Tutorial Topic 9

Case study
Review Questions

1. List and describe the different types of potential audience for a firm’s business plan.
2. Define (in the correct order that they appear) the seven major elements of a business plan.
 Executive summary
 Background
 Marketing
 Operations and production
 Financial projections
 Implementation timetable
 Appendices
3. What are the main differences between a strategic plan and a business plan?
A strategic plan is primarily used for implementing and managing the strategic direction of an
existing organization. A business plan is used to initially start a business, obtain funding, or
direct operations. The two plans cover different time frames as well

4. ‘The disadvantages of preparing a business plan outweigh the advantages.’ Do you agree
with this statement? Explain your reasons.
Not a guarantee of success
Cannot eliminate uncertainty — not possible to accurately predict the future
May use inaccurate or outdate Reliance on a predetermined plan can actually do more damage to
the business than might otherwise be the case. ed information

5. Outline and briefly describe (in the correct sequence) the eight steps involved in the
business-planning process.
1. Set preliminary steps
2. Conduct initial research using secondary sources
3. Confirm goals
4. Conduct subsequent detailed research
5. Write the business plan
6. Critically assess the proposed plan
 7. Implement
8. And evaluate the plan

6. If you were the owner of a business but employed a full-time manager to run your firm,
who would be best placed to write up the plan.
The owner would be best of write up the business plan but the manager would be best to write
the strategic plan for the business

7. What do you think are the major pieces of information that an investor would look for
first in a business plan, and why would an investor look for these items?
The financial projections of the organization and the appendices to help better evaluate if the
business is going to succeed