Business Objectives And Strategy

Question 1

Distinguish between quantifiable and unquantifiable risk

Answer 1

Quantifiable risks are those that can be measured, while non-quantifiable risks are those that are not tangible

Question 2

Explain the purpose of a business plan

Answer 2

to identify, describe and analyze a business opportunity and/or a business already under way, examining its technical, economic and financial feasibility.

Question 3

What are the main points of a business plan

Answer 3

.Executive summery
.marketing plan
.management strategy

Question 4

Advantages and disadvantages of having a business plan

Answer 4

Advantages- increased clarity over direction,supports funding
Disadvantages-maybe too inaccurate, creates false certainty

Question 5

Explain the ‘Plan-Do-Review’

Answer 5

The cycle of coming up with a plan through to the step of reviewing how it went, the 4 stages or plan,do,review,assess

Question 6

How can the plan-do-review cycle improve a business’ performance?

Answer 6

Helps go through the stages of how effective the plan for performance change will be in order to evaluate the if it will be a success or not

Question 7

Importance of strategic review to the business

Answer 7

an important tool for assessing how well your business has performed, relative to its goals

Question 8

What is meant by risk and reward

Answer 8

The risk/reward ratio marks the prospective reward an investor can earn for every dollar they risk on an investment

Question 9

How could a business reduce its risk

Answer 9

Prioritise, reduce liabilities, insurance

Question 10

What is meant by uncertainty

Answer 10

any event that a business is unable to predict or directly influence which may lead to negative outcomes as a result.

Question 11

Internal and external courses of uncertainty

Answer 11

Internal-new objectives, loosing employees, industrial action
External-entering a new market, economic recession

Question 12

How can uncertainty effect the aims and objectives of the business

Answer 12

Uncertainty could push businesses to cut back on production, investment and employee compensation

Question 13

Advantages and disadvantages of contingency planning

Answer 13

Advantages-it allows managers to be flexible,

Disadvantages- time and cost consuming, may not happen

Question 14

Importance of contingency planning

Answer 14

help to ensure that you’ve always got a backup option when things go wrong, or when the unexpected happens.

Question 15

What is seasonal and cyclical variations impact on forecasting

Answer 15

Seasonal- changes due to seasonal factors

Cyclical- changes due to economic factors

Question 16

The impact and importance of effective decision making to the business

Answer 16

Decisions allow leaders to respond to changing market conditions, threats, and opportunities, in order to secure the future success of their organisation.

Question 17

How does the level of risk affect decision making

Answer 17

Usually the larger the business and the importance of the nature of the business, the more sophisticated the level of risk management is needed

Question 18

How does the nature of risk affect decision making

Answer 18

The bigger the damage potentially caused by the risk the more care need to go into the decision making

Question 19

How does the accuracy of forecasts affect decision making

Answer 19

Accurate forecasting gives the business the ability to make well informed decisions to create accurate data driven strategies

Question 20

Distinguish between strategic, tactical and operational decisions

Answer 20

Strategic-complex, made by senior managers
Tactical-less complex,made by middle managers
Operational-small and routine, made by junior managers

Question 21

Overall usefulness of Ansoffs matrix

Answer 21

Useful for providing strategic growth route to discuss with stakeholders, however doesn’t outline the risk involved