Business Planning: Cheat Sheet (fb2) (p
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Authors Business Planning: Cheat Sheet
DEFINITION OF PLANNING
Planning, being the norm of any business activity, is necessary to anticipate the future situation and to effectively achieve the goal. The planning process is about analysis and decision making and takes time and mental effort. Time is a special irreplaceable resource.
Planning has developed methods, uses a scientific approach, improves and applies new methods and improvements, so planning is a science.
Due to the fact that specialists use different methods, forms, types and elements of planning, depending on the specific situation, their knowledge, personal qualities, style and approach, planning is an art.
Planning as an activity is the process of developing actions to achieve a goal.
Planning answers the following questions:
• What to do and for whom (product)?
• How to do it (technology, action program)?
Also, planning helps to evaluate the actions already taken (answers the questions: what has already been done, what resources are already there, etc.).
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Business plan in the activities of enterprises in a market economy
Business plan development
In a market economy, a business plan is a working tool in all areas of entrepreneurship.
The business plan describes the process of functioning of the company, shows how its leaders are going to achieve their goals and solve the assigned tasks.
A well-developed business plan helps the company grow, gain new positions in the market (a business plan is needed by those who you are going to ask for money for the implementation of your project - bankers, investors, your employees, in order to know the prospects of the enterprise and their tasks and the owner, to make sure that their project is realistic).
A business plan is a working document that is systematically updated in connection with changes occurring within the firm, in the market where the firm operates and in the economy as a whole.
The business plan simulates the activities of the enterprise for the current year and a prospective period of 2-5 years.
Development of a business plan is carried out in 3 stages:
1) conducting marketing research of the market - determining its potential capacity, conditions of competition, degree of risk;
The cheat sheet provides answers to all the main questions stipulated by the state educational standard and the curriculum for the discipline "Business planning" in a concise and convenient form.
The book will allow you to quickly gain basic knowledge of the subject, repeat the material covered, as well as prepare well and successfully pass the test and exam.
Recommended for all students and applicants for the discipline "Business Planning" in higher and secondary educational institutions.
2. SUBJECT OF PLANNING. ESSENCE AND STRUCTURE OF PLANNING OBJECTS IN THE ORGANIZATION
3. ESSENCE AND NEED FOR BUSINESS PLANNING
4. ROLE, PLACE AND SIGNIFICANCE OF BUSINESS PLANNING IN THE MANAGEMENT SYSTEM OF THE ORGANIZATION (ENTERPRISE)
5. THE NEED FOR A BUSINESS PLAN FOR A LEADER AND ENTREPRENEUR
6. PLANNING FORMS AND FACTORS INFLUENCING THE CHOICE OF PLANNING FORMS
7. REQUIREMENTS FOR THE DEVELOPMENT OF BUSINESS PLANS. INFORMATION SUPPORT FOR BUSINESS PLANNING
8. STRUCTURE, FUNCTIONS AND CONTENT OF SECTIONS OF THE BUSINESS PLAN. SECTION OF THE BUSINESS PLAN "CONCEPT, OVERVIEW, SUMMARY"
ON Beketova, VI Naydenkov Business planning cheat sheet
The concept of business, its participants
The word "business" (from the English business) means any occupation, business that generates income. A person doing business is a businessman, that is, a businessman, a businessman, an entrepreneur. In the new economic reference books, business is the economic activity of an entity in a market economy, aimed at making a profit by creating and selling certain products (goods, works, services). Also, the concept of "business" can be considered as synonymous with the concept of "entrepreneurship". Entrepreneurial activity, entrepreneurship is an initiative independent activity of citizens and their associations, aimed at making a profit, carried out by citizens at their own risk and under property responsibility within the limits determined by the organizational and legal form of the enterprise.
Thus, business is the income-generating activity of citizens who own property. In addition, business is also a set of relations between all its participants, who form a team of like-minded people with the aim of generating income, profit, development of a company, enterprise, organization. The following groups of people are business participants:
1) entrepreneurs themselves, that is, persons who carry out proactive activities at their own risk, under their economic and legal responsibility, as well as groups of entrepreneurs. In the course of their activities, they enter into business relationships, as well as relationships with other business participants, eventually forming the sphere of entrepreneurial business. The latter includes three components: product manufacturing, commerce (trade) and commercial intermediation;
2) individual and collective consumers of products offered by entrepreneurs, as well as groups of consumers forming their own unions, associations, etc.;
The business interest of the business participants in this group is the purchase of goods and services. It is implemented through establishing contacts with manufacturers and sellers of products on the basis of mutual benefit;
3) employees engaged in labor activities for hire, on a contractual or other basis, as well as their trade unions. Extraction of income - is realized through work in a firm, organization, at an enterprise. If for entrepreneurs the profit in transactions is the final income of the company, then for employees it is the personal income received as a result of the work performed;
4) government bodies, institutions and organizations when they are direct participants in transactions.
