Question

1. What is the Golden Circle and how can businesses benefit from it?

2. What are the advantages and disadvantages of creating a traditional business plan?

3. Which planning method, traditional business plan or lean business model, would you prefer to use for your current business or future business ventures? Why?

Answer 1

Q1. The Golden Circle is the ultimate innovative concept that identifies the purpose of doing the effective business to make the dealings or process more focused to meet the standard of the business objectives and fulfilling goals.

The business benefits from the Golden Circle in three ways: what, how, and why. To increase the demand or to bring any product in the market it requires raising these three questions to judge the feasibility in each stage then after a clear judgment, the business decisions are made for a new approach in each step. This may lead to taking several good decisions in the leading the successful business through which people will get inspired and positively respond.

Q2. Traditional business:

Advantages:

1. It makes aware of the several aspects and considers all sectors to eliminate flaws and failures in the process.

2. It gives the sense to identify the skills that are missing and as per the requirements, new experts are hired in the particular field to fulfill the gap.

Disadvantages:

1. The plans that are made for constructing the business seem to have no guarantee to achieve the goals.

2. Sometimes the plan flexibility never fits the market changes, the problems arise because as per the market needs is unable to match up with the plans.

Q3. The planning method is “traditional business plan”. Yes, it can be preferred for the current business purpose.

The “traditional business plan” focuses on many factors to cover all range of services like company financing, future aspects of business and effective marketing plans for the customers. The “traditional business plan” is developed to target the potential audiences to effectively operate the business. It is the best business tools to focus on the organization's goals and visions. A correct “traditional business plan” can function and reconstruct present and future financial objectives. The budgets can be properly settled up in the plan as per the market projections and it can effectively fulfill the organizational targets by earning a sufficient profit with the effective approach of marketing techniques.