Business planning (Level 1)

Question 1

What is a business plan?

Answer 1

A document that defines the business objectives and suggests strategies to be undertaken to realise how this will be achieved within a defined time frame.

Question 2

A business plan can help achieve what objectives?

Answer 2

• Funding
• Gain new clients and customers
• Help focus on priorities
• Help to focus on organisational change
• To set targets for staff
• Set budgets

Question 3

Does the RICS have a business plan?

Answer 3

Yes the 2020 to 2023 business plan. Is to to provide increased market confidence through our professional and ethical standards. Updated to address Covid-19

Question 4

How do you contribute to TfL’s business plan?

Answer 4

• By understanding the business and driving this forward. For example, taking the initiative to make things happen.
• Handover information for clients
• Pre start works
• Commercially initiating talks
• Speaking to clients / partners to create relationships.

Question 5

What tools are commonly used to understand your current position in the market place?

Answer 5

• SWOT
• KPI’s
• Competitors
• Opportunities
• Management

Question 6

What are the three levels of business management?

Answer 6

1. Corporate Level
2. Management Level
3. Operational Level

Question 7

Does the RICS have a Corporate Strategy?

Answer 7

It sets out long term strategic goals of the organisation.

Question 8

What should you do when starting a business?

Answer 8

Create a Business Plan, such as a 3 – 5 year business plan.

Question 9

How would a public sector business case differ from a private one?

Answer 9

A public sector business case would look to maximise net social benefit and achieve value within its available funds.

A private sector business case is typically focused towards profits for shareholders.

Question 10

How is TfL’s business plan set?

Answer 10

Our latest Business Plan was approved by the Finance Committee in December 2019. It covers our plans for the transport network over the five years to 2024/25. Our latest Budget for 20/21 was approved by the TfL Board on 29 March 2020.

Question 11

What is a SWOT analysis?

Answer 11

A review by a business to identify its strengths, weaknesses, opportunities and threats.

Question 12

What is a Key Performance Indicator?

Answer 12

A measurable value to determine the success of project/venture.

Question 13

What is the meaning of Working Capital, Stock, debtors and creditors?

Answer 13

Working Capital is money you have available to spend on projects – Current assets minus liabilities
Stock – Is assets or goods a company hold
Debtors – People that owe you money
Creditors – People that you owe money too.

Question 14

What is the point of a business plan?

Answer 14

• Sets direction
• Helps to achieve targets
• Allows to achieve funding
• Set targets for staff

Question 15

How is a business plan laid out?

Answer 15

• Cover
• Exec summary
• Financial forecasts
• Management team
• Description of business opportunities
• Market and sales strategy.

Question 16

What are different types of organisational Structure?

Answer 16

Matrix – Grid system where teams are built of different specialisms, separate reporting line.
Hierarchical – Management and feeds downwards
Flat – Mainly same level workers with a manager or owner
Team based – Working in teams to problem solve, more control at team level

Question 17

What does the RICS business plan state?

Answer 17

• Influential thought leader -collaborating with others
• Trusted by our stakeholders and society -
• Professional qualifications remain in demand
• Sustainability in 21st century - (5% increase year on year, efficiency)

Question 18

Tell me about TfL financial sustainability report

Answer 18

TfL released a financial sustainability in Jan 21 to address short, medium long-term plans for how it will manage its finances given the pandemic and how riding numbers will be affected. This outlines how it will manage capital projects and government grants.

Question 19

Once you are chartered surveyor and decide to set up a business, what insurances should you have in place?

Answer 19

Personal Indemnity Insurance

liability Insurance – protect employees and customers

Question 20

What are the methods for financial benchmarking? (e.g. key financial ratios)

Answer 20

Benchmarking is a process of assessing your current performance against a peer group of organisations of comparable scale and complexity. This enables you to build a case for making changes to support wider business strategy.

Question 21

Name some financial ratios

Answer 21

• Profitability / Return on investment - Profitability ratios provide information about management’s performance in using the resources of a business.
• Liquidity ratios - Liquidity ratios demonstrate a company’s ability to pay its current obligations.
• Leverage ratios - Leverage ratios look at the extent to which a company has depended upon borrowing to finance its operations
• Efficiency Ratios - By assessing a company’s use of credit, inventory, and assets, efficiency ratios can help business owners and managers conduct business better.

Question 22

What forecasting techniques are there?

Answer 22

• The Delphi Technique - Using this technique, a group of field experts responds to a series of questionnaires. The experts are kept apart and unaware of each other.
• The Subjective Forecasting Approach - Subjective forecasting allows forecasters to predict outcomes based on their subjective thoughts and feelings.
• Time-Series Forecasting - Time-series forecasting is a quantitative forecasting technique. It measures data gathered over time to identify trends.

Question 23

What is a Key Performance Indicator?

Answer 23

A KPI is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to track performance measures.

Question 24

In terms of Business Planning, how does your management ensure that you achieve good value?

Answer 24

Regular reporting.
Forward planning.
Accounting systems to track all costs.

Question 25

What is a market analysis?

Answer 25

A market analysis is a quantitative and qualitative assessment of a market. It looks into the size of the market both in volume and in value, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation.

Question 26

What type of company if TfL?

Answer 26

Transport for London (TfL) is a local government body responsible for the transport system in Greater London