BUSINESS PLANNING Flashcards
What is a SWOT analysis?
- A SWOT analysis can be used to analyse the internal strengths and weaknesses and external threats and opportunities of a company.
- This is carried out with a view to exploiting strengths and opportunities and mitigating weaknesses and threats.
What is a PEST analysis?
- This is a structured method of analysing the key factors influencing market conditions.
- These factors are:
o Political influences.
o Economical influences.
o Socio-demographical influences.
o Technological influences.
o Environmental influences.
What are Porter’s five forces?
- They are used to analyse the competitiveness of an industry and the barriers to entry.
- These typically include:
o Substitute products.
o Bargaining power of suppliers.
o Bargaining power of customers.
o Rivalry amongst existing firms.
How do companies write a business plan?
- They undertake an analysis of the market and industry to identify business opportunities and critical success factors.
- Companies should focus their resources in developing their competences in the critical success factors.
- This then leads to the development of goals and objectives with their associated strategies and actions.
What is a Client Account Planning session?
A review of current workload, resources & fees.
* It involves the identification of key client personnel who have influence over job opportunities and identification of who the firm should look to build relationships with.
* A review of pipeline opportunities with that client is also undertaken.
What is a Business Plan?
- A formal statement of the business’s goals with reasons why they are thought to be attainable and the plan for reaching the goals.
- The business plan also provides employers with a common ground to focus upon.
What is contained within an appointment document?
- It includes a clarification of the work scope.
- The agreed fee bid.
- The firms terms of business.
- Any agreed amendments to the firms’ terms of business.
- Contact Details.
Does your firm produce an annual account?
- Yes it produces a statement of turnover, gross profit & net profit.
- This must be submitted to Companies House in accordance with the Companies Act.
Would you be able to interpret & understand an annual account?
- At a high level but I would seek further advice from one of our internal Chartered Accountants if necessary.
What are your firms Terms of Business?
Together with the Engagement Letter, the T&C’s will form the contract between our Firm and the Client.
* Our terms of business are made up of around 14 Sections including:
o Our firms General Obligations to the client which is to provide ‘Services’ detailed in the Engagement Letter with the skill, care and diligence expected of a professional person.
o The Client’s General Obligations for example they are not to solicit any Partner or Employee with a job offer, if this occurs they must pay £35,000.00 compensation.
o Additional Service terms for example this sets out the entitlement for additional fees if the work scope varies.
o My firms’ liability for example any claims raised are to be against the company and not any Partner or Employee.
o Payment terms and interest entitlement in the event of late payment.
o Termination and Suspension terms which have a minimum 7 days notice to suspend the works.
o Force Majeure terms for example the company is not liable for failure to carry out its service obligations if this occurs.
o Intellectual Property Rights relating to copyright of documents provided by the firm.
o Assignment and Subcontracting terms set out the requirements for written consent from other either party.
o Formal communication is to be in writing to the addresses set out within the Engagement Letter.
o Problems and Complaints handling procedures are included within the terms of business.
What is your firms business plan?
- Vision:- To create, enhance and sustain the world’s built, natural and social environments.
- The current 10 year business plan is called [this will be specific to your firm].
- Example goals you could reference include:
o Strong financial performance.
o Diversification.
o To become the Global Industry leader.
o To increase to a targeted percentage of market share.
o Expansion into new territories.
o £X Turnover with % net profitability.
o Growth within certain sectors for example e-commerce logistics warehousing or data centers.
How do you contribute to your company’s goals?
- Focus on safety.
- Maintain excellence in my work.
- Sharing knowledge within integrated teams.
- Keeping up with new technologies.
- Upskilling new and junior team members.
How do you think an up to date business plan can help an organisation in the current economic climate?
- To support with gaining additional investment, funding or finance.
- To gain new instructions from new and existing clients.
- The business plan will help focus on key priorities.
- It allows the organisation to respond to change.
- For budgeting purposes.
- To support with recovery from Covid-19.
- To facilitate the setting of targets for staff.
