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  • The main motive of a business is profit. Business men don’t rush into business unless they forecast their weaker areas first. A strong plan can either sustain a business or can ruin it. Business Plans is a simple representation of balancing and gaining edge over the weaknesses of a business with the strengths. If you fail you might be Heart Broken, but if you never tried you are doomed. Working with strategies is the primary scope in Business Development and for Business Managers. Learn to strategically place yourself out of scenarios. You are never the main concern. You are just the representing medium.
  • - Know organizational vision Where company wants to go ? Will the organization fully supply you with resource ? How can you plan accordingly and what a company needs to do to attain goals - Make Futuristic but realistic goals. Dream in night, jot down in day how you vision the part of business. Where do you want to go. Answer is this possible ? If yes How - Clients, Users, Target market Probably most important feature of the business. Understand whom to target and how. Know a users mind and you know business. If you provide Baby food to a teenager probably this wont sell. - The Edge and Strength Edge over your competition is the strength you possess. This also features Special achievement and knowledge in team which can result growth Special viewpoints and ideas - Barriers to achieve the target These are the weaknesses and provide how these can be removed. Can be Resource Finance Machinery Communication barrier Plan accordingly and suggest ways so as to remove barriers. - Barriers to achieve the target These are the weaknesses and provide how these can be removed. Can be Resource Finance Machinery Communication barrier Plan accordingly and suggest ways so as to remove barriers. Clients are your customers. They are God. Always take a peek in better client services - Increase in Target Always Increase target. That’s why is a business plan, grow the business. The best way is dividing targets quarterly During 1 st phase it is least say 20% of total growth Increase a bit in second phase based upon your calculations The third phase is the highest increase Remaining of target comes in last phase (where you also analyze the present BP to formulate for new financial year) - New Segments of Scope Is there a new market ? Are their any growth in certain sectors ? How can these be trapped ? Are there any specific strategies ? How do you plan to grab a new target market ? Answer these questions in this section. - Accountings Financials and Accounting facts to be dealt with. This might also take into account project costs. The best way to calculate project cost is upon hours you have to give in Manage the time based upon estimation, take into account flaws, limitations and resource. Always remember to add 15% - 20% time leeway due to unknown factors

    1. 1. Strategic Management Dr. Hala Hattab November 21-23 Venue
    2. 2. Course Introduction <ul><li>Welcome </li></ul><ul><li>About Me </li></ul><ul><li>About You (why you?) </li></ul><ul><li>Why Strategy? </li></ul><ul><li>Overview of Topics and Calendar </li></ul><ul><li>Expectations </li></ul><ul><li>Introduction of Concepts </li></ul>
    3. 3. Who are You? Self Introduction <ul><li>Name </li></ul><ul><li>Company </li></ul><ul><li>Undergraduate Studies </li></ul><ul><li>Work experience, if any </li></ul><ul><li>What are you interested in? </li></ul><ul><li>What do you hope to gain from this course? </li></ul>
    4. 4. Why You? <ul><li>You will be principals in firms </li></ul><ul><li>You will have to decide what to do: What markets? </li></ul><ul><li>What services? </li></ul><ul><li> Where to dedicate your time? </li></ul><ul><li> What kinds of people? </li></ul><ul><li>You probably will be part of a team. </li></ul>
    5. 5. Why Strategy? <ul><li>It’s about how businesses compete. </li></ul><ul><li>How to earn above average returns. </li></ul><ul><li>Selection of industries </li></ul><ul><li>Selection of segments </li></ul><ul><li>Choice of tactics </li></ul><ul><li>How to IMPLEMENT! </li></ul>
