APC Business Planning Level 1

Question 1

What is a business planning?

Answer 1

A document that defines the business objectives and suggests strategies to be undertaken to realise how this will be achieved within a defined time frame.

Question 2

A business plan can help achieve what objectives?

Answer 2

Funding
Gain new clients and customers
Help focus on priorities
Help to focus on organisational change
To set targets for staff
Set budgets

Question 3

How would a public sector business case differ from a private one?

Answer 3

A public sector business case would look to maximise net social benefit within its available funds.

A private sector business case is typically focused towards profits for shareholders.

Question 4

What areas would be included in a public sector business plan?

Answer 4

Strategic Case - The case for change
Economic Case - Value for money
Financial Case - Affordability
Commercial Case - Commercial viability
Management Case - Deliverability

Question 5

What are the essentials elements of a business plan?

Answer 5

• Executive Summary - The first section should be a concise overview of your business plan
• Company Description - This high-level view of your business should explain who you are, how you operate and what your goals are.
• Products and Services - Show your industry knowledge, and present conclusions based on thorough market research.
• Market analysis - Summarize your sales and marketing strategy, and how you’ll implement them with an operating plan.
• Strategy and Implementation - Summarize your sales and marketing strategy, and how you’ll implement them with an operating plan.
• Organization and Management Team - Outline your company’s organizational structure. Identify the owners, management team and board of directors
• Financial plan and projections - This last section of your business plan should be developed with a professional accountant after you’ve completed a market analysis and set goals for your company.

Question 6

What are the types of organisational structure?

Answer 6

• Hierarchical Structure - In a hierarchical organization structure, employees are grouped with every employee having one clear supervisor.
• Matrix Structure - It is a type of organizational management in which people with similar skills are pooled for work assignments
• Horizontal/Flat Structure - The most important thing about this structure is that many levels of middle management are eliminated.
• Line Organizational Structure - Its authority flows from top to bottom.
• Team-based Organizational Structure - Team-based organizational structures are made of teams working towards a common goal while working on their individual tasks.

Question 7

What are the methods for financial benchmarking? (e.g. key financial ratios)

Answer 7

Benchmarking is a process of assessing your current performance against a peer group of organisations of comparable scale and complexity. This enables you to build a case for making changes to support wider business strategy.

This can be done internally or externally.

Profitability / Return on investment - Profitability ratios provide information about management’s performance in using the resources of a business.

Liquidity ratios - Liquidity ratios demonstrate a company’s ability to pay its current obligations.

Leverage ratios - Leverage ratios look at the extent to which a company has depended upon borrowing to finance its operations

Efficiency Ratios - By assessing a company’s use of credit, inventory, and assets, efficiency ratios can help business owners and managers conduct business better.

Question 8

What forecasting techniques are there?

Answer 8

The Delphi Technique - Using this technique, a group of field experts responds to a series of questionnaires. The experts are kept apart and unaware of each other.

The Subjective Forecasting Approach - Subjective forecasting allows forecasters to predict outcomes based on their subjective thoughts and feelings.

Time-Series Forecasting - Time-series forecasting is a quantitative forecasting technique. It measures data gathered over time to identify trends.

Question 9

What accounting techniques are there?

Answer 9

the main accounting techniques are…

Question 10

What is the meaning of working capital, stock, debtors and creditors?

Answer 10

working capital is…

Question 11

What types of business plan are there?

Answer 11

types of business plan are…..

Question 12

What is a Key Performance Indicator?

Answer 12

A KPI is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to track performance measures.

Question 13

How is TfL’s business plan set?

Answer 13

Our latest Business Plan was approved by the Finance Committee on Thursday 13 December 2018. It covers our plans for the transport network over the five years to 2023/24. Our latest Budget for 2018/19 was approved by the TfL Board on 20 March 2018.

Question 14

What is marketing analysis?

Answer 14

Increase sales through identifying areas of strength, and aligning these with opportunities.

Question 15

What is SWOT analysis

Answer 15

Strengths

Weaknesses

Opportunities

Threats

Question 16

What is PESTLE analysis?

Answer 16

• Political.
• Economic.
• Social.
• Technological.
• Legal.
• Environmental.

Question 17

In terms of Business Planning, how does your management ensure that you make a profit?

Answer 17

Regular reporting.

Forward planning.

Accounting systems to track all costs.

Question 18

What is a market analysis?

Answer 18

A market analysis is a quantitative and qualitative assessment of a market. It looks into the size of the market both in volume and in value, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation.

Question 19

What is short term planning?

Answer 19

Short-term planning looks at the characteristics of the company in the present and develops strategies for improving them. Examples are the skills of the employees and their attitudes. The condition of production equipment or product quality problems are also short-term concerns.

Question 20

What is Long-Term Planning?

Answer 20

In the long term, companies want to solve problems permanently and to reach their overall targets. Long-term planning reacts to the competitive situation of the company in its social, economic and political environment and develops strategies for adapting and influencing its position to achieve long-term goals.

Question 21

What is a PLC?

Answer 21

A Public Limited Company - A public company is a corporation whose ownership is open to the public. Anyone can buy shares in the company’s stocks.

Question 22

What is a Royal Charter?

Answer 22

If a company or organisation has been created by Royal Charter, it means that it has been granted power or a right by the monarch.

Question 23

What is a Private Limited Company (Ltd)

Answer 23

In contrast to a public company, a private company cannot be owned by any members of the public. It will instead be owned by an NGO (non-government organisation) or a relatively small number of shareholders, and the sale of company shares is handled privately.

Question 24

What type of company if TfL?

Answer 24

Transport for London (TfL) is a local government body responsible for the transport system in Greater London

Question 25

What is a LLP?

Answer 25

A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In a LLP, each partner is not responsible or liable for another partner’s misconduct or negligence