Answer to Question 1
Answer: Strategic planning is important to managers because in well-run companies the goals from the very top of the organization downward should form a more-or-less unbroken chain (or hierarchy) of goals. These goals, in turn, should be guiding what everyone does. Management creates a hierarchy or chain of departmental goals, from the top down to the lowest-ranked managers, and even employees. Then, if everyone does his or her jobif each salesperson sells his or her quota, and the sales manager hires enough good salespeople, and the HR manager creates the right incentive plan, and the purchasing head buys enough raw materialsthe company and the CEO should also accomplish the overall, company-wide strategic goals. You could therefore say with great certainty that without a clear plan at the top, no one in the company would have the foggiest notion of what to do. At best, you'd all be working at cross-purposes.
Answer to Question 2
Answer: TRUE
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