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Introduction to Business Business Plan Project. Well Functioning Teams Characteristics: Shared set...
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Transcript of Introduction to Business Business Plan Project. Well Functioning Teams Characteristics: Shared set...
Well Functioning Teams
Characteristics: Shared set of values and mutual respect for the perspectives and skills of each
tem member.
“group” vs “team”
Communication
How: face-to-face; virtual; email
When
What
Collaboration vs cooperative
Team Contract?
Agenda/Minutes/Assignments
Project Schedule
Part 3Business Description
Business Name
Organized Chaos
Knightflix
First impression of business
Trademarked?
Applicable Business Concepts
Target market?
Forms of business ownership
Other resources
Goals of your Business
Purpose of business. Why do you exist?
KISS! (elevator speech!)
Marketing?
Maslow’s Hierarchy of Needs:
Industry Analysis
What type of industry?
Size of industry nationally? Locally?
Growth trend nationally? Regionally? Locally?
Impact of the size and trends in industry might have on business
NAICS Codes
Census bureau website
Trade association websites?
Ownership of Business
Form of ownership implications of that type of ownership
Risks, rewards
Business concepts:
Continuity or liquidation of ownership?
Raising capital
Ease of start up
Investor liability
Taxation implications of ownership
Number of partners
Who is your ideal customer?
Describe in terms of:
Age
Income level
Education level
Male/female
Lifestyle
What can you offer of value to them?
B2B: what attributes would your prospective customers possess?
Business concepts
Our Competitive Advantage
Why buy from you instead of your competitor?
Uniqueness?
Not so obvious competitors
Business Concepts:
Competitive advantage
Monopolistic competition
Monopoly
Oligopoly
Perfect competition
Ethical Considerations
May or may not be necessary. However, for this assignment, must be addressed!
Principles that company will follow
List at least three that could be used as foundation for a code of ethics for your company.
Applicable Business Concepts
Affirmative action
Code of ethics
Consumer rights
Consumer safety
Employee safety
Environmental laws
Ethics audit
Social responsibility
How are you, as a company, a good citizen to all of your stakeholders: customers, suppliers, employees, shareholders and investors, community, environment, and the government?
Applicable business concepts: Accommodative stance
Defensive stance
Economic model of social responsibility
“green” and at what cost?
Obstructionist stance
Organizational stakeholders
Proactive stance
Social audit
Socioeconomic models of social responsibility
Global Issues
Need to consider the opportunities and threats posed to the global business environment
Will you, at some point, expand internationally?
Which countries? Why?
Challenges?
Advantages?
Will you use foreign suppliers?
Applicable Business Concepts
Section 4Management and Operations Plan
Mission statement Why do you exist
How are you different
Values of the company
Bishop Luer’s mission statement:
Bishop Luers High School is a Catholic educational community that instills in each student dignity, integrity, respect and responsibility. Nurtured by Catholic truths each student is able to face the challenges in his or her own life spiritually, academically, and socially while serving God and others in a global and changing society
Business concepts: Competitive advantage
Organizational goals
Strategic planning
Target market
Business Goals
Specific, attainable
Need three specific, measurable, realistic, short-term goals
Two long-term (longer than 5 years) goals
Needs to be based upon realistic research.
Alright to shoot for the “pie in the sky” (Kennedy), but also have your feet on the ground
Business Concepts:
Strategic planning; tactical planning; operational planning; contingency planning
SMART: specific, measurable, achievable, realistic, time-bound
SWOT ANALYSIS
Strengths
Weaknesses
Opportunities
Threats
Business Concepts:
Competitive analysis
External business environment
SWOT analysis
Plans
Management Plan: who do you need? What areas are you weak in? How many managers and levels of managers will you need?
Organizational Chart: provides structure to your organization. Who reports to whom? Departments and responsibilities? Different organizational teams?
Floor Plan:
How big? How will the equipment, people, supplies, furniture be placed?
