Business Plans

Question 1

What is the plan do review process?

Answer 1

Once a plan has been drawn up, it needs to be implemented and then monitored, formalises this approach

Question 2

What is the aim of the plan do review process?

Answer 2

To achieve key departmental tasks which should mean the business achieves its strategic objectives

Question 3

Advantages of the plan do review process:

Answer 3

• Methodical
• Encourages Kaizen
• Ensured employees know what they have to do
• Identifies and corrects deviations from the plan

Question 4

Disadvantages of the plan do review process:

Answer 4

• Employees may see it as micro managing to constantly be reviewed
• Length process = opportunity cost
• If employees don’t get involved, may not feel committed to the plan
• Can be inflexible

Question 5

What is involved in the planning stage of the plan do review process?

Answer 5

Establishing objectives and the course of action and the resources necessary to achieve objectives

Question 6

What is involved in the doing stage of the plan do review process?

Answer 6

Implementing the plan ensuring that all areas of the business understand their part of it in terms of responsibilities and deadlines

Question 7

What is the review stage of the plan do review process?

Answer 7

Formal ongoing evaluation of progress towards objectives and a final review at the end

Question 8

What should be included in a business plan?

Answer 8

1. What you are aiming to achieve
2. Why
3. What will need to be done to achieve this
   4 By whom
4. When
5. Using what resources

Question 9

What is a business plan?

Answer 9

A formal written document that explains in detail how a business is going to achieve its objectives

Question 10

Why are business plans most important for start ups?

Answer 10

1. absence of one guarantees failure

2. impossible to gain financial backing otherwise

Question 11

What does a business plan follow for an established company?

Answer 11

Follows a strategic review

Question 12

What are the benefits of strategic reviews?

Answer 12

• identifies underperforming areas
• SWOT and PEST can be undertaken
• identifies good practice
• consensus established for where business is headed

Question 13

Why is a business plan important for stakeholders?

Answer 13

Depends on the objective of the stakeholder

Question 14

Advantages of a business plan?

Answer 14

• Requires a stratgeic review
• Sense of direction
• Forces evaluation of performance
• Sets out role of each department
• Encourages communication and coordination

Question 15

Disadvantages of a business plan?

Answer 15

• Opportunity cost - ongoing process, time consuming to gather data
• May be too rigid and leave little room for innovation and creativity
• May be disregarded or altered by someone who doesn’t like it