Business Planning Flashcards
(22 cards)
What is a SWOT analysis?
A SWOT analysis can be used to analyse the internal strengths and weaknesses and external threats and opportunities of a company. This is carried out with a view to exploiting strengths and opportunities and mitigating any weaknesses and threats.
What issues would you expect a company to experience with a high staff turnover?
Increased recruitment costs.
Increased training costs.
Inconsistent production & performance.
Poor staff morale.
Lower customer satisfaction.
Loss of customers and repeat business
Higher operating expenditure.
Reduced profitability.
Please explain your understanding of the term ‘PEST’ analysis?
Political influences.
Economical influences.
Socio-demographical influences.
Technological influences.
What is a Business Plan?
A business plan is formal statement of the business’s goals, strategies and financial projections. It contains detailed descriptions of the business including:-
Products or services.
Target market.
Competitive landscape.
Marketing and sales strategies.
Management and organisation.
Logistics and operations plans.
Financial Plans.
What is contained within a client appointment document?
Clarification of the scope of services being provided.
The agreed fee bid and payment terms.
The terms of business.
Any agreed amendments to the firms’ terms of business.
Contact Details of key personnel who are working on the appointment.
Details of the firms complaints handling procedure.
Does your firm produce an annual account?
Yes it produces a statement of turnover, gross profit & net profit. This must be submitted to Companies House in accordance with the Companies Act.
Would you be able to interpret & understand an annual account?
At a high level but I would seek further advice from one of our internal Chartered Accountants if necessary.
How do you think an up to date business plan can help an organisation in the current economic climate?
Maintaining an up to date business plan can assist with analysing external threats and opportunities for example the increasing adoption of artificial intelligence, the impact of policies introduced by the labour government, high inflation and subsequent high interest rates. An up to date business plan can also assist with focussing on key internal priorities, responding to market changes, supporting with compiling financial projections and setting of targets for staff.
What components would you identify within a business plan?
Executive Summary.
Marketing Strategy.
Vision & Mission Statements.
Products & Services.
Management Team & Organisational Structure.
Financial Forecasts.
Responsibilities & Targets.
SWOT Analysis.
PEST Analysis.
How can a business plan help a company to remain profitable?
Assisting with securing new funding and investments.
Growth of existing client base and services provided.
Highlighting key business objectives.
Assisting with responding to change.
Growth of market share.
Supporting with accurate forecasting and budgeting.
Facilitation of resource planning.
What is a business model?
A business model is the strategy implemented by an organisation to generate revenue and make a profit from its operations. The business model may detail the products or services being offered to the client base, the business niche or sector being operated in and the route to market entry including costs associated with bringing the product or service to the target market.
What is your firms business plan?
To become the UKs leading promotion company
Expansion into new geographic territories.
Growth within the commercial sector eg logistics or data centres.
Are you aware of some of the aims within the RICS Business Plan?
Following acceptance of the Levitt Report recommendations, the RICS in its latest Business plan looks to be more open and transparent with members and the public about the operation of the institution including decision making and management of its finances. This includes developing and implementing new, more effective whistleblowing arrangements and reviewing arrangements for the reward of senior executives. The RICS has introduced immediate financial priorities including continued support of the profession and seeking to minimise any increases in the cost of subscription levels and reducing any funding deficit in the close final salary pension scheme. Corporate objectives including the maintenance and increase of demand for RICS qualifications with the primary goal to ensure the RICS qualification remains relevant for future generations.
What is a KPI?
A Key Performance Indicator
What are Richborough’s KPI?
Metrics include:
The time in legals
Planning applications submitted on time
Time taken for planning determination
Forecasted sales completed
What is business planning and why is it important for a land promotion company?
Business planning is the process of setting strategic goals and outlining how to achieve them through resource allocation, financial forecasting, and performance monitoring. In a land promotion context, it ensures the business maintains a healthy pipeline of sites to generate future income while managing operational risks and reacting to market conditions.
How does your organisation monitor its land pipeline and why is this significant?
We track the rate at which we secure new sites and compare it to the rate at which sites are being disposed of. This is essential to maintain long-term business sustainability and cash flow. Without a strong pipeline, the business would face future revenue gaps as promoted sites are sold off.
What are KPIs and how are they used in business planning?
KPIs, or Key Performance Indicators, are measurable values that show how effectively a business is achieving its objectives. In our case, KPIs include metrics such as the number of sites secured, planning success rates, timeframes to disposal, and financial return on investment. These are discussed quarterly at board level and are used to inform strategic decisions.
What have you learned from attending quarterly board meetings?
I’ve gained insight into how senior management assesses financial performance, reviews KPIs, and models financial forecasts. These meetings have shown me how data-driven decisions are made to ensure resilience—such as adjusting acquisition strategies or reallocating resources in response to external economic pressures.
How does forecasting contribute to business planning?
Forecasting allows the business to predict future income, expenditure, and resource requirements. This supports decision-making around staffing, investment, and site acquisition strategies. It also helps the business prepare for potential external shocks by modelling best- and worst-case scenarios.
Can you explain how external factors can impact business planning in your sector?
External factors such as changes to planning policy, interest rates, housing market fluctuations, and political uncertainty can all affect land values, planning risk, and investor confidence. Understanding these risks helps the business plan more effectively, for instance by diversifying its land portfolio geographically or adjusting financial reserves.
