Sinopec Limited proposes to install an oil refinery to process 500,000 barrels of crude oil per day and produce gasoline, diesel and other petroleum products. The $3 billion project will be located in Guangdong province to take advantage of its large consumer market and port access. It is expected to be profitable within 3 years and provide a sustainable new revenue stream for the company's growth.

1. Business Plans
For The Real World

2. Presentation Overview
1 Why a Business Plan? • Customers
• Strategic Guide • Marketing and Sales Plans
• Lenders • Development
• Investors • Operations
2 Funding Sources • Management Personnel
3 Business Plan Content • Financial Summary
• Appendices
• Executive Summary
• Company Description
• Product/Services Description
• Industry Overview
• Market Analysis
• Competitors

3. 1. Why a Business Plan?
• Strategic Guide
• Lenders
• Investors

4. Strategic Guide
• Where Do You Want To Go?
• How Are You Going to Get There?
• What Market Niches?
• How Much is it Going to Cost?
• Greatest Profit Opportunity?

5. Lender Expectations
• Good Business Track Record
• Ability to Repay
• Staying Power
• Collateral

6. Investor Expectations
• Competitive Advantage
• Huge Market
• Strong Management Team
• Strong Marketing and Sales Plan
• Some Skin in the Game
• Obscene Return
• Exit Strategy

7. 2. Funding Sources
• Savings
• Friends and Family
• Financial Institutions / Banks
• Angel Investors
• Venture Capital

8. 3. Business Plan Content
• Executive Summary
• Company Description
• Product/Services Description
• Industry Overview
• Market Analysis
• Competitors

9. Business Plan Content
• Customers
• Marketing and Sales Plans
• Development
• Operations
• Management Personnel
• Financial Summary
• Appendices

10. Executive Summary
• A mini-business plan in one or two pages
• Highlights the most important points of
your business plan
• It is NOT an introduction to the plan
• It must grab your reader, and entice
him/her to read further

11. Executive Summary
• Identify the company, its background,
structure and location
• Describe what the company does, and the
market it serves
• Describe the market potential for the
company’s products and services, market
trends, etc.

12. Executive Summary
• Outline the backgrounds and experience
of the top management team
• Describe the funding required, the
purposes for which it will be used, the
collateral available (if for a lender), and
the expected outcomes

13. Company Overview
• Brief Company Introduction
• Mission statement
• Location, size, history
• Market and products
• Overview of company capabilities
• Objectives

14. Products/Services
• Products / Services
• What does it do?
• Uniqueness
• Competitive Advantage
• Technology
• Brief description
• Applications
• Commercialization Status
• Brief overview

15. Industry Overview
• Set The Stage
• Industry Definition and Description
• Major players within the industry
• Factors driving dynamics
• New products and developments
• Legislation and Policies Driving the Industry
• Historical and Future Trends

16. Market Analysis
• Market Definition
• Primary Market
• Secondary Markets
• Market Size and Trends
• Current total revenues
• Predicted annual growth rate

17. Competitors
• Direct Competitors
• Who are they?
• Size and product breadth
• Revenues and profitability
• Strengths and weaknesses
• Market shares
• Indirect Competitors

18. Customers
• Customer Characteristics
• Who are they?
• Why do they buy?
• Need satisfied by the product/service
• How is the need currently filled?
• What are the alternatives?
• Who makes the decision to buy?
• How frequently do they purchase?

19. Marketing and Sales Plans
• Statement of Opportunity
• Marketing and Sales Objectives
• Existing Customers
• Potential Customers
• Prospects targeted
• How prospects will be targeted and qualified

20. Marketing Strategies
• Product/Service Strategy
• Pricing Strategy
• Distribution Strategy
• Advertising and Promotion Strategy
• Sales Strategy
• Marketing and Sales Forecasts

21. Marketing and Sales Plans
• Marketing Programs
• Direct Mail
• Trade Shows
• Advertising
• Internet
• Publicity/Public Relations
• Marketing Budget
• Pricing
• Basis for targeted price point
• Margins and profitability by volume levels

22. Marketing and Sales Plans
• Sales Plan
• Sales force structure – (direct or reps)
• Sales expectations/quotas
• Margins given to intermediaries
• Service and warranties
• Sales Budget
• Organizational chart indicating planned
growth

23. Development
• R & D Plan
• Objectives
• Milestones and current status
• Difficulties and risks
• Staffing
• R & D Budget and assumptions

24. Operations
• Manufacturing/Production Plan
• Objectives
• Facilities
• Staffing
• Subcontractors
• Quality Control
• Budget / Operating Expenses

25. Management
• Company Organization
• Management Team
• Administrative Expenses

26. Management Team
• President
• VP Finance
• VP Sales
• VP Marketing
• VP Manufacturing
• Board of Advisors

27. Personnel
• Human Resource Plan
• Staffing Objectives
• Organizational Structure
• 3-5 year growth plan
• Budget

28. Financials
• Pro-forma Cash Flow Projections
• Pro-forma Profit & Loss Statements
• Pro-forma Balance Sheet

29. Offering
• Investment Requirements
• Pro-forma Valuation of Business
• Offer

30. Summary of Financials
• Financial Objectives
• Time to Cash Flow Positive
• Time to profitability
• Financial Assumptions
• Capital Requirements
• Exit Scenario

31. Summary of Financials
• Financial Objectives
• Time to Cash Flow Positive
• Time to profitability
• Financial Assumptions
• Capital Requirements
• Exit Scenario

32. Appendices
• Resumes of Key Management
• Patent Information
• Customer List
• Testimonials
• Supplemental Financial Spreadsheets
• References

33. Questions?

34. Class Assignment
Being a marketing manager of Sinopec Limited, write
a Business Plan to your Chairman: Mr. Fu Chengyu on
any of the following topics:
a. A proposal to install an oil refinery.
b. A plan to initiate a loyalty program to
generate more customers.
c. A proposal to diversify into pharmaceuticals.
d. A business plan to of your choice to build a
global image of the company.