Business Planning L1

Question 1

WHAT IS A SWOT ANALYSIS?

Answer 1

Strengths, Weaknesses, Opportunities & Threats.

Used to analyse internal strengths and weaknesses, and external threats and opportunities of a company.

Carried out with a view to exploit strengths and opportunities, and mitigate weaknesses and threats.

Question 2

WHAT IS A PEST ANALYSIS?

Answer 2

Structured method of analysing key factors influencing market conditions, such as:

• Political influences
• Economic influences
• Socio-demographic influences
• Technological influences
• Environmental influences

Question 3

WHAT ARE PORTER’S FIVE FORCES?

Answer 3

Used to analyse the competitiveness of an industry and barriers to entry, typically including:

• Substitute products
• Bargaining power of suppliers
• Bargaining power of customers
• Rivalry amongst existing firms

Question 4

HOW DO COMPANIES WRITE A BUSINESS PLAN?

Answer 4

Undertake market analysis to identify business opportunities and critical success factors.

Companies should focus their resources in developing their competences in critical success factors.

This then leads to development of objectives with their associated strategies and actions.

Question 5

WHAT IS A CLIENT ACCOUNT PLANNING SESSION?

Answer 5

A review of workload, resources & fees.

Identify key client personnel who influence opportunities and who relationships should be formed with.

A review of pipeline opportunities with the client is also undertaken.

Question 6

WHAT IS A BUSINESS PLAN?

Answer 6

A formal statement of business goals and why they are attainable, and the plan to achieve the goals.

The business plan provides employers with a common ground to focus on.

Question 7

WHAT IS CONTAINED WITHIN AN APPOINTMENT DOCUMENT?

Answer 7

Clarification of works scope and programme.

Agreed fee bid.

The firms term’s and conditions, including any amendments.

Contact details.

Question 8

DOES YOUR FIRM PRODUCE AN ANNUAL ACCOUNT?

Answer 8

Yes, it produces a statement of turnover, gross profit & net profit.

This must be submitted to Companies House in accordance with the Companies Act.

Question 9

WOULD YOU BE ABLE TO INTERPRET & UNDERSTAND AN ANNUAL ACCOUNT?

Answer 9

At a high level, but would seek further advice from a Chartered Accountant if necessary.

Question 10

WHAT ARE YOUR FIRMS TERMS OF BUSINESS?

Answer 10

Together with the Appointment Letter, the T&C’s will form the contract between Firm and Client.

Our terms of business are made up of the following 11 Sections:

1. To provide Services, detailed within Appointment Letter, with skill, care, diligence expected of a professional person.
2. Client’s General Obligations, i.e. they are not to solicit any Employee with a job offer.
3. Additional Service terms, i.e. additional fees if the work scope varies.
4. My firms liability, i.e. claims raised are against the company, not individual
5. Payment terms and interest entitlement in the event of late payment
6. Termination and Suspension terms, minimum 7 days notice to suspend works
7. Force Majeure, i.e. company not liable for failure to carry out service obligation if this occurs
8. Intellectual Property Rights, i.e. copyright of documents provided by the firm
9. Assignment and Subcontracting terms for written consent from the other party
10. Formal communications between stakeholders outlined
11. Problems and Complaints Handling Procedures

Question 11

WHAT IS YOUR FIRMS BUSINESS PLAN?

Answer 11

To create, enhance and sustain the worlds built environment.

Goals set by the company, for example, are:

• Strong financial performance
• Being industry leading in our respective field, with aims to expand
• Diversification
• To increase our market share
• Expansion into new territories
• Increase turnover with improved net profitability per year, or show signs of real growth annually
• Growth within specific sectors, i.e. insurance for surveys and works to follow

Question 12

HOW DO YOU CONTRIBUTE TO YOUR COMPANY’S GOALS?

Answer 12

Focus on safety

Maintain excellence in my work

Sharing knowledge with integrated teams

Keeping up with new technologies

Upskill new and junior colleagues

Question 13

HOW DO YOU THINK A BUSINESS PLAN CAN HELP AN ORGANISATION IN THE CURRENT ECONOMIC CLIMATE?

Answer 13

Support gaining additional investment and funding.

Gain new instructions from new and existing clients.

Focus on key priorities.

Allows organisation to respond to change.

Budgeting purposes.

Support with recovery from Covid-19.

Facilitate setting targets from staff.