Business planning ppt bec bagalkot mba

1. BUSINESS PLANNING
PRESENTED BY :-BABASAB PATIL

2. BUSINESS PLANNING
(M.B.P)

3. CONTENTS
Introduction
Being aware of opportunities (SWOT)
Setting objectives or goals
Indentifying alternatives
Evaluating Alternatives
Selecting an alternative
Formulating Supportive Plan
Numberising Plans By Making Budget

4.  Planning Definition:
Planning is a particular type of decision
making that addresses the specific future that
manager desire for their organizations.
Planning is the first managerial function to
be performed in the process of management.

5.  Importance of Planning:
• It offsets future uncertainty and change.
• It tackles increasing complexity in modern business.
• It helps in co-ordination.
• It helps in exercising effective control.
• It helps in the proper utilization of the company’s
resources.

6. Cont…
• It facilitates unity of action.
• It helps in avoiding business failures.
• Focuses attention on organization’s goals.
• Improves competitive strength.
• Improves adaptability.
• Guides decision-making

7. Introduction
 Business plans can help to perform a number of
tasks. They are used by investment-seeking
entrepreneurs to convey their vision to potential
investors. They may a be also used by firms that are
trying to attract key employees, prospect for a new
business, deal with suppliers or simply to understand
how to manage their companies better.

8. Environment scanning
To start our new business we selected Navanagar, i.e.
near by Akshay International Lodge and
restaurant, Vidyagiri Bagalakot.While considering
bagalakot as a developing area we have a lot of
opportunities to start new business finally scanning of
the areas we got many alternatives to start new business.

9. Like as:
 Yoga centre
 Milk Parlor
 Travelling Agency

10. SWOT Analysis
Strengths:
o In bagalakot as we found only few business existing
like our alternatives.
o Sound finance.
o No competitors.
o Mutual understanding in between our business and
public.
o Affordable price.

11. Weakness:
o Problem of location.
o Government rules and regulation.

12. Opportunities:
o Customer satisfaction.
o Promotional activities.
o Total quality management (TQM).
o Switch on to others.

13. Threats:
o High oligopoly.
o Government intervention.

14. Establishing objectives
 Employment opportunities.
 To increase standard of living.
 To giving extraordinary service.
 To become a market leader.
 To maximize profit.
.

15. Evaluating alternatives
After knowing out of the alternatives next step
is to evaluate the alternatives through analysis of
strong and weak points of alternatives as below:

16.  Yoga centre
Strong Points:
1.Mental and physical health.
2.Some extent target customers are all .
Weak Points:
1.Maintenance problem.
2.Impact of mass media.
3.Busy in their routine schedule.

17.  Milk parlor:
Strong Points:
1.Easily available of raw materials.
2.Cost is low.
3.100% quality .
4.Demand is more
Weak Points:
1. Competition.
2.Maintenance cost is high.

18. Travelling agency:
Strengths:
 Navanagar is the heart of the Bagalkot.
 Sound finance.
 Proper professional guiders,maps,periodicals etc.
 Habits.
 Maintaining with security.

19. Weaknesses:
 Season based.
 Improper roads.

20. Selecting an alternative
Analysis of strengths and weakness of alternatives
,we are giving to more priority about strengths not at
all about weak points because to survive the business
long run with the profit.
Our business is very nearer to Akshay International
Lodge and Restaurant obliviously we are Switch on
to them .

21. Formulating Supporting Plans
Natural Resources
* Climate-seasons
* Water resources-lakes, streams, waterfall
* Geological resources-topography, soils, sand dunes,
beaches, caves, rocks & minerals, fossils
* Scenery-combinations of all of the above
Cultural Resources
* Historic buildings, sites
* Monuments, shrines
* Industry, government, religion, etc.
* Local celebrities

22. Human Resources:
* Hospitality skills
* Management skills
* Infrastructure-transportation roads, airports,
railroads, walkways
* Infrastructure: utilities water, power, waste
treatment, communications

23. Numberizing plans by making budgets
Once we have decided on one or more budgets we must
answer certain questions about each before making final
draft, the questions are
*can we make it ?
*Can we sell it?
*can we earn from if?
Then only business run smoothly.

24. Business Plan or Budget
FIXED CAPITAL
Si no particulars period amount
1 Land/buildin 1 year 1,75,000
g
2 Machinery/e 1year 55,000
quipment
3 Furniture 1year 25,000
and fixtures
4 Total 2,50,000

25. Working capital:-
Si no particulars period Amount
1 Utilities 1 year 55,000
2 Wages/salari 1year 75,000
es
3 Other 1year 50,000
4 Total 1,70,000

26. Total cost of project
Si No Particulars Period Amount
1 Fixed 1 Year 2,50,000
capital
2 Working 1 Year
1 year 1,70,000
capital
3 Preliminary 1Year 15,000
expenses
4 Total 4,20,000

27. Means of finance
Si no particulars period amount
1 Term loan 1 year 15,000
2 Working 1 year 5,000
capital loan
3 Own 1 year 1,00,000
investment
4 Total 1,20,000

28. Profitability Analysis
Particulars Amount
Sales revenue 6,00000
Fixed capital 2,50,000
Working capital 1,70,000
Interest (12.5%) 75,000
Gross Profit 1,05,000
Income tax 25,000
Net profit 80,000

29. Conclusion
Finally we conclude that Travelling Agency is
the best alternative to start new business in
Bagalkot with great support of business planning
process.

30. Open For Queries

31. THANK YOU