Business Planning Flashcards
What does PEST analysis stand for and what is it?
Structured method to analyse key factors influencing market conditions.
Political influences
Economical influences
Socio-demographical influences
Technological influences
Environmental influences
What is SWAT analysis?
Used to analyse internal strengths/ weaknesses and external threats/ opportunities for a company.
- Exploit strengths, mitigate threats.
What are Porters 5 forces and what are they used for?
Used to analyse the competitiveness of an industry & the barriers to entry, including:
- Substitutive products
- Bargaining power of suppliers
- Bargaining power of customers
- Rivalry amongst existing firms.
What is a Business Plan?
Formal statement of business’ goals with reasons why they are attainable and a plan to reach these goals.
- provides employees with common ground to focus on.
How would you write a business plan?
1) Undertake analysis of the market to identify business opportunities/ critical success factors
2) Focus company resources in developing competences in critical success factors
3) This leads to development of goals/ objectives with their associated strategies.
What is include within an appointment letter?
- Scope of the work
- Agreed fee bid
- Terms of business
- Agreed amendments to firms terms of business
- Contact details.
What is a Client Account Planning session?
Review of the current workloads/ resources/ fees
Involves identifying key client personnel who influence job opportunities and who the firm should look to build a relationship with
Review of pipeline opportunities with the client is also undertaken.
How do you contribute to your companies goals?
1) Maintain excellence within my work
2) Share my knowledge within the team and upskill new/ junior team members
3) Keep up with new technologies.
Can up to date business plans help an organisation in the current economy?
Yes.
- Supports with gaining additional investment/ funding
- Gain new instructions from clients
- The plan helps focus on key priorities
- Allows response to change
- Supports recovery from Covid-19.
What are the types of business plans?
Corporate, or top-level;
Departmental, at a lower level;
Strategic, with a specific function or service and a longer-term horizon;
Operational, concerning how things work on a day-to-day basis.
A business may have more than one business plan: it is likely to have an overall corporate plan and then separate lower-level plans for departments, teams or specific services. The lower-level plans should align to the wider corporate business plan, however.
What is the RICS organisational structure?
Privy council grants and awards the Royal Charter
Governing council manage and agree strategy
The regulatory tribunal, standards and regulations board, audit committee and management board are beneath and execute the strategy.
What is the difference between Debtors Vs. Creditors?
Debtors = Business’ that owe money to another entity.
Creditors = Business’ owed money by another entity they have borrowed to.
What are Financial Gearing Ratios?
They measure financial structure of a company.
Good indicators for suppliers of dept. & equity, as well as internal managements.
Payment of interest = lower profit.
What are Liquidity Ratios?
Measure a companies ability to pay off liabilities by converting assets into case.
Calculation = Current assets / current liabilities.
- Ratio is usually 1.5
- A ratio of less than 0.75 = early indicator of insolvency.
What are Profitability Ratios?
Measure the performance of a company to generate profits.
Trading profit margin ratio calculation = Turnover - (cost of sales/ turn over)
- Low margins may be a growth strategy.