What impression will this have on clients, customers, employees?
Operations Helps visualize and realize your operational planning details.
Manufacturing process; service process
When will you operate?
Business Concepts
Customer-driven production
Customization
Inventory
Layout planning
Lean production (Just in time delivery)
Operations processes
Process control: PERT and Gantt charts
Quality planning
standardization
What do we need?
What supplies do you need and the cost of those supplies?
Needs to be detailed and realistic
Quality Control How will you ensure a quality product or service to your customers?
What process will you use to ensure that quality? McDonalds
WalMart
Appleby’s
Who will take on the responsibility of quality control?
Business Concepts: Benchmarking
Inspections
International Standards Organization
Quality circles
Quality Control
Quality planning
Six sigma
Total Quality Management
Value Added Analysis
Technology Question
Will IT be necessary? Will it contribute to the operation of the business?
Hardware? Software?
Must include support services
Will it be used for marketing your business?
Outsource?
Intranet necessary? ISP provider?
Develop website? Who?
All costs MUST be included in financial plans
Technology (cont) Business concepts:
CAD
Database
Electronic conferencing
ERP
Extranet
Identity Theft
Intellectual property
ISP
Intranet
LAN
WAN
MIS
Management support systems
Transaction Procession
Section 5Human Resources
Company Culture: What type? Networked?
Fragmented?
Communal?
Mercenary?
Business Concepts: Committees
Corporate culture
“group think”
Informal groups
Integration/cooperation
Intrapreneurship
Managerial hierarchy
Teams
Leadership style Identify your leadership style and show how your style will help you
manage and lead your employees
Business concepts:
Authoritarian leadership
Democratic leadership
Formal leadership
Informal leadership
Laissez-faire leader
Management skills
Managerial decision making
Managerial roles
Transformational leadership
Transactional leadership
Job Descriptions List duties and responsibilities. Working conditions. Tools, materials,
equipment and information needed to perform.
What education, skills, and experience will be needed? (KSA)
Job title, job objective, list of duties, description of relationships and roles
In-house or outsourced?
Business concepts:
Human resource management
Human resource planning
Job analysis
Job description
Workflow analysis
Job specifications
Specifications to identify the minimum qualifications necessary to successfully complete a job.
Needs to be developed for every position.
Business Concepts
Job specification
Training
How to train new employees
How to provide for further professional development for current employees
How to train employees in the policies, routines, and culture of the company?
Who will develop? In house or out-sourced or combination?
Business Concepts
E-learning
Employee training
Management development
Orientation
Training needs assessment
Compensation The total package that is offered employees in return for their labor.
Wages/salaries? Benefits?
Business Concepts:
Cafeteria benefits
Commissions
Employee benefits
Flexible benefits
Hourly wage
Job evaluation
Management by objective
Performance appraisal
Performance standards
salary
Incentives Special programs designed to motivate high performance
INCENTIVES MATTER!!!
What is important to your employees? What can you do to motivate them?
Business concepts:
Bonuses
Company-wide incentives
Flextime
Individual incentives
Merit pay
Pay for performance
Pay-for-knowledge
Profit-sharing
Section 6Marketing Plan
Target Market: Can’t be all things to all people at all times.
Characteristics of target market and its size. Who, where, size, variables
Market penetration goal?
Business Concepts: Demographic variables
Differentiated/niche
Behavioristic
Customer relationship management
Market segmentation
Positioning
Psychographic variables
Target marketing
undifferentiated
Product features and benefits
What are customer’s perceived features and benefits from your product/service?
How important are these features/benefits to the customer?
Business concepts:
Commodity products
Consumer products
Differentiation
Shopping products
Specialty products
Unsought products
Competitive Analysis andProduct Differentiation
What is your competitive advantage?
What do you offer that your competitors don’t offer?
What do your competitors do well that you don’t?
What is important to your customers?
