Overview/Environment
What do the letters S W O T stand for?
Strengths
Weaknesses
Opportunities
Threats
Name the 2 types of objectives
Operational
What are the four pillars/functions under which resources should be organised?
Operations
Human Resources
Marketing
Finance
What is the formula used to calculate total revenue?
TR = P x Q
Total Revenue = Price x Quantity
the ‘road map’ for future growth and development within a business. It sets out the desired goals and direction of the business.
Business Plan
Name 3 elements of the business plan
1.Executive Summary
2.Goals
3.Strategies
4.Business Description
5.Management and Ownership
6.Operational Plan
7.Marketing Plan
8.Financial Plan
9.Human Resources Plan
Name the 3 types of goals a business owner may set
Name 2 questions that may be asked when organising human resources:
•How will I entice people to work here?
•What benefits will we provide?
•How many staff members do we need?
•What skillset do staff need to have?
•What other professionals do we need to hire?
•How much will we pay staff?
What is the formula used to calculate the total costs?
TC = FC + VC
Total costs = Fixed Costs + Variable Costs
The surrounding conditions in which the business operates. It can be divided into two broad categories: internal and external
Business Environment
Name 2 benefits of business planning (that we discussed)
Identifies business strengths and weaknesses
Forces small business owner to justify their plans and actions
Helps to test the viability of the business
Assists the business to be proactive rather than reactive
Indicates the owner’s ability and level of commitment
Assists in maintaining the business operation, focusing on goals
Who is responsible for setting operational objectives?
Front line management
What are the two most common sources of finance for an SME
Personal savings
Loans
Name 3 fixed costs
Insurance
Rent
Salaries
Rent
Insurance
Advertising/Marketing
Depreciation
The changes to the cash position brought about by the operating, investing and financial activities of the business
Cash flow projection/statement
Name 3 steps in the planning process
Identify goals
Identify key criteria to achieve goals
Analyse current set up
Identify issues and develop solutions
Identify new opportunities
Formulate new business structure
Develop action plan
Manage change process
What is the timeframe for strategic goals?
Long term (years)
Develop plans and establish goals
Determine activities
Group activities
Assign work tasks and delegate authority
Design a hierarchy of relationships
Name 3 variable costs
Packaging supplies
Inputs (i.e. wood for timber furniture)
Materials
Inventory
Electricity for machinery used in manufacturing
Postage
mid-term, departmental issues and describe the course of action necessary to achieve the business’s strategic goals
Tactical objectives
Name 3 external influences on the business
Economic
Political
Legal
Financial
Geographic
Name 2 of the strategies discussed for creating long term growth
Customer feedback
Supplier and Customer relationships
Cost efficiency
Six Sigma
Staff Motivation
Operations management is responsible for transforming different types of ____________ into finished or semi-finished ____________ and ____________.
Inputs
Goods
Services
What is the breakeven point formula? And what does it tell you?
BEQ = TFC / (UP - VCPU)
Break even quantity = Total Fixed Costs / (Unit price - Variable costs per unit)
Tells us the quantity that needs to be sold before making a profit.
long-term, broad aims and apply to the business as a whole
Strategic goals