Mandatory - Business Planning L1 Flashcards
What is a business plan?
A document that defines business objectives and suggests strategies to be undertaken to realise how this will be achieved within a defined time-frame.
What can a business plan achieve?
-Funding
-New customer/clients
-A focus on organisational change
-A focus on priorities
-Set targets for staff
-Set budgets
What are some types of business plans?
Strategic Plan
Start-up business plan
One-page business plan
What-if business plan
Growth business plan
Operations business plan
Business acquisition plan
What is a public sector business objective?
Maximise net social benefit within its available funds
What is a private sector business objective?
Typical focus directed towards profits for shareholders
What are the six elements of a business plan?
- Executive Summary - concise overview of business plan
2.Company Description - Who (you are), What (are your goals) and How (will you achieve this) - Products and Services - What do you provide. why is this necessary?Conclusions from market research
- Market Analysis- Summarise sales/strategy and implementation of operating plan
- Organisation and Management Team - organisational structure and identify key members
- Financial Plan/Projections: developed with accountant to set goals in terms of finances.
What is a Hierarchal Organisational Structure?
Employees grouped so that every employee has one clear supervisor.
What is a Matrix Organisational Structure?
Individuals with similar skills pooled for work assignments.
What is a Horizontal/Flat Organisational Structure?
Sees that many levels of middle management are eliminated.
What is a Line Organisational Structure?
Authority flows from top to bottom
What is a Team Based Organisational Structure?
Made of teams working towards a common goal whilst working on their own individual tasks
What is Financial Benchmarking?
A process of assessing current performance against a peer group of of organisations of comparable scale and complexity
What are some methods of Financial Benchmarking?
1.Profitability/Return on Investment - performance in the use of business resources.
2. Liquidity Ratios - demonstrates company’s ability to pay current obligations
3.Leverage Ratios - Looks at extent to which company has relied on borrowing to finance operations
4. Efficiency Ratios - assess use of credit, inventory and assets to help owners/managers conduct business better
What is a Key Performance Indicator?
Measurable value that demonstrates how effectively an organisation is achieving key business objectives.
What is Marketing Analysis?
Qualitative and Quantitive assessment of the market:
What is the size of the market?
What are customer buying patterns?
What is the competition?
Are there any legal or economic barriers?
What is a SWOT Analysis?
Strengths
Weaknesses
Opportunities
Threats
What is a PESTLE Analysis?
Political
Economic
Social
Technological
Legal
Environmental
What is short-term planning?
Planning that looks at the present performance of a company and develops strategies to improve any issues:
skills/attitudes of employees
condition of production equipment
What is long-term planning?
Planning too solve problems permanently and reach overall targets:
further adapting and influencing position to achieve long-term goals
What is a PLC?
Public Limited Company:
ownership is open to the public and anyone can buy shares in the company’s stocks
What is a Private Limited Company?
Cannot be owned by any members of the public
Owned by a non-government organisation or relatively small number of shareholders.
Sale of company shares is handled privately
What is a Royal Charter?
Organisation granted a power or right by the Monarch
What is an LLP?
Limited Liability Partnership:
some or all partners have limited liabilities.
Each member is not responsible or liable for another person’s misconduct or negligence.
What is cash accounting?
Records revenues an expenses when they are received and paid
