What's planning?What's planning?• A plan is a blueprint for the future course of action.• In simple words planning is deciding in advance

what to do it, how to do it, when to do it, and who to do it

• Planning is most fundamental function of management.

• It provides the foundation upon which organizing,staffing,directing and controlling functions can be carried out.

• Planning involves selecting enterprise objectives, departmental goals and determining the ways of reaching them

• Need of planning has increased due to frequent changes in technology,tastes,fashions and competitions.

Steps in planningSteps in planning

Example for PlanningExample for Planning Breeze Shoe Company

Consumer wantsGoalsProduct planLocation planOrganizational planMarket planRisk reduction planFinancial plan

Consumer wantsConsumer wants

Basis on Consumer wantsBasis on Consumer wantsFirst we need to gather information on

consumer wants regarding how they evaluate select the footwear.

It developed on three major themes.a. The features or benefits consumers desire

when purchasing footwearb. The "negatives" involved with purchasing

and/or using footwearc. The respondent's "wish list" for footwear

(i.e., those features or benefits they would like their footwear to have).

Features and benefits

Negatives Wish list

1. QualityArch SupportGood StitchingWaterproofAnkle SupportGood SolesDurability2. ComfortWeightCushioningNo BlistersHeel ComfortTractionShock AbsorptionCoolDryWaterproof3. PerformanceReboundLateral Stability4. StyleColorBrandsLooksFashion

Stinky FeetSweaty FeetBulkyHeavyUnattractiveBreaking InNot WaterproofGets Dirty EasyAir Holes crackMaterials Rip and FailUncomfortablePoor tractionExpensiveToo HotToo Warm

Cool feetDry FeetCan Regulate TemperatureVentilationEnhanced CirculationNo MaintenanceWaterproofGet Sole Conforms to footComfortStyleQualityLow prices

GOALSGOALS

PRODUCT PLANPRODUCT PLAN

About ProductAbout Product In this shoe company it mainly uses the Breeze technology which is

very useful for athletes. About the technology:- The technology consists of an active displacement

system which induces a positive flow of fresh air into the shoe while forcibly exhausting the warm and moisture-laden air which has collected inside the shoe. The air is replaced entirely once per stride with fresh air from outside the shoe. The resultant cooling and dehumidifying effect on the feet is substantial. Product testing indicates a reduction in the temperature inside the shoe of 7.3°F and a reduction in the "heat index" within the shoe by 46°F. This has obvious benefits in reducing odor, athlete's foot and other fungal infections. Less obviously, the technology militates against foot fatigue, blistering and discomfort related to the buildup of heat and moisture within the shoe.

Benefits of technology:- The benefits of Breeze technology include significant cushioning advantages over the existing airbag and gel technologies, allowing the user greater comfort and protection from shock-related injuries. Breeze technology can be used in conjunction with existing cushioning systems to improve the functioning of those systems, and potentially can be custom-adjusted by the user to suit different activities and/or users of different weights. Two additional advantages are offered by the use of nonporous and non-stretching materials. First, if water does enter the shoe from around the ankle, the Breeze technology would actively evacuate the water and ultimately dry the foot. Second, non-stretching fabrics in the shoe's upper will significantly extend the useful life of athletic shoes and other footwear (and the period of peak performance), and thus justify a premium price.

Design of a shoe

The expanded pumping chamber holds 4 1/2 cubic inches of airSimilar to the volume of air contained around the foot

 EXHAUSTThe pumping chamber compresses, and the contents is propelled out Through the exhaust. With the exhaust completethe pumping chamber is fully compressed

INTAKEThe chamber compresses, and fills with heated moist air drawn from around the toes. Fresh air then enters around the top of the shoe.

LOCATION PLANLOCATION PLAN

Where is the firm should be located at what facilities.

ORGANIZATIONAL PLANORGANIZATIONAL PLAN

About CEO(bob)About CEO(bob)Robert Craig BroughYear of Birth1958Qualifications• Bachelor of Laws (Hons) (Bond)• Presently a candidate for an MBA (Bond).Responsibilities• dealing with legal issues• strategic planning• marketing• providing the vision and leadership to take

the company forward

About Operations About Operations managermanagerTimothy Grant Zwemer

Year of Birth1958Qualifications• Master of Business Administration (Bond).• Commercial Pilots License (Command

Instrument Rated)Responsibilities:-• managing the commercialization and

application of current technologies • managing the R&D department of company.

