BUSINESS PLANNING

CHAPTER 5
Lesson objectives
To identify the different aims and objectives of different
enterprises
How aims influence the activities of enterprise
What are Action plans- to discuss its purpose and
importance
Difference between Aims and Objectives

Aims : it is an over all goal that an enterprise wants to achieve.

Objectives : A specific target that an enterprise wants to reach, so that it can achieve its aims

Aims are long term

Objectives are short term

Aims are general

Objectives are specific

Example of Aims : to increase sales revenue

Example of objectives: to increase sales revenue by 25% by the end of the year.
Objectives
Objectives should be :
S - Specific
M- Measurable
A – Achievable
R - Realistic
T- Time based
Importance of setting objectives

Provides focus and sense of direction

Motivates employees
Measures progress
Actions can be monitored
Plans and strategies adopted to achieve targets
Different types of objectives

Profit maximization
Growth or expansion
Satisfying profits
Survival
Increase market share (sales growth)
Increase revenue
Cash flow
Providing good services
Protect environment
Being ethical
Social needs
Legal compliance
Not-for-profit
Lesson objectives
To identify the different aims and objectives of different
enterprises
Can objectives change? Discuss.
What are Action plans- to discuss its purpose and
importance
Can objectives change?
Are there factors that can influence the objectives that are
set?
Objectives can change based on……..

Changes in external environment

A new competitor
Advancement of technology
Economic conditions of the country
Political instability leading to change in government policies
PLANNING: an essential aspect in achieving objectives
Planning becomes essential to achieve the aims and objectives.
Planning can be short term or long term. An enterprise may use
several planning tools such as :
 Action plans
 Business plans
 Marketing plans
 Plans for negotiations and meetings
Action plan
A list of tasks that can be completed in order for a set of goals
to be achieved.
 It provides step by step framework of activities needed to be
done to complete the project
 It shows what needs to be done
 It shows by whom it will done
 It shows by when it needs to be done
 And how the progress will be monitored
Format of an action plan

TASK PERSON COMPLETION HOW UPDATES/

RESPONSIBLE DATE PROGRESS CHANGES
CAN BE MADE
MONITORED
Lesson objectives
To discuss the purpose and importance of Action plans.
To analyse methods to monitor action plans.
To explain what is a business plan. And to discuss its
purpose and importance.
 Action Plan

An action plan provides a step by step framework of individual activities

needed to complete a project. It shows what needs to be done, when it
needs to be done, by whom it needs to be done and how progress will be
monitored.
 Arrange the stages of an Action plan in a logical sequence

 Start implementing your actions/

activities

 Think of how you can monitor and

 Set the goal you want to achieve
check if an activity is completed

 Identify the actions you will need to

achieve the goal

 Break the actions into small and simple  Decide on the time spent for each
tasks activity

 Put these tasks into a logical order-

order of priority

 Review and update or modify plan while

 Achieve the goal
carrying out the activity
Stages in constructing an Action plan
 Set the goal you want to achieve
 Identify the actions you will need to achieve the goal
 Break the actions into small and simple tasks
 Put these tasks into a logical order- order of priority
 Decide on the time spent for each activity
 Think of how you can monitor and check if an activity is completed
 Start implementing your actions/ activities
 Review and update or modify plan while carrying out the activity
 Achieve the goal
Stages in constructing an Action plan
 Set the goal you want to achieve
 Identify the actions you will need to achieve the goal
 Break the actions into small and simple tasks
 Put these tasks into a logical order- order of priority
 Decide on the time spent for each activity
 Think of how you can monitor and check if an activity is completed
 Start implementing your actions/ activities
 Review and update or modify plan while carrying out the activity
 Achieve the goal
 Attempt Activity 5.2 (pg. 68)

Imagine you have been asked to organize a food stall for a celebration or festival
which is happening in a few week’s time.

Identify steps that need to be taken to complete it. What are the stages involved
in constructing an action plan for this activity.

Write a simple action plan that you could use to help you achieve your goal.
Activity 5.3 - HOMEWORK

Read the case study Activity 5.3 on Pg. 68 in the text book and
suggest ways in which Olivia could solve her fruit problem
Activity 5.3: Solution
Methods of monitoring action plans

To monitor means to check the progress of something over a period

of time.
Check progress of project from time to time.
Know the stages are completed in the right order and on time.
Identify the actions to be taken
Allow for alternative steps if necessary
BUSINESS PLAN

A formal document that gives the aims of the enterprise

and outlines ways those aims can be achieved

Watch the video and be prepared to share your views on

what is a Business plan.
https://www.youtube.com/watch?v=FIoGLHT4wGE
Purpose and Importance of a business plan

It helps the entrepreneur:

 To plan ahead- which will help in identifying and avoiding risks that may take
place.
 It helps to set objectives and measure the success of achieving these
objectives.
 What products or services do I intend to sell ?
 Who should be my target audience?
 What will be my main costs and will I be able to make enough products to
cover the cost?
 It provides information about the market, competitors and potential demand-
make marketing decisions
Contents of a Business Plan

Basic information – Name, objective, description of proposed

idea
Marketing - Size of market, nature and type of product, price of
product, promotion methods used, place to sell,
Operation (production) - methods of production, resources
used
Human resources - number of employees, who will do what?
Financial - budgets, income statement, balance sheet, cash
flow forecasts, etc.
Refer Pg. 72 on the Business plan for Suki’s Noodle bar.
Identify the main contents and discuss why the information may be
useful.

Discuss the answers for the question given at the end of the case
study on pg. 73
Monitoring and updating a business plan

A plan drawn may not be accurate as it is based on estimates, assumptions and historical data.
There are so many factors that may affect your plans and so plans need to be constantly
modified
Business plans need to be updated for reasons such as:
 Objectives set may have now been achieved
 You may require additional finance
 There may be changes in the ownership and management
 New products introduced or existing products need to be developed
 Changes in competition
 External factors may have changed such as growth in population
 Cost may have increased or decreased from what was planned
Do the Activity seen in your text book (page 75)

Attempt all question in the Notebook

Do the task in 20 minutes