Question

Mr. Smith, CEO of an auto dealership, has been working on the two planning steps of the planning/control cycle with his managers. To do this, Mr. Smith and his managers need to make their plan and then carry out the plan.

a. true
b. false

Answer 1

True, Mr. Smith and his managers are engaged in the planning/control cycle, which includes both creating and implementing a plan, a fundamental part of business management.

Step-by-step explanation:

True, Mr. Smith, CEO of an auto dealership, has been working on the two planning steps of the planning/control cycle with his managers. In this context, the two key steps involved are to make a plan and then carry out the plan.

The description fits well within fundamental business management practices where planning is essential for setting objectives and devising strategies, while execution involves implementing the established plans and tactics to achieve the set goals. Mr. Smith and his managers must carefully coordinate their activities, as in the scenario presented where two factory owners find coordination both easy and profitable, thereby having a greater incentive to do so.

Similarly, for a plan to be successful, it should be Achievable and Appropriate, indicating that the goals set during the planning phase must be attainable and aligned with the overall objectives of the organization.