Study Session 1

Question 1

What is Porters 5 forces?

Answer 1

Porters five forces is a tool to analyse the attractiveness and profitability of a business.

The forces include

one) competitive rivalry amount of competition

Two) Supplier power {how easy it is for supply costs to increase)

Three) buyer power how easy is it for buyers to drive your prices down.

Four) Threat substitution likelihood of customers finding a different way of doing what you do.

five) threat of new entry ability for others to enter the market

Question 2

When you start your private practice. How would calculate your fees

Answer 2

First I would calculate operations costs.

The decide on an hourly rate
Fixed price
Or contract price

Question 3

How would you define a SWOT analysis

Answer 3

S = Strength 
W= Weakness 
O = Opportunities 
T = Threats

Question 4

Question 1
What procedures does your firm adopt to ensure profitability under the Business Planning competency?

Answer 4

Answer 1:
To ensure profitability, our firm adopts several procedures.
We utilize timesheets,
resource planners,
fee and cost reconciliation tools
conduct project reviews
hold yearly performance reviews,

conduct ongoing team meetings, and have direct one-to-one catch-ups.
Additionally, we implement a business development strategy and monitor project pipelines.
Timesheets are especially crucial as they record expenditure against each project, allowing us to quickly assess

Question 5

What challenges might a company face with high staff turnover?

Answer 5

High staff turnover can pose several challenges for a company,
including increased recruitment costs,

higher training expenses,

inconsistent production and performance,

decreased staff morale,

lower customer satisfaction,

potential reputational damage,

a loss of customers and repeat business,

elevated operating expenditures,

and reduced profitability.

Question 6

Question 3: What is the difference between fee-earning staff members and non-fee owners within a company?

Answer 6

Answer 3: Fee-earning staff members, such as quantity surveyors, architects, project managers, building surveyors, valuers, and commercial real estate consultants, directly generate revenue through their work. In contrast, non-fee owners encompass roles like administration support staff, business development managers, and IT support staff, who support the business but do not directly generate fees.

Question 7

Question 4: What does the term “investment appraisal” mean, and why is it important?

Answer 7

Answer 4: An investment appraisal is a critical evaluation process used to determine whether a business or project would generate the required levels of return to be financially viable. It typically considers factors like the rate of return, payback period, and net present value. Investment appraisal is crucial as it helps organizations make informed decisions about investing resources in projects or ventures.

Question 8

Question 5: What components are typically found within a business plan?

.

Answer 8

Answer 5: A business plan typically includes various components, such as:
- Executive summary
- Marketing strategy
- Vision and mission statements
- Products and services description
- Reference to the management team and organizational structure
- Financial forecasts
- Responsibilities and targets
- SWOT analysis and PEST analysis

Question 9

Question 6: How can a business plan help a company remain profitable?

Answer 9

Answer 6: A well-structured business plan can contribute to a company’s profitability by:
- Securing new funding and investments
- Expanding the client base and project pipelines
- Achieving key business objectives
- Adapting to changes effectively
- Gaining a larger market share
- Supporting accurate forecasting and budgeting
- Facilitating resource planning

Question 10

Question 7: What is a business model?

Answer 10

Answer 7: A business model refers to the strategic framework and approach adopted by an organization to create, deliver, and capture value. It encompasses how a company generates revenue, acquires and retains customers, designs its products or services, and manages its resources. A business model is fundamental in determining how a company operates and sustains profitability

Question 11

What fee and cost reconciliation tools do use?

Answer 11

Teams
Excel
Applications called MIS

Question 12

What is a PEST analysis?