    6. 6. Overview of Topics and Calendar <ul><li>Day 1 </li></ul><ul><ul><li>Introduction to Strategic Planning and Management </li></ul></ul><ul><ul><li>Why strategic management is important? </li></ul></ul><ul><ul><li>Strategic Management: Key Concepts </li></ul></ul><ul><ul><li>Strategic Planning for SMEs </li></ul></ul><ul><li>Day 2 </li></ul><ul><ul><li>Design a business plan for your organization </li></ul></ul><ul><li>Day 3 </li></ul><ul><ul><li>Design a business plan for your organization </li></ul></ul>
    7. 7. Expectations for the Course: You Will… <ul><li>Struggle with figuring out what to do </li></ul><ul><li>Be prepared to participate in planning for your own firms </li></ul><ul><li>Study real business situation </li></ul>
    8. 8. Introduction of Concepts <ul><li>Strategic Management : The set of managerial decisions and actions that determines the long-run performance of an organisation. </li></ul><ul><li>Strategic Planning : The process of determining a company's long-term goals and then identifying the best approach for achieving those goals </li></ul>
    9. 9. Why is strategic management important? <ul><li>Gives everyone a role </li></ul><ul><li>Makes a difference in performance levels </li></ul><ul><li>Provides systematic approach to uncertainties </li></ul><ul><li>Coordinates and focuses employees </li></ul>
    10. 10. Basics of Strategic Management <ul><li>Four aspects that set strategic management apart </li></ul><ul><ul><li>Interdisciplinary </li></ul></ul><ul><ul><ul><li>Capstone of the Business degree </li></ul></ul></ul><ul><ul><li>External focus </li></ul></ul><ul><ul><ul><li>Competition </li></ul></ul></ul><ul><ul><li>Internal focus </li></ul></ul><ul><ul><li>Future direction </li></ul></ul>
    11. 11. Strategic Management Process
    12. 12. Strategic Management Process <ul><li>Step 1: Identifying the organisation’s current mission, objectives, and strategies </li></ul><ul><ul><li>Mission: the firm’s reason for being </li></ul></ul><ul><ul><ul><li>Who we are, </li></ul></ul></ul><ul><ul><ul><li>What we do, and </li></ul></ul></ul><ul><ul><ul><li>Where we are now </li></ul></ul></ul><ul><ul><li>Goals: the foundation for further planning </li></ul></ul><ul><ul><ul><li>Measurable performance targets </li></ul></ul></ul><ul><li>Step 2: Conducting an external analysis </li></ul><ul><ul><li>The environmental scanning of specific and general environments </li></ul></ul><ul><ul><li>Focuses on identifying opportunities and threats </li></ul></ul>
    13. 13. Strategic Management Process (cont’d) <ul><li>Step 3: Conducting an internal analysis </li></ul><ul><ul><li>Assessing organisational resources, capabilities, activities and culture: </li></ul></ul><ul><ul><ul><li>Strengths ( core competencies) create value for the customer and strengthen the competitive position of the firm. </li></ul></ul></ul><ul><ul><ul><li>Weaknesses (things done poorly or not at all) can place the firm at a competitive disadvantage. </li></ul></ul></ul><ul><li>Steps 2 and 3 combined are called a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) </li></ul>
    14. 14. Strategic Management Process (cont’d) <ul><li>Step 4: Formulating strategies </li></ul><ul><ul><li>Develop and evaluate strategic alternatives </li></ul></ul><ul><ul><li>Select appropriate strategies for all levels in the organisation that provide relative advantage over competitors </li></ul></ul><ul><ul><li>Match organisational strengths to environmental opportunities </li></ul></ul><ul><ul><li>Correct weaknesses and guard against threats </li></ul></ul>
    15. 15. Strategic Management Process (cont’d) <ul><li>Step 5: Implementing strategies </li></ul><ul><ul><li>Implementation: effectively fitting organisational structure and activities to the environment </li></ul></ul><ul><ul><li>Effective strategy implementation requires an organisational structure matched to its requirements. </li></ul></ul><ul><li>Step 6: Evaluating results </li></ul><ul><ul><li>How effective have strategies been? </li></ul></ul><ul><ul><li>What adjustments, if any, are necessary? </li></ul></ul>
    16. 16. Levels of strategy
    17. 17. End of part One
    18. 18. Part Two: Business Plan
