Business Planning and Management

Question 1

What are the 5 keys to Success?

Answer 1

1. Flexibility
2. Reputation
3. Market Niche
4. Access to Information
5. Entrepreneurial Ability

Question 2

What are the sources of Information a business can use to support their success?

Answer 2

Government Organisations, The Internet, Other people/ Business owners, Books/ Manuals, Trade Association and Industry Bodies, General Media

Question 3

Types of Staff Payment?

Answer 3

Wage -Hourly Rates
Salary- Yearly Pay, (in increments)
Award- minimum legislated entitlement

Question 4

What are some Non-Wage Costs?

Answer 4

• Equipment
• Insurance
• Commission
• RDO’s
• Rewards, Bonuses and Incentives

Question 5

What are the factors to consider when buying a SME?

Answer 5

Location: Popularity, Competition, Logistics
Goodwill: Past and Future performance, culture and reputation, $ value
Potential Issues: Socioeconomic climate, transport, accessibility, zoning and legal

Question 6

What does a SWOT Analysis Include?

Answer 6

Strengths, Weaknesses, Opportunities, Threats

Question 7

What is the segmentation of Target Market?

Answer 7

Demographic- Age, Gender, Income
Geographic- Location
Psychographic- Lifestyle and Personality
Behavioural- Interactions with Product and Service

Question 8

What records are monitored in relation to accounting and finance?

Answer 8

• Sales
• Expenses
• Borrowings
• Assets

Question 9

What are the main sources of finance?

Answer 9

-External Lenders: Banks, Credit
- Sale of Shares
- Investors

Question 10

What are the 2 types of finance?

Answer 10

• Debt Finance
• Equity Finance

Question 11

What is Revenue?

Answer 11

Money Entering the business through sales or investors

Question 12

What are expenses?

Answer 12

Money exiting the business through bills or purchases

Question 13

What is Profit?

Answer 13

Financial Gain, The difference in revenue and expenses

Question 14

What are Assets?

Answer 14

Items of Value, either current (short term) or non-current (long term)
Current- Stock, computers
Non Current- Building, Vehicles

Question 15

What are Liabilities?

Answer 15

Items which are owed to others, either current (short term) or non current (long term)
Current- Product
Non Current- Mortgage

Question 16

Vision vs Mission Statements

Answer 16

Vision- What they see in the future for the business
Mission- More realistic, precise and accurate -Current, aim of business, actual activity

Question 17

What is Marketing Mix?

Answer 17

The 4 P’s
Product, Price, Promotion, Place

Question 18

How do we Forecast?

Answer 18

• Market Research
• Sales History
• Expert Opinion
• Past Experience
• Competitors
• Technology

Question 19

What are the Management approaches?

Answer 19

Classical: Hierarchy, Rules
Behavioural: Team Based, Employees Involved in Decision Making
Contingency: Flexibility and Adaptation to suit circumstances

Question 20

What are the purposes of Management?

Answer 20

Management as:
Planning/Organising/Controlling, Leading, Motivation, Communication, Working as a team

Question 21

What are the leadership styles?

Answer 21

Autocratic- Controlling
Democratic- Inclusive

Question 22

What are the 9 Skills of Managers?

Answer 22

Vision, Decision Making, Strategic Thinking, Interpersonal Skills, Problem Solving, Communication, Flexibility, Adapt to Change Reconciling the conflicting interest of stakeholders

Question 23

Factors that lead to change?

Answer 23

• Economic Cycle
• Seasons
• Employees/ Ownership
• Demand and Supply
• Consumer Preferences
• Technology

Question 24

What can poorly managed change lead to?

Answer 24

-Overall Business Decline
-Employee Resistance
-Decreased Profit
-Deceased Productivity
-Increased Employee Tensions
= Business Failure/ Closure

Question 25

Changes can be ____ and _____

Answer 25

Internal and External

Question 26

What are Ethics?

Answer 26

Standards of behaviour or moral position, influences decisions and what is seen as wrong/ right and the values of management

Question 27

What are the Key Business Functions?

Answer 27

Operations: Process of Inputs and Outputs Marketing: Sell the outputs, determines outputs, cogs and employee needs Human Resources: Combines skills of owners and employees to perform tasks Finance: Financial resources to operate the business

Question 28

Tangible Vs Intangible?

Answer 28

Tangible: Outputs you can touch Intangible: Service/Process that completes a need/want but isn't always visible as an output

Question 29

Inputs vs Outputs?

Answer 29

Inputs: Resources used in the operations process Outputs: The End Product

Question 30

Inputs--> ________ _____-->Outputs

Answer 30

Transformation Process

Question 31

What is the Transformation Process and How do we Transform?

Answer 31

Conversion/ Change of Resources into products, operations process is to add value to the input. How do we transform? 1. Labour Intensive: Manual Labour 2. Assembly Line: Mass Production 3. Automated: factories, robots

Question 32

What is Value adding?

Answer 32

Equipment, Labour, Materials, skills and ability, money/cash flow, access to resources/facilities, vision, knowledge

Question 33

What is Quality Control and Assurance

Answer 33

Purpose to minimise waste and cost, create a consistent product Having a quality system in place to meet standards

Question 34

Financial Objectives of a Business?

Answer 34

INCREASED SALES, DECREASE COSTS, MAXIMISE PROFITS Advertising, Budgets, Efficiency, Growth, Product Development, Liquidity, Solvency

Question 35

Debt vs Equity Finance?

Answer 35

Debt: External Sources- borrowed from banks, investors, other firms. Involves contractual agreement that specifies interest and repayment Equity: Internal Sources- provided by owners. Business capital or shares. Also Net Profit reinvested

Question 36

3 Statements for Financial Information

Answer 36

Cash Flow Statement Balance Sheet Revenue Statement

Question 37

What are the HR Functions?

Answer 37

- Hiring - Performance Management - Learning and Development - Career Planning - Total Rewards - Employee Communication - Heath and Safety - Wellbeing - HR Strategic Planning - HR Operation - Industrial Relations

Question 38

Types of Pricing?

Answer 38

Cost Plus Margin Market Price Competitors Price Discount Price