The Business Planning Process Flashcards
Primary Research
Research undertaken to answer questions that cannot be answered from the currently available information
Secondary Research
Research that utilises presently existing information
Situational Analysis
A situational analysis assesses a business’s current position, the present state of the market and the firm’s target market
Vision Statement
A business’s vision statement expresses the desired image and values of the business and the direction in which it wants to head
Mission Statement
A mission statement outlines the goals of the business and what they hope to achieve for the stakeholders, as well as how they plan to achieve those goals
Operational Planning
Day to Day Planning
Tactical Planning
Short Term (usually three months to two years)
Strategic Planning
Long-Term (usually 5-10 years)
Organic Growth
A business increases its size and scale of operations because sales continually increase, with profits being reinvested into the business
Acquisitive Growth
Arises when a business buys out or takes over another business
Operations Process
Involves taking various inputs and transforming them into outputs that can be sold in markets
Human Resource Management Steps
Acquisition: The process of recruitment
Maintenance: Ongoing training, development and education
Motivation: Through monetary and non-monetary rewards
Separation: The processes by which people leave a business
Break-Even Point
The break-even point is the number of sales that a business has to make in order to cover its total fixed and variable costs
Break-Even Point Formula
Fixed Costs/Selling Price - Variable Costs
How can sales be monitored?
Overall revenue generated from sales
Sales by individual product line
Sales by time
Sales patterns when prices are lowered or raised
