Business plan
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This document outlines the sections and contents of a typical business plan. It discusses the key preliminary sections like the executive summary and table of contents. The major sections covered include background on the business, objectives, market analysis, development and production details, marketing strategy, financial projections, ownership structure, and critical risks. Appendices that can be included are financial statements, photos, forecasts, and CVs. The purpose of a business plan is to communicate the vision, strategy, and financial forecasts of a business to stakeholders.
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Business plan
- 2. โโ. (Ph,D) โโโโโโโโโโโโโโโโโโโ โโโโโโโโโโโโโโโโโโโ โโโโโโโโโโโโโ TEL: 081-7543838 FAX. :02- 2722965 e-mail: pongsakswat@yahoo.com www.pongsakswat.blogspot. com โโโโโโโโโโโโโโโโโโโโ โ.โโโโโโโโโโโโโโโ โโโโโโโโโโโโโโโโโโ โ.โโโโโโโโโโโ โโโโโโโโโโโโ โโโโโโโโโโโโโ โโโโโโโโโโโโโโโโ โ.โโโโโโโโโโโ โ. M.Eng. โ.โโโโโโโโโโโ MBA . ./ โ.โโโโโโโ / โโโ.โโโโโโโโโโ / โโโโโโโโโโโโโโโโโโโโโโโโ โโโโโโโโโโโโโโ
- 3. Uses of a Business Plan • Comprehensiveness • Communication • Guidance Firms that plan better are more likely to succeed
- 4. Who is it for? • Self • Investor – Debt – Equity • Key employees • Significant others
- 5. Strategic PlanningStrategic Planning …is the managerial process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing market opportunities. Org Objectives Resources Changing Environment Strategic Fit
- 6. The Role of StrategyThe Role of Strategy Strategy: •Corporate •Business •Functional Operating Plans
- 7. Vision and StrategyVision and Strategy
- 8. Corporate MissionCorporate Mission • Broad purposes of the organization • General criteria for assessing the long-term organizational effectiveness • Driven by heritage & environment • Mission statements are increasingly being developed at the SBU level as well
- 9. Examples of Corporate Mission SINGAPORE AIRLINES is engaged in air transportation and related businesses. It operates world-wide as the flag carrier of the Republic of Singapore, aiming to provide services of the highest quality at reasonable prices for customers and a profit for the company
- 10. Examples of Corporate Mission MARRIOTT’S Mission Statement: We are committed to being the best lodging and food service company in the world, by treating employees in ways that create extraordinary customer service and shareholder value
- 11. Corporate Objectives &Corporate Objectives & GoalsGoals • An objective is a long-range purpose – Not quantified and not limited to a time period – E.g. increasing the return on shareholders’ equity • A goal is a measurable objective of the business – Attainable at some specific future date through planned actions – E.g. 10% growth in the next two years
- 13. The Usual Business PlanningThe Usual Business Planning HierarchyHierarchy
- 14. Strategic Planning – ManyStrategic Planning – Many Sub PlansSub Plans
- 15. Framework of a SuccessfulFramework of a Successful OrganisationOrganisation
- 16. Business Planning andBusiness Planning and DeliveryDelivery
- 17. Vision is a Critical DriverVision is a Critical Driver • To succeed in the long term, our business needs a vision of how we will change and improve in the future. • “without a vision, the people perish” • The vision of the business gives its energy. – It helps motivate us. – It helps set the direction of corporate and marketing strategy.
- 18. "Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations".
- 19. Strategic Plan Definition: • A clear and simple summary of – Key market trends, – Key target segments, – The value required by each segment, – How the company intends to create value, – With a clear prioritization of marketing objectives and strategies, together with financial consequences.
- 20. Four Generic StrategiesFour Generic Strategies Cost Leadership Differentiation Cost Focus Differentiation Focus Scope Broad Target Narrow Target Lower Cost Differentiation
- 21. CHANGING ASSUMPTION IN STRATEGIC MARKETING MARKETING DEPARTMENT DOES IN MARKETING MARKETING INTEGRATES THE WORK OF EXPLOING CREATING AND DELIVERING CUSTOMER VALUES FOCUSES ON “INTERRUPTION” MARKETING FOCUSES ON “PERMISSION” MARKETING
- 22. FOCUSES ON ACQUIRING NEW CUSTOMERS FOCUSES ON CUSTOMER RETENTION & LOYALTY FOCUSES ON IMMEDIAT TRANSACTIONS FOCUSES ON CAPTURING CUSTOMER LIFE TIME VALUES (CLV) MARKETING EXPENDITUREES ARE VIEW AS EXPENSES MUCH MARKETING EXPENDITURES ARE VIEWED AS INVESTMENT
- 23. Marketing Planning Market Needs Wants Strengths of organization Weakness of organization Existing competitors Expected competitorsDesign for creating value
- 24. Stages of Marketing Plan 1.Mission 2.Corporate objectives 3.Marketing audit 4.SWOT analysis 5.Assumptions 6.Marketing objective and strategies 7.Estimate expected result 8.Identity alternative plans and mixes 9.Budget 10.First year detailed implementation program Phase one -Goal Setting Phase Two – Situation Review Phase Three- Strategy Formulation Phase Four- Resources allocation and monitoring Measuremen t and review
- 25. SWOT Analysis ©South-Western College Publishing SS WW OO TT Things the company does well.Things the company does well. Things the company does not do well.Things the company does not do well. Conditions in the external environment that favor strengths. Conditions in the external environment that favor strengths. Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness. Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness. InternalInternal ExternalExternal
- 26. SWOT Analysis Opportunities Threats Strengths STSO Weakness WTWO Internal External
- 27. SWOT Analysis Production Costs Marketing Skills Employee Capabilities Financial Resources Available Technology Company/Brand Image Strengths and WeaknessesStrengths and Weaknesses INTERNALINTERNAL Strengths and WeaknessesStrengths and Weaknesses INTERNALINTERNAL
- 28. External Marketing Environment DemographicsDemographics Social Change Social Change Economic Conditions Economic Conditions Political & Legal Factors Political & Legal Factors TechnologyTechnology CompetitionCompetition Environmental Scanning Target Market Product Distribution Promotion Price Product Distribution Promotion Price External Environment is not controllable Ever-Changing Marketplace
- 29. SWOT Analysis Opportunities and ThreatsOpportunities and Threats EXTERNALEXTERNAL Opportunities and ThreatsOpportunities and Threats EXTERNALEXTERNAL POLITICAL / LEGAL ECONOMIC SOCIAL TECHNOLOGY COMPETITIVE DEMOGRAPHIC
- 30. Environmental Scanning Collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organization or the marketing plan implementation.
