3. Form derivatives according to the model.

A→Adv (-ly)		V→N(-ment)
internal – external – financial – typical –	particular – critical – primary –	develop – depart – govern –	invest – involve – state –

4. In each column find the word with the more general meaning:

business plan	externally focused plan	internally focused plan
investors	stakeholders	сustomers
bank loan	investment	equity financing
the World Bank	the IMF	international lending bodies

5. Fill the gaps with the proper words. Use the words given: target, goals, internal, to pursue, tools.

1. Internally focused business plans … intermediate goals required to reach the external goals. 2. Operational plans describe the goals of an … organization, working group or department. 3. Project plans, sometimes known as project frameworks, describe the … of a particular project. 4. Business plans are decision-making …. 5. A business plan should contain whatever information is needed to decide whether or not … a goal.

6. Translate the following collocations:

to be internally focused, to be important to, to be determined by, to be needed to, to be concerned about, the development of, a restructuring of, to be called, in conjunction with.

7. Explain the meaning of the following words and word combinations:

business plan, externally focused plans, international lending bodies, external stakeholders, strategic plan, project plan, internally focused business plan, external goal, exit valuation.

Reading

8. Read the text and be ready to answer the questions. Business planning

A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.

Business plans may be internally or externally focused. Externally focused plans target goals that are important to external stakeholders, particularly financial stakeholders. They typically have detailed information about the organization or team attempting to reach the goals. With for-profit entities, external stakeholders include investors and customers.^[1] External stake-holders of non-profits include donors and the clients of the non-profit's services.^[2] For government agencies, external stakeholders include tax-payers, higher-level government agencies, and international lending bodies such as the IMF, the World Bank, various economic agencies of the UN, and development banks.

Internally focused business plans target intermediate goals required to reach the external goals. They may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organization. An internal business plan is often developed in conjunction with a balanced scorecard or a list of critical success factors. This allows success of the plan to be measured using non-financial measures. Business plans that identify and target internal goals, but provide only general guidance on how they will be met are called strategic plans.

Operational plans describe the goals of an internal organization, working group or department. Project plans, sometimes known as project frameworks, describe the goals of a particular project. They may also address the project's place within the organization's larger strategic goals. Business plans are decision-making tools. There is no fixed content for a business plan. Rather the content and format of the business plan is determined by the goals and audience. A business plan should contain whatever information is needed to decide whether or not to pursue a goal.

For example, a business plan for a non-profit might discuss the fit between the business plan and the organization’s mission. Banks are quite concerned about defaults, so a business plan for a bank loan will build a convincing case for the organization’s ability to repay the loan. Venture capitalists are primarily concerned about initial investment, feasibility, and exit valuation. A business plan for a project requiring equity financing will need to explain why current resources, upcoming growth opportunities, and sustainable competitive advantage will lead to a high exit valuation.