Business Planning (Level 1) Flashcards
What is the 3-horizon model?
Horizon 1 – 1-3 years (maintain strength of core business)
Horizon 2 – 2-5 years (explore new expansions)
Horizon 3 – 5-12 years (create new possibilities)
What is a business plan?
Document that defines the business objective and suggest strategies.
What can a business plan help achieve?
Funding
Gain new clients
Focus on priorities
Set budgets
Targets for staff
Public v private sector business plan?
Public: Maximise social benefit
Private: Profit for shareholders
Public sector business plan?
Value for money
Affordability
Deliverability
Commercial viability
What are the essential parts to a business plan?
Executive summary
Company description
Method statement
SWOT
KPI
Services
Market analysis
What are the types of organisational structure?
Hierarchical
Matrix
Horizontal
Line
What are the methods for financial benchmarking?
Benchmarking performance against peer group
Profitability – management performance
Liquidity ratios – ability to pay current obligations
Leverage ratios – extent company rely on debt
Efficiency ratios – companies use of credit, assets, inventory
What forecasting techniques are there?
Delphi Technique – expert questionnaire
Subjective forecasting – subjective opinion
Time series – quantitative data over time
What is a KPI?
Measurable value that demonstrates how effectively company is achieving business goals. Track performance.
What is APAM’s business plan?
?
What is market analysis?
Qualitative and quantitative assessment of market.
Short term planning?
Present company characteristics
Develops strategies for improving them
E.g. skills of employees and attitudes
What is Long Term planning?
Want to solve problems permanently in long-term
Aligning company to long term goals and targets that take time
E.g. Net Zero 2050
What is a PLC?
Public Limited Company – public company, ownership open to public. Anyone can buy shares.