SBE BY1 Business Plans July 2024 PDF

LO-3- BE ABLE TO REVISE BUSINESS OBJECTIVES AND PLANS TO INCORPORATE PROPOSED CHANGES Presented By: Dr....

LO-3- BE ABLE TO REVISE BUSINESS OBJECTIVES AND PLANS TO INCORPORATE PROPOSED CHANGES Presented By: Dr. Kavita Sharma Maldives Business School, Malé, Maldives PartA: Business Plans Structure of business plans Use of business plans Part B: Action Plans Evolution of business plans Plans to implement change Changes to business plans Monitoring and evaluating changes Measuring outcomes Setting deadlines POINTS TO BE COVERED BUSINESS PLANS A written Document which sets out a business’s plans and objectives, and how it will achieve them. E.g. by marketing, production, Development, etc. FEATURES OF SUCCESSFUL BUSINESS PLAN Clear objectives Vision Commitment Timeliness and actions Regular Responsiveness Contingencies reporting to changes  IMPORTANCE OF BUSINESS PLANS - To a Firm’s Employees Communicate the vision and future-plans of the firm. To operate in sync in a consistent and purposeful manner. - To Investors and Other External Stakeholders Include facts about the business feasibility. Communicate what the organization wants to achieve. What will be the main business activities of the firm. DEVELOPING AND USING BUSINESS PLANS Analyze Your Describe Your Describe Your Market and 1 Begin the Plan Company — Its Product/Service with a Summary 2 Business, Goals 3 Determine Your 4 and How They are Marketing and Objectives Produced Strategy 5 Determine Your Describe Your Summarize Your Describe Your Proposed 8 7 6 Management Financial Needs Operations Financing Organization 9 Outline Your Plan(s) for the 10 Other Future Considerations https://www.shopify.com/blog/business-plan  BENEFITS  Just search it please….. STRUCTURE OF A BUSINESS PLAN COMPONENTS OF A BUSINESS PLAN Executive summary Business Profile/Description of a Business Markets business will operate in/ Business environment SWOT Analysis Management Team and Personnel/ Human Resources The products/ Services offered Marketing Plan Financial Plan Monitoring and Evaluation BUSINESS PROFILE/ BUSINESS DESCRIPTION This section should contain details of things such as your goals and the customers you will service. Company structure Location Customer’s needs and wants  EXECUTIVE SUMMARY - Overview of the Main products The Market : - Money business plan and services, Who will buy needed and - Summarizes the with emphasis your product how will it be key points of the on unique and why and paid back document selling how you are -Helps a reader to proposition going to market quickly grasp the to them key elements of your business plan  MARKETING PLAN Market research Competition Marketing and sales Present markets and trends. The current competition, their size strategies and market share Target market, its size and Promotional and media methods Future competition demographics you will use. Competitors’ strengths and Ideal consumer profile Special services or policies weaknesses. Projected share of the market Effectiveness of each methods. Overcoming competitors’ Geographic boundaries strengths and targeting Frequency of use. Seasonal trends competitors’ weaknesses Channel selection Customer service policies Your strengths and weaknesses Incentive or sales bonus schemes. Strengths and weaknesses Your edge over the competition Sales force reach. Market survey results. Your cost to stay competitive. SWOT ANALYSIS  HUMAN RESOURCE PLAN What kind of compensation What kind of How will Where will we incentives will be How will employees do we employees be recruit them offered in terms of employees be need to run the trained and from? salary, stock evaluated? business? developed? options, and benefits?  MARKETS BUSINESS WILL OPERATE IN What is the market for it? How well do you know the market? disruptive innovation What does a typical buyer look like, disruptive innovation what is their income level? Does the business have the hallmarks of disruptive innovation? Put your idea to the test Analyse what information you've uncovered and outline it's potential impact in your plan.  FINANCIAL PLAN Projection s of Cash flow Financial Capital Net worth Sources of income forecasts Position expenses statement funding and expenses SOURCES OF FUNDING 1. Capital contribution : How money much is invested by owner? 2. Other sources of finance : Any existing loans? 3. Other sources of finance : If planning to apply for a loan, how much money to borrow ? Where to get the loan from? 4. Plan to utilize the loan. (Purchase of assets ? Use as working capital?)  PRODUCTS AND SERVICES Legal What will be concerns- how you'll get customers produced Cost of Future What returning to and how it Sales prospects intellectual make repeat will be sold? property do purchases you own.  MONITORING AND EVALUATION Monitoring by the Board Performance Measures Reporting Progress of the plan. Customer satisfaction. Regular performance Performance against the Productivity reporting. budget. Time cycle Weekly, monthly, quarterly Defect free production. and semi-annually. Financial performance. Report on KPI.  EXERCISE  1. ABC Company, a business consultancy firm, was hired by a small business engaging in the tourism sector. The client plans to open a 5 story- guest house along with a restaurant for its customers.  You, as the business consultant, are required to prepare a business plan for this start – up guest house project.  