- 8 Marks
BMIS – L1 – QB2 – Management Levels
Question
(a) At which level of management will the decision be taken for dealing with a breakdown in the computer system for inventory control, and why?
(b) At which level of management will the decision be taken for deciding to expand business operations by moving into the South American market, and why?
(c) At which level of management will the decision be taken for replacing an existing computer system for production planning with a new purpose-written computer system for the planning and control of production processes, and why?
(d) At which level of management will the decision be taken for preparing a sales plan, and why?
Answer
(a). This is an operational matter, involving a day-to-day operational problem.
(b). This is a strategic decision, involving the selection of a business strategy for achieving the strategic objective of business growth.
(c). A decision to introduce a major new computer system begins as a strategic decision. It is concerned with the implementation of business strategy. Having made the strategic decision to develop a new computer system, tactical plans must then be developed (a budget and timetable for the development project, and the preparation of detailed system specifications). Tactical planning for the project will then be converted into more detailed operational plans as the development project progresses.
(d). A sales plan is made at a tactical level of management when it covers a longer-term period such as one year. A tactical sales plan must then be converted into detailed sales targets for the next week or month, possibly for individual sales representatives or sales areas.
- Tags: Management Levels, Sales Planning, Tactical Decisions
- Level: Level 1
- Topic: Management and leadership
- Uploader: Samuel Duah