Module 3 Business Plans and Forecasts Flashcards
How many components of a business plan are there?
14
What is in included in the ‘Business details, including products/services’ section (minus the obvious)?
- Ownership structure
- Description of product/service
- Mission and vison statement
- Aims and objectives
What is included in the ‘Industry and market analysis’ section of a business plan?
- Analysis on internal and external factors
- Details of the specific market segments targeted
- Details on the marketing mix and how the product will be promoted
- The size growth and potential structure of the industry as well as market trends
What is included in the ‘Marketing strategy’ section of a business plan?
- How will meet sales targets
- Launch strategy
- Marketing mix
- Distribution channels
- Sales tactics
- Brand development
- Growth potential
What is included in the ‘Operations plan’ section of a business plan?
- Manufacturing process
- Business model
- Business controls
- IP
- Scalability
What are the Prime objectives of cash management?
Liquidity
Safety
Profitability
Flexibility
What is Cost-Plus-Pricing?
Cost-plus pricing involves adding a markup to the cost of a product to ensure that the business covers its costs and achieves a profit
What is Target Pricing?
Target pricing starts with determining the desired level of return and working backward to set the selling price that achieves that return
What is Market Skimming?
Initially charging high prices for a new product, then lowering prices to attract price-sensitive customers
What is Premium Pricing?
Maintaining high prices to create the perception of superior quality
What is Market Penetration?
Offering products at low prices, even at a loss, to gain market share rapidly
What is Limit Pricing?
Setting low prices to deter competitors from entering the market
What is Dynamic Pricing?
Adjusting prices based on demand, supply, and various factor
What is Freemium pricing strategy?
Offering basic features for free and charging for premium features
What is Loss Leader pricing strategy?
Selling a product at a loss to attract customers who may purchase other profitable items