About Financial managerAbout Financial managerPeter Gerard HomanYear of Birth1963Qualifications• Bachelor of Commerce (University of Queensland)• Qualified Chartered Accountant (equivalent to US CPA)• Presently a candidate for an MBA (Bond).Responsibilities• work in preparing complex budgets • preparation of business plans • business structuring and forward planning• taxation and financial law issues

MARKET PLANMARKET PLAN

The MARKET WANTS: The MARKET GETS: BREEZE OFFERS:

1. COMFORT:• Cushioning• Dry feet  • Ventilation•temperature reduction •humidity reduction- odor reduction

• Air or gel bags• Water penetration Passive ventilation- porous fabrics- holes/vents/sandals- odor cures

• Improved cushioning• Restricted water entry• Positive evacuationof water and humidity• Positive ventilation- space-age fabrics- lower temperature- lower humidity- odor prevention

2. PERFORMANCE:• Injury avoidance• Rebound/energy return• Optimal foot support

• Structural design• Air/gel bags• Deteriorating foot supportas the shoe ages

• Retains all benefits• Potential improvements• Optimal foot support forlonger period

3. STYLE/FASHION• Design• Colors• Gimmicks• Celebrity endorsements

• Various • Retains all benefits andoffers additionalpossibilities

4. VALUE• Price• Benefits

• Increasing price• Minimal increase in benefits

• Insignificant increase inprice• Significant increase inbenefit

What Breeze Technology Offers the Market

RISK REDUCTION PLANRISK REDUCTION PLAN

Risk reduction planRisk reduction planBreeze is aware of the of risks that may threaten the

viability of its operation. The following summarizes the main risk reduction strategies implemented:

• Intellectual property protection via patents, copyrights and design registration (Appendix VII);

• Patent insurance and a patent defense fund developed income;

• Injunction readiness, with patent attorneys ready at a moment's notice;

• License structured to encourage rapid diffusion of the technology;

• Dividend policy to discourage exit of major shareholders;

• Continuing discussions with several inventors to develop a diverse portfolio of technological innovations.

FINANCIAL PLANFINANCIAL PLAN

Investor planInvestor plan Fund Raising The initial seed capital for this business was raised by of a contribution of $700 by

each of the three shareholders of Recreation Innovations Inc. to fund investigation of the Breeze proposal. These inquiries illuminated the potential of the venture and were followed by further shareholder contributions of $14,000 each. These funds were used for the development and testing of prototypes, legal and other fees to define and protect intellectual property, establishing legal structure and travel costs.

Once the legal structure was established, these funds were converted to share capital in Breeze. To cover further intellectual property and negotiation expenses and to ensure adequate funding reserves for the remainder of the project, Breeze negotiated with a local investor, Gurumbal Pty Ltd, for $70,000 in funding on the following terms:

• A three year $70,000 bond with a coupon rate of 18%.• Monthly interest payments, or to compound at coupon rate, at our discretion.• Secured by directors' guarantees of $70,000 and a lien over Director's shares in

Breeze. Agreement with the Inventor The technology assignment documentation requires Breeze to commercialize the

invention and pay the inventor $1 million within three years and within 30 days of revenues less operating costs, exceeding $l.5 million. If this payment is not made, the original technology will revert to the inventor. Subsequent technical innovations will be retained by Breeze.

Funding uses and general Funding uses and general assumptionsassumptions

expenses costsAdvertising $50,000

Legal fees $10,000

Office $40,000

Working capital $1,00,000

Miscellaneous $50,000

Sub-total $2,50,000

Product Development: $12,50,000

Total $15,00,000

The company is raising $1.5 million for the purpose of growth and operations. This funding will cover operating expenses and product development during this period.

SUMMERYSUMMERY

summerysummery What's planning? Example of planning-shoe company:- Consumer needs Goals Product plan Location plan Organizational plan Market plan Risk reduction plan Financial plan

ConclusionConclusion Planning is base for

every business organization. without planning its difficult to succeed.

THANK YOUTHANK YOU

ByIndira Priya Darshini