1 Outline three reasons why a company may choose to develop a business plan. XXXXXXXXXX Outline the key steps involved in developing a business plan. XXXXXXXXXXOutline five common components of a...

Running Head: Response to Questions         1
Response to Questions         5
RESPONSE TO QUESTIONS
Table of Contents
Response to Questions    3
References    6
Response to Questions
1. A company may choose to develop a business plan because:
· It will help to identify, describe and analyse a business opportunity in terms of its economic, technical and financial feasibility (Fairchild, 2017)
· It will help to start up a new business project by providing an estimate of start-up costs
· It will act as a management and planning tool and will help to convince investors to fund the project
2. The key steps involved in developing a business plan are:
· Research: The mission and gaols of the business must be stated explicitly and the information gathered must be relevant to the business and must act to be valuable for the business.
· Market Analysis: Conduct a thorough market analysis to determine the needs and the target market for the business (Barrow, Barrow & Barrow, 2018). This will help to validate the new ideas.
· Financial Analysis: This will help to determine the costs that must be involved in executing the new business idea.
· Determining the structure of the organisation: For a business to be successful it must have a well-defined organisational structure and culture.
· Launch the products and services: Let the people know about the products and services and launch them into the market.
3. Five common components of a business plan are:
· Executive Summary
· Structure and description of the business
· Market research and strategies
· Human resources and structure of the organisation (Alonso-Vazquez, del Pilar Pastor-Pérez & Alonso-Castañón, 2018)
· Financial and budgetary requirements
4. The three areas that can be addressed through initial business planning process are:
· Financial Analysis (Thande, 2020)
· Situational Analysis
· Strengths and weaknesses of the business
5. Purpose of SWOT...