BSBMGT617

DEVELOP AND IMPLEMENT A BUSINESS PLAN

Assessment Task 1: Written questions

1. Identify and describe five common components of a business plan
 Executive summary is a short document or section of a document produced for business
purposes. It summarizes a longer report or proposal or a group of related reports in such a way
that readers can rapidly become acquainted with a large body of material without having to
read it all.
 Business profile is a professional introduction and aims to inform people (primarily prospective
buyers and stakeholders) your products, services, and current status.

 Market analysis is a study of the dynamism of the market. It is the attractiveness of a special
market in a specific industry.

 Marketing Plan is a comprehensive document or blueprint that outlines the advertising and
marketing efforts for the coming year. It describes business activities involved in accomplishing
specific marketing objectives within a set time frame.

 Risk Management Strategy is the process of identifying, assessing and controlling threats to an
organization's capital and earnings. These threats, or risks, could stem from a wide variety of
sources, including financial uncertainty, legal liabilities, strategic management errors, accidents
and natural disasters

 Operating Plan is the section of your business plan where you dig into more of the nuts and
bolts of your business, areas like: production/manufacturing, inventory, and distribution

 Management and staff plan is ultimately a document that explains the various human resources
requirements that will be met for both staff management and employees alike.

 Finance is defined as the management of money and includes activities like investing,
borrowing, lending, budgeting, saving, and forecasting.

2. Discuss the purpose of the business planning process

A business plan serves as the blueprint for how you will operate your business. While you need to have a
business plan to seek investors or get a loan for your company, the plan is actually for your benefit. It
provides a step-by-step guide as you start a new business or grow your current company. It provides
direction for every decision you make going forward.
3. Discuss three areas that a business planning process may address.

 Finances
Once you’ve outlined your intentions you then need to back it up with capital. This section is
where you outline the finances you have on hand, any loans you may intend to take, and also
some projected earnings for the first year or two of your business.

 Strengths and Weaknesses

This section should detail the strengths of your business and its weaknesses. The strengths will
vary depending on your industry, but listing the unique selling point of your goods and services
is ideal for all enterprises. Also listing any weaknesses the business may have, such as seasonal
factors, higher risk of litigation, high difficulty obtaining ongoing financing, and so on.

 Marketing
It’s vital a new business gets the word out. Marketing is always going to be a core focus on any
new business in the earliest stages.

4. Discuss key steps in developing a business plan

 Executive summary -- a snapshot of your business

 Company description -- describes what you do
 Market analysis - research on your industry, market and competitors
 Organization and management -- your business and management structure
 Service or product -- the products or services you’re offering
 Marketing and sales -- how you’ll market your business and your sales strategy
 Funding request -- how much money you’ll need for next 3 to 5 years
 Financial projections -- supply information like balance sheets
 Appendix -- an optional section that includes résumés and permits

5. Outline key stakeholders who may be involved in business planning

1. Investors – owners, bank or investment company

2. Business people – in companies working cross-culturally in your business or industry
3. Business consultant – someone with specialist knowledge
4. Colleagues – management and staff
5. Customers – those likely to be your clients
6. Suppliers – of essential materials and services for your business

6. Discuss the purpose of a business vision

Vision statements help to describe the organization's purpose. Vision statements give direction
for employees. A vision statement is a view into the future with hope and a positive outlook. It
describes a company's inspirational, long-term plan for what they'll be able to accomplish, who
they will help, and how the company will then be perceived. It's often out of reach for now, but not so
far out of reach as to be unattainable. The vision statement gives everyone a description of what
they're working [Link] behavior and help provide inspiration. Strategic plans may require a
marketing strategy, which could include the vision statement to also help inspire consumers to
work with the organization.

7. Discuss the purpose of a SWOT analysis in a business planning process

SWOT analysis is a planning methodology that helps organizations build a strategic plan to
meet goals, improve operations and keep the business relevant. During SWOT analysis,
organizations identify strengths, weaknesses, opportunities and threats (the four factors
SWOT stands for) pertaining to organizational growth, products and services, business
objectives and market competition.

