Chapter 4 Homework
Case Study
Opening the Hollywood Knitting Factory
1. At a bare minimum, KnitMedia needs to have a strategic plan, a financial plan
(budget), standing plans, policies, procedures, and rules to help them
articulate their goals and objectives.
2. Students should do research to develop an outline that KnitMedia can follow
in opening up the Hollywood Knitting Factory.
3. You should first establish a formal, but simple planning process that
allows you to be flexible to ensure that all of the specific goals set are
aligned to help KnitMedia achieve its overall goals and objectives.
You Be the Consultant
Planning in the Face of Uncertainty
You and your team are consultants to Mr. Neeleman, who is depending on your
management expertise to help him navigate the launch and management of
JetBlue. Here’s what he want to know from you now:
1. From what you know, how well did my team and I do in applying effective
planning procedures? Please list what we did right and wrong.
2. Develop an outline of a business plan (just the main headings, please),
including the component functional plans we will need for the company as
a whole.
3. Give me examples of how Jet Blue can use descriptive plans, graphical
plans, and financial plans.
4. List four forecasting tools you think we should apply and why.
Suggested answers
1. What they did right in planning—prepared for competition with strong
financing, fleet homogeneity, high fleet utilization, efficient use of fuel, low
maintenance, low costs, attractive pricing, experienced management,
accurate forecasting of developing markets. What they did wrong—might
not have anticipated post-9/11 decline in air travel or aggressiveness of
competitors.
2. Outline of business plan (students may also wish to look ahead at Chapter
16’s coverage of the business plan):
a. Executive summary
b. Company summary
c. Products and Services
d. Market Analysis Summary
Strategy and Implementation Summary
e. Management Summary
f. Financial Plan
g. Marketing Plan
h. Personnel Plan
i. Production/Operations Plan
3. Use of descriptive plans: to evaluate management performance; use of
graphic plans: for budgeting, scheduling; use of financial plans: for
budgeting and financial reporting.
4. Four forecasting tools—sales forecasting, qualitative forecasting,
marketing research, competitive intelligence