MNE3701 EXAM PACK QUESTION ANSWERS Exam Prep.

Entrepreneurship and managing a small business Content of the Business Plan •Product/Service Plan (Important): Describes the product and/or service to be provided and explains its merits •Marke?ng Plan (important): Describes the user benefits of the product or service and the type of market that exists •Opera?ons and Development Plan (important): How product will be produced or service provided •Management Team (important): Describes the firm’s organiza?onal structure and the backgrounds and qualifica?ons of key personnel Chapter 6 Unit 1 Creating business plans The Objectives of a Business Plan Chapter 6 Unit 1 June 2010 Q1.2 (2), Nov 2013 Q1.2 (2) 1. To identify and describe the business opportunity or new venture 2. To present a written plan to exploit the opportunity 3. To recognise factors that will determine whether the venture will be successful Common Actions in writing a quality business plan Chapter 6 Unit 1 Nov 2012 Q4.2 (4) 1. Analyse the market thoroughly: What is the target, size, problems, customers 2. Provide solid evidence for any claims 3. Think like and advisor 4. Don’t hide weakness – Identify potential fatal flaws 5. Maintain confidentiality 6. Remember that the little things are the big things Page 1 of 20 Benefits of a business plan Chapter 6 Unit 1 1. Systematic realistic evaluation of the new venture’s chance of success in the market 2. Identify the key variables and primary risks that will determine the success of business 3. Game plan for managing the business successfully. 4. Management instrument for comparing actual results against targeted performance. 5. Primary tool for attracting money in the hunt for resources Chapter 7 Unit 2 The Marketing plan Steps in Market research Chapter 7 Unit 2 June 2010 Q1.1.1 (10), Nov 2011 Q3.3 (8), Nov 2012 Q1.2 (8) 1. Identify the informational need • Venture’s informational needs to be correct and in detail, then marketing research will produce meaningful results • Example: target market? Willing to pay? Disposable income? Geographic info? Quality? 2. Searching secondary data • Secondary research is less expensive than primary research. • Secondary data comprises market information that has been compiled previously. • sources: Stats SA, Bureau for Marketing Research(Unisa), search engines • Shortcomings: outdated, may not fit requirements, credibility of sources. 3. Collect primary data Primary data are collected by means of observation and questionnaires. The following are considerations vital in conducting primary research: • Differences between observational and questioning method • the high value of personal observation in small business Considerations in questionnaire design: