Page 31 - THE CARIBBEAN ADVANCED PROFICIENCY EXAMINATIONS

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