1.

List 5 characteristic that should form part of a Key Performance Indicator

 Measurable
 Achievable
 Timely
 Visible
 Aligned

2. List 3 alternative approaches to developing key performance indicators to meet business

objectives
 Cause and Effect
 Risk Based
 Lifecycle

3. What is the difference between a strategic KPI and an operational KPI?

Strategic key performance indicators (KPIs) are concerned with observing growth or trends within
specified time frames. They typically have lengthier completion timelines, ranging from two to five years
to even ten years, depending on the project. While operational KPIs are typically targeted, specific, and
easy to monitor, especially when measured over a shorter period of time, financial KPIs are not.
Furthermore, operational key performance indicators (KPIs) are more project-based, and they provide
critical information regarding systems, processes, and people. Counteractive action can be taken
promptly, and issues can be resolved before they become more serious.

4. What should you consider when formulating your business goals?

When developing a business plan, it is important to consider a number of factors, including the products
and services that we intend to sell, as well as the consumer groups and their requirements that we will
be targeting, as well as the factors that will determine our future success. Another key consideration is
what will encourage customers to purchase from us rather than our competitors, as well as the level of
company returns we hope to accomplish. Last but not least, after completing our market research, we
need to establish our business objectives.

5. What is normally included in a typical business plan?

• Executive Summary: provides an outline of the main concept underlying the business initiative as well
as the steps the company intends to take to overcome potential barriers.
• Business Goals: These are the plans that your firm creates to help it thrive. Setting strong, attainable
goals will boost your chances of achievement. These objectives should assist you in meeting your
organization's mission or objectives.
• Management Strategy:
• Market Research and Analysis: the process of acquiring information that will make you aware of
your clients and how well they react to your company's products and services.
• Marketing Plan: Effective marketing begins with a well-thought-out marketing strategy. A
effective marketing plan assists you in defining your vision, mission, and business goals, as well
as outlining the procedures necessary to attain these objectives.
• Operational Plan: Explain your company's objectives, goals, procedures, and timeframe in the
operations portion of your business plan. An operations strategy is beneficial to investors, but it is also
beneficial to you and your employees since it forces you to consider tactics and deadlines.

• Financial Plan: A financial plan should include the following items:

o Cash flow: The total amount of money going in and out of your business.

o Working capital: Contrast this with the industry average. Take steps to obtain extra
capital if necessary.

o Cost base: Keep an eye on your costs at all times. Make certain that your costs are
included in your selling price.

o Borrowing: What is the status of any credit lines or loans? Is there a more appropriate or
less expensive form of financing you could use?

o Development: Do you have plans in place to adjust your funding to meet the changing
needs and growth of your business?

o Break even analysis: the amount of output and/or sales required to cover all costs.

• Action Plan: An action strategy is a detailed plan that outlines the steps required to achieve one or
more goals. Alternatively, describes an action plan as a series of tasks that must be completed, or
activities that must be executed properly, in order for a Strategy to be successful.

6. What should be identified in your marketing plan?

6 main elements of a marketing plan

 Description of your product or service.
 Market analysis.
 Marketing goals and objectives.
 Pricing details.
 Advertising plan.
 Marketing budget.

7. What should be considered when developing an operational plan?

• Clearly explain the plan's ultimate vision or goal.

• Examine and deconstruct the smaller goals for the budget, team, and resources needed to put
the strategy into action.
• Budgets, team members, and resources should all be assigned.
• Keep track of progress with regular reports.

8. What should be included in your financial plan?

• Cash flow: The total amount of money going in and out of your business. Make certain that your
forecast is evaluated and updated on a frequent basis.
• Working capital: Have your needs shifted? If so, explain why any movement occurred. When
compared to the industry average. Take steps to obtain extra capital if necessary.
 • Cost base: Keep an eye on your costs at all times. Make sure your costs are covered in your sale
price – but don't expect your customers to pay for any inefficiencies in your firm.
• Borrowing: What is the status of any credit lines or loans? Is there a more appropriate or less
expensive form of financing you could use?
• Development: Do you have plans in place to adjust your funding to meet the changing needs
and growth of your business?
• Break even analysis: the amount of output and/or sales required to cover all costs.

9. Why is it important to develop a business plan?

It allows you to solve challenges and make critical business decisions such as marketing and competitive
analysis, customer and market analysis, and logistics and operations strategies. It can also assist you in
organising your thoughts and goals, as well as provide you with a better understanding of how your firm
will operate.

10. What are the principles of Business planning?

A strong business plan should be built on up-to-date information. It should include information about your
firm as well as industry forecast, target audience, services and goods, marketing plan, and funding.
• Plans Must Be Continuous. Planning is an ongoing process.
• Plans Must Take Your Competitive Advantage Into Account.
• Plans must include both short- and long-term objectives.
• Plans Must Be Relevant to the Bottom Line
• Plans Must Contain Strategies
• Plans must have an impact on the customer.