Business Plan

“Plans are nothing, planning is everything”

-Dwight Eisenhower

Mission

Company’s statement of purpose in writing Long term in nature and explains what the

organization wants to do and what they want to become in the future

Open ended (It doesn’t have a time frame) Companies should not promise something

they can’t deliver

Source : Strategic Management, Khenh-Hor, Munro-Smith

What should the mission statement address?

What is our business? What should our business be? Who is the customer? What do customers value? What is unique about our company? What are our main products and services? What are our values and beliefs?

The Apple Mission statement is: “Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.”

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=aapl&script=1800&layout=7#corpinfo2

RMIT Mission Statement

RMIT is a global university of technology with its heart in the city of Melbourne. We create and disseminate knowledge to meet the needs of industry and community and foster in students the skills and passion to contribute to and engage with the world

Goals or Objectives

SPECIFIC and MEASURABLE outcomes the organization wants to achieve

These should be achieved within a set time Goals should be SMART (Specific,

Measurable, Achievable, Realistic and Timely)

Examples typically are Measurements of Performance like Profits, ROI, Market Share etc

Goals/Objectives Cont…

The 3 main objectives usually are:

1. Profitability : ROI, Net Income after tax

2. Opportunity : New products, or new markets for existing products

3. Efficiency : Controlling costs

Objectives should be realistic

Strategies

Actions needed to achieve the goals/Objectives

In the simulation, you would need to devise strategies for each department

Since they are ACTION oriented, you must explain exactly what decisions each manager will make to achieve company objectives.

Vision

Mission

Objectives or Goals

StrategiesStrategies help to achieve the goals.

Objectives or goals help to achieve the organization mission.

The goals of the company should be in line with the mission of the company

Environment Analysis

Next Class

Quiz on the rules. You are expected to know all the rules regardless of what your role is

Students will register on to the system. The registration manual will be uploaded on blackboard. Print it and bring it to class

Attendance is required since the codes needed to register will be given in class

Students will run the solo version to familiarize themselves and start the planning process

Books Referred to:

Reader Friendly Strategic Management – Khenh-Hor and Munro-Smith

Threshold Competitor – Anderson, Beveridge, Scott and Hofmeister

The New Venture Creations – Timmons and Spinelli