The business interest of the members of this group is the implementation of national programs (scientific and technical, scientific and industrial, social, etc.) in order to meet the needs of both the state as a whole and all its citizens.
Business as a System
Business as a system is a phenomenon endowed with four properties - expediency, integrity, contradiction and activity.
Enterprise Planning: The Cheat Sheet
PLANNING AS A FUNCTION OF ENTERPRISE MANAGEMENT
Management of production activities by the nature of the impact on the production process provides for a number of functions, which include organization, regulation, planning, coordination, motivation, control and regulation. Among the entire set of management functions, planning takes the leading place, since it is designed to strictly regulate the behavior of an object in the process of realizing its goals.
In the context of changes in the general principles of state structure, the transitional period of the formation of free market relations, the rejection of the administrative command system of public economy management, planning takes on a new meaning. With its help, the enterprise should make an independent choice of the prospects for its development and coordinated decisions on the use of financial resources, material, technical and labor resources.
The elimination of the organizational system based on planning and distribution management methods creates a favorable climate for the implementation of scientific and technological progress and other decisions at enterprises, on which the financial and material well-being of the entire population of the country and each individual largely depends employee.
Planning in modern conditions is aimed at defining specific tasks for each individual enterprise and its divisions for various planning periods and developing economically viable production programs. Strict coordination of these programs for all divisions of the enterprise and workshops, consistency with the available material, financial and labor resources are the main planning functions. Ensuring the successful operation of an enterprise in a free market economy can be achieved if planning ensures the operation of the enterprise in accordance with the developed strategy for its development, including: improving management, increasing production efficiency, competitiveness of products, increasing labor productivity, reducing production costs, improving financial and economic results of activities.
To implement the main functions of enterprise management, program planning documents are developed in the field of production, marketing (supply and sales activities of the enterprise), price management, costs, taxes, finance, use of fixed and circulating assets, depreciation, investments, loans and savings.
CONTENT OF PRODUCTION PLANNING
From the standpoint of production management, planning provides for the establishment of goals and objectives of the economic and financial activities of an enterprise, as well as ways to achieve them based on the formation of planned tasks (activities, actions), which must be completed in a predetermined time frame. This means that an enterprise is a multi-level system in which the control object of the higher system turns into the subject of control of the lower one. For example, in the case of a shop management structure of an enterprise, the head of the section (foreman) reports directly not to the director of the plant, but to the head of the shop. The latter from the object of management of the director of the enterprise turns into a subject of management for the head of the section (foreman). The head of the section (foreman) from the object of management of the head of the shop himself becomes the subject of management for the workers of his section.
In each of the control subsystems, regardless of its level, a planning function is implemented. And since the enterprise management subsystems are part of a single system, the goals of their functioning should be coordinated, but the content of planning will be different based on the place and role of the subsystem in the overall management system. The plan of an enterprise, a workshop, a site, a task for a worker are interconnected, but these are plans of different content.
Planning is the process of predicting the desired future. The end result of this process is planning decisions - the basis for purposeful follow-up. Planning in a free market economy is much more difficult than in a centralized system of enterprise management, since it becomes necessary for them to independently develop the prospects for their future development. Thus, planning the activities of enterprises in the new conditions requires a change in the previously applied principles, forms and content of the process of drawing up planned targets.
However, at many enterprises in the country, planning continues to be carried out in the old fashioned way, according to the principle “from what has been achieved”. The only difference is that if earlier this principle was implemented in the form of a task for an increase in production volumes compared to volumes in the previous year, now it is expressed in a desire to load the existing production capacity as much as possible. Most often, this is provided regardless of whether all manufactured products can be sold, and most importantly, whether the company can receive full revenue for it. The accuracy of calculating the cost indicator, which serves as the basis for many planned calculations of goods, due to insufficient attention to this indicator, is very problematic. The degree of its compliance with the realities of production, at best, can deviate by up to 20 percent or more. The practice of calculating indirect (proportional) costs especially affects the reliability of planned calculations.