Podcast
Questions and Answers
Which feature is essential for a successful business plan?
Which feature is essential for a successful business plan?
What is a crucial aspect of monitoring and evaluating changes in business plans?
What is a crucial aspect of monitoring and evaluating changes in business plans?
What role do business plans play for investors and external stakeholders?
What role do business plans play for investors and external stakeholders?
How should a business respond to disruptive innovation according to its plans?
How should a business respond to disruptive innovation according to its plans?
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Which element is not typically included in financial planning within a business plan?
Which element is not typically included in financial planning within a business plan?
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What is the primary purpose of an executive summary in a business plan?
What is the primary purpose of an executive summary in a business plan?
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Which factor is NOT typically included in a SWOT analysis?
Which factor is NOT typically included in a SWOT analysis?
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Which aspect is essential for evaluating the effectiveness of marketing and sales strategies?
Which aspect is essential for evaluating the effectiveness of marketing and sales strategies?
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What is a key consideration when planning human resources for a business?
What is a key consideration when planning human resources for a business?
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Which element is typically examined in the competition section of a marketing plan?
Which element is typically examined in the competition section of a marketing plan?
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What should a company consider when setting compensation and incentives for employees?
What should a company consider when setting compensation and incentives for employees?
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In financial planning, which strategy is essential for understanding market demand for a new product?
In financial planning, which strategy is essential for understanding market demand for a new product?
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Which of the following best describes the purpose of customer service policies in a business?
Which of the following best describes the purpose of customer service policies in a business?
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What is essential for a business plan to remain effective over time?
What is essential for a business plan to remain effective over time?
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What type of monitoring should be employed by a board to assess the performance of a business plan?
What type of monitoring should be employed by a board to assess the performance of a business plan?
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Which of the following is considered a source of funding for a business?
Which of the following is considered a source of funding for a business?
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What defines a characteristic of disruptive innovation?
What defines a characteristic of disruptive innovation?
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What aspect of financial planning involves projecting future revenues and expenses?
What aspect of financial planning involves projecting future revenues and expenses?
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How can a business ensure that it meets legal concerns when producing goods or services?
How can a business ensure that it meets legal concerns when producing goods or services?
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Which financial statement gives a snapshot of a company's overall value including assets and liabilities?
Which financial statement gives a snapshot of a company's overall value including assets and liabilities?
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What is one of the benefits of having a performance measure system in place?
What is one of the benefits of having a performance measure system in place?
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Study Notes
Learning Objectives
- Be able to revise business objectives and plans to incorporate proposed changes
Business Plans
- Structure of business plans
- Use of business plans
- Evolution of business plans
- Changes to business plans
Action Plans
- Plans to implement change
- Monitoring and evaluating changes
- Measuring outcomes
- Setting deadlines
Components of a Business Plan
- Executive summary
- Business Profile/Description of a Business
- Markets business will operate in/Business environment
- SWOT Analysis
- Management Team and Personnel/Human Resources
- The products/Services offered
- Marketing Plan
- Financial Plan
- Monitoring and Evaluation
Business Profile/Business Description
- Details of goals and customers to be served
- Company structure
- Location
- Customer needs and wants
Executive Summary
- Overview of the business plan
- Summarizes key points of the document
- Helps reader quickly grasp key elements of the business plan
- Main Products and services, with emphasis on unique selling proposition
- The Market: Who will buy product and why; how you are going to market to them
- Money needed and how it will be paid back
Marketing Plan
- Market research
- Present markets and trends
- Target market, size, and demographics
- Ideal consumer profile
- Projected market share
- Geographic boundaries
- Seasonal trends
- Customer service policies
- Strengths and weaknesses
- Market survey results
- Competition
- Current competition, size, and market share
- Future competition
- Competitors' strengths and weaknesses
- Strengths and weaknesses of your business
- Your competitive edge
- Your ongoing cost to stay competitive
- Marketing and sales strategies
- Promotional and media methods
- Special services or policies
- Effectiveness of each method
- Frequency of use
- Channel selection
- Incentive or sales bonus schemes
- Sales force reach
SWOT Analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
Human Resource Plan
- What kind of employees are needed to run the business?
- Where will employees be recruited from?
- What kind of compensation incentives will be offered?
- How will employees be trained and developed?
- How will employees be evaluated?
Markets Business Will Operate In
- Research the market
- Typical buyer characteristics (e.g., income levels)
- Identify the hallmarks of disruptive innovation
Financial Plan
- Projection of income and expenses
- Cash flow forecasts
- Financial position
- Capital expenses
- Net worth statement
- Sources of funding
Sources of Funding
- Capital contribution (amount invested by owner)
- Existing loans
- Other funding sources (e.g., loans)
- Utilization of loan proceeds (e.g., asset purchase, working capital)
Products and Services
- Description of products/services to be produced
- Cost of sales
- Future prospects
- Legal concerns (intellectual property)
- How you'll get repeat customers
Monitoring and Evaluation
- Monitoring by the Board
- Plan progress
- Performance against budget
- Performance Measures
- Customer satisfaction
- Productivity
- Time cycle
- Defect-free production
- Financial performance
- Reporting
- Regular performance reporting, weekly, monthly, quarterly, and semi-annually
- Report on key performance indicators (KPIs)
Action Plans to Implement Changes
- How to manage change in a business
Action Plan
- Simple list of tasks
- Checklist outlining steps to achieve goals
- Objectives, tasks, team, planning, and scheduling
Change Management Process
- Steps are typically included
- Identifying change, process, and approach
- Evaluating, implementing, and monitoring change
Types of Change
- Strategic
- People-Centric
- Structural
- Technological
- Unplanned
- Remedial
Common Areas of Change
- Mission & Strategy
- Organizational Structure
- People
- Culture
- Knowledge
- Policies & Legal Agreements
- Processes
- Technology
- Products, Marketing & Customer Relations
- Integration
Negative Effects of Change Management
- Employee retention levels dropping
- Insufficient focus on managing impact of change on people
- Risks not being highlighted
- Increased resistance to change
- Negative impact on productivity
- Drop in customer service
- Lack of ownership or shared vision
Tips for a Less Painful Change Process
- Employee involvement
- Past experience
- Continued communication
- Myth-busting
- Understanding the psychological impact
- Consultation
- Additional support
How to Write an Action Plan
- Define objectives
- Break down objectives into tasks
- Assign tasks to a team
- Detail planning and resource allocation
- Schedule deadlines and milestones
What Should an Action Plan Include?
- Key Action Steps
- Timeline
- Expected Outcome
- Data Source and Evaluation Methodology
- Person/Area Responsible
- Comments
Example Action Plan for ABC Co.
- Objective 1: Improve meal quality on Male' to Srilanka flights
- Objective 2: Improve inflight customer services
- Detailed actions, milestones, timelines, expenditure, and resources.
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Description
This quiz focuses on understanding the structure, components, and evolution of business plans. It also addresses how to implement changes effectively through action plans, including monitoring and evaluating outcomes. Test your knowledge on the critical aspects of business planning and execution.
