Business Planning Flashcards
In terms of business planning, what tools does your company use to ensure you are making a profit?
- timesheets
- using resource planners (to ensure utilisation)
- fee/cost reconciliation tools
- project reviews
- yearly performance reviews
- team meetings
- director one-to-ones
What is benchmarking (on a construction project)?
A project by which the estimated performance (often cost) of a project is compared to other similar projects. This can highlight areas of design that are not offering good value for money, or if the price offered by the contractor is in line with the wider market.
What is a PESTEL analysis?
PESTEL is an acronym for political, economical, social, technological, environmental and legal.
It is a way of understanding and reviewing how external forces may impact the business.
What is a SWOT analysis?
SWOT analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or business venture.
SWOT analysis can be used as a basis for business strategy.
What are the issues related to a staff turnover?
- it can be expensive and time consuming to hire staff
- training new people is time consuming and expensive
- turnover can also affect team dynamics, productivity and continuity
What are SMART targets/objectives as part of a business plan?
Objectives are:
- Specific
- Measurable
- Achievable
- Realistic
- Time Related
What is an investment appraisal?
An investment appraisal is used to assess whether a business or project would be a worthwhile investment in terms of return (both financially and/or added value). Considerations:
-Rate of return
-Payback period
-Net present value (NPV)
Give example of fee-earning and non-fee earning staff?
- Fee earning - QS, PM, architect
- Non fee earning - Administration staff, IT technicians
What is the purpose of a business organisation chart?
- a graphical representation of the roles, responsibilities and relationships between individuals within the organisation
- It can be used to depict the structure of an organisation as a whole or broken down into smaller business units
How do you contribute to your company’s goals?
- sharing knowledge within my team(s).
- Keeping up with new technologies and systems
- Delivering and exceeding my responsibilities
- Understanding my personal/project objectives, exceeding expectations where possible
- bringing in new business
- focus on safety
What is the objective of the Porter’s 5 Forces Model?
Porter’s 5 Forces is a model that identifies the competitive forces that shape every industry and helps determine an industry’s strength and weaknesses.
Frequently used to identify and industry’s structure to determine business strategy.
The five forces are:
- Supplier power
- Buyer power
- Threat of substitutes
- Threat of new entrants
- Competitive rivalry
What is a joint venture?
- A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.
- Each of the participants in a JV is responsible for profits, losses and costs associated with it. However, the venture is its own entity, separate from other participants’ other business interests.
Can you explain what working capital is?
Working capital represents the amount available to a company for day-to-day use and describes the company’s ability to meet its current liabilities. It is calculated by the difference between current assets and current liabilities.
What is meant by business strategy?
- A business strategy is an outline of the actions and decisions a company plans to take to reach its business goals and objectives
- the strategy defines what the business need to do to reach its goals, which can help guide the decision-making process for hiring and resource allocation.
What is meant by strategic planning?
The managerial process of developing and maintaining a strategic fit between the organisation’s objectives, resources and changing market opportunities.