    19. 19. What is a BP ? <ul><li>A written document that </li></ul><ul><li>outlines an organization's overall direction, philosophy, and purpose </li></ul><ul><li>examines its current status in terms of its strengths , weakness , opportunities, and threats </li></ul><ul><li>sets long-term objectives , and </li></ul><ul><li>formulates short-term tactics to reach them. </li></ul>
    20. 20. The Strategic Mind behind BP <ul><li>Focus the strategic parts of your plan related to: </li></ul><ul><ul><li>Time and Energy to attain goals (predefine what is to be achieved) </li></ul></ul><ul><ul><li>Resource allocation (Count chickens before they hatch don’t take in too much. Promise what can be delivered) </li></ul></ul><ul><ul><li>Your Business and Competition (Analyze your strengths and weakness) </li></ul></ul><ul><ul><li>Employee communication (nice trick, don’t take the blame over you) </li></ul></ul>
    21. 21. Extended Tricks <ul><li>Divide the work. Take The Correspondence. </li></ul><ul><li>Editable BP – make BP in revisions as you go in depth, make it finalized when you are sure about zero loopholes </li></ul><ul><li>Make another BP as a Plan 2, so that anytime you can seek in more resource (handy but a tough trick) </li></ul>
    22. 22. How to Draft a Simple BP <ul><li>Work on These lines: </li></ul><ul><ul><li>Vision of organisation </li></ul></ul><ul><ul><li>Goal of future </li></ul></ul><ul><ul><li>Clients, Users, Target market </li></ul></ul><ul><ul><li>Edge of you / your team / company </li></ul></ul><ul><ul><li>Barriers to achieve the target </li></ul></ul><ul><ul><li>Better serve ?? </li></ul></ul><ul><ul><li>Ad more to target..possible ?? </li></ul></ul><ul><ul><li>Adding new customers / users / target market share </li></ul></ul><ul><ul><li>Accountings </li></ul></ul><ul><ul><li>Starting of the plan dates </li></ul></ul>
    23. 23. <ul><li>In theory, there is no difference between theory and practice. But, in practice, there is.&quot; - Jan L.A. van de Snepscheut </li></ul>
    24. 24. Simply Stated... Make your points clearly and crisply.
    25. 25. Style counts… <ul><li>Use bulleted or enumerated points whenever possible. </li></ul><ul><li>Leave a wide margin. </li></ul><ul><li>Try to utilize meaningful graphs and diagrams throughout the entire plan </li></ul>
    26. 26. Basic Structure <ul><li>Executive Summary </li></ul><ul><li>The Market </li></ul><ul><li>The Product </li></ul><ul><li>The Team </li></ul><ul><li>The Strategy </li></ul><ul><li>The Forecasts </li></ul><ul><li>Appendices </li></ul>
    27. 27. Market Analysis <ul><li>It should be as useful for you as it is for the investor. </li></ul><ul><ul><li>Situation Analysis </li></ul></ul><ul><ul><li>Market Opportunity </li></ul></ul><ul><ul><li>Competitive Factors </li></ul></ul><ul><ul><li>Technical Feasibility </li></ul></ul><ul><ul><li>Risk/Reward Assessment </li></ul></ul>
    28. 28. The Product <ul><li>Know when “less is more” </li></ul><ul><li>Readability geared for layman </li></ul><ul><li>Deep technical points can be reserved for an appendix </li></ul><ul><li>“ Market Driven Engineering” </li></ul>
    29. 29. The Forecasts <ul><li>Let’s be realistic! </li></ul><ul><li>4 year model </li></ul><ul><li>Monthly detail only in years #1 and #2 </li></ul><ul><li>Drive data from “unit model” </li></ul><ul><li>Use ordinal numbers for months </li></ul><ul><li>Understand your DCF </li></ul>
    30. 30. Executive Summary <ul><li>This may be the only document that gets read; distill the most important points </li></ul><ul><li>Write it after the rest of the document, but put it 1 st </li></ul><ul><li>Use same terminology, wording, and images </li></ul><ul><li>Provide your sense of valuation and likely deal structure </li></ul>
    31. 31. Appendices <ul><li>Stuff you wanted to put in the plan </li></ul><ul><ul><li>Technical white-paper(s) </li></ul></ul><ul><ul><li>More detailed financial analysis, DCF, etc. </li></ul></ul><ul><ul><li>Additional competitive data </li></ul></ul><ul><ul><li>Additional market data/published reports </li></ul></ul><ul><ul><li>Articles about the company, product, market, team, etc… </li></ul></ul>
    32. 32. Concluding Remarks <ul><li>Impress the reader with the thoroughness of your understanding of the market. </li></ul><ul><li>Make it understandable. </li></ul><ul><li>Value white-space. </li></ul><ul><li>Develop realistic, flexible financial forecasts </li></ul>