Ch.13 - Business planning and functional strategies

Question 1

What is business plan and what it consists of?

Answer 1

• typically produced when a business is applying for funding - critical document for potential investor

Pro-forma:

• cover page
• contents
• introductions and terms of reference
• executive summary
• management team
• products or services
• market information
• business operations
• details of finance requied
• appendices

Question 2

What are key functions of the business?

Answer 2

 Finance
 Marketing
 Information technology
 Human resource management (planning may include recruitment plan, training plan, productivity plan, redevelopment plan including succession planning)
 Research & development (product or process research)
 Operations
 Procurement (Purchasing)

Question 3

What factors need to be considered in operations?

Answer 3

• volume
• variety
• variation in demand
• visibility

Question 4

What is capacity planning?

Answer 4

• planning of capacity of operations and stock

1. made to stock
2. made to order
3. manipulate demand

Question 5

What are methods of quality management?

Answer 5

Prevention = quality assurance (minimising defects)
Detection = quality control (checking and reviewing work)

Question 6

What does quality mix in procurement consist of?

Answer 6

• quantity
• quality
• price
• delivery

Question 7

What factors to consider in supply chain management?

Answer 7

Supply chain management – management of all supply activities from the suppliers to a business through to delivery to customers
- Factors to consider:
 Responsiveness (capable and flexible enough)
 Reliability (consistently meets organisation’s needs)
 Relationships (strengthened trust and integration)

Question 8

What are advantages of supplying from single supplier or multiple suppliers?

Answer 8

Single supplier:
	Strong relationship
	Better commitment
	Economies of scale
	Better quality 
	Better communication
	Confidentiality

Multiple suppliers:
 Reduced supplier power – lower prices
 Less disruption (spreads dependency)
 Wide range of knowledge and expertise