Page 31 - THE CARIBBEAN ADVANCED PROFICIENCY EXAMINATIONS
P. 31
UNIT 2
MODULE 2: NEW VENTURE PLANNING AND CREATION (cont’d)
(iii) Operations (what is your internal source of advantage?):
- Internal capabilities of a business, including unique skills,
technologies, resources.
(iv) Product differentiation (how do you differentiate your product?):
- operational excellence;
- product quality;
- innovative leadership;
- cost; and,
- networks.
(v) Income generation (how do you intend to make money?):
- operating leverage (fixed and variable costs);
- volumes (high, medium, low), margins (high, low);
- pricing (fixed, flexible); and,
- revenue sources.
(vi) Growth (what are the time scope and ambitions of the venture?):
- subsistence model;
- income model;
- growth model; and,
- speculative model.
5. Introduction to the Business Plan (students are not required to produce a business plan)
(a) Purpose of a business plan.
(b) Benefits of a business plan.
CXC A31/U2/13 26 www.cxc.org