Business And Management

Front 1

What is a Business Plan? What is in a Business and Plan and what is its importance?

Back 1

A written docuements that describes a business its objectives and its strategies, acknowledging the market an its financial forecasts. A business plan contains an executive summary, description of the business opportunity, marketing and sales strategy, management team and personnel, operations and financial forecasts. The importance of business plans is that it is curcial in setting up the business. For a new business, the purpose of a business plan is to establish the finance needed for start up.

Front 2

What is the relation of Stakeholders as users of business plans?

Back 2

Business plans must be real to the benfit of the stakeholders. They must plan for the future. This is reffered as corporate planning. It allows existing organizations to adapt and adjust to the original business plan in the event of revised strategies or perhaps even a major expansion. This will help the stakeholders assess the risks and rewards from investing on such actions. It can also act as a financial forecast that will be adjust budgets abd control the benchmarks, it would also help employees identify the specific objectives and focuses of the business. It will also help suppliers decide whether or not a long-term trading relationship can be established

Front 3

What are the two Decision-making frameworks?

Back 3

Intuitive Decision Making: We decide things based on instinct or "gut feeling" for a situation and the option available. Scientific Decision making involes basing decision on a formal framework and a fata analysis of both the problem and the options available.

Front 4

What are the stages in the decision making framework?

Back 4

1. Set objectives: This will define the purpose of the organization. 2. Assess the problem or situation: We see the strenghts, threats and potential opportunities. 3. Gather data to analyze both the extent of the 'problem' and the information needed to assess the options available. 4. Consider all the options available. 5. Decide between the alternative ideas or options using decision-making tools 6. Plan and implement the decision. 7. Control and Review

Front 5

What are Internal Constraints?

Back 5

They are the limiting factors in decision-making that can be controlled by the organization. This includes the organizationals structure, financial constraints, labour and other resources constraints and the attidude of the workfore to change

Front 6

What are External Constraints?

Back 6

They are limiting factors in decision making that are beyond the organization's control. This includes things that could identified with the PEST analysis. These are things such as the changes in the business cycle that may make raising finance difficult or expensive (higher interest rates), Another could be the changes in legal constraints that could influence the emand for the new products manufacutred.

Front 7

Explain the fishbone diagram

Back 7

It is a visual representation of many potential causes of a problem. It is known as the cause and effect diagram. There are six main bones which are: measurement, manpower, materials, "mother nature", methods and machines.

Front 8

Explain the concept of decision trees.

Back 8

It is a diagram that sets out the options connected with a decision and the outcomes and economic returns that may result. all of the options are open to the manager, they also look at the chances of these outcomes occuring, economic returns. Constructing decision trees: it is established from left to right and eavh of the branch of the tree represents an option together with ra range of consequences or outcomes and the chances of these occuring. Decision points are denoted by a square. it also such probablities are shown alongside.

Front 9

How do we work out the expected values?

Back 9

There is a likely financial result of an outcome obtained by mulitplying the probability of an event occurring by the forecast economic return if it does occur. They make the force of the decision that should be considered is the options and variables related to a decision. They put these on an easy-to-follow diagram which allows for numerical computation to assess the risks.

Front 10

What is the SWOT analysis?

Back 10

It identifies the strengths, weaknesses, opportunity and threats. The SWOT analysis diagram focuses on the key issues under each heading. A brief outline of each of these could then accompany the diagram to make it more useful to the managers. SWOT evaluation: subjectivity is often a limitation of a SWOT analysis.