Question

L01 The Planning Framework E 6. Edward Ortez has just opened a company that imports fine ceramic gifts from Mexico and sells them over the Internet. In planning his business, Ortez did the following: 1. Listed his expected expenses and revenues for the first six months of operations 2. Decided that he wanted the company to provide him with income for a good lifestyle and funds for retirement 3. Determined that he would keep his expenses low and generate enough rev- enues during the first two months of operations so that he would have a posi- tive cash flow by the third month 4. Decided to focus his business on providing customers with the finest Mexican ceramics at a favorable price 5. Developed a complete list of goals, objectives, procedures, and policies relating to how he would find, buy, store, sell, and ship goods and collect payment 6. Decided not to have a retail operation but to rely solely on the Internet to market the products 7. Decided to expand his website to include ceramics from other Central American countries over the next five years Match each of Ortez's actions to the components of the planning framework: goal, mission, strategic objectives, tactical objectives, operating objectives, busi- ness plan, and budget.

Answer 1

1. Budget

Explanation: Budget refers to an estimation of expenses and revenues for a set period of time

　

2. Goal

Explanation: Goal setting refers to a process of identification what the business targets to accomplish and create the plans to achieve those desired goals.

　

3. Operating Objectives

Explanation: Operating Objectives are short-term objectives whose achievement brings the business closer to its long-term goals.

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4. Mission

Explanation: A mission of a business the overarching outcomes the business such as providing customers with the finest Mexican ceramics at an addordable prices

　

5. Business Plan

Explanation: Business Plan involves an entire list of goals, objectives, procedure, and policies of the business

　

6. Strategic Objectives

Explanation: Strategic objectives are long-term objectives that help in converting the business mission statement from a large vision into more specific projects and plans

　

7. Tactical Objectives

Explanation: A tactical objective refers to an immediate short-term desired result for a given task, or mission