UNIT 12: BUSINESS PLANNING

Câu 1: (2 điểm): Choose the best word to fill in each gap.

1. ………………….. enables management to think through the business in a logical and

structured way and to set out the stages in the achievement of the business objectives.

A. International marketing

B. Business planning

C. Organizational Behavior

D. Leadership and Management

2.……………………. enables management to plot progress against the plan.

A. Business planning

B. International marketing

C. Organizational Behavior

D. Leadership and Management

3 .…………………….. ensures that both of the resources needed to carry out the strategy
and the time when they are required are identified.

A. Organizational Behavior

B. International marketing

C. Business planning

D. Leadership and Management

4. Business planning is an important document for discussion with prospective

…………………….. and lenders of finance.

A. leaders

B. managers
C. inventors

D. investors

5. A business plan has to be particular to the organization in question, its situation and
time. However, a business plan is not just a…………………, to be produced and filed.
Business planning is a continuous process.

A. document

B. papers

C. text file

D. book

6. The business plan has to be a living document, constantly in use to monitor,

………………and guide the progress of a business.

A. limit

B. control

C. command

D. master

7. The previous review of the business plan and its …………………..will help highlight
which areas of the business have proved difficult to forecast historically.

A. income

B. result

C. outcome

D. outgone

8. A business plan must have a purpose, set out the key business
……………………….on which their plans will be based (such as inflation, exchange
rates, market growth, competitive pressures and so on) and take a critical look at their
business.

A. presumptions

B. suppositions

C. claims

D. assumptions

9. The strategies adopted by a business will be largely based on the outcome of the
SWOT……………………..

A. analysis

B. synthesis

C. strategy

D. plan

10. The one-year plan, or budget, will be prepared in such a way that progress can be
regularly monitored by checking the ……………………..between the actual
performance and the budget, which will be phased to take account of seasonal variations.

A. invariance

B. variance

C. differentiation

D. division

11. The budget will show financial ……………………..and also non-financial items
such as personnel numbers, output, order book, etc. Budgets can be produced for units,
departments and products as well as for the total organization.

A. numbers

B. digits
C. figures

D. calculators

12. The financial analysis includes the company’s projected sales,………………………

and loss statement, balance sheet, cash flow statement, and potentially a few other tables
depending on its intended use.

A. gain

B. benefit

C. loss

D. profit

13. The most standard business plan covers topics including the company overview, the
products or service you are selling, the target market and strategy of your company, your
……………milestones and goals, management team, and financial forecasting and
analysis.

A. implementation

B. implantation

C. effectuation

D. execution

14. The cash flow ………………………..is usually considered to be the most important
part of your financial planning and is a no-brainer for inclusion in the plan.

A. command

B. statement

C. instruction

D. situation
15. Profitable or not, a business’s plan must prove that it has enough
………………………..to remain operational.

A. payment

B. credit

C. cash

D. money

16. A standard business plan will start with an executive summary describing the key
points of your plan, and end with appendices showing monthly ………………………….
for the first year.

A. ideas

B. executions

C. expulsions

D. projections

17. A startup plan is a very simple business plan that typically includes the following
sections: an executive summary, a company overview, a mission statement, and a market
……………………………………….

A. analysis

B. plan

C. overview

D. implementation

18. Even if you do not have the exact numbers for a business plan yet, it’s always a smart
idea to include a ……………………………..analysis of costs, pricing, and probable
expenses.

A. first
B. preliminary

C. overture

D. prelude

19. If you do not have a business plan, you can use a kind of no-frills plan to
…………………… your options with potential partners and associations.

A. prove

B. implement

C. discuss

D. analyze

20. The kind of no-frills plan is good for deciding whether or not to proceed with an idea,
to help gauge whether this is a business ………………..pursuing.

A. worthless

B. cost

C. valuable

D. worth

Câu 2 (2 điểm): Circle the correct form of the word

1. Since the purpose of an internal plan is specific to the people directly

……………………… with the company, it will most likely be shorter and more concise
than a fully detailed standard plan that you’d take to the bank.

A. involved

B. involve

C. involving

D. involvedly
2. Internal plans are not intended for banks, outside ………………………. or other third
parties.

A. investing

B. investors

C. investment

D. invest

3. An operation plan includes specific ………………………. milestones, project

deadlines, and responsibilities of team members and managers.

A. implement

B. implementing

C. implementation

D. implemented

4. An operation plan is the plan …………………. for staying on track to meet your goals
as a business. Your operation plan covers the inner workings of your business.

