Business Planning

Question 1

What are the three levels of business management?

Answer 1

Corporate Level – Group of seniors responsible for leading, directing and administrating and organisation
Management Level – Feed into the top, can be heads of department
Operational Level – supervisory who assign employees tasks

Question 2

What are the main types of business’?

Answer 2

• Sole Trader
• Partnership
• Limited
• Limited Liability Partnership (LLP)
• Public Limited Company (PLC)

Question 3

What are the types of organistational structure?

Answer 3

• Formal – hierarchical, defined and planned by management
• Informal – structure relies on relationships and dictated by individuals

Question 4

What is Socotec Advisory management structure / business model?

Answer 4

Functional structure – groups employees based on skillset.
Hierarchy in different departments (Marketing, FEW and QS) under designated leaders

Question 5

What is the definition and purpose of a business plan?

Answer 5

A document that defines the business objectives and suggests steps to be taken to realise the business strategy
o Clarifies business ideas
o Spots problems
o Sets out goals
o Measures progress
o Secure funding

Question 6

Who is the audience of a business plan?

Answer 6

• External: Stakeholders, investors, customers
• Internal: Employees, Managers

Question 7

What is the structure of a business plan?

Answer 7

• Executive summary
• Company description
• Company objectives and goals
• Market analysis - who the clients we are aiming for
• Competitor analysis - other companies like us
• Management team and personnel - org chart
• Products or services - what we can offer
• Marketing and sales strategy.
• Financial forecasts

Question 8

How an up-to-date business plan can help in the current economic climate?

Answer 8

• to help focus on key priorities
• to allow the organisation to respond to change
• for budgeting
• for setting targets for staff

Question 9

What is the RICS business plan 2021-2022?

Answer 9

Trusted by out stakeholders and society

RICS qualifications in demand – remain relevant for next generation

Influential thought leader – leadership on sustainability, technology

Involved and engaged members – increase engagement

Sustainable 21st century professional body – improve satisfaction, transparency, financial sustainability

Question 10

What is Socotec Advisory’s short-term strategy?

Answer 10

• Grow the QS revenue by 10% in the next two years
  o Engaging in networking events
  o Pushing into Essex (new market for Base)

Question 11

What is the difference between an objective and goal?

Answer 11

• A aim - an achievable outcome that is typically broad and long-term. A company might use goals to inform yearly strategies that each department will execute.
• An objective- Steps to reach the aim. defines the specific, measurable actions each team employee must take to achieve the overall goal

S - specific
M - measurable
A - achievable
R - realistic
T - time sensitive

Question 12

What is SWOT analysis?

Answer 12

• Strengths – e.g., strong base capital and experienced management
• Weaknesses – e.g., Lack of reputation, untrained new staff
• Opportunities – e.g., Increase range
• Threats – e.g., price fluctuation and competitive market

Business approach to prepare for a new venture/expansion. New office location used in example.

Question 13

Why can a business plan help?

Answer 13

Seeking funding

Help focus on key priorities

Allow organisation to respond to change

Set business objectives

Set targets for staff

Question 14

Why is Market Analysis important?

Answer 14

Understand market and customers

Identifies key players/competitors in the market

Helps understand where you are with product and price being offered

Helps see what opportunities exist

Question 15

What targets does the business plan set for staff?

Answer 15

Billable hours of 80%