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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
Step 2
Give TWO reasons for the review of a business idea.
Answer
- Change in prices: Fluctuations in market prices can significantly impact the viability of a business idea, necessitating a review to adapt strategies.
- Introduction of modern technologies: Advances in technology may present opportunities that require re-evaluation of the business model to enhance efficiency and competitiveness.
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 identifies:
- Strengths: The strong points of the farming operation that can be leveraged to gain a competitive advantage.
- Weaknesses: Areas that may hinder growth and need improvement.
- Opportunities: External possibilities that the farm can capitalize on for growth.
- Threats: External challenges that could negatively affect the farm's future performance. By assessing these factors, farmers can create actionable strategies to improve their business outcomes.