Don't fear change, your business plan isn't written in stone……………… Business plan should change with the needs of the business. This is a document that a business can improve and update as it grows and changes. Your plan should be reviewed regularly. To be continued……………. CHANGES TO A BUSINESS PLAN  Part A: Business Plans Part B: Action Plans Structure of business plans Plans to implement change Use of business plans Monitoring and evaluating Evaluation of business plans changes Changes to business plans Measuring outcomes Setting deadlines ACTION PLANS TO IMPLEMENT CHANGES BUT CHANGE IN BUSINESS??? Change Management: Action Plan for Implementation of New Business Processes  CHANGE MANAGEMENT Change management is about supporting people through their individual transitions. Change management is necessary because organizational change ultimately impacts how people do their jobs (likely many people). But What is Organisational Change???? It is about moving from an organizational current state to an organizational future state. ORGANIZATIONALCHANGE -The actions in which a company or business alters a major component of its organization, such as its culture, the underlying technologies or infrastructure it uses to operate, or its internal processes. -Alteration required to be implemented to overcome the weaknesses or shortcomings of a business enterprise.  EXAMPLE  Postwar recovery of Japan to its present state of supremacy is a significant change.  Today, Americans are learning from the Japanese as to how to retain competitiveness in the global markets.  Even Dr. P.E. Drucker wondered as to whether he is writing for American economy or Japanese. Mr. John Bull defines organisational change as: “When an organisational system is disturbed by some internal or external force, change frequently occurs. Change as a process, is simply modification of the structure or process of a system. It may be good or bad, the concept is disruptive only”.  - Change agent (Within the business / outsider ) - A change agent, also known as an advocate of change, is a person who acts as a catalyst for the change management process. (34) 4 Real-Life Examples of Change Management in Business | LinkedIn T Y P E S O F C H A NX` G E S https://whatfix.com/blog/types-of-organizational-change/  COMMON AREASOFCHANGES Mission & Strategy Organizational People Culture Knowledge Structure Products, Policies & Legal Marketing & Processes Technology Customer Integration Agreements Relationships  NEGATIVE EFFECTS OF CHANGE MANAGEMENT Employee retention levels may drop Insufficient focus on managing the impact of change on people Risks may not be highlighted Increased resistance to change Negative impact on productivity Drop in customer service Lack of ownership or shared vision TIPS FOR A LESS PAINFUL CHANGE PROCESS Pla n Past Understand the experie psychological nce impact Additional Employee Myth support involvement busting Continu ed Consulta commu tion nication CHANGE MANAGEMENT PROCESS -Change management incorporates the organizational tools that can be utilized to help individuals make successful personal transitions resulting in the adoption and realization of change. -Change can be a simple process or activity change or major system change. IMPLEMENTATIONOFCHANGE Action Plan Action Plans are simple lists of all of the tasks that you need to finish to meet an objective. An action plan is defined as a document or a checklist outlining the steps or tasks one needs to complete in order to achieve the goals they have set.  ACTION PLAN -A document that explains what needs to be done to achieve an objective. - An important part of strategic planning. -It includes objectives or goals / targets, resources, timelines and milestones, expenditures and person responsible for achieving the objectives. - Implementation of new projects requires action plans. - Organizational changes require action plans. mini goals leading up to the main goal at the end  Document.. To be shared.. WHAT SHOULD AN ACTION PLAN INCLUDE? BUSINESS ACTION PLAN TEMPLATE https://creately.com/blog/diagrams/how-to-write-an-action-plan/  ACTION PLAN FOR ABC CO. Objective 1. Improve meal quality on Male’ to Srilanka flights ACTIONS MILESTONE/ TIMELINE EXPENDITURE RESOURCES EXPECTED OUTCOME 1. Conduct market Develop meal Jan - Mar $700 2 Staff research with requirements passenger 2. Test three meals per Find satisfying Apr - May $1000 5 Staff week from different meals suppliers 3. Survey customers who Measure quality 1 Jun - 10 $100 5 Staff tried new meals of new meals Jun 4. Select suppliers with Develop more 11 Jun - $100 3 Staff new meals and negotiate satisfying 30 Jun contracts Objective 2. Improve inflight customer services ACTION MILESTONE TIMELINE EXPENDITURE RESOURCE S 1. Get feedback from Collection of feedback Jan –Feb $100 2 staff passengers forms 2. Conduct research on Develop a summary of Mar–Apr $100 5 staff passenger identified needs needs 3. Communicate with flight Conduct customer May–Jun $300 3 staff attendants regarding service training changing customer needs programs https://www.examples.com/business/business-action-plan.html  NEED FOR ACTION PLAN Lend To be sure To To save time, To increase credibility to that you don’t understand energy, and accountabili the overlook what is and resources in ty organization any details what is not the long run possible for organizations  Revise the links