chapter 5 Flashcards
business planning
aim
an overall goal that an enterprise wants to achieve
long term
objective
a specific target that an enterprise wants to reach so it can achieve its aims
short term
should be SMART(specific, measurable, achievable, realistic, time based
can change over time
why is planning important in an enterprise
to help achieve the aims and objectives
use its rescources and time more efficiently
help prepare for unexpected events
poor planning= failed enterprise
action plans
a list of tasks that need to be completed in order for.a set goal to be achieved
format- task, person responsible, completion date, how progress will be monitored, updates/changes.
purpose of an action plan
to better understand what needs to be done
identify key stages of a project by having to think carefully what they want to do
not waste time of rescources
identify potential obstical and issues
keep track for who is responsible for what
monitor progress so delays can be stopped and spotted.
stages in constructing an action plan.
- set a goal you want to achieve
- identify key actions
- break actions into small activities
- put activities in order
- decide how much time is spent on task and who will do it
- monitor
- start
- review and update the plan
- achieve goal
methods of monitoring action plans
checklists, data, measuring customer needs of satisfaction through surveys, testing the product, reporting
monitoring
to check and review the progress of something over a period of time
importance of monitoring
checks progress of the project
know stages are completed of the right time and order
allow for alternative steps
identify actions to be taken
why do you need to update your action plan
because sometimes circumstances change
business plans
a formal document that gives the aims of the enterprise and outlines ways those aims will be achieved.
importance of a business plan
focus so the entrepeneur thinks abt what they are doing
provides info about the market, competitors and the potential demand
help marketing decisions
identifies costs and financial needs
arrange finance in advance and avoid potential cash flow problems
think ahead
identify or avoid risks
to produce targets
helps organisation
contents of a business plans
preliminary info- details abt the business
marketing- size of market, comp., pricing, promotions, product and place
operations- how the enterprise will work
human resources- no. of employees and asign roles
financial- key targets, cash flow forecast, break even, budget, income statement, balance sheet, sales revenue, costs.
methods of monitoring business plans
financial data- cash flow, profits, costs, sales
operations data- total level of output per employee
marketing data- feedback from customers, surveys, customer retention no. , market shares
human resource data - no. of employees, attendances levels, hours worked
reasons for updating business plans
need additional finance
change of ownership/management
growth
achieved original obejectives
costs change
external factors such as pop. change
changes in market or competition
new products developed
