PGM Level 1 Facility Management Exam
The process for developing a business plan starts before you establish the goals you would like to achieve for the shop's coming year. (T / F) (Ans - This is true- There are 5 phases to the PGA business planning model and goals are in the 3rd phase. Before you establish goals you would like to achieve you must first "Define the Business" and second "Assess the Current State of the Business." (Page 5)
A well thought out business plan will typically focus on achieving financial goals. (T / F) (Ans - True: For a golf facility or business, a well thought out plan helps: Establish and achieve financial goals (bottom of page 2)
Staff should be involved in effective business planning to create a sense of ownership. (T / F) Page 4 (paragraph 4)
(Ans - True: One key to the creation of effective business plans is to involve
major stakeholders and staff in the planning process.
Assessing the current state of business is the most significant advantage of strategic business planning. (T / F)
(Ans - False: The most significant advantage of strategic business planning
is that it provides long term vision, destination and does not focus on the current state of the business. (Bottom of page 3)
Who should provide direction for creating the business plan at a golf operation?(Ans - Input from Key stakeholders is used to establish the facility's purpose and direction. (Page 5 under define the business)
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What are the five phases of the PGA Business Planning Model?(Ans - Define the business, Assess the current state of the business, Develop business goals, objectives, and related strategies, Prepare financial forecasts and budgets, Monitor performance
According to the Business Planning Model, a business plan should build on and refine the operational plan. (T / F) (Ans - True
What is the usual business destination for long-range planning?(Ans - Long range plans are usually 3 to 5 year plans that identify a future "destination" for a business. (Page 4 second paragraph)
Proactive planning is one of the anticipated outcomes of strategic business planning?(Ans - Yes, "Promoting proactive problem solving" This is a part of "strategic business planning"
What is the most significant benefit of strategic business planning?(Ans - Defining the future and destination of a business is the most significant benefit. (Page 4, 2nd paragraph)
Clarification of job responsibilities is one of the added values provided by the strategic planning process? (T / F)
(Ans - False: The clarification is not included on the strategic business
planning list. (Page 3)
Business goals are typically developed in the Defining the Business phase of the business planning process. (T / F)
(Ans - False: Define the business is in phase one. Business goals
developed in phase 3 called (Develop Business Goals, Objectives, and Related Strategies).
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Typically, a written set of core values is developed in the Defining the Business phase of the business planning process. (T / F) (Ans - True
Helping establish a starting point for goals, objectives, and related strategies is an appropriate use of the SWOT analysis. (T / F) (Ans - True
Financial forecasts should be based on historical data derived from a linear trend analysis. (T / F)
(Ans - False: This means creating a financial forecast based on projections
of revenues, expenses, and net income.
You are in the process of completing a business plan for the golf shop.Initial forecasts of sales, expenses, and profit have been made. Past data has been analyzed and important inside and outside factors have been identified. What is the next step to be taken towards completing the plan?(Ans - Monitor Performance (page 5)
A golf professional is purchasing a golf course. The business plan he presented to his banker included his history of successfully operating similar facilities, budget projections for the first five years under his management, and objectives and strategies for reaching his goals. The banker rejected his loan application because of missing information. What important element is missing from the business plan?(Ans - Assess the Current State of the Business (Page 5)
What time frame would be the least effective for monitoring the progress and performance of a business plan?(Ans - It would be least effective to hold off monitoring progress until the end of the year. In the book it states "It is not uncommon for many successful management companies and golf professionals to track performance for each core business area on a daily or weekly basis." The 3 / 4
book also mentions that daily, weekly, and monthly reports are outcomes of this phase.
The skills of a golf professional include knowing rounds, memberships, golf cars, tournaments, and merchandise generate revenue for a facility. (TI /F) (Ans - True
A personal development summary details interests, strengths, weakness, and future personal development steps. (T / F) (Ans - True
What must every professional understand about evaluation?(Ans - Every professional must understand that evaluation is a continuous process. Evaluation does not end after a milestone is achieved or a job is secured. It also involves evaluating both short and long-term progress.Career advancement is accelerated by regularly assessing individual interests, strengths and accomplishments, weaknesses, and areas for development. Finally, recording self-evaluation information in a professional development summary makes it accessible for use in the other phases of career planning. Page 4
How might a golf professional discover interests?(Ans - Exploring industry opportunities, connecting with people in the industry, and gaining first-hand experiences at golf facilities are ways to reveal specific interests that are useful to career development. Personal interests evolve over time because self-evaluation is an ongoing process.Understanding what truly drives a person's career is only possible by examining options and taking advantage of opportunities to explore separate areas of work. The goal is to discover a career where interests often align with job responsibilities. Page 4
What is part of the Explore stage in the Career Planning Process?(Ans - Exploring these career opportunities to understand the diverse nature of the industry and evaluate personal interests connected to available positions. Page 10
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