1.6 Business planning

• A clear business plan can attract investors by demonstrating a company's vision.


  True
• What does the market analysis section of a business plan assess?

  Target market and competition
• Match the marketing strategy with its description:

  Product Strategy ↔️ Develops and improves products

  Pricing Strategy ↔️ Sets competitive and profitable prices

  Promotion Strategy ↔️ Raises awareness and drives sales

  Place/Distribution Strategy ↔️ Determines product accessibility
• Match the marketing strategy with its description:

  Product Strategy ↔️ Develop, improve, and differentiate offerings

  Pricing Strategy ↔️ Set competitive and profitable prices

  Promotion Strategy ↔️ Raise awareness and drive sales

  Place/Distribution Strategy ↔️ Make products accessible to customers
• What is one benefit of business planning in terms of risk management?

  Reduces risks
• An executive summary provides a concise overview of the business, its objectives, and key strategies
• What does the Product Strategy focus on in marketing?

  Developing and improving products
• What does the Place/Distribution Strategy determine?

  How products reach customers
• What is the primary purpose of Sales Projections?

  Estimate future revenue
• What is the main goal of Operational Planning?

  Produce goods or services efficiently
• Why is effective operational planning crucial for a business?

  Align production with demand
• Business planning reduces risks by identifying potential challenges
• The executive summary of a business plan provides a concise overview
• Presenting market research findings to stakeholders supports informed decision-making.


  True
• What does the place/distribution strategy determine?

  Product accessibility
• Steps in the business planning process

  1️⃣ Set business objectives

  2️⃣ Develop strategies to achieve objectives

  3️⃣ Manage risks

  4️⃣ Attract investors

  5️⃣ Guide decision-making
• Match the business plan component with its description:

  Executive Summary ↔️ Concise overview of the business

  Business Description ↔️ Details about the company

  Market Analysis ↔️ Assessment of the target market

  Operations Plan ↔️ Details on production and logistics
• Steps in the market research process

  1️⃣ Define research objectives

  2️⃣ Collect data

  3️⃣ Analyze the data

  4️⃣ Interpret the findings

  5️⃣ Communicate the results
• The Promotion Strategy uses advertising, sales, public relations, and other methods to drive sales.


  True
• The choice of marketing strategy depends on factors such as the business's objectives, target market, and competitive landscape
• Sales and financial projections help companies make informed strategic decisions.


  True
• Steps in Supply Chain Management

  1️⃣ Planning the flow of materials

  2️⃣ Coordinating with suppliers

  3️⃣ Managing production processes

  4️⃣ Ensuring timely delivery
• Match the funding source with its description:

  Debt Financing ↔️ Loans requiring interest payments

  Equity Financing ↔️ Selling shares to investors

  Venture Capital ↔️ Funds for high-growth startups

  Angel Investors ↔️ Personal capital for early-stage companies
• Mitigation strategies are proactive measures taken to reduce or eliminate the risks
• Understanding funding sources and investment types is crucial for financial planning and securing capital.

  True
• Regularly updating risk assessments is essential to adapt to changing business conditions.

  True
• What is business planning?

  Setting objectives and strategies
• Match the benefit of business planning with its description:

  Reduces Risks ↔️ Avoids costly mistakes

  Attracts Investors ↔️ Demonstrates vision and strategy

  Guides Decision-Making ↔️ Provides a framework

  Improves Efficiency ↔️ Streamlines processes
• In market research, primary data includes surveys and interviews
• A pricing strategy aims to set prices that are competitive and profitable
• Effective marketing strategies integrate different elements to create a cohesive plan
• Business planning focuses on short-term day-to-day activities rather than long-term growth

  False
• Effective market research is essential for understanding the target market and mitigating risks


  True
• The Pricing Strategy involves setting prices that are competitive, profitable, and attractive
• Match the marketing strategy with its description:

  Product Strategy ↔️ Develop and improve products

  Pricing Strategy ↔️ Set competitive prices

  Promotion Strategy ↔️ Raise awareness and drive sales

  Place/Distribution Strategy ↔️ Determine product availability
• Financial Projections involve developing projected income statements, cash flow statements, and balance sheets
• Production Schedules are timetables outlining the production of specific products or services, considering capacity and resources
• Debt Financing involves loans from banks or issuing bonds
• What does Risk Assessment involve in business?

  Identifying and analyzing hazards
• What is an example of a mitigation strategy for Operational Risks?

  Employee training