Business Planning + Objectives Flashcards
Define a business plan
A document that outlines a businesses purpose and how it will organise its resources in order to achieve its goals
Name Sections of a business plan
Aims and objectives
Management bio
Target market/ market research
Why write a business plan?
Name Pros and cons
To set clear objectives
To show organisation
To help raise finance
Pros- helps identify potential problems and possible solutions, often essential to raise finance
Cons- takes time and energy to make (opportunity cost) needs to be updated to be useful
Methods other than profit that are used to judge a business
Customer satisfaction
Product quality
Brand image
Company size
Revenue/ sales growth
What are the main aims
To survive
Profit maximisation
Growth
Market share
Customer satisfaction
Why do businesses set aims
To improve decision making
To provide clear goal
Prioritise spending
Motivate employees
Why do aims change
New bs old business
Change in competition level
Change in ownership
Define an
Aim
Objective
Long term
Short term
Aim- term goal, business organises its resources in order to achieve
Objective- clearly stated outcome that will help an organisation achieve its aim
Long term: +1 year
Short term:within 1 year
Define survival
Business has sufficient cash flow to pay debts and continue operating
Define increasing market share
Business aims to increase number of sales from customers who previously used rival companied
Define increasing customer satisfaction
Aim of meeting customer expectations
Define growth
Business aims to increase in terms of number of outlets, employees or sales revenue
Domestic- within uk
Define social and ethical objectives
Wide range of objectives related to moral values eg reducing environmental damage or creating employment
Define profit maximisation
Business focused on maximising revenues whilst minimising costs
Define maximising shareholder value
Increasing shareholder returns through increasing dividend payments and the organisations share price
