Business Planning

Question 1

What are PMP’s business plans over the next 5 years?

Answer 1

• Organic Growth to consolidate after a period of fairly rapid growth.

Question 2

Can you name some of the elements of an effective business plan?

Answer 2

• Market analysis
• Competitor analysis
• Strategy
• Management and personnel resources
• Organisational structure.

Question 3

How is working capital essential to a business’s cash flow an ability to trade effectively?

Answer 3

• Working capital is a measure of liquidity after all a company’s assets and liabilities have been accounted for e.g. what is left over.
• A business needs money for day-to-day operational costs so it’s important that working captial covers this.

Question 4

What is a key financial ratio?

Answer 4

A line from a company’s financial date that is compared to that of its peers.
Key examples are:
* Liquidity ratio
* Price-earnings ratio
* Debt to equity ratio

Question 5

What planning models can be used to develop business strategy?

Answer 5

• SWOT
• PEST