LO #1- Diagnose the business
• To improve business performance you need to
understand your business current performance
and familiar with your business goal and targets.
• Organizational Diagnosis is a process that help
organizations to improve their capacity to assess and
change inefficient patterns of organizational behavior as
a basis for greater effectiveness.
• Organizational diagnosis is an effective ways of looking
at an organization to determine gaps between current
and desired performance and how it can achieve its
• There are six step processes for major
organization development efforts. These are:
1. Clarification of whole organization objectives
2. Data gathering and sharing
3. Diagnosis of organization strength and
4. Joint action presentation of organizational
development intervention to current
5. Implementation of organizational development
6. Periodic progress review of results.
• Diagnosis is a cyclical process that involves
data gathering, interpretation/clarification
and identification of the problem areas and
possible action programs.
• Each organizational culture profile reflects
underlying attributes including the management
style, strategic plans, reward system,
leadership, and basic values of the
Some major data gathering methods are:
Secondary source of data:-
• Which are generated for other organizational
purposes that can be used in identifying problem
areas, such as: performance indicators, accounting
data, productivity and quality data.
Primary source of data:-
• Direct observation of people behaviors is
another important source of data. This can
include member actions or reactions to specific
situations, and communication patterns.
• The other method of data collection is employee
survey. The data provide a snapshot of an existing
situation, and can be used to compare an
organization's current state with some desired state.
• Questionnaire-based surveys are one of the most
effective tools for organizational diagnosis
practitioners to understand and evaluate
• Interviews (can be structured, semi-structured or
informal) are also the most widely used data gathering
technique in organizational diagnosis programs.
• SWOT Analysis
A. Strengths/Internal strength :
• good communication skills, on time for shifts,
handles customers well, gets along well with all
departments, physical strength, good
• Some common employee strengths include:
– hard work ethic,
– humour, flexibility, ambition,
– excellent written communication,
– excellent verbal communication,
– creativity, tech-savvy,
– thinking outside of the box,
– strong interpersonal skills,
– persuasiveness and industry-specific skills and knowledge
• The best managers place employees in positions in
which they can best use their strengths and build on
• Revise job descriptions, change employees'
positions, add or change responsibilities, and do
what you need to in order to place employees in
positions where they can succeed and use their
B. Weaknesses/Internal weakness:
• takes lengthy smoke breaks, low technical skill, very
prone to spending time chatting. Evaluate your
employees' weaknesses as well.
• Consider factors such as tardiness/lateness,
communication problems, lack of enthusiasm or
energy, poor understanding of materials or
programs, and difficulty getting along with others.
• Create a system to track each employee's
progress and check in regularly
• For more subjective areas, such as people
skills, consider holding office seminars on
topics such as diversity, cooperation or
communication or paying for employees to
• Offer incentives for the training – such as
lunch for all participants or a certificate.
c. External opportunity
• Opportunities are chances for something
positive to happen, but you'll need to claim
them for yourself!
• They usually arise from situations outside
your organization, and require an eye to what
might happen in the future.
D. Threats (External )
• Threats include anything that can negatively affect
your business from the outside, such as supply chain
problems, shifts in market requirements, or a
shortage of workers.
• It's vital to expect threats and to take action against
them before you become a victim/target of them
and your growth stands.
LO #2- Benchmark the business
What is benchmarking?
• Benchmarking is simply the process of
measuring the performance of one’s company
against the best in the same or another
• Benchmarking is basically learning from
• Therefore, benchmarking is a continuous,
systematic/ structured/ formal process for
assessing/ measuring/ comparing the organizations.
• In business, benchmarking has come to mean
variety of things. It has assumed a very special
significance in todays competitive world.
Role of Benchmarking
• The role of benchmarking is to provide
management with knowledge of what constitutes
‘best performance’ or ‘superior performance’ in a
• Best performance relates to output, efficiency,
quality and any other measurement relevant to
performing the job.
• Generally, there are three reasons that benchmarking is
becoming more commonly used in industry. These are:
I. Benchmarking is a more efficient way to make
II. Benchmarking speeds up organization’s ability to
III. Benchmarking has the ability to bring organizational
performance up as a whole significantly.
Types of Benchmarking
• There are four primary types of
a) Process Benchmarking
b) Performance Benchmarking
c) Strategic Benchmarking
d) Internal Benchmarking
a) Process benchmarking
• Focuses on the day-to-day operations of the organization.
• It is the task of improving the way processes performed
• This type of benchmarking results in quick improvements to the
• Some examples of work processes that could utilize
process benchmarking are:
The customer complaint process,
the billing process, and
The order fulfillment process
b) Performance benchmarking
• focuses on assessing competitive positions through
comparing the products and services of other
• When dealing with performance benchmarking,
organizations want to look at where their product or
services are in relation to competitors on the basis of
things such as:
reliability, quality, speed, and other product
or service characteristics.
C. Strategic benchmarking
• Strategic benchmarking deals with top management.
It deals with long term results.
• Strategic benchmarking focuses on how companies
• This form of benchmarking looks at what strategies
the organizations are using to make them successful.
• This is the type of benchmarking technique that most
Japanese firms use.
d) Internal /collaborative Benchmarking
• Collaborative/ Internal benchmarking are the most widely used types
of benchmarking because they are relatively easy to practice.
• These forms of benchmarking are a more cooperative & helpful way of
• In Internal benchmarking, organizations invite best in class
organizations to meet with their benchmarking team to share
knowledge. It is sometimes called “data sharing”.
• During this process information flows one way. From the “best in
class” organization to the benchmarking team organizations
• There are four main steps that should to be followed
to conduct Benchmarking.
• Step 1- Plan the study
Establish Benchmarking roles and responsibilities.
Identify the process to Benchmark
Document the current process
Define the measures for data collection
Step 2- Collect the data
Record current performance level
Find Benchmarking partners
Conduct the primary study/analysis
Make a site visit
Step 3- Analyze the data
Normalize the performance data
Construct comparison matrix to compare your
Identify outstanding practices
Isolate process enablers
Step 4- Adapt enablers to implement
Set stretching targets
“Vision “ an alternative process
Consider the barriers to change
Plan to implement the change
LO #3- Develop plans to improve
PLANNING FOR THE BUSINESS GROWTH
• Business planning has become a very important part
of the top management function due to the influence
of external environmental factors and systems
approach to the business management.
• Business planning is strategic planning because it is
concerned mainly with the designing of business.
What is Planning?
• Planning is deciding now what we are going