Business planning Flashcards
What is meant by business strategy?
Actions and decisions a company plans to take to reach its business goals and objectives
What is meant by strategic planning?
The managerial process of developing and maintaining a strategic fit between the organisation objectives, resources and changing market opportunities.
What is the difference between business strategy and business planning?
- BS
- Entire organisation,
- What it produces, where it competes and how it allocates resources.
- BP
- Detailed implementation after the big choices have been made.
What is a business model?
Business model is the plan implemented by a company to generate revenue and make a profit from operations
A business model may contain:
- The product / service the business believes has value for the customer
- The market niche and main target demographic
- The expense of brining your product / service to the target market
What is a business plan?
- A document that summarises the operation and financial objectives of a business.
- Road map to success
- Likely timescale of three to five years (at least)
- Written business plans are often required to obtain a bank loan or other financing
What would be included in a business plan?
- Executive summary
- Marketing strategy
- Vision and mission statements
- Products and services
- Management team and personnel
- Financial forecasts
- Responsibilities and targets
- Training, resource strategy and hierarchy plans
- SWOT analysis
How can a business plan help a company in the current economic climate?
- To help secure additional funding rom banks or external investors
- To gain new clients and commissions
- To help focus the businesses priorities and respond to change
- Focus on key priorities
- For budgeting
- For setting targets for staff
What is the difference between a business vision statement and mission statement?
- VS focuses on tomorrow and what an organisation wants to ultimately become
- MS focuses on today and what an organisation does to achieve it
