SECTION A 1. THE TWO TYPES OF PLANNING : STRATEGIC PLANNING AND BUSINESS PLANNING STRATEGIC PLANNING : - Setting a long term vision or future direction of business. 3-5 year plan. - Includes : a) Visioning b) Values c) External competitor analysis (array) d) Internal competitor analysis (Gap, SWOT) e) Financial resources f) Human resources - For product to be trusted, 1st choice : i. Establish company’s values ii. Be honest in listing values (create ‘face’ of business) iii.People will associate with companies that have stong brand name which follows certain values. BUSINESS PLANNING : - Mid-lower level, short term. 12-18 month mission plan, critical goal category, marketing plans, financial plans. - Is a tactital of how vision to achieve, identifies steps of business is going to take. - Good business plan : a) Marketing b) Operations c) Management d) Finance - Helps to identify the actions need to reach long term goals. - Usefull for new business as it show potential investors. - Contain the following elements : o Statement of aim and objectives o Description of market business is selling to o Main competitors o Production and sales forecast o Equipment needed o Plans to get product to customer 2. TOOLS USED TO PROCESS GATHERED INFORMATION IN MARKET ANALYSIS The tools are : i. SWOT analysis - Evaluate the Strenght, Weakness, Opportunities and Threat involved business ventures. - Specifying the objective, identifying the internal and external factor - Essential due subsequent steps in the process of planning for success ii. Competitor array analysis - Build detail profiles of each competitor - Focusing on their relative competitive strenghts and weakness using SWOT analysis. - Steps in array analysis : i. Define industry ii. Determine competitors iii. Determine customers (what benefits)
iv. Determine the key suces factors v. Rank the key success factors vi. Rate each competitor vii. Multiply each call in the matrix by factor weighing iii. Gap analysis (from present to future) - Helps company to compare actual and potential peformance - Indentify the gap between current level and the optimized level - Helps to provide the company into areas that can be improved - Methodology : i. Determining ii. Documenting iii. Approving the variance (new expexted requirement minus current) - Can be use to rank of ‘Good’, ‘Average’, ‘Poor’ achievement.*Gap analysis is appropiate to evaluate an enterprise that already stated or running, while other two is suitable evenbefore starting and trough out the life of the enterprise. 3. IDENTIFICATION AND ANALYSIS OF BUSINESS OPPORTUNITIES : 4 STEPS AND ENTREPRENUER ANALYZES TO SEE OPPORTUNITIES 4 Steps to identify market analysis: i. Gathers and analyzes data/information ii. Technical data is used to predict iii. Fundamental economic factors iv. Technical considerations How entreprenuer see opportunities : i. Identify the needs, wants and demands of customers. ii. Identify the market environment. iii. Evaluate the meat business opportunity iv. Choose or commit 4. THE 5 DIFFERENT AREAS (types of analysis) STRUCTURED AND COVERED IN MARKET ANALYSIS 5 C’s : a) Customer analysis b) Company analysis c) Collaborator analysis d) Competitor analysis e) Analysis of the industry Context. Market analysis : 1. Gathers and analyzes data – information about moving and distribution of goods 2. Technical data – forecast/predict supply/demand future movements 3. Fundamental economic factor – basic knowledge of wages of customers, inflation, operation costs. 4. Technical Considerations – trading volume, price charts. 5. Market Segmentation – how to creatively indentify and exploit emerging opportunities in the market. 6. Market need analysis? – to reveals the risks, oppotunities, buying habits, challenges, adoption rates.
5. THE RELATIONSHIP BETWEEN THE QUANTITY OF SUPPLY OF A CERTAIN GOODS AND ITS PRICE When the quantity of product is less, the demand of the product high, thus the price of the product is high. When the product quantity is high, the product had already well-known to the market hence the product demand is low, and the price of product will be decrease. Entreprenuer needs to analyze what quantity is the profit point.6. CHALLENGES AND PROBLEMS ASSOCIATED WITH AGRICULTURE MARKETING IN MALAYSIA Problem relating to agri-Products 1. Agricultural goods are perishable and can not be stored for a longer period of time. 2. Great annual variations in the quality of product from year to year, season to season combined with unfavourable sale environment : a. Unfavourable place b. Unfavourable time c. Unfavourable terms 3. Collection of products – involves a lot of logistics problems, expensive to collect product from scattered farmers. 4. Poor Quatity of products – inferioir quality of seeds and inappropiate fertilizers results poor quality of product hence low price. 5. Lack of Grading – aunethical but common practice 6. Lack of Storage and Warehouses – lack in towns, MIDDLEMEN EXPLOIT this products and buy them at lower price. Problems relating to Inadequate marketing components 1. Lack of Intelligence – refers to providing everyday information 2. Lack of Marketing Service Agencies in some countries – news media, adversiting and consultation agencies 3. Inadequate Market Information – both cultivators and consumers are not aware of market conditions. 4. Inefficient Market Environment – agro-market is not clean and neat. 5. Inability to Wait for Higher Price – farmers usually sell in higher price, do not wait for suitable profit in order to meet their immediate expenditures.7. FUNCTIONS OF BUSINESS MANAGEMENT a) Planning : Decide what objective neds to happen in the future Generate plans for actions Plan to meet the 9 criteria – Specific, Measurable, Agreed, Realistic, Time Specific, Survival, Profit maximization, Profit satisfying, Sales growth b) Organizing and Implementation : Making optimum resource required to carry out plans c) Staffing : Job analyzing, recruitment, hiring individual fot appropiate jobs. d) Leading/Directing :
Determine what need to be done in situation and getting people to do it e) Controlling an organization : Checking progress against plans f) Motivation : Without motivation, employess cannot work effectively.SECTION B 1. Terms used in market analysis.Market analysis : - Gathers and analyzes data – information about moving and distribution of goods - Technical data – forecast/predict supply/demand future movements - Fundamental economic factor – basic knowledge of wages of customers, inflation, operation costs. - Technical Considerations – trading volume, price charts. - Market Segmentation – how to creatively indentify and exploit emerging opportunities in the market. - Market need analysis? – to reveals the risks, oppotunities, buying habits, challenges, adoption rates.SWOT, Competitor Array, Gap Analysis see before. 2. Explain how SME visited improve using 4 P’s a) Product Satisfy customer Have benefits b) Place Distribution center Place center Warehousing Inventory Management c) Price Discounts Allowances Payment Period d) Promotion Sales Promotion Advertising Public Relations Direct Marketing