Topic 1: Business Organisation and Environement

Topic 1: Business Organisation and Environment

1.6 OrganisationalPlanning ToolsBrainstorm what Organisational planning tools are?

Business PlansLO: Analyse the importance of the information in the business plan to different stakeholders.

Business Plans

Business Plans

Business plans identify...The business idea and product or service being provided

The experience and skills of personnel

The external environment of the business

A background study of the sector

The competition

The market and a plan for penetration

Financial needs for the start-up and projections for returns

Future plans and goals

Decision making frameworkLO: Apply a formal decision-making framework to a given situation.

Decision making frameworkBusinesses face critical moments when decisions have to be made

Managers held accountable for the results

Decision can be made based on:HunchExperienceScientific Date

Decisions must be justified and backed-up by data or an acceptable process.

Decision-making tools.

Each decision carries an opportunity cost.

The risk needs to be controlled while maximising the gain.

Decision making framework

What is wrong with this picture?

Decision making framework

Phases of the decision making frameworkSet objectivesClarify the present situationGather informationGather ideas and innovationDecide between alternativesWork on planningTake actionControl and review

SWOT AnalysisStrengthsWeaknesses

OpportunitiesThreatsLO1: Prepare a SWOT analysis for a given situation.

LO2: Analyse an organisations position using a SWOT analysis.

SWOT Analysis

SWOT AnalysisStrengths

Can be anything favourable for the business.

Think of a business and try to list as many strengths as you can.

SWOT AnalysisWeaknesses

Require attention and honest/realistic assessment

Negative effects may be minimised through strategic action.

Could include things done badly or things done better by competition

Add some weaknesses to your list

SWOT Analysis

Opportunities

Factors that provide growth potential.

List as many as you can...

SWOT Analysis

Threats

Factors with potential harmful effects on business.

Barriers to development.

Issues that the organisation must protect itself from.

SWOT Analysis Why?

SWOT Analysis Why?

Uses its strengths to take advantage of its opportunities.

Minimises its weaknesses to reduce the significance of the threats.