Question

In​ 2007, Newmarket Inc. set as its annual production goal the manufacture of​ 125,000 units. By​June, the economy had declined so drastically that sales were less than half what they had been one year earlier.​ Still, Newmarket management insisted that the firm produce all​ 125,000 units. It nearly went bankrupt in the process.
Which one of the following statements could have helped prevent this​ disaster?

A. Managers should develop plans that are specific then communicate those plans to all who need to know.

B. Make the organizational hierarchy flatter to effectively plan in dynamic environments.

C. It is important to continue formal planning in order to see any effect on organizational performance.

D. Managers need to recognize that planning is an ongoing process.

E. Managers need to stay alert to environmental changes that may impact the implementation of a plan and respond as needed.

Answer 1

Answer:

(E) Managers need to stay alert to environmental changes that may impact the implementation of a plan and respond as needed.

Explanation:

Planning has to be dynamic and not static. Manager who are aware of the trends in an economy are suppose to, expected to adjust their plans to align with the present economic reality in other not to run into crisis.