Business Fundamentals & Project Management Revision Sheet

Question 1

what are the three main principles under the heading business fundamentals?

Answer 1

-project management
-project business case
-cost-benefit analysis

Question 2

what is cost benefit analysis?

Answer 2

a technique that allows you to compare the total costs of the project with the benefits - usually measured in monetary units. it can be useful when making decisions and changes on a project.

Question 3

what is project management?

Answer 3

when you decide what the scope if the project is going to be, you use tools to help plan and monitor resources and manage the project as a whole.

Question 4

what are advantages of project monitoring?

Answer 4

• quality control: allows you to track the quality in terms of material, level or work and cost.
  -deadlines: allows you to spot delays
  -detection of potential issues: allows you to identify potential issues before they become a problem with the project.

Question 5

what are disadvantages of project monitoring?

Answer 5

-cost: this can take up many resources, such as time and effort from different team members.

Question 6

what is risk management

Answer 6

the process of identifying, analysing and communicating risks tat could affect the objectives of a project.

Question 7

what is risk analysis

Answer 7

estimating the probability and the consequence of a possible even, scenario or circumstance

Question 8

what is a risk analysis tool?

Answer 8

they are used to analyse and assess risks in order to help manage them.

Question 9

what is a gantt chart and how can it help you with project management?

Answer 9

this is a visual way of viewing your project plan - mapping out the progress.
this can help you with project management as you can see which team member is dealing with certain task(s)

Question 10

why is a budget important?

Answer 10

monitored to ensure you do not overspend. this can be:
-project budget
-department budget
-materials budget etc.

Question 11

why is a budget contingency important?

Answer 11

this covers extra costs that may not have been included in the budget.

Question 12

why is a balance sheet important?

Answer 12

shows the organisation’s current assets and debts.wh

Question 13

why is a cash flow statement important?

Answer 13

shows the money that is available and moving through the organisation.

Question 14

what is a project business case, and how does it support project management?

Answer 14

• a presentation that will allow you to gain approval to continue with the project.
  -this can help with project management as it will allow people to know why the project is happening and what the goals and aims are.

Question 14

how do you need to manage resources?

Answer 14

efficiently by ensuring that there are enough resources and are used for a manageable amounts.

Question 15

what are the components of a budget-setting cycle?

Answer 15

1. limiting key factors within the budget
2. master. subsidiary and functional budgets
3. cash budgets
4. sales budget
5. debtors budgets
6. creditors budgets
7. production budgets
8. raw materials and finished goods budget

Question 16

how do business finances affect a business? why is it important?

Answer 16

if management of business finances is poor, it can leas to low cash flow and, worst case, stop business operations from being able to continue.

Question 17

what is change management? who is involved?

Answer 17

the way we change operations within the business to ensure that both internal and external changes will not have negative impacts on the organisation. all staff need to be involved.

Question 18

how do you overcome resistance and negativity?

Answer 18

communicating the positives of the change. if you lead by examples and become a positive role model, individuals will observe and learn.