Business Planning Flashcards
What is a business plan?
It is a logical decision-making process based on market analysis and forecasting to set a company’s goals and objectives. The plan is continuously updated using a feedback system and measuring performance.
A formal statement of the business goals, reasons why they are attainable and the plan for reaching the goals. Provides employers with a common ground to focus upon.
What is a SWOT analysis?
It is a structure analysis of the market (demand side). It is used to analyse internal strengths and weaknesses and external threats and opportunities to exploit strengths and opportunities and mitigate weaknesses and threats.
What is a PEST analysis?
This is a structured method of analysing the key factors influencing markets (the demand side).
These factors are:
Political influences
Economical influences
Socio-demographical influences
Technological influences
Environment
What are Porters five forces?
They are used to analyse the competitiveness of the industry (the supply side)
Barriers to entry
Substitute products
Bargaining power of supplies
Bargaining power of customers
Rivalry among existing firms
What do you find in a business plan?
The vision
Objectives and Goals
Strategies and actions
How do companies write a business plan?
The analysis of the market and industry enable companies to identify business opportunities and critical success factors in their markets and industry.
Companies should focus their resources in developing their competences in the critical success factor.
This then leads to the development of goals and objectives with their associated strategies and actions.
What is a client account planning session?
Review of current workload, resources and fees etc. Identification of key client personnel who have influence over job opportunities and who from ECH shall build up the relationship with them. Review of pipeline opportunities with that client.
What is contained in an appointment document?
Clarification of workscope
Agreed fee bid (aligned to workscope)
ECH terms of business
Agreed amendments to ECH terms approved by GLS
Contact details
Do ECH produce an annual account?
Yes – produces statement of turnover, gross profit, net profit etc. Must submit to Companies House in accordance with the companies Act 2006.
Would you be able to interpret/ understand an annual account?
Yes at a high level but would seek further advice from one of our internal Chartered Accountants.
What is your firms business plan?
Project 30 – 30 mil turnover by 2030, double turnover in 10 years.
How do you contribute to your company’s goals?
Focus on safety
Excellence in my work
Sharing knowledge in integrated teams
Keeping up with new technologies
How do you think an up to date business plan can help an organisation in the current economic climate?
To seek funding
To gain new instructions, new clients and new customers.
To help focus on key priorities
To allow the organisation to respond to change
For budgeting
For setting targets for staff.
What is the importance of business planning?
- Provides direction through defining objectives
- Provides a greater understanding of your current position, the position of competitors and where you want to be
- If regularly reviewed it can improve efficiency
How long should a business plan project its future?
Typically, 12-24 months with longer term goals constantly being re-evaluated
