2. Why write a business plan?
Strategic management define
difference between strategic management
vs. strategic planning .
Strategic management process
strategy formulation
Strategy implementation
Strategy evaluation
3. Becouse I have to -------
- needed for financing
- strategic partnering
- attract key people / investors
- organize my thoughts
4. because I need to understand my business
- the plan is the result of a planning process
- people don’t plan to fail ; they fail to plan
how are my customer?
Why will they buy my product or service?
What will they pay?
How will I make and deliver/sell the service/product?
What resources ( people, money , technology) do I need?
Can I make money / create value?
Do I have the right team on board ?
5. Art and science of formulating, implementing, and
evaluating cross-functional decisions that enable an
organization to achieve its objectives.
Basic of strategic management:-
strategic management consist of four basic elements:-
- environmental scanning
- strategy formulation
- strategy implementation
- Evaluation & control
6. Strategic
management
Used more often in academia
Strategic planning
Used more often in the business world
9. Environmental scanning and industry analysis
Environmental scanning is the monitoring,
evaluating and disseminating of information from
the external and internal environments to keep
people within the corporation. It is a tool that a
corporation uses to avoid strategic surprise and to
ensure long-term health.
10. The social environment includes general forces that
do not directly touch on the short-run activities of
the organization but those can, and often do,
influence its long-run decisions.
These forces are:-
• Economic forces
• Technological forces
• Political-legal forces
• Social cultural forces
11. A TEAM with Relevant Experience
Market Size
Idea
Technology
Competitive Advantage
Reasonable Projections
Exit Strategy
12. Company
structure
Financials idea
Operations
&
production
Market
Team Competitive
edge
Marketing
strategy
13. Strategy formulation
Elements of the Business Plan
1.Executive Summary
2.The opportunity, company, product/service, vision,
mission & objectives
3.Market research/analysis / SWOT Analysis
4.Marketing plan
5.Design and development plan
6.Manufacturing& operation plan
7.Management team
8.Financial plan (Capital Required, Projections, Returns)
9.Action plan
14. 1.Idea generation, Vision, Mission, Objectives,
Strategies
2.Market research and Analysis
3.Marketing strategy
4.Production planning
5.Management and Organization
6.Financial plan
7.Company formulation
15. • Innovative product or service
• Visualize a market gap – you
can add value
• Imported idea
16. Where do you want to go at
the end? vision
What is the road
map and major mile 4th Objective
stones? Strategy
3rd Objective How will you
reach your
SMART objectives?
Specific
Measurable
Achievable 2nd Objective
Relevant
Time-Bound
1st Objective
17. Who are your stakeholders and
what is your mission to each one
Religion of them?
Family
Community Work
Mission:
Stakeholders
Country Friends
18. Who are your stakeholders and
what is your mission to each one
Suppliers of them? Shareholders
Community Employees
Mission:
Stakeholders
Country Customers
19. Amazon:
Amazon’s vision is to be earth’s most customer
centric company; to build a place where people can
come to find and discover anything they might want
to buy online.
Apple:
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.
20. Face book:
Face book's mission is to give people the power to
share and make the world more open and
connected.
Microsoft:
Microsoft’s mission is to enable people and
businesses throughout the world to realize their full
potential.
Yahoo!:
Yahoo!’s mission is to be the most essential global
Internet service for consumers and businesses
21. 2. Market Analysis
Market size
–How big is it NOW?
–Trends –how fast is it or will it grow?
Market Players –Competitors
–Competitive Advantage
–Estimated market shares
–Existing/planned products in the marketplace
Is this the RIGHT TIME for my product?
Is there a GAP that I can fill?
22. How maximize
Strengths
them
Internal
minimize their
Weaknesses effects Strengths
How you capitalize
Opportunities
on them
External
How you avoid
Threats
them
23. •Who are my TARGET customers?
•Why would they buy my product?
•How much would they pay?
•What are the special features in my product?
•What is my competitive advantage
It is all about your EDGE
24. Defining Target Market
Needs, Wants, Demand Marketing Mix
Marketing Research
4 Ps
Product Promotio
Variety n
Place Promotion
Quality Price Channels s
segme Targeti Positi Design Price List Coverage Advertisin
nting ng oning Features Discounts
Location g
Brand Allowance
s Inventory Sales Force
Packaging
Payments Transport Public
Size
Credit Push / relation
Services
Pull Direct
Warranty
Return marketing
28. Income Statement
Objective: provides information about the firm’s operating activities over a
specific period of time.
Revenue: 100 100%
-Cost of Goods Sold (COGS): 60 60%
Gross Profit (Profit Margin) 40 40%
Operating Expenses:
General & Administration 8 8%
Sales & Marketing 12 12%
-Total Operating Expenses 20 20%
Earning Before Interest, Tax, Depreciation & Amortization (EBITDA) 20 20%
-Depreciation & Amortization 5 5%
Earning Before Interest and Tax (EBIT) 15 15%
-Interest Expenses 5 5%
Net Income Before Tax 10 10%
-Taxes 2 2%
Net Income 8 8%
29. • Name – logo – slogan
• Legal structure
• Location
Mission – values – objectives