Business Planning


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Aspect of Business planning are explored including marketing, external analysis & HRM

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Business Planning

  1. 1. Business Planning <ul><li>Defined as: </li></ul><ul><li>“A plan presented to a bank or other provider of finance, describing what the business intends to do, explaining what the costs will be, what it expects to earn, how it will repay the money it has borrowed, & how soon it will make a profit” </li></ul>
  2. 2. The Purpose of a Business Plan <ul><li>For the providers of finance. </li></ul><ul><li>For the managers of the business. </li></ul><ul><li>For monitoring of the business. </li></ul>
  3. 3. Business Sectors <ul><li>Public. </li></ul><ul><li>Private. </li></ul><ul><li>Voluntary. </li></ul>
  4. 4. Business Classification <ul><li>Sole Trader. </li></ul><ul><li>Partnership. </li></ul><ul><li>Limited Company. (PLC & LTD) </li></ul>
  5. 5. Business Classification (cont) <ul><li>Franchise. </li></ul><ul><li>Co-operatives </li></ul>
  6. 6. Business Objectives <ul><li>A business may be defined as: </li></ul><ul><li>“An organisation which provides goods or services which satisfy customer needs & wants” </li></ul>
  7. 7. Business Objectives (cont) <ul><li>To cover costs & make a profit. </li></ul><ul><li>To grow – increase sales & market share. </li></ul><ul><li>To provide quality. </li></ul><ul><li>To develop a skilled workforce. </li></ul><ul><li>To serve the community. </li></ul>
  8. 8. Market Research <ul><li>Questions that need to be answered: </li></ul><ul><li>Is there a demand for the product / service? </li></ul><ul><li>Who are the customers? </li></ul><ul><li>What is the competition doing? </li></ul><ul><li>What should I charge? </li></ul>
  9. 9. Market Research (cont) <ul><li>Secondary (desk) research. </li></ul><ul><li>Primary (field) research. </li></ul><ul><li>Broken down, this can be either; </li></ul>
  10. 10. Market Research (cont) <ul><li>Quantitative research </li></ul><ul><li>Or </li></ul><ul><li>Qualitative research. </li></ul>
  11. 11. Market Research (cont) <ul><li>Secondary Research </li></ul><ul><li>An examination of the organisations own internal records. </li></ul><ul><li>A study of external publications, complied by experts in various fields. </li></ul>
  12. 12. Market Research (cont) <ul><li>Primary Research </li></ul><ul><li>Consists of several stages: </li></ul><ul><li>Clarify the objectives of the research. </li></ul><ul><li>Choose a suitable data collection method. </li></ul><ul><li>Construct a questionnaire. </li></ul><ul><li>Decide on sampling techniques. </li></ul>
  13. 13. Market Research (cont) <ul><li>Collect data in the field. </li></ul><ul><li>Collate, analyse & interpret the data </li></ul><ul><li>Present your findings, with forecasts if required. </li></ul>
  14. 14. Market Research (cont) <ul><li>Whichever method(s) of market research </li></ul><ul><li>are used the answers should answer the </li></ul><ul><li>question ‘Is there a demand for the </li></ul><ul><li>product / service?’ </li></ul>
  15. 15. Market Segmentation <ul><li>‘Is the process whereby the overall </li></ul><ul><li>market is divided up into separate sets of </li></ul><ul><li>customers (segments) who have </li></ul><ul><li>identifiable product needs’ </li></ul>
  16. 16. Market Segmentation (cont) <ul><li>There are a number of ways of identifying consumer market segments: </li></ul><ul><li>Social stratification. </li></ul><ul><li>Age groups. </li></ul><ul><li>Regional groups. </li></ul>
  17. 17. Market Segmentation (cont) <ul><li>Sex. </li></ul><ul><li>Income groups. </li></ul><ul><li>Ethnic groups </li></ul>
  18. 18. Marketing Planning <ul><li>A marketing plan is a result of careful research, consultation & discussion. It will analyse past performance & present trends & attempt to predict the future. </li></ul><ul><li>There are a number of planning tools and techniques used to aid decisions… </li></ul>
  19. 19. Marketing Planning (cont) <ul><li>SWOT </li></ul><ul><li>Marketing Mix. </li></ul><ul><li>Ansoff strategy. </li></ul><ul><li>PEST analysis. </li></ul>
  20. 20. Marketing Planning (cont) <ul><li>Strengths </li></ul><ul><li>Weaknesses </li></ul><ul><li>Opportunities </li></ul><ul><li>Threats </li></ul>
  21. 21. Marketing Planning (cont) <ul><li>Product. </li></ul><ul><li>Price. </li></ul><ul><li>Place. </li></ul><ul><li>Promotion </li></ul><ul><li>The </li></ul><ul><li>Marketing </li></ul><ul><li>Mix </li></ul>
  22. 22. Marketing Planning (cont)
  23. 23. Marketing Planning (cont)
  24. 24. Marketing Planning (cont)
  25. 25. Planning for Resources <ul><li>2 areas: </li></ul><ul><li>Human Resource planning. </li></ul><ul><li>Physical & Production Recourse planning. </li></ul>
  26. 26. Human Resource Planning <ul><li>Objectives: </li></ul><ul><li>The productivity & output of the business is efficient. </li></ul><ul><li>The profit is maximised. </li></ul><ul><li>People working in the business are motivated & satisfied. </li></ul>
  27. 27. Human Resource Planning (cont) <ul><li>The skills that are needed: </li></ul><ul><li>Administration & management. </li></ul><ul><li>Finance / book-keeping / payroll. </li></ul><ul><li>Production & operations. </li></ul><ul><li>Research & development </li></ul>
  28. 28. Physical & Production Recourse Planning . <ul><li>Premises – Work from home, rent or buy? </li></ul><ul><li>Things to consider; </li></ul><ul><li>Planning permission. </li></ul><ul><li>Licences. </li></ul><ul><li>Leasehold or freehold. </li></ul><ul><li>Environmental restrictions. </li></ul>
  29. 29. Physical & Production Recourse Planning . (cont) <ul><li>Machinery – buy or lease? </li></ul><ul><li>Purchasing stock & materials – getting the right quality, in the right quantity, at the right time at the right price. </li></ul>
  30. 30. Financial Techniques & Tools <ul><li>Cash Flow Forecast. </li></ul><ul><li>Break even analysis. </li></ul><ul><li>Ratio analysis. </li></ul><ul><li>Balance sheet. </li></ul><ul><li>Profit & Loss account. </li></ul>