Post on 12-Jan-2015
description
Business Plan
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Presented by:
Rizwan Qamar
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Outline
• Business Plan• Types of Plan• Advantages of Plan• Business Planning Process• Supply Chain• Marketing Research• Environmental Scanning• Product Management
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Outline (Cont’d)
• Pricing
• Promotion and Distribution
• Channel Management
• Financial Plan
• Brake Even Analysis
• Limitations
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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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Types of Business Plans
• The Miniplan
• The Working Plan
• The Presentation Plan
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The Miniplan
• Also Called SUMMARY Plan
• Consists on 1-10 pages
• Include only Key Matters
• Suitable for Internal Concerns
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The Working Plan
• A tool to be used to operate the business
• Longer in detail and shorter in Presentation
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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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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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Business Planning Process
• Idea Generation
• Feasibility Analysis
• Drawing up a Functional Plan
• Project Report Preparation
• Evaluation, Control & Review
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Contents of a Business Plan
• Executive summary
• Background
• Background of key personnel
• Marketing
• Production and manufacturing
• Finance
• Human resources
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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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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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Marketing Research
• Business-to-Business (B2B) Marketing Research
• Consumer Marketing Research
• Advertising Research
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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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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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Marketing Research Techniques (Cont’d)
• Internet Strategic Intelligence
• Marketing Effectiveness and analytics
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Marketing Research Methods
• A-BASED ON QUESTIONING
• B-BASED ON OBSERVATIONS
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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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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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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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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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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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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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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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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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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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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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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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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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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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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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Product Management
• Product planning
• Product marketing
• Program management
• Project management
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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
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Pricing Types
• Effective price
• Price lining
• Promotional pricing
• Price/quality relationship
• Premium pricing
• Goldilocks pricing
• Demand-based pricing
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Promotion
• Personal selling • Non-personal selling • Advertising • Sales promotion • Publicity and public relations • Tradeshows • Direct selling • Product placement
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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)?
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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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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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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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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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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.
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HRM Activities
• Requirement and Selection
• Training and development
• Performance Appraisals
• Compensation
• Incentives and Benefits
• Equal Employment Opportunities and Affirmative Action
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HRM Activities (Cont’d)
• Motivating Employees
• Health and Safety Issues
• Legal Requirements of Workers
• Building Employment Commitment
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Recruitment and Selection
• Job Analysis
• Job Posting
• Recruitment
• Test Conducting
• Background Investigation
• Interviews
• Selection Decision
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Training and Development
• Need Analysis
• Instructional Design
• Validation
• Implementation
• Evaluation
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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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Performance Appraisals
• Define Job Means
• Appraising Performance
• Feedback Session
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Compensation and Benefits
• Basic Pay
• Pay on Merit
• Pay for work done
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Incentives and Benefits
• Bonuses
• Commissions
• Medical Allowance
• House Rent Allowance
• Conveyance Allowance
• Children Education Allowance
• Free Utilities
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Incentives and Benefits (Cont’d)
• Pension and Gratuity
• Vacations/Holidays
• Sick Leave
• Insurance Benefits
• Social Security
• Family Friendly Benefits
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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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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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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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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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Thanks