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A good business plan involves research on the external and internal business environments - NSC Agricultural Management Practices - Question 3 - 2019 - Paper 1
Question 3
A good business plan involves research on the external and internal business environments. 3.1.1 Define the vision statement of a business. 3.1.2 Give TWO reasons ... show full transcript
Worked Solution & Example Answer:A good business plan involves research on the external and internal business environments - NSC Agricultural Management Practices - Question 3 - 2019 - Paper 1
Step 1
Define the vision statement of a business.
Answer
A vision statement is a declaration that describes the long-term aims and objectives of a business. It serves to provide direction and inspiration, guiding the decision-making processes and motivating stakeholders towards the desired future.
Step 2
Give TWO reasons for the review of a business idea.
Answer
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To identify any changes in market conditions, such as changing consumer preferences or emerging technologies that may impact the business's viability.
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To evaluate the potential risks associated with the business idea, including financial risks and competitive threats, ensuring that the business can adapt and thrive.
Step 3
Describe the usefulness of the SWOT analysis to determine the performance of a farm.
Answer
The SWOT analysis is a strategic planning tool that evaluates the Strengths, Weaknesses, Opportunities, and Threats related to a farm's operation. By identifying strengths, such as resource availability and market position, the farm can leverage these to maximize performance. Recognizing weaknesses can help address potential issues before they become significant problems. Additionally, identifying opportunities allows the farm to capitalize on favorable conditions, such as new markets or technological advancements. Lastly, understanding threats enables the farm to develop strategies to mitigate risks, ensuring sustainable performance and growth.