3.1 Give ONE term for EACH of the following descriptions of a business plan: 3.1.1 The section that describes the pricing, marketing and promotion of the product 3.1.2 The section that describes the operation or manufacturing 3.1.3 The section that describes the employees 3.1.4 This section is also used to identify the internal and external factors that are favourable or unfavourable to achieve your goals 3.2 Name FIVE advantages of a business plan for a farming enterprise - NSC Agricultural Management Practices - Question 3 - 2018 - Paper 1

Production plan

Human resources plan/Labour plan

SWOT analysis

1. Provides clear strategies and goals.
2. Guides the business towards goals and objectives.
3. Helps to reposition the business to adapt to market changes.
4. Facilitates risk management and identifies competitive advantages.
5. Aids in effective resource allocation.

1. Knowledge of the enterprise.
2. Networking skills.
3. Leadership and managerial skills.

1. Identifying and evaluating the opportunities 2. Determining the resources required 3. Developing the business plan 4. Starting and managing the enterprise

1. Clear and simple.
2. Specific and accurate.
3. Relevant and up to date.

A Balance Sheet provides a clear overview of the financial position of the farm, showing whether it is well-managed and highlighting the assets and liabilities at a specific date.

Diversification occurs when a farmer engages in various production units to contribute to the total income of the farm, such as running both dairy and crop production.

Specialisation involves focusing on one commodity by adapting farming methods to produce that single product, like a farmer concentrating solely on maize.

1. Business information services: responsible for collecting and distributing production and marketing information to aid farmers.
2. Market development: enhancing product markets and developing marketing campaigns.
3. Technology transfer: facilitating research programs for the benefit of all players in the agricultural market.

1. Limits the initiative of farmers due to heavy regulations.
2. Membership fees may pose a financial burden.

1. Social media advertisements.
2. Online marketing campaigns.
3. Email newsletters.
4. Mobile applications promoting agricultural products.

1. Price: Lower prices typically increase demand.
2. Product quality: Higher quality alternatives can sway consumer preference.
3. Consumer preferences: Brand loyalty impacts purchasing.
4. Availability: Easier access raises the likelihood of purchase.
5. Seasonal trends: Demand fluctuates with seasons.

Graph A - Fixed cost Graph B - Total cost Graph C - Variable cost

Break-even point.

Point D represents the break-even point where total income equals total costs. Before point D, the farmer incurs losses; after point D, the farmer begins to realize profits, emphasizing the importance of managing costs and production levels effectively.