Business Plan PDF

**BUSINESS PLAN** **Chapter 1** - **WHAT IS ABUSINESS PLAN?** **-** A business plan is a written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement. - **WHAT IS A BUS...

**BUSINESS PLAN** **Chapter 1** - **WHAT IS ABUSINESS PLAN?** **-** A business plan is a written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement. - **WHAT IS A BUSINESSNAME?** \- Business Name (BN) shall refer to ANY name that is different from **THE TRUE NAME OF AN INDIVIDUAL WHICH IS USED OR SIGNED** in connection with her/his business on any written or printed receipts or at the place of her/his business or elsewhere, announcing his /her business. **Anatomy of a Business Name** a. **Dominant Word** -word, group of words or a combination of letters and numbers which does not contain purely generic words. b. **Descriptor** - word or group of words describing the nature of business c. **Infix** - specialization of the business descriptor that suggested to differentiate the type of business being offered -------------- ------------- ----------------- **DOMINANT** **INFIX** **DESCRIPTION** JED'S ELECTRONICS REPAIR SHOP -------------- ------------- ----------------- **Business logo Types** a. **FONT-BASED LOGOS** consist of just the company name in a carefully chosen font that makes it stand out. b. **LITERAL ILLUSTRATIONS,** such as a loaf of bread along side the name of a bakery, simply send a message about what that company does **c. ABSTRACT SYMBOLS**, such as Nike's swoosh, are immediately identified with the company's brand and image that promotes an athletic way of life. - **Business Description** **-** The business description usually begins with a short explanation of the industry. When describing the industry, discuss what\'s going on now as well as the outlook for the future. - **MISSION AND VISION** A. \- The **VISION Statement** should be short, preferably one sentence, and as many managers as possible should have input in to developing the statement. B. \- a declaration of an organization's**"reason for being."** \- answers the pivotal question**"What is our business?"** -essential for effectively establishing objectives and formulating strategies -reveals what an organizationwantstobeandwhom it wants to serve -Also called a creed statement, a statement of purpose, a statement of phi philosophy,a statement of beliefs, and a statement of **Mission Statement Components** 1. **2. Products or services**---What are the firm's major products or services? 3\. **Markets**---Geographically, where does the firm compete 4\. **Technology**---Is the firm technologically current? 5\. **Concern for survival, growth, and profitability**---Is the firm committed to growth and financial soundness? 6\. **Philosophy**---What are the basic beliefs, values, aspirations,and ethical priorities of the firm? 7\. **Self-concept---**What is the firm's distinctive competence or major competitive advantage? 8\. **Concern for public image**---Is the firm responsive to social,community, and environmental concerns? 9\. **Concern for employees**---Are employees a valuable asset of the firm? - **BUSINESS ORGANIZATION** -**SOLE PROPRIETORSHIP -** Business organization owned by one person. The owner is personally liable for all debts of the business. \- **PARTNERSHIP** - Business organization owned by two or more people. Each partner is personally liable for all debts of the business. \- **CORPORATION** - A separate entity from both legal and accounting perspective. (stakeholders) are not personally responsible for debts of the corporation. **CHAPTER 2** - **WHAT IS ORGANIZATION PLANNING?** -constitutes of all the activities which are utilized to set priorities, focus energy, resources and assets, reinforce tasks, guarantee that employees and different stakeholders are moving in the direction o f a common objective, set up agreement around expected results, and evaluate plus modify the organization's path with respect to the changing environment. - **How Organizational Planning Helps an Organization?** **The Destination**- Where do you want to take your business? **The Initial Point**- Where are you at the current time? **The Journey**- How will you get there? **The Checkpoints**- How will you know if you're succeeding? - **What Is Organizational Charts?** An organizational chart shows the internal structure of an organization or company. The employees and positions are represented by boxes or other shapes, sometimes including photos, contact information, email and page links, icons and illustrations. Straight or elbowed lines link the levels together **Types of Organizational Charts** 1. **Function** -- employees are grouped according to the function they provide. The below image shows a functional org. chart with finance, technical, HR and admin groups. **Geography** -- employees are grouped based on their region. For example in USA employees might be grouped according to the state. If it's a global company the grouping could be done according to countries. **Product** -- If a company is producing multiple products or offering different services it can be grouped according to the product or service. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. - **Job Description and JobSpecification -** Job description and job specification are two integral parts of job analysis. They define a job fully and guide both employer and employee on how to go about the whole process of recruitment and selection. - **Job Analysis -** is a primary tool to collect job-related data. The process results in collecting and recording two data sets including job description and job specification. - **Personnel Salary Structure -** A well-designed salary structure allows management to reward performance and skills development while controlling overall base salary cost by providing a cap on the range paid for particular jobs or locations. **CHAPTER 3** - **GANTT CHART -** a horizontal bar chart that visually represents a project plan over time. Modern gantt charts typically show you the status of as well as who's responsible for each task in the project. - **TOTAL QUALITY MANAGEMENT -** T Q M can be summarized as a management system for a customer-focused or organization that t involves all employees in continual improvement. - **PRODUCTION / SERVICECHECKSHEET -** Simple data check-off sheet designed to identify type of quality problems at each work station; per shift, per machine, per operator. - **PRODUCTION / SERVICEFLOWCHART -** A flow chart shows the break down of a task into separate steps, they can be used to represent how programs work. - **DISTRIBUTION CHANNELSTRATEGY** - **FIFO ( FIRST-IN- FIRST-OUT), LIFO ( LAST-IN-FIRST- OUT)** **CHAPTER 4** - **MARKETING-** is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. - **Marketing mix\" -** is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market  - PRICING STRATEGY - **Penetration Pricing -** Prices set to 'penetrate the market', 'Low' price to secure high volumes , Typical in mass market products -- chocolate bars, food stuffs, household goods, etc - **Market Skimming-** Skim the profit from the market Suitable for products that have short life cycles or which will face competition at some point in the future (e.g. after a patent runs out) - **Value Pricing** -Price set in accordance with customer perceptions about the value of the product/service - **Loss Leader** - Goods/services deliberately sold below cost to encourage sales elsewhere Purchases of other items more than covers 'loss' on item sold - **Psychological Pricing** - Used to play on consumer perceptions Links with value pricing -- high value goods priced according to what consumers THINK should be the price - **Competitor Pricing (Going Rate)** In case of a price leader, rivals have difficulty in competing on price -- too high and they lose market share, too low and the price leader would match price and force smaller rival out of market. - **Destroyer/Predatory Pricing** Deliberate price cutting or offer of 'free gifts/products' to force rivals (normally smaller and weaker) out of business or prevent new entrants Flooding the market with cheap (often imported) goods - **Contribution Pricing** Contribution = Selling Price -- Variable (direct costs) Prices set to ensure coverage of variable costs and a 'contribution' to the fixed costs/overheads Similar in principle to cost-plus pricing - **Cost-Plus Pricing** The cost of the product + mark-up = selling price.The advantage of this method is that you are able to calculate your expected profit level very easily. - **PACKAGING -** Contain information about the products they contain information transfer useful when sorting products and processing orders - - - - - - - **PESTLE-analysis**  - **PORTER'S STRATEGY - 5 Forces Mode** 1. 2. 3. 4. 5. - **PORTER'S GENERIC VALUE CHAIN** - **SWOT ANALYSIS** **Strengths** **Weaknesses** **Oppurtunities** **Threats**