 Fortifying the strengths and mitigating the weaknesses

 Creating a big-picture look at an enterprise's core values
 Assisting in long-term planning
 Highlighting priorities
 Underscoring options and possible courses of action
 Pointing to the potential need for outside assistance from financial, legal, management
or marketing experts
 Developing realistic sales forecasts.

8. Discuss why it is important for a business to use a range of performance measures

The importance of performance measurement system lies in the fact that it not only improves
the performance, but also the productivity of a business entity by reducing costs. It is a good
way to align the activities with the plans being established. It provides necessary feedback that
the activities may be guided accordingly by allowing managers to implement best practices. It
may thus be said that performance measurement process is a great way to understand, manage
and improve the overall functioning state of a business organization. If done effectively and
efficiently, it drives success in business definitely.

9. Outline three performance measures that could be used to measure customer satisfaction

1. Customer Effort Score (CES)

With this method, customers aren’t asked for their satisfaction or likeliness of referring, but for
the effort it took them to have their issue solved — generally on a scale from 1 (very low effort)
to 7 (very high effort).
2. Social Media Monitoring
Social media has had an immense impact on the relationship between business and customer.
Where before, a great or poor service experience would maybe be shared with the closest
family and friends, social media offered an outlet and reach to potentially millions of people.

3. Things Gone Wrong

This metric originates from the Lean Six Sigma approach , and measures the number of
complaints, or "Things Gone Wrong," per 100, 1000, or up to a 1,000,000 units of survey
responses, units sold, or other.
The standard approach to measure TGW is through complaint sections in customer surveys, but
you could also maintain internal metrics. In the worst case scenario your score is 1 or higher,
meaning that you get at least 1 complaint per chosen unit.

10. Discuss the balanced scorecard approach in relation to performance measurement

The Balanced Scorecard, referred to as the BSC, is a framework to implement and manage
strategy. It links a vision to strategic objectives, measures, targets, and initiatives. It balances
financial measures with performance measures and objectives related to all other parts of the
organisation. It's a way of looking at your organization that focuses on your big-picture strategic
goals. It also helps you choose the right things to measure so that you can reach those goals.
Traditionally, companies have judged their health by how much money they make.

11. Explain the SMART criteria for objectives

Specific
Be specific! There’s no use in setting a generic goal because it won’t suit you personally,
however if you adapt the goal to apply to what you need, then it will be much more valuable to
you. Of course you want to prosper in your field of work, but isn’t everyone in the office
thinking the same?

Measureable
Is it quantifiable? For instance going back to the example objective of selling more, you can
measure this by the amount of units sold. Being a measurable goal allows you to identify when
exactly it has been reached, i.e. what you desire as the end result.

Achievable

The point of a target is to challenge and motivate yourself to complete a piece of work, if you
was to set your target too high it can cause stress and so decreasing the chance of your target
actually being within reach. Likewise if a target was too easy will inhibit you from pushing
yourself and doing more. Setting yourself a reasonable target is crucial!
Realistic

‘I’m going to own a multimillion pound enterprise by the end of the month’ Might be a tad too
ambitious, don’t get me wrong ambition is a leading trait, but maybe start off with something
more realistic, remember all successful business people don’t just become successful overnight.

Time bound

Deadlines. Not something we like, but something most of us need. Especially if you’re someone
like me, who tends to procrastinate. For example, if you’re sat at your desk knowing you have
work to do, it’s easy to get lost in the world of the internet looking at cute animal photos or
funny videos, but what if you were to say ‘Right, by 2 o’clock I want to have completed…’ then
you’ve just motivated yourself to complete a job by an allotted time.

12. What is the purpose of using key performance indicators in the business planning
process?

The business world regularly uses key performance indicators, or KPIs, to track the performance
and project the future success of a business organization. No standard list of KPIs exists that the
business world recognizes and adheres to as a way to track these. Instead, KPIs can vary from
industry to industry and even from business to business within the same industry.

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