Alex, a consultant, has told the board of Lucy plc that the strategic planning process should result in a strategic plan, a business plan and an operational plan.
Alex gave the board two definitions.
Definition 1 – A business plan sets out the markets the business intends to serve, how it will serve each market and what finance is required
Definition 2 – A strategic plan sets out how overall objectives are to be achieved, by specifying what is expected from specific functions, stores and departments
Are these definitions accurate or inaccurate?
Select ONE answer:
- Definition 1 – Accurate / Definition 2 – Not accurate
- Definition 1 – Accurate / Definition 2 – Accurate
- Definition 1 – Not accurate / Definition 2 – Not accurate
- Definition 1 – Not accurate / Definition 2 – Accurate
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 1
- Correct == > A strategic plan sets out the business’s overall objectives and how to achieve them, but it is the operational plan which specifies what is expected of each function in a business. A business plan sets out the market(s) to be served, how they will be served and the finance required.
- Not correct
- Not correct
- Not correct
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