The document outlines the key components of a business plan, including describing different types of business plans, the advantages of developing a business plan, and the processes involved in business planning, marketing research, product development, financial planning, and supply chain management. It provides an overview of the various sections that should be included in a business plan and factors to consider in each business planning area.

1. Business Plan

2. Presented by:
Rizwan Qamar
2

3. Outline
• Business Plan
• Types of Plan
• Advantages of Plan
• Business Planning Process
• Supply Chain
• Marketing Research
• Environmental Scanning
• Product Management
3

4. Outline (Cont’d)
• Pricing
• Promotion and Distribution
• Channel Management
• Financial Plan
• Brake Even Analysis
• Limitations
4

5. Business Plan
• Set of guide line for the new venture
• Define each and every aspect of business
• Identifies Product or service and Market
• Serves as the Firms Resume
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6. Types of Business
Plans
• The Miniplan
• The Working Plan
• The Presentation Plan
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7. The Miniplan
• Also Called SUMMARY Plan
• Consists on 1-10 pages
• Include only Key Matters
• Suitable for Internal Concerns
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8. The Working Plan
• A tool to be used to operate the business
• Longer in detail and shorter in
Presentation
8

9. The Presentation
Plan
• More attention is paid to attractive
formatting
• Formal language, and conciseness
• Suitable for showing to bankers, investors
and others outside the company
• More Expensive
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10. Advantages of
Business Plan
• Focusing time and energy
• Puts a solid strategy in place to set your
business apart from the competition
• Ability to communicate the plan to
employees
• Held them accountable for results
• Results of business efforts can be tracked
and mid-course corrections made to get
back on track if necessary
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11. Business Planning
Process
• Idea Generation
• Feasibility Analysis
• Drawing up a Functional Plan
• Project Report Preparation
• Evaluation, Control & Review
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12. Contents of a Business
Plan
• Executive summary
• Background
• Background of key personnel
• Marketing
• Production and manufacturing
• Finance
• Human resources
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13. Supply Chain
• Logistics network, or supply network
• Coordinated system of organizations,
people, activities, information
• Moving a product or service in physical or
virtual manner from supplier to customer
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14. Key Process of Supply
Chain
• Customer relationship management
• Customer service management
• Demand management
• Order fulfillment
• Manufacturing flow management
• Supplier relationship management
• Product development and commercialization
• Returns management / reverse logistics
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15. Marketing
Research
• Business-to-Business (B2B) Marketing
Research
• Consumer Marketing Research
• Advertising Research
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16. Marketing Research
Techniques
• Test marketing
• Concept testing
• Mystery shopping
• Store audit
• Demand estimation
• Sales forecasting
• Customer satisfaction studies
• Distribution channel audits
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17. Marketing Research
Techniques
(Cont’d)
• Price elasticity testing
• Segmentation research
• Consumer decision process research
• Positioning research
• Brand name testing
• Brand equity research
• Advertising and promotion research
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18. Marketing Research
Techniques
(Cont’d)
• Internet Strategic Intelligence
• Marketing Effectiveness and analytics
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19. Marketing Research
Methods
• A-BASED ON QUESTIONING
• B-BASED ON OBSERVATIONS
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20. A-based on
questioning
• Qualitative marketing research
-generally used for exploratory purposes
-small number of respondents
-not generalizable to the whole population
-statistical significance and confidence not
calculated
-examples include focus groups, in-depth
interviews, and projective techniques
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21. A-based on
questioning (Cont’d)
• Qualitative marketing research
-generally used to draw conclusions
-tests a specific hypothesis
-the uses random sampling techniques so
as to infer from sample to the population
-involves a large number of respondents
-examples include surveys and
questionnaires
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22. B-based on
observations
• Ethnographic studies
– by nature qualitative
– researcher observes social phenomena in
their natural setting
– observations can occur cross-sectionally
(observations made at one time) or
longitudinally (observations occur over several
time-periods)
– examples include product-use analysis and
computer cookie traces
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23. B-based on
observations
(Cont’d)
• Experimental techniques
– by nature quantitative
– the researcher creates a quasi-artificial
