▪ Option Taken: OPTION B
▪ Assessment Criteria: OPTION B
▪ Name: MARIA ROSA MARCO CABANES
▪ IoSCM Membership Number: 01684
▪ Your email address: rosa.marcO@LIVE.COM
▪ Assessment Criteria File 5/7
▪ Page 1/8
Produce a piece of work which includes the following information; 1. A description of three roles and responsibilities within an organisation you have worked in or studied.
2. An explanation of the importance of a business plan to the running of a business.
3. An explanation of how an individual could contribute to a business plan.
A business plan is an informative document that explains the strategy and objectives of the company. Its first aim is to evaluate the viability of the project and to analyze the business prospects. This powerful tool of communication within the company will provide a clear direction of the planning strategy. It will clearly identify and focus the company objectives using appropriate information and analysis. It can also be used as a selling tool when dealing with lenders, investors and banks.
Within business planning managers also calculate a break-even analysis, profit , loss projection and a cash flow analysis designed to show if the business has enough money or has developed as expected.
When the organization is a profit organization the business plan will focus more on financial goals such as profit or value creation. On the other hand a not for profit organization will focus on the three E's namely Economy, Effectiveness and Efficiency.
There is no specific format to write a business plan and the structure can vary broadly. Therefore when writing a business plan it is imperative to organize the business ideas and supply high level of analysis. It is very important to collect a great deal of information so that will be easier to understand the company position in the market and the viability of the business plan.
Whether the business is of new creation or already well established, business implementation becomes the responsibility of all the employees. Implementation is the process of executing a plan or policy so that the concept becomes real. To implement a plan properly, managers should communicate clear goals and expectations, and supply employees with the resources needed to help the company achieve its goals.
Business planning is essentially about taking a more in depth approach to think strategically about the future of the business.
There are many specific reasons for business planning:
* Deciding objectives
* Asses market demand
* Plan resource requirements
* Assess finance requirements
* Analyse likely future changes
* Summarise likelihood of success
* Set targets
* Guide day to day activates
* Describe situation of the business
* Check against targets
* Decide changes
* The plan takes many information from many sources ideas
* Industrial market research
* Customer market research
* Financial calculations
Above I talked about the financial calculation section that would be included as part of the business planning, making financial projections and calculations are considered very important within the business planning process, this aspect significantly contributes to the survival and growth of the business. For example predicting and planning business finances can show potential investors that the business idea will be very successful.
Individual contribution to the Business Plan
The Business Plan incorporates a series of targets and objectives in order to maximise success within the company.
A useful and well-recognised method of setting objectives is to use the SMART Formula to build up properly constructed business objectives,...