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 full utilisation).
Fee/cost reconciliation tools.
Project reviews.
Yearly performance reviews.
Team meetings.
Director one-to-ones.
What is a PESTLE analysis?
PESTLE is an acronym for political, economic, social, technological, legal and environmental.
It is a way of understanding and reviewing how external forces may impact the business.
Whatis a SWOT analysis?
SWOT analysis is a strategic planning method used to evaluate 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 SMART targets/objectives as part of a business plan?
Obiectives which are:
Specific.
Measurable.
Achievable.
Realistic.
Time related.
What is an investment appraisal?
An investment appraise 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).
What is the obiective of Porter’s 5 Forces model?
Poraris 5 Forces is a model that identifies competitive forces that shape every industry and helps determine an industry’s strengths and weaknesses.
Frequently used to identify an 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 meant by strategic planning?
The managerial process of developing and maintaining a strategic fit between the organisation objectives, resources and changing market opportunities.
What is the difference between business strategy and business planning?
- A business strategy is concerned with the entire organisation, such as what it produces, where it competes and how it allocates resources. It deals with the fundamental choices that will affect the entire organisation.
Business plans are concerned with the detailed implementation after the big choices have been made.
A business plan deals with the detailed implementation of specific aspects of the overall strategy.
What is the difference between a business vision statement and mission statement?
A vision statement focuses on tomorrow and what an organisation wants to ultimately become.
A mission statement focuses on today and what an organisation does to achieve it.
What is a business plan?
A business plan is a document that summarises the operational and financial objectives of a business will be realised.
It’s a business road map to success with detailed plans and budgets that show how the objectives will be realised.
Likely timescale of three to five years (at least).
Written business plans are often required to obtain a bank loan or other financing.
What would typically be included in a business plan?
Executive summary.
Marketing strategy.
Vison and mission statements.
Products and services.
Management team and personnel.
Financial forecasts.
Responsibilities and targets.
Training, resource strategy and hierarchy plans.
SWOT analysis.
What is a business model?
A business model is the plan implemented by a company to generate revenue and make a profit from operations.
A business model may contain:
The product/service the business believes has value for the customer.
The market niche and main target demographic.
The expense of bringing your product/service to the target market.
