Business Plan Flashcards
What is a business plan?
A written document that describes a businesses objectives, strategies, the market it is in and its financial forecasts
What does a business plan do?
Indicates what the business intends to achieve and how.
Allows them to assess performance against it.
What are the advantages of a business plan?
Gives a sense of direction
Identifies constraints when trying to achieve strategic objectives
Provides structure to thinking about the business
Forces evaluation of current strategic and tactical objectives
Sets out role of each department and their part in achieving strategic objectives
Whats a strategic objective?
A long term organisational goal which help set and shape the strategy of the business (long term approach)
Whats a tactical objective?
The immediate short term desired result of a given task, activity or mission
What are the drawbacks of a business plan?
Time spent formulating could be sent elsewhere
Often too rigid, may limit individual creativity
Useless unless followed
Needs flexibility
What should be included in a business plan?
What are we aiming to achieve?
Why?
What will need to be done to achieve this?
By whom?
When?
Using what resources?
Whats the plan do review process?
Allows a business to implement an monitor that the plan and is used to achieve key departmental tasks
What is the plan do review cycle?
Planning and prepare —> gathering evidence —> taking action —> reviewing and improving
What are the benefits of the plan do review process?
Methodological approach
Clear what everyone has to do
Regular review means deviations limited
Encourages kaizen - continuous improvement
Allows evaluation and evaluation
What are the drawbacks of the plan do review cycle?
Lengthy process if not part of culture - opportunity cost
Can be inflexible or too flexible (not specific)
If not all employees involved may make achievement of objectives slower
