IB Business & Management

Topic 1 – Business Organisation and Environment

ORGANISATIONAL PLANNING TOOLS

Learning Objectives • Analyse the importance of business plans to

stakeholders• Apply a formal decision making framework to a

business situation• Prepare a SWOT analysis for a business situation• Analyse an organisations position using a SWOT

analysis• HL – Analyse and interpret business plans• HL - Apply decision making processes and planning

tools• HL - Compare and contrast scientific and intuitive

decision making processes• HL - Construct and interpret decision trees and

evaluate this technique

Business Planning

An excellent example of how business entrepreneurs can increase their chances of success and gain acceptance from stakeholders

Business Plans give clear explanations of:

• Who the business owners are, their strengths and experiences

• The central purpose of the business and the intended market

• Benefits to consumers of using the business• The market research undertaken• Financial forecasts and the borrowings

required • The main risks likely to be faced by the

business

Business Plan – A written document that describes a business, its objectives, the market its in and its financial forecasts

• Why would you advise new entrepreneurs to write a detailed business plan?

• Which stakeholders would find a plan useful, and why?

Making Strategic Decisions

Strategic

Tactical

Operational

• Made at the top of the hierarchy

• May require high capital investment

• Once made difficult to reverse

• Long term direction of business

• Aim at meeting corporate objectives• Will impact upon different stakeholders

All business must plan for the future – corporate planning

Business planning

• http://www.entrepreneur.com/how-to-write-a-business-plan

• Go onto the following website and write down the different parts of a business plan and what goes into each section

Business Plans – The Importance

• Most important when setting up a new business, but, should be referred to and updated when important strategic choices are being made too

• Main purpose is to obtain finance• Planning process is very important• Financial and other forecasts can be used as

targets

Stakeholders as users of business plans

• Business plans can be of real benefit to new and existing stakeholders of a business

• Which stakeholders may find a business plan useful? In both, new and existing businesses?