Business Planning

SMES

100

What does SME mean?

Small to Medium Enterprise

200

Explain the difference between a good and a service. 

 A good is a tangible or physical product that someone will buy, tangible meaning something you can touch, and a service is when you pay for a skill. A service is something intangible, which can't be physically touched or stored.

300

SMEs are heavily involved in which industry areas? (Will get points if you list 3).

Construction, property and business services and retail.

400

What is a non-employing business?

Sole proprietorship and partnership without employees. 

500

What are two main goals of a SME? One starts with an E.

Expansion & Profit

Influences on SMES

100

Identify 2 advantages of purchasing a franchise. 

Reduced risk of failure, suppliers and materials already established, research and development already performed, well established procedures/visions. 

200

List 2 advantages of entering a market where there exists a number of competitors.

Market analysis/research has already taken place, all the roadblocks have been identified and cleared, pick & choose success' of other businesses. 

300

Fill in the gaps: personal qualities – qualifications, s______, motivation, e__________, cultural background, g_____

skills, entrepreneurship, gender

400

Start-up capital can come from where? List 3 sources. 

Owner's savings, a gift from family members, inheritance, shares in business purchased from other people, sale of a personal asset such as second family car, bank loans. 

500

What is Lewin's change model? 

Unfreeze, change, refreeze

The Business Planning Process

100

Explain what variable costs are. 

Variable costs (VC): are costs that depend on the number of goods or services produced.

200

List the 4 P's in relation to Marketing. 

Price, promotion, place, product. 

300

Define what a vision statement is.

A written statement that expresses long-term inspirational image that the owners desire for the business.

400

Explain each section of SWOT. 

500

Finance: Identify one internal and one external finance source. 

Internal: retained profits, owner's equity. 

External: banks, investment banks, mortgages, superannuation, life insurance. 

Critical Issues - Success/Failure

100

Explain why group work may not be the best for your business. 

Unequal Participation, intrinsic Conflict, no  individual thinking, decision making takes time, easy to avoid work, loss of creativity, time consuming.

200

List 4 qualities a manager needs to exhibit. 

Decision-making skills, communication skills, negotiable skills, open-mindness. 

300

Identify 3 factors that lead to a failed business. 

Lack of experience.

Insufficient capital (money)

Poor location.

Poor inventory management.

Over-investment in fixed assets.

Poor credit arrangements.

400

Explain what a megatrend is. 

Megatrends are long-term developments over several decades that have a formative effect on all areas of society and the economy worldwide.

500

List 4 methodologies for conducting trend analysis'.

Interviews with customers, users, employees and suppliers

Expert interviews (science and business)

Workshops with experts and stakeholders, offering creativity techniques, among other things

Delphi studies (a forecasting process framework based on the results of multiple rounds of questionnaires sent to a panel of experts).

True or False

100

Operations deals specifically with the relationships between the employer and the employees of a business. 

False

200

Most SMEs fail within 5 years. 

True

300

Location plays no role in the success of a business. If consumers want the product, they will source it from wherever.

False. 

400

Reducing carbon footprints is an example of corporate social responsibility. 

True

500

A cafe should use the just-in-time inventory system. 

True.