Level 1 - Business Planning

Question 1

What are the three levels of business management?

Answer 1

1. Corporate Level
   2.Management Level
   3.Operational Level

Question 2

What is a business plan?

Answer 2

A document that defines the business objectives and suggests steps to be taken to realise the business strategy over the next 3 years.

Components of a Business Plan:
• Division of the business into service type or client segment
• Financial performance targets
• Plan business opportunities and allocate staff resource
• Budgeting and cash forecasting money in vs. money out to understand what you can afford to pay because you estimate what you will earn
• Plan business opportunities, identify the resource required.

A business plan could help to:
• Seek funding,
• To gain new instructions, new clients, new customers
• To help focus on key priorities
• To allow the organisation to respond to change
• For budgeting, and
• To set targets for staff.

Question 3

What are the business objectives of your company?

Answer 3

• To develop and grow the business sustainably in the sectors:

o Commercial
o Sports & leisure
• Retain existing and gain new clients
• Retain and train staff
• Grow team to support senior members of staff

Question 4

How do you contribute to business planning within your company?

Answer 4

• Budgets
• Land Sales

Question 5

Does the RICS have a Corporate Strategy?

Answer 5

Yes, It sets out long term strategic goals of the organisation.

Question 6

N1. What should you do when starting a business?

Answer 6

Create a Business Plan, such as a 3 – 5 year business plan.

Question 7

N2. What is a business plan?

Answer 7

A formal statement of the business goals, how they are obtainable and the plan for reaching these goals.

Question 8

N3. Why would you create a business plan?

Answer 8

• To help achieve funding.
• Set business objectives.
• Create a business direction.

Question 9

N4. What would you expect to be included within this business plan?

Answer 9

• Method Statement.
• Goals and Objectives.
• SWOT analysis.
• Key Performance Indicators.

Question 10

N5. What is a Mission Statement?

Answer 10

A formal summary of the company aims and values.

Question 11

N6. What is a SWOT analysis?

Answer 11

internal study undertaken by a business to identify its strengths, weaknesses, opportunities and threats.

Question 12

N7. What goals and objectives would you likely see?

Answer 12

• Expected profit margin.
• Expected Turnover.
• Markets the company are looking to move into.

Question 13

N8. What is a Key Performance Indicator?

Answer 13

A measureable value to determine the success of project/venture.

Question 14

N9. How is a business plan laid out?

Answer 14

1. Executive summary.
2. Financial Forecasts.
3. Management team.
4. Description of business opportunity.
5. Market and Sales Strategy.

Question 15

N10. What is Tarmacs 5 year business plan?

Answer 15

• Maintain Health and Safety Record.
• Become UK’s number 1 supplier of sustainable construction materials.
  Department - Deliver £10m a year in land sales
  Become the UK’s no 1 internal real estate company
  Deliver mineral continuity

Question 16

N11. Why is Market Analysis important?

Answer 16

Increase sales through identifying areas of strength, and aligning these with opportunities.

Question 17

N12. How does an up-to-date business plan help an organisation?

Answer 17

• Helps achieve funding.
• Market previous work to clients.
• Bring focus the company priorities.
• Allows staff to align their goals with the company’s.
• Help set budgets.

Question 18

N13. In terms of Business Planning, how does your management ensure that you make a profit?

Answer 18

• Regular reporting.
• Forward planning.
• Accounting systems to track all costs.

Question 19

N14. What is a PESTLE Analysis?

Answer 19

• Political.
• Economic.
• Social.
• Technological.
• Legal.
• Environmental.

Question 20

What are Leading and Lagging indicators?

Answer 20

Leading - Inputs - I.e. sell a certain amount of properties a year

Lagging - Deliver a sales income of £xxx