A. using

B. use

C. useful

D. used

5. ………………………. for your goals as a business allows your company to assign

priorities, focus on results and track your progress. Your operation plan covers the inner
workings of your business.

A. Planning

B. Plannedly

C. Planned
D. Plan

6. Your operation plan covers the inner workings of your business. Of course, cash flow
figures ……………………………. there as well.

A. prominent

B. prominently

C. prominence

D. prominency

7. Your milestones will need to have sufficient funding for

their………………………..,and you’ll need to track your progress so you know how
much you’re spending.

A. implement

B. implementing

C. implementation

D. implemented

8. A ..………………………. or expansion plan focuses on a specific area of a business,

or a subset of the business.

A. growing

B. grow

C. grown

D. growth

9. An expansion plan requiring new outside investment would include full company
……………………………. and background on the management team, just the same as a
standard plan for investors would.

A. descriptions
B. descriptive

C. describer

D. describing

10. Loan ……………………… would require full company descriptions and background
on the management team much detail as well.

A. appliers

B. applications

C. applicant

D. apply

Câu 3 (1 điểm): Choose the best term to match the given definition

1. This is a sum of money allocated for a particular purpose or an estimate of costs,

revenues, and resources over a specified period, reflecting a reading of future financial
conditions and goals.

A. Budget

B. Fund

C. Strategy

D. Cash

2. It is an elaborate and systematic plan of action or a method or plan chosen to bring

about a desired future, such as achievement of a goal or solution to a problem.

A. Analysis

B. Strategy

C. Program

D. Planning

4. An estimate of an expenditure made before the appropriation.

A. Forecast

B. Strategy

C. Forecast out - turn

D. Figure

5. This is an estimate of all cash receipts and all cash expenditures that are expected to
occur during a certain time period. Estimates can be made monthly, bimonthly, or
quarterly, and can include nonfarm income and expenditures as well as farm items. It
looks only at money movement, though, not at net income or profitability.

A. Budget

B. Plan

C. Figure

D. Cash flow budget

6. This is the aggregation of all lower-level budgets produced by a company's various

functional areas, and also includes budgeted financial statements, a cash forecast, and a
financing plan.

A. Master budget

B. Cash flow budget

C. Budget

D. Forecast out-turn

7. This is the excess of cash revenues over cash outlays in a given period of time (not
including non-cash expenses). Or anther definition is incomings and outgoings of cash,
representing the operating activities of an organization.

A. Cash flow budget

B. Cash flow
C. Cash

D. Cash flow statement

8. It is a process of evaluating how we invest in capital assets or another way to say about
it is the planning process used to determine whether an organization's long term
investments such as new machinery, replacement of machinery, new plants, new
products, and research development projects are worth the funding of cash through the
firm's capitalization structure.

A. Budget analysis

B. Capital budget

C. Capital budget analysis

D. Capital analysis

9. It is an acronym for strengths, weaknesses, opportunities, and threats and is a

structured planning method that evaluates those four elements of an
organization, project or business venture. This analysis can be carried out for a company,
product, place, industry, or person.

A. ROI analysis

B. TNA analysis

C. PEST analysis

D. SWOT analysis

10. This analysis describes a framework of macro-environmental factors used in

the environmental scanning component of strategic management. It is part of an external
analysis when conducting a strategic analysis or doing market research, and gives an
overview of the different macro-environmental factors to be taken into consideration.

A. PEST analysis

B. TNA analysis
C. ROI analysis

D. SWOT analysis

11. It is a kind of plan which is a formal statement of business goals, reasons they are
attainable, and plans for reaching them. It may also contain background information
about the organization or team attempting to reach those goals. These plans may target
changes in perception and branding by the customer, client, taxpayer, or larger
community.

A. Startup business plan

B. Business plan

C. Internal plan

D. External plan

Câu 4 (3 điểm): Read the following passage and answer the questions

©Câu 4-04-B2 (3,0 điểm)

The Demon risk taker

In 1998, Cliff Stanford made £30m out of the sale of his company, Demon Internet, the
UK’s first dial-up Internet service provider. Immediately afterwards he launched his
current venture, Redbus, which specializes in identifying and backing entrepreneurs with
innovative business ideas. Now aged 45, Cliff Stanford is worth an estimated £200m.

From school I went into accountancy: I’d never known a poor accountant. By 1979 I
wasn’t enjoying it anymore. I couldn’t see what was going to change between then and
the end of my working career. I had got involved in computers and thought I might make
more money that way, and have more fun. So in 1979 I set up a one-man business to
write computer software. That carried on until 1992, by which time the company was
quite successful. By then I had a lot of knowledge of networking, though not of the
Internet; but again, I had the desire to try something different.
I started the Demon Internet service provider initially in order to reduce the cost to me of
accessing the Internet. If I’d had any money it wouldn’t have happened, but I couldn’t
afford the 20,000 to 30,000 per year it cost for an Internet connection. I decided that if I
couldn’t afford it, then lots of other people couldn’t afford it either, and that if we all got
together, we could get the cost down to about 10 a month. The defining moments in the
development of the business were not to do with the system but with the decision to keep
investing. Once we got about 400 subscribers we could have stopped at any time, but we
decided to keep the ploughing the profits back into the business. It was a high-risk
strategy to keep growing, but I did feel the opportunity was there so why not pursue it? If
risk worries you, then you can’t be successful in the business.

I’ve had to fire friends with whom I’d worked very closely because they weren’t right in
the job they were doing. It was a horrible experience, but once that I coped with by
focusing on what was best for the company and treating people as fair as possible. Some
people I’ve fired went to be very successful in other companies

I’m almost proud of the jobs that I created at Demon in an industry that didn’t exist when
I started. By the time I sold the company there were 520 people working there, all with
good jobs and share options.

The key quality in my view is determination to carry on whatever happens. If things

aren’t working, then you have to identify what will make them work. And make the
changes change usually upset people, but you have to go and do it anyway. You need the
determination to make the thing work at all costs. At Demon, and now at Redbus, we try
to stay six months ahead of where the technology is going, and that’s important too.

When I was a youngster I was very bad at managing people and they hated working for
me. As I’ve got older I’ve got better at knowing what people need to stay motivated.

Read the article and answer questions 1 – 6

1. Why did Cliff Stanford go into accountancy?

2. What made him switch from accountancy to computing?

3. What was his main reason for staring Demon?

4. What key choice did Stanford make once he had 400 subscribers?

5. How does Cliff justify tough decisions, such as firing friends?

6. How have his people skills improved over the years?

©Câu 4-05-B2 (3,0 điểm)

Reaching your audience

Research in the United States suggests that a teenager is exposed to up to 3,000

television ads a day. These ads can become white noise, barely noticeable. The huge
growth of satellite channels and the introduction of the TiVo box, which can record
programs while filtering out the ads, has reduced the reach of the television commercial
even more. As a result, brands are turning increasingly to undercover marketing. In
America, actresses are hired to go into bars to offer strangers particular brands of alcohol,
cigarettes or snacks. They never reveal the truth of their mission, but the intentions are to
help foster a feel-good image for their corporate employers. This stealth advertising is
aimed particularly at young consumers who are no longer influenced by the heavy sell
with which they have grown up.

Britain is not far behind the USA with this technique. Last night in London, party lovers
could listen on their mobile phones to a list of places to go out under the slogan “Sol on a
mission”. When they relax in front of the soap opera Hollyoaks, they will see actors
drinking from bottles of Sol Mexican beer. It is all part of a £1m campaign by Sol, which
is rejecting normal advertising in favour of more covert methods. “Today’s youth are very
cynical,” said Zoe Smith, Sol’s brand manager in Britain. “You cannot be too obvious.
They like something a little bit different that challenges them.”

In Hollywood, product placement has been around for decades. Producers can collect
upwards of £75,000 a time from companies wanting their product to be seen on the
screen. To an extent, the same is true of television, although the methods are more subtle.
British TV companies face heavy fines from the Independent Television Commission if
they accept payment for product placement. Marketing firms have therefore relabeled this
as ‘prop provision’. The Sol beer in Hollyoaks is used as a realistic prop. No money is
paid to the program-makers. ‘It sounds artificial for a character to walk into a pub and ask
for a cola drink,’ said the ITC’s Helena Hird.

Some enterprising consumers are finding novel ways of exploiting the urge to brand
anything that moves. A Dutch student, hitch-hiking round the world, is naming on his
website diary the hotels that give him free accommodation. Jonathan Ressler, whose
agency has helped to pioneer product placement methods, says this is just the beginning.
‘You’re definitely going to see real people being sponsored by companies. It’s not going
to be a superstar like Michael Jordan, it’s going to be Mr. Joe Average. And it’ll be
cheaper, more effective and carry far more credibility,’ he said. We’ve had reality
television, he argues, so what’s wrong with reality advertising?

Read the article and answer questions 1 – 6

1. Do you think consumers can be so exposed to advertising that they are no longer aware
of it? Why?

2. What is the cause of reducing of the reach of the television commercial?

3. People think that in America, undercover marketing in bars is aimed at corporate

employers. Do you agree with that? Why?

4. What do advertisers need to do to reach the young?

5. What problems do British TV companies have if they accept payment for product
placement?

6. What does a Dutch student do for the hotels that give him free accommodation?

©Câu 4-06-B2 (3,0 điểm)

External stakeholders

The business plan even more important to outsiders, on whom the entrepreneur depends
for the survival and success of the venture. Indeed, the importance of the business plan
may be said to revolve around “selling” the new business to outsiders, who may include
the customers, investors and banks.

Customers

When small business seek substantial orders or ongoing service contracts, major
customers always want assurance that the business will still be around in three or five
years’ time to provide the parts or service they might require for the product. Customers
are almost always impressed by a business plan, since it proves to them that the
entrepreneur has thought about the future.

Investors

Almost everyone starting a business faces the task of raising financial resources to
supplement their own resources (personal savings, investment in shares or property and
so on). Unless the entrepreneur has a wealthy relative who will supply funds, he/she will
have to appeal to investors or bankers to obtain the necessary funds. Very few investors
or financial institutions will consider financial assistance without a well-prepared
business plan.

Investors has a different interest in the business plan from the interest of other
stake-holders, and if the entrepreneur intends to use the business plan to raise capital,
he/she must understand the investor’s basic perspective. A prospective investor has a
single goal: to earn a return on the investment, while at the same time minimizing risk.
While many factors may stimulate an investor’s interest in the venture, certain basic
elements of a business plan attract (or repel) prospective investor interest more than
others.

Banks

Banks are a common source of debt capital for small business. To improve the chance of
obtaining bank loans or what is known in South Africa as “overdraft facilities”, the
entrepreneur should know what it is that banks look for in evaluating an application for
such a loan. Most banks use the four Cs to evaluate a loan application: Capital,
Collateral, Character and Conditions.

● Capital. A small business must have a stable equity base of its own before a bank will
grant a loan. The bank experts the small business to have an equity base of investment
by the owner(s) before it will make a loan. South African banks generally insist on at
least 50% equity.
● Collateral. This includes any assets the owner pledges to a bank as security for
repayment of the loan. Bankers view the owner’s willingness to pledge collateral
(personal or business assets) as an indication of the entrepreneur’s dedication to
making the venture a success.
● Character. Aspects of the owner’s character (such as honesty, competence,
determination, ability and a good track record) play a critical role in the bank’s
decision to grant a loan.
● Conditions. The conditions surrounding a loan request also affect the bank’s decision.
Banks will consider factors relating to the business operation, such as potential market
growth, competition and form of ownership, as well as the current state of the
economy.

Read the article and answer questions 1 – 6

1. Why does the author say that the business plan more important to outsiders?

2. What can a small business do to get customers’ attraction?

3. What are the problems that a starting-up business has to face?

4. What is the goal of an investor when he/she invests on your project?

5. Why should a business know what it is which banks look for in evaluating an
application for such a loan?

6. Why does the entrepreneur need to have collateral when they get a loan from banks?

Câu 5 (1 điểm): Translate the following sentences into Vietnamese

1. Managers can plan to steer the organization in the best possible direction, taking into
consideration the organization’s internal strengths and weaknesses.

2. Good managers understand that although they are leading the organization in a
pre-determined direction, they should anticipate change in the environment, and adjust
their goals and plans accordingly when necessary.

3. Cash flow budget is an estimate of all cash receipts and all cash expenditures that are
expected to occur during a certain time period. Estimates can be made monthly,
bimonthly, or quarterly.

4. An expansion plan requiring new outside investment would include full company
descriptions and background on the management team, just the same as a standard plan
for investors would.

5. The cash flow statement is usually considered to be the most important part of your
financial planning and is a no-brainer for inclusion in the plan. Profitable or not, a
business’s plan must show that it has enough money to remain operational.

Câu 6 (1 điểm): Translate the following sentences into English .

1. Các nhà quản lý không thể dự đoán trước được tương lai, việc lập kế hoạch không thể
thay đổi được môi trường kinh doanh và không có kế hoạch nào là hoàn hảo cả.

2. Việc lập kê hoạch có rất nhiều lợi ích, và môi trường càng bất ổn thì việc lập kế hoạch
càng cần thiết.