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Business Sarfaraz > Chapter 9 -Making a Business and Financial Case > Flashcards

Chapter 9 -Making a Business and Financial Case Flashcards

1
Q

At what stages should the Business Case be reviewed?

A

Feasibility study

Requirements Analysis

Solution design

Solution development

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2
Q

What is the process for developing options for a business case?

A

Identify possible options

Shortlist options

Evaluate shortlist

Take options forward to business case

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3
Q

Why should “do-nothing” be included as an option in a business case?

A

Showing the risks and consequences of doing nothing makes the case for other options.

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4
Q

What three headings of Feasibility need to be considered?

A

Business

Technical

Financial

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5
Q

What tools can be used for assessing feasibility of a business case?

A

PESTLE

Force-field analysis

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6
Q

What is force-field analysis?

A

Consider which forces inside and outside the organisation will support and oppose the proposal.

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7
Q

What factors will go into force-field analysis?

A

Feasibility results

PESTLE

Stakeholders

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8
Q

What are the sections of a business case?

A

Intro

Management Summary

Description of current situation

Options considered

Analysis of costs and benefits

Impact assessment

Risk assessment

Recommendations

Appendices

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9
Q

What should the intro of a business case contain?

A

Set scene

Explain why being presented

Methods to examine the issue

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10
Q

What should the Management Summary of a business case contain?

A

What the study was about and issues considered

Summary of options with principle advantages and disadvantages

Clear statement of recommendation

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11
Q

What should be included in Description of current situation in a business case?

A

Explain where problems and opportunities lie.

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12
Q

What should be included in Options considered section of business case?

A

Options considered

Explanation of why rejecting

More details around option recommending.

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13
Q

What should be included in Cost-Benefit Analysis section of Business Case?

A

Immediate and longer-term

Tangible and intangible

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14
Q

Give examples of tangible costs

A

IT Development staff costs

User staff costs

Equipment

Infrastructure

Packaged software

Relocation

Staff training

Ongoing costs

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15
Q

Give examples of intangible costs

A

Disruption and loss of productivity

Recruitment

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16
Q

Give examples of tangible benefits

A

Staff savings

Reduced effort and improved speed of working

Faster responses to customers

Reduced accomodation costs

Reduced inventory

Reduced overtime

17
Q

Give examples of intangible benefits

A

Increased job satisfaction

Improved customer satisfaction

Better management information

Greater organisational flexibility

More problem solving time

Better market image

18
Q

What are Avoided costs?

A

Situations where a business has to do something and had already budgeted for it; that budget can be offset against more radical solution that offers additional benefits.

19
Q

Give examples of what might be included in Impact assessment of business case?

A

Organisation structure

Interdepartmental relations

Working practices

Management style

Recruitment policy

Appraisal and promotion

Supplier relations

20
Q

What should be included for each risk in a business case?

A

Description

Impact assessment

Probability

Mitigation

Ownership

21
Q

What should be included in the Recommendations section of the business case?

A

Summary

Make clear decisions asking senior management to take.

Outline main tasks and timeline

22
Q

What should be included in appendices if business case?

A

Detailed information

Stats

23
Q

What is an investment appraisal?

A

Financial aspects of the business case are contrasted to see when project will pay for itself

24
Q

What is a discounted cash flow?

A

Cash flows after Year 0 are adjusted to today’s value of money using a ‘discount rate’ to show a net present value

25
Q

What is internal rate of return?

A

Calculation that assesses return on investment in a percentage figure

26
Q

What is internal rate of return used for?

A

Compare projects to see which are better investment opportunities and with what interest rates would earn if the money was left in the bank.

27
Q

How is internal rate of return calculated?

A

Finding at which point the discount rate causes the Net Present Value to be zero

28
Q

What needs to be considered when presenting a business case?

A

Audience

Brevity

Structure

Appearance

29
Q

What are RAID and CARDI logs used for?

A

Ongoing management of changing factors within a project.

Business Sarfaraz (14 decks)

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