What is a commonly cited reason for businesses to develop an action plan?

• A. To acquire new technology
• B. To mitigate supply chain risks
• C. To establish clear objectives and outcomes
• D. To recruit new talent

Answer: (C)

An action plan is a strategic tool that outlines specific steps to achieve identified goals and objectives. By establishing clear objectives and outcomes, businesses can provide direction to their teams, structure their initiatives, and track progress more effectively. This clarity ensures that everyone involved understands their roles and what is expected, making it easier to align resources and prioritize tasks toward achieving desired results. When objectives are well-defined, it also enhances accountability, as team members can be held responsible for their contributions towards those objectives.

While acquiring new technology, mitigating supply chain risks, and recruiting new talent are all important aspects of business operations, they typically serve as specific tasks or goals that could be part of a broader action plan. The essence of an action plan lies in its ability to create a roadmap that focuses on achieving defined outcomes, making the establishment of clear objectives and outcomes the primary reason for its development.