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.
Political influences.
Economical influences.
Socio-demographical influences.
Technological influences.
Environmental influences.
What are Porter’s five forces?
They are used to analyse the competitiveness of an industry and the barriers to entry.
Substitute products.
Bargaining power of suppliers.
Bargaining power of customers.
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 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.
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.
My firms’ liability for example any claims raised are to be against the company and not any Partner or Employee.
Payment terms and interest entitlement in the event of late payment.
Termination and Suspension terms which have a minimum 7 days notice to suspend the works.
Force Majeure terms for example the company is not liable for failure to carry out its service obligations if this occurs.
Intellectual Property Rights relating to copyright of documents provided by the firm.
Assignment and Subcontracting terms set out the requirements for written consent from other either party.
Formal communication is to be in writing to the addresses set out within the Engagement Letter.
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:
Strong financial performance.
Diversification.
To become the Global Industry leader.
To increase to a targeted percentage of market share.
Expansion into new territories.
£X Turnover with % net profitability.
Growth within certain sectors
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.