- 31. Political • ecological/environmental issues • current legislation home market • future legislation • European/international legislation • regulatory bodies and processes • government policies • government term and change • trading policies • funding, grants and initiatives • home market lobbying/pressure groups • international pressure groups • wars and conflict Economic • home economy situation • home economy trends • overseas economies and trends • general taxation issues • taxation specific to product/services • seasonality/weather issues • market and trade cycles • specific industry factors • market routes and distribution trends • customer/end-user drivers • interest and exchange rates • international trade/monetary issues
- 32. Social • lifestyle trends • demographics • consumer attitudes and opinions • media views • law changes affecting social factors • brand, company, technology image • consumer buying patterns • fashion and role models • major events and influences • buying access and trends • ethnic/religious factors • advertising and publicity • ethical issues Technological • competing technology development • research funding • associated/dependent technologies • replacement technology/solutions • maturity of technology • manufacturing maturity and capacity • information and communications • consumer buying mechanisms/technology • technology legislation • innovation potential • technology access, licencing, patents • intellectual property issues • global communications
- 33. tegic Choices Taken from SWOT STRENG THS WEAKNES SES OPPORTU NITIES THREATS กกกกกกก กกกกกกก Proactive กกกกกกก กกกก กกกกกกกกกก Joint Venture etc. กกกกกกกกกกกก กกกกกกกกกก กกกกกกกกกกก กกกก Improve Quality กกกกกกกกกกก กกกกกกกกกกกกกก Retrenchment or Divestitures
- 34. 4. Diversification 2. Market Development New Markets 1. Market Penetration Existing Markets Existing Products 3. Product Development New Products Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid Marketing Objectives and Strategies
- 35. Marketing Mix Product Price Promotion Place The Marketing Mix Customer Solution Customer Cost Communication Convenience
- 36. Elements of the Business Plan
- 37. Preliminary sections • Cover page • Table of contents • Executive summary
- 38. Major sections • Background – History – Current situation – Firm’s advantage • Objectives (quantitative / qualitative) – Short term – Long term
- 39. Market analysis • Overall market • Specific market – Focus on the consumer • Competitive factors • Macroeconomic influences
- 40. Development and production • Stages of product development • Production process – Use of flow charts • Resources (and risks) • Quality program
- 41. Marketing strategy • Overall concept and orientation • Marketing strategy – Discuss along 4 Ps • Sales forecast – Size of market – Market penetration – Pricing • Follow up segments
- 42. Financial statements • Projected profit and loss statements • Projected cash flow statement • Projected balance sheets • IRR and NPV projections • Break-even analysis – In a table
- 43. Financial strategy • Financial resources • Sources – pref. for debt/equity • Uses – priorities, expansion plans • Internal control and monitoring systems
- 44. HRM strategy • Structure of organisation • Manpower planning • Supervision • Benefits / compensation [retention] • Legal & regulatory obligations • Key personnel
- 45. Ownership • CVs of promoters • Form of business – Subsidiaries, holding companies • Equity positions
- 46. Critical risks & contingencies • Failure to produce product promised • Failure to meet production deadlines or sales forecasts • Problems with suppliers and distributors • Unforeseen industry trends • Unseen political, economic, social, technological events
- 47. Critical risks & contingencies (cont.) • Retaliation by competitors • Problems related to inexperienced mgmt • Problems related to unproven technology • Difficulties in raising adequate finance • Other issues specific to the firm
- 48. Schedule / Milestones • Completing licensing / permit requirement • Completion of R & D efforts • Completion of product/prototype testing • Purchase/lease of facilities • Construction timetable • Hiring • Begin production
- 49. Appendices • Financial statements • Photo or drawing of your product • Photo of location • Layout diagram • Sales & profitability forecast charts • Market survey & documentation
- 50. Appendices • Fixed asset acquisition schedule • Sample press releases, adverts • Price lists, catalogues • Individual & corporate tax returns • CVs of promoters, key individuals
Editor's Notes
- Mission statements may be developed at the SBU level in order to make sense, especially for large organization with diverse business interests e.g. NTUC INCOME and NTUC Fairprice