Planning Flashcards
list the benefits of planning
Anticipate problems
Identifies SWOT
benchmarking
improves motivation
finance
anticipate problems
helps the firm to anticipate future problems. It can then put plans in lace to overcome these problems before they arise
Identifies SWOT
A SWOT analysis helps a business to identify and exploit its strengths and opportunities. It helps to minimise or remove its weaknesses or threats
Benchmarking
The business monitors its progress by comparing its planned targets with actual results. It can help identify what changes need to be made to achieve its targets.
improves motivation
Planning ensures all employees know future goals of the business. It makes them feel like they have an important role in the business and increases motivation levels
finance
future planning helps the business to obtain finance. It shows banks and investors that the firm is capable of repaying its loans
strategic plan
long term
2-10 years
it breaks down the mission statement into long term business plans
tactical plan
1-2 years
written by middle management
it breaks down the strategic plan into short-term plans
it helps the business to achieve the strategic plan
operational plan
short term plan
0-1 years
written by management at all levels
it includes plans for the day to day running of the business
contingency plan
short term plan
0-1 year
written by management at all levels
back up plan used to overcome or deal with unforeseen events or emergencies
HR plan
short term plan
0-1 year
written by the HR manager
it ensures the business has the correct number of employees with the correct skills and qualifications to fill all roles in the firm
Financial plan
short term plan
0-1 year
written by the finance manager
the business prepares a cash flow forecast to predict the income they will receive and spend over a particular period of time
