108 Chapter 1 Questions:

A. Discussion
1. Distinguish between long-range planning and strategic planning.

Long-range planning is commonly thought to be based on current knowledge of

future conditions. It aims to ensure that the plan's specific outcomes are achieved
over the course of its implementation.

Strategic planning, on the other hand, considers that your company must be able
to react quickly to a dynamic, changing environment that may necessitate changes
in the future. The significance of making important decisions that will guarantee
your organization's opportunity to effectively respond to changes in the
environment is highlighted by strategic planning.

The main distinction between strategic and long-term planning is the emphasis.
Long-term planning is commonly defined as the creation of a strategy for achieving
a goal or collection of goals over a period of many years. Long-range planning is
predicated on the idea that present knowledge of future situations is sufficiently
dependable to allow the construction of these plans. Some claim that this has
always been the case.

Nonetheless, there is widespread consensus in the nonprofit sector that the

environment is evolving in dynamic and often unanticipated ways. As a result,
knowing how the environment has changed and will change is emphasised in
strategic planning, as is designing organisational actions that are responsive to
these adjustments.

Long-range planning refers to the planning done by an organization for its future
with the help of the present forecast. It does not involve a thorough knowledge of
the future to plan strategically.
Strategic planning helps an organization to be successful on the long-run of the
business. It assumes an organization to be dynamic. The changing environment is
given importance before making plans on the future of the organization.

Hence, long-range planning assumes the environment to be stable whereas

strategic planning assumes it to be dynamic. However, strategic planning is done
by an organization for the long-term success of a business.

2. As cited in the chapter, Edward Deming, a famous businessman, once said, “In God we trust. All
others bring data.” What did Deming mean in terms of developing a strategic plan?

Data is the core or the base of every decision-making process of the business as
well as formulating the strategies and planning. Data is the plain facts and
information that is collected or gathered about all the aspects of the business.
This quote explains that we trust God and its decision for all the divine things, but
for all other things the data is the crucial element for making the decision and this
relevance of data for making the decision is applicable in all the fields and
processes and the data also has a significant role in formulating the strategies, as
without effective and proper data and information drawing the conclusion is not
possible and also making decisions. In the case of marketing the demand,
forecasting depends upon historical data as it helps in determining patterns,
fluctuations, seasonality, etc. Moreover, poor forecasting can lead to excess or
shortage inventory in the market. So the data is everything in the business and the
proper data is essential for formulating the strategic plan of the business.

3. What strategies do you believe can save newspaper companies from extinction?
4. List reasons why objectives are essential for organizational success.
5. List six characteristics of annual objectives.
6. List what you feel are the five most important lessons for business that can be garnered from
The Art of War book.
7. Why are policies especially important in strategy implementation?
 B. Activity:
Go to page 37 of our book and answer Assurance of Learning Exercise 1B.

108 Chapter 2 Questions:

A. Discussion
1. Explain why a mission statement should not include monetary amounts, numbers, percentages,
ratios, goals, or objectives.
2. Explain why a mission statement should not include strategies and objectives.
3. How often do you think a firm’s vision and mission statements should be changed?

B. Activity:
Go to page 56 of our book and answer Assurance of Learning Exercise2A.

Size of a septic tank to serve 200 persons in a commercial building:

consider water supply demand in commercial area =20 L/per capita/day

Assume 80% of eater demand converted as sewage and detention time = 2 days

sludge accumulation time = 40 L/per capita/day = 0.04 m3

desludging period= 1 year

The volume of septic tank = volume of setting zone + volume of sludge

accumulation

Volumen of septic tank = 20×0.8×300×2/1000+0.04×300=9.6+12= 21.6 m³

assume depth is 1.0m 

The surface area of the tank = volume of septic tank/depth of tank=21.6/1=21.6 m²

consider the length and width of the tank in the ratio of 3:1 '

L×B=21.6
3B×B=21.6
B2=21.6/3
B=7.20 m
Length =3B =21.60m
so, the size of septic tank = 21.60m x 7.20 m x 1.30 m