environment to try to control spurious factors
– then manipulates at least one of the variables
– examples include purchase laboratories and
test markets
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24. The Macroenvironment
• The Economy
– GNP or GDP per capita
– Economic growth
– Unemployment rate
– Inflation rate
– Consumer and investor confidence
– Inventory levels
– Currency exchange rates
– Merchandise trade balance
– Financial and political health of trading partners
– Balance of payments
– Future trends
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25. The Macroenvironment
(Cont’d)
• Government
– Political climate - amount of government activity
– Political stability and risk
– Government debt
– Budget deficit or surplus
– Corporate and personal tax rates
– Payroll taxes
– Import tariffs and quotas
– Export restrictions
– Restrictions on international financial flows
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26. The Macroenvironment
(Cont’d)
• Legal
– Minimum wage laws
– Environmental protection laws
– Worker safety laws
– Union laws
– Copyright and patent laws
– Anti- monopoly laws
– Sunday closing laws
– Municipal licenses
– Laws that favor business investment
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27. The Macroenvironment
(Cont’d)
• Technology
– Industrial productivity
– New manufacturing processes
– New products and services of competitors
– New products and services of supply chain
partners
– Any new technology that could impact the
company
– Cost and accessibility of electrical power
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28. The Macroenvironment
(Cont’d)
• Ecology
– Ecological concerns that affect the firms
production processes
– Ecological concerns that affect customers'
buying habits
– Ecological concerns that affect customers'
perception of the company or product
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29. The Macroenvironment
(Cont’d)
• Socio-Cultural
– Demographic factors such as:
– Population size and distribution
– Age distribution
– Education levels
– Income levels
– Ethnic origins
– Religious affiliations
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30. The Macroenvironment
(Cont’d)
• Attitudes towards
– Materialism, capitalism, free enterprise
– Individualism, role of family, role of government,
collectivism
– Role of church and religion
– Consumerism
– Environmentalism
– Importance of work, pride of accomplishment
• Cultural structures including
– Diet and nutrition
– Housing conditions
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31. The Macroenvironment
(Cont’d)
• Potential Suppliers
– Labor supply
– Quantity of labor available
– Quality of labor available
– Stability of labor supply
– Wage expectations
– Employee turn-over rate
– Strikes and labor relations
– Educational facilities
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32. The Macroenvironment
(Cont’d)
• Material suppliers
– Quality, quantity, price, and stability of material inputs
– Delivery delays
– Proximity of bulky or heavy material inputs
– Level of competition among suppliers
• Service Providers
– Quantity, quality, price, and stability of service
facilitators
– Special requirements
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33. New Product
Development
• Idea Generation
• Idea Screening
• Concept Development and Testing
• Business Analysis
• Beta Testing and Market Testing
• Technical Implementation
• Commercialization
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34. 34

35. Product
Management
• Product planning
• Product marketing
• Program management
• Project management
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36. Pricing
• Achieve the financial goals of the firm
• Fit the realities of the marketplace (will customers buy at
that price?)
• Support a product's positioning and be consistent with
the other variables in the marketing mix
• Price is influenced by the type of distribution channel
used, the type of promotions used, and the quality of the
product
• Price will usually need to be relatively high if
manufacturing is expensive, distribution is exclusive, and
the product is supported by extensive advertising and
promotional campaigns
• A low price can be a viable substitute for product quality,
effective promotions, or an energetic selling effort by
distributors 36

37. Pricing Types
• Effective price
• Price lining
• Promotional pricing
• Price/quality relationship
• Premium pricing
• Goldilocks pricing
• Demand-based pricing
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38. Promotion
• Personal selling
• Non-personal selling
• Advertising
• Sales promotion
• Publicity and public relations
• Tradeshows
• Direct selling
• Product placement
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39. Distribution
• Should the product be sold through a retailer?
• Should the product be distributed through wholesale?
• Should multi-level marketing channels be used?
• How long should the channel be (how many members)?
• Where should the product or service be available?
• When should the product or service be available?
• Should distribution be exclusive, selective or extensive?
• Who should control the channel (referred to as the
channel captain)?
• Should channel relationships be informal or contractual?
• Should channel members share advertising (referred to
as co-op ads)? 39

40. The distribution
channel
• Selling direct, such as via mail order, Internet
and telephone sales
• Agent, who typically sells direct on behalf of the
producer
• Distributor (also called wholesaler), who sells to
retailers
• Retailer (also called dealer), who sells to end
customers
• Advertisement typically used for consumption
goods
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41. Financial plan
• Personal financial plan
– Personal budget
– Personal investment plan
– Financing plan
• Business financial plan
– Financial statements
– Projection of income and expenses
– Financing plan
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42. Break Even
Analysis
• Cost=Revenue
• Cost
• Variable Cost
• Fixed Cost
• Revenue
• Profit
• Profit Margin
• Profit Equation
• Change in Price and BE
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43. 43

44. Limitations of BE
• Break-even analysis is only a supply side
• It assumes that fixed costs (FC) are constant
• It assumes average variable costs are constant
per unit of output, at least in the range of likely
quantities of sales
• It assumes that the quantity of goods produced is
equal to the quantity of goods sold
• In multi-product companies, it assumes that the
relative proportions of each product sold and
produced are constant
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45. Human Resource
Management
• It is a Process of acquiring, training,
appraising and compensating employees
and attending to their labor relations,
health and safety and fairness concerns.
45

46. HRM Activities
• Requirement and Selection
• Training and development
• Performance Appraisals
• Compensation
• Incentives and Benefits
• Equal Employment Opportunities and
Affirmative Action
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47. HRM Activities (Cont’d)
• Motivating Employees
• Health and Safety Issues
• Legal Requirements of Workers
• Building Employment Commitment
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48. Recruitment and
Selection
• Job Analysis
• Job Posting
• Recruitment
• Test Conducting
• Background Investigation
• Interviews
• Selection Decision
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49. Training and
Development
• Need Analysis
• Instructional Design
• Validation
• Implementation
• Evaluation
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50. Training Techniques
• On the Job Training
• Off the Job Training
• Computer Based Training
• Lectures
• Programmed Training
• Audio/Video Visuals based Training
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51. Performance Appraisals
• Define Job Means
• Appraising Performance
• Feedback Session
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52. Compensation and
Benefits
• Basic Pay
• Pay on Merit
• Pay for work done
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53. Incentives and Benefits
• Bonuses
• Commissions
• Medical Allowance
• House Rent Allowance
• Conveyance Allowance
• Children Education Allowance
• Free Utilities
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54. Incentives and Benefits
(Cont’d)
• Pension and Gratuity
• Vacations/Holidays
• Sick Leave
• Insurance Benefits
• Social Security
• Family Friendly Benefits
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55. Acts and Laws In
Pakistan
• Industrial Relations Ordinance 2002
• Factory Act 1934
• Industrial and Commercial Employment
Ordinance 1968
• Payment of wages Act 1936
• Workmen’s Compensation Act 1923
• Provincial Employees Social Security
Ordinance 1965
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56. Recommendations
• The Business Plan should be concise and full of
relevant information about concerning product or
service.
• The Business plan should be revised and error
free.
• The strategies should be well defined and the
tools to achieve them
• The whole Hierarchy of an organization and their
concerned work should be clearly defined
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57. Recommendations
(Cont’d)
• In Business plan the Financial position of
the company (current) and the Desired
targets (Future) in terms of profit or return
should be well defined.
• Business Plan should be result and Goal
Oriented.
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58. Conclusion
• We conclude that the Business plan is
having a greater importance for a company
who desire to enter in Business world.
• The strategies are based on it. It means
the whole business and its progress
depends on how well the Business plan of
the company is being made and clarified.
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59. Thanks
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