) - Answer -The plan should be explainable in simple terms. The plan should be implemented without extensive training while employees continue their day to day operations. Explain Practicability - Answer -The plan must be realistic Explain severability (2 points) - Answer -The parts of a plan must be separate and identifiable. Each business unit must see how to apply it to their area Explain flexibility - Answer -A good plan must allow for modification as it is implemented. Explain the difference between a strategic plan and an action plan - Answer -Strategic plans are broad and cover 3 -5 years. Action plans give specific activities to support SP. They apply to a particular unit and cover 1 -3 years, typically one year. How many components of a strategic plan are there? - Answer -Seven. What are the first three components of a strategic plan? - Answer -a) Scanning the external environment. b) Scanning the Internal Environment c) Matching strengths and weaknesses to opportunities and threats. Explain "scanning the external environment" and its two sub categories. - Answer -
Scanning the external environment looks at the competitive environment and attempts to identify opportunities and threats. They look at the distant environment and near environments. Explain the distant environment. - Answer -Factors that are critical to the survival of the brokerage, but over which it has no control. Example: Hard and soft markets. Changes to laws. Technology. Explain the near environment. - Answer -Factors over which a brokerage does have control. Example: Clients and prospects, market segment targeted, direct competitors. What are the three types of profiling within Near environment scans? - Answer -
Competitor, market, and client profiling. Competitor: Size, financial condition, and location of head office. Market: Total market, market segments where they compete, and the market portion that they serve. Client: Find a clear understanding of the nature and characteristics of a brokerage's clients. Explain SWOT and the needed actions given the four scenarios - Answer -If there is a weakness where there is a threat - Immediate Attention If there is a weakness where there is an opportunity - Resources should be allocated to capitalize later. If there is a strength where they is a threat - No action needed If there is a strength where there is an opportunity - it should be immediately capitalized on Recite the vision statement - Answer -Protection of assets by protecting what is near and dear to our clients Recite the value statement - Answer -We seek and encourage innovative solutions to problems that deliver results for our clients.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Perfectscorer. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