Business Concepts:
Competitive advantage
Product features
Product benefits
Product/service differentiation
Target market
Pricing
Choices: Higher than market
Near market
Lower than market
Reasons for pricing strategy?
Break-even analysis
Business concepts: Break even analysis
Bundle/package pricing
Commodity product
Competition based pricing
Pricing (cont) Business (cont)
Cost oriented pricing
Discounts
Everyday low pricing
Loss leader
Penetration pricing
Price lining
Price skimming
Pricing strategies
Product life cycle
Psychological pricing
Random discounting
Special event pricing
Specialty product
Target price
Distribution
Getting the product to the customer Primary distribution channel
Secondary distribution channel
Business concepts Agents/brokers
Automatic vending
Convenience stores
Customer relationship management
Direct marketing
Distribution mix
Discount store
Exclusive distribution
Distribution (cont) Business Concepts (cont)
Exclusive distribution
Intensive distribution
Marketing mix
Non-store retailing
Online retailing
Retailer
Scrambled merchandise
Selective distribution
Specialty store
Supply chain
Telemarketing
Warehouse club
Wholesaler
Virtual retailing
Promotion
Advertising? Why?
Any other methods of promotion? (Coke in movies)
Business Concepts
Advertising
Branding
Direct mail
Integrated marketing communication
Marketing communications mix
Outdoor advertising
Personal selling
Promotion (cont)
Business Concepts (cont)
Point of sale
Positioning
Promotion mix
Public relations
Publicity
Sales promotion
Trade shows
Section 7Financial Plan
Money going out the door………
Major reason small businesses fail: lack of sufficient funds due to insufficient research and planning. Poor business skills.
How much will it cost to start the business and run it for one year?
Rent
Salaries
Utilities
Supplies/equipment
Advertising
Insurance
Other
Financial Planning
Business Concepts
Employee benefits
Fixed costs
Liability
Insurance
Variable costs
RevenueMoney coming in the door………
Where will your revenues come from?
Must be realistic, not over optimistic. Project for one year with projections for several years.
Business Concepts:
Bundle pricing
Net profit
Revenue
Pricing strategies
Financing
How much start up will come from:
Bank loans
Investors
Savings
How much interest expense? What return on investment will your investors want?
Business concepts:
Bonds
Capital
Capital structure
collateral
Financing (cont) Business concepts (cont)
Commercial banks
Financial Institutions
Creditor
Debt financing
Debtor
Dividends
Equity financing
IPO
Leasing
Prime interest rate
Retained earnings
stock
Income Statement andBalance Sheet
Balance sheet shows relationship between the assets and the liabilities of the company and the owners’ equity.
Income statement shows the relationship of the costs of doing business, the revenue realized from the business and the net profit.
Business Concepts
Accounts payable
Assets
Cash flow statement
Cost of goods sold
Current assets
Current liabilities
Financial statements (cont)
Business Concepts (cont) Fixed asset
Gross profit
Interest expense
Intangible assets
Liabilities
Long-term liabilities
Notes payable
Owner’s equity
Pre-paid expenses
Profit and loss statement
Sales revenue
Taxes payable
Section 8Executive Summary
Must be placed at the beginning of the business plan.
Developed AFTER everything else has been completed.
Brief-overview of company; rationale for starting it; why it will be a success
Cover: Name of business
Where it will be located
Mission
Product or service
Who are the customers
What will differentiate it
Who are the owners? What is their experience?
Overview of future prospects
Executive Summary (cont)
Business concepts:
Competitive advantage
Forms of business ownership
Marketing concepts
Mission statement
Target market
Due Dates
Form teams by September 8
Business Plan drafts for sec 1-3 due Friday, October 16.
Business Description
Management and operations plan
Human Resources Plan
Complete Business Plan draft and executive summary due November 16.
Final Business Plans and Executive Summary due December 7. We will then present them in class. Have a Power Point presentation ready.