Business Planning

Question 1

What are the three levels of business management?

Answer 1

• Operational
• Management
• Corporate

Question 2

What is the operational level?

Answer 2

Operational end of the business, create the output of the company e.g. a QS that takes measures, produces cost plans etc.

Question 3

What is the management level?

Answer 3

Management of the operational workers. Managers ensure employees carry out their tasks and work efficiently.

Question 4

What is the corporate level?

Answer 4

At the strategic apex of the company. Dictate which way the business should move, takes a holistic view on the business.

Question 5

What is a business plan?

Answer 5

A document setting out a business’s future objectives and strategies for achieving them.

Question 6

What are the components of a business plan?

Answer 6

• Business description/service lines
• SWOT analysis
• Market analysis
• Business opportunities
• Resource allocation for opportunities
• Financial performance targets
• Budgets and cash flow forecasts
• Current position
• KPIs

Question 7

What can a business plan be used for?

Answer 7

• To secure funding
• To secure new business from clients
• To focus on key priorities
• To respond to change
• For budgeting/setting targets

Question 8

What are the business objectives of your company?

Answer 8

[Grow a sector/staff retention/retain clients/grow team to support senior staff]

Question 9

How do you manage your time so you do not work beyond your fee allowance?

Answer 9

• Fill time sheets. These are reviewed by senior management.
• I am aware of fees on different jobs and raise concerns if I feel the workload is over and above what has been allowed for in our fees

Question 10

Does the RICS have a business plan?

Answer 10

Yes

Question 11

Does the RICS have a corporate strategy?

Answer 11

Yes, it sets out long term strategic goals of the organisation

Question 12

What should you do when starting a business?

Answer 12

Put together a business plan covering the next 3 - 5 years

Question 13

What is a mission statement?

Answer 13

A formal summary of the aims and values of a company, organisation, or individual.

Question 14

What is a SWOT analysis?

Answer 14

Internal analysis of a company’s:

• Strength
• Weakness
• Opportunities
• Threats

Question 15

What are KPIs?

Answer 15

Key Performance Indicators - measurable values against which a company’s success can be determined

Question 16

Why is market analysis important?

Answer 16

Allows you to find opportunities to make money and align your workforce to satisfy this.

Question 17

How does your management ensure you are making a profit?

Answer 17

We fill time sheets. Resource allocation to projects is cross referenced with fees from those projects.

Question 18

What is a PESTLE analysis?

Answer 18

An analysis of macro-environmental factors (major external and uncontrollable factors that influence an organisation’s decision making, and affect its performance and strategies):

• Political
• Economic
• Social
• Technological
• Legal
• Environmental

Question 19

What legislation are you aware of that affects businesses?

Answer 19

• Companies Act 2006

- Money Laundering Regulations 2017