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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
The vision statement of a business outlines the long-term aspirations and objectives of the organization. It serves as a guiding star, providing a sense of direction for the company and inspiring stakeholders by conveying what the business aims to achieve in the future.
Step 2
Give TWO reasons for the review of a business idea.
Answer
- Change in Prices: Fluctuations in market prices can impact the feasibility and profitability of a business idea, necessitating a review to adjust strategies accordingly.
- Introduction of Modern Technologies: Advancements in technology might provide new opportunities or means of production that could enhance the business idea, requiring a reassessment to capitalize on them.
Step 3
Describe the usefulness of the SWOT analysis to determine the performance of a farm.
Answer
SWOT analysis is a strategic planning tool that helps farmers identify:
- Strengths: These are the internal factors that give a farm a competitive advantage, such as experienced staff or fertile land. Recognizing strengths helps to build upon them to enhance performance.
- Weaknesses: Identifies internal limitations affecting the farm's output or efficiency, like outdated machinery or lack of funding, allowing for targeted improvements.
- Opportunities: External elements that the farm can exploit for growth, such as new market trends or government subsidies, guiding future investments and strategies.
- Threats: Acknowledges external challenges, such as climate change or market competition, which may pose risks to farm operations, enabling proactive risk management.