business planning Flashcards
Situational Analysis
A situational analysis assesses a business’s current position, the present state of the market and the firm’s target market
Vision Statement
A business’s vision statement expresses the desired image and values of the business and the direction in which it wants to head
Mission Statement
A mission statement outlines the goals of the business and what they hope to achieve for the stakeholders, as well as how they plan to achieve those goals
Operational Planning
day to day planning
Tacitical Planning
Short term (usually three to five years)
Strategic Planning
Long-term (Usually 5-10 years)
Organic Growth
A business increases its size and scale of operations because sales continually increase, with profits being reinvested into the business
Acquisitive Growth
Arises when a business buys out or takes over another business
Operations Process
Involves taking various inputs and transforming them into outputs that can be sold in markets
Human Resource Management Steps
Acquisition: The process of recruitment
Maintenance: Ongoing training, development and education
Motivation: Through monetary and non-monetary rewards
Separation: The processes by which people leave a business
Break-Even Point
The break-even point is the number of sales that a business has to make in order to cover its total fixed and variable costs
Break-Even Point Formula
Fixed Costs/Selling Price - Variable Costs
What is the purpose of budgets?
Having a budget keeps business finance in check and makes sure that its savings are on track for the future.
What is the importance of a business plan?
A good business plan guides you through each stage of starting and managing your business. Without the business has no guidance
What is trend analysis?
Trend analysis is a technique used to examine and predict movements based on current and historical data. You can use trend analysis to improve your business using trend data to inform your decision-making.
