Key Words 1
The various people and groups with a strong interest in a particular enterprise, including customers, employees, suppliers and the community.
What are stakeholders?
The goal of many enterprises to make the gap between total revenue and total cost as wide as possible.
What is Profit Maximisation?
The most important reason the production of a business plan is vitally important for an enterprise, especially when it is starting up.
What is it is likely to help the enterprise to attract potential investors to lend money?
This will contain a sequence of steps that need to be taken for a strategy to be successful
What is an Action Plan?
The "S" in S.M.A.R.T.
What is Specific?
The idea that an enterprise has a responsibility towards the wider society and environment.
What is Social Responsibility?
When an enterprise aims to maximise the revenue received from sales rather than its profit.
What is Sales Revenue Maximisation?
Two pieces of financial information that would usually be included in a business plan.
What are ... ? (Name two of the following):
1) The expected profit; 2) the break-even point; 3) cash flow forecast; 4) how much money will be put in to the enterprise by the owners; 5) how much money will need to be borrowed.
Why it is especially important to update an action plan.
What is to take account of any challenges or threats that may have emerged since the beginning of the project.
The "M" in S.M.A.R.T.
What is Measurable?
The increase in size of an enterprise through internal and/or external expansion.
What is Growth?
Whe an enterprise aims for an adequate level of profit, rather than profit maximisation.
What is Satisficing?
Two objectives that an enterprise may have.
What are ... ? (Name two of the following):
1) ethical; 2) not-for-profit; 3) social; 4) belief-based; 5) legal compliance; 6) profit; 7) sales revenue; 8) cash flow; 9) growth; 10) survival.
The advantage of producing and using an action plan.
What is it establishes the steps needed to achieve the end goal, e.g. it outlines each of the tasks that will need to be carried out?
The "A" in S.M.A.R.T.
What is Achievable?
The process or procedure to ensure that an enterprise follows relevant laws, rules and regulations.
What is Legal Compliance?
A plan that outlines the actions required to achieve particular aims and objectives and which provides a way of monitoring progress.
What is an Action Plan?
Two non-financial pieces of information that would usually be included in a Business Plan.
What are ... ? (Name two of the following):
The Enterprise; the Product; the Market; Personnel; Production; Premises and Equipment.
One way the success of an action plan can be monitored.
What is ... ? (name one of the three following):
1) By analysing the progress achieved in relation to certain targets; 2) by ensuring that tasks have been completed efficiently; 3) by ensuring that tasks have been completed the agreed deadline.
The "R" in S.M.A.R.T.
What is Realistic?
The difference between the total revenue and the total cost of an enterprise.
What is Profit?
A document that summarises the main objectives of an enterprise and how these objectives are to be achieved.
What is a Business Plan?
Two reasons why an enterprise would want to draw up a business plan.
What are ... ? (Name two of the following):
1. to present to a financial institution when seeking to negotiate a loan. 2. to give a clear idea of its direction to all stakeholders. 3. to outline how it is going to operate. 4. to anticipate potential problems and so minimise the risk of something going wrong.
What the target of an action Plan needs to be.
What is S.M.A.R.T.?
The "T" in S.M.A.R.T.
What is Time-based(bound)?