Ch2 Business Plan

Question 1

Three sections of a feasible analysis

Answer 1

1. Product and or service feasibility
2. Market in industry feasibility
3. Financial feasibility

Question 2

Two criteria to determine product or service feasibility

Answer 2

1. product or service is possible at a profit

2. will customer demand will be sufficient

Question 3

Five industry forces that impact market and industry feasibility

Answer 3

1. Existing competitive rivalry
2. Barriers to entry
3. Threat of substitutes
4. Supplier power
5. Buyers power

Question 4

Six barriers to entry into competitive market or Industry

Answer 4

1. Capital requirements
2. Cost of advantages
3. economies of scale
4. Access to distribution channels
5. product differentiation
6. Government policy

Question 5

What is the concept of threat of substitutes

Answer 5

The level of threat posed by alternative products and services to industry consumer matters.

Question 6

What is the concept of supplier power and how can it impact industry or Market feasibility

Answer 6

The less bargaining power and control the suppliers of raw material components and labor have over competitors the more attractive the industry

Question 7

What is the concept buyer power and how does it impact market industry feasibility

Answer 7

The larger and more diverse the customer base the less depending competitors in the industry will be on particular customers

Question 8

Analyzing the financial feasibility of a business idea involves Assessing its viability and then

Answer 8

Addressing capital requirements revenues cost in earnings should suffice

Question 9

The nine core blocks of a business model canvas

Answer 9

1. Customer segments
2. Value proposition
3. Channels
4. Customer relationships
5. Revenue streams
6. Key resources
7. Key activities
8. Key partnerships
9. Call structure

Question 10

The four main elements contained in a business plan are

Answer 10

1. The story of what the business is and will be
2. all cost and a marketing plan
3. Description of how the business will be financed
4. An estimate of projected earnings

Question 11

Two reasons you need a business plan

Answer 11

To attract of the investors and see if business is viable

Question 12

Danger in using standard software packages to create your plan

Answer 12

Creating a cookie-cutter plan and falling into the trap of using the data in financial projections of sample plans

Question 13

Length and purpose of execution summary

Answer 13

Written last in limited to one or two pages he should answer the who what when why and how questions for the business

Question 14

Mission statement

Answer 14

Devise the purpose in management philosophy of the business

Question 15

Feasibility analysis

Answer 15

A study to assist in making the go/ no go decision based on a close examination of product/ service, market, industry, and financial data

Question 16

Business model

Answer 16

Accompanies plant to generate revenue and make a profit from operations

Question 17

Business plan

Answer 17

A document that truly explain the business idea and how it will be carried out

Question 18

Marketing plan

Answer 18

A statement of the marketing goals and objectives for a business and the intended strategies and tactics to attain them

Question 19

Marketing mix

Answer 19

The combination of the four factors –product ,price ,place, and promotion –that communicates a marketing vision

Question 20

Advertising

Answer 20

Paid promotion through media outlets

Question 21

Public relations

Answer 21

Community activities that are designed to enhance and organizations image

Question 22

Publicity

Answer 22

Free promotion

Question 23

Direct marketing

Answer 23

Includes telemarketing ,direct-mail ,in person, selling ,and other personalized promotional efforts

Question 24

Break even point

Answer 24

When the volume of sales exactly covers the fixed cost

Question 25

Contents of the management section of the business plan

Answer 25

Management team will bios
organization chart
job descriptions
If your business will be involved in research and development the description of the physical location

Question 26

Three forms of financial statements included in the business plan

Answer 26

1. Cash flow projections
2. balance sheet projections income statements for
3. three years