PGA LEVEL 1 QUESTIONS AND ANSWERS ALREADY PASSED

BUSINESS PLANNING Business planning process organized plan that clearly describes explicit goals and objectives and strategy for accomplishing them PGA Business Planning Model (5 phases) 1. Define the business 2. Assess current state of the business 3. Develop business goals, objectives, and strategies 4. Prepare financial forecasts/budgets 5. Monitor performance Long term vs short term Long term = 3-5 years Short term = less than 1 year Mission (define the business) purpose Vision (define the business) phrase that paints a picture where want to be in future core values (define the business) individual words that shape the mission, vision assess the current state of the business... understanding and utilizing performance data, assessing core areas, SWOT, and prioritizing findings Goals vs. Objectives goals intend to be accomplished 3-5 years objectives within 1 year help to accomplish goalSMART goals and objectives Specific Meaningful Achievable Realistic Time-oriented Strategies define what your going to to do to achieve objectives Action plans define... specific "how to" strategies Horizontal analysis usually centers on a specific revenue or expense metric -Linear trend = evaluates positive and negative trends over time -Base year analysis = categories values are compared to one benchmark year