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EY Accounting - Business Acumen > Module 15 - Buiness Plans > Flashcards

Module 15 - Buiness Plans Flashcards

1
Q

What are primary stakeholders?

A

Those affected directly

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2
Q

Examples of primary stakeholders:

A

Owners of business

Employees / management

Customers

Suppliers

Local communities

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3
Q

What are secondary stakeholders

A

Those affected indirectly

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4
Q

Examples of secondary stakeholders

A

Government and regulators

Pressure groups

Competitors

General public

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5
Q

What does Mendelows matrix look like?

A
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6
Q

Mendelows matrix

Those with high interest and high power should be:

A

Managed closely

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7
Q

Mendelows matrix

Those with high power but low interest should be:

A

Kept satisfied

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8
Q

Mendelows matrix

Those with lower power but high interest should be:

A

Kept informed

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9
Q

Mendelows matrix

Those with low power and low interest should be:

A

Monitored

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10
Q

What is an executive summary?

A

A short section that summarises the business plan

It is essential that an executive summary is well written, persuasive, concise and that is stated the key conclusions and figures

A potential finance provider may dismiss an entire business based off of reading this

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11
Q

What should be included in the business details section

A

Business name

Address

Legal form e.g. sole trader…

Ownership structure

Description of product/service

Mission and vision statement

Aims and objectives

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12
Q

What should the industry and market analysis section include?

A

Analysis of internal (e.g. SWOT) and external factors (e.g. SWOT, PESTEC or Porters Five Forces)

Details on specific market segments targeted (not really sure but was in quiz)

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13
Q

Marketing strategy section should discuss what?

A

Details about how meeting sales targets

Launch strategy

Marketing mix

Distribution channels

Sales tactics

Brand development

Competitive reaction

Product and market development

Growth potential and scale-up plans

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14
Q

Operations plan should discuss what?

A

Manufacturing processes

Business model

Business controls

IP issues

Scalability of the business

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15
Q

Management, workforce and CV should include:

A

Information on day-to-day operations

People charged with governance of the business

Employees of the business

Job roles

(Some other things like CV of management)

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16
Q

Equipment and start-up costs section should include:

A

Details of business resources (e.g. existing premises, equipment and other assets (IP))

Start-up coasts to get the business set up

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17
Q

Financing section should include:

Sources of finance include?

A

Details on how the business has been financed (e.g. founders contributions)

Whether business will be funded by loan or equity financing

Sources of finance may include:

Bank loan
Equity investors including venture capitalists and business angels
Government grants
Incubators

18
Q

Forecasts and sensitivity analysis should include:

A

One of the most important parts - potential providers of finance will base their decision largely on this section

Profit/loss projections
Cash flow surplus/deficit projections
Forecast balances (assets, liabilities and capital)
Key ratios
Assumptions and commentary

Sensitivity analysis (what if?)

19
Q

Financial projections for small start ups are generally expected for how long?

How long for larger businesses?

A

A three year period for smaller

A five year period for larger

20
Q

What is an executive summary?

What is essential for an executive summary?

A

A short section that summarises the business plan

Well written, persuasive, concise, states key conclusions and figures

21
Q

Could a potential provide of finance or investor dismiss and entire business plan based solely on reading the executive summary?

A

Yes

22
Q

Business details section should include (common exam q I have found)

A

Business name

Address

Legal form (eg sole trader)

Ownership structure (eg shareholder)

Description of product / service

Mission and vision statement

Aims and objectives

23
Q

External maker analysis would include

A

SWOT (OT)
PESTEC
Porter’s Five Forces

24
Q

Internal analyses would include

A

SWOT (SW)

25
Q

What would industry and market analysis section include?

A

Internal and external factors

Details on marketing mix & how product will be promoted

Details on size of industry, growth potential and structure of the industry, as well as market trends, buyer behaviour and market share

26
Q

Customers and value proposition section should:

A

Outline the target market segment

As well as the value proposition for the product or service

27
Q

Marketing strategy should include:

A 
How business will meet sales targets 
Launch strategy
Marketing mix
Distribution channels
Sales tactics
Brand development 
Competitive reaction
Product and market development 
Growth potential and scale-up plans
28
Q

Operations plan should include:

A

Manufacturing processes

Business model

Business controls

IP issues

Scalability of the business

29
Q

Management, workforce and CV

A

Information on day-to-day operations, people charged with governance of the business, employees of the business and job roles

Include CV of management and other key personnel

30
Q

Components of a business plan

A
31
Q

Equipment and start-up costs must include:

A

Details of business’ resources (eg equipment) as well as a

List of start-up costs to get the business set up

32
Q

Financing - what should it include?

A

Details on how the business has been financed (eg founders contributions, loan or equity)

Details on longevity including any exit routes

33
Q

Sources of finance for a business may include:

A

Bank loan

Equity investors including venture capitalists and business angels

Government grants

Incubators

34
Q

What are incubator firms

What do they give?

A

Invite start-up businesses to become part of a cohort to participate in a programme

The chance to work with mentors and advisors which offer them business expertise

35
Q

What does the incubator scheme do?

What happens at the end of the scheme?

A

Help develop start ups

Start-ups are expected to prepare a business plan which is presented to potential investors to try and secure investment (think of the apprentice)

36
Q

Forecasts and sensitivity analysis - what should be included?

A

Financial projections

Profit/loss projections

Cash flow surplus/deficit projections

Forecast balances

Key ratios (eg debtor days)

Assumptions and commentary

37
Q

Financial projections for start-ups are generally expected for how long?

A

A three year period

38
Q

Financial projections for larger businesses are generally expected for how long?

A

A five year period

39
Q

What is sensitivity analysis in the context of financial projections?

A

The process of re-calculating amounts using alternative assumptions to assess the impact on the profits/losses, cash flow surpluses/deficits, balances, and key ratios

40
Q

Risks and strategic options should include

A

Risks that have been identified by the business

Critical success factors

How risks are monitored and mitigated

Strategic options available to the business

41
Q

Key milestones should include:

A

Commentary around the key milestones on the business’s journey so far

Details around when they launched their first products, received funding or expanded their service offering

EY Accounting - Business Acumen (16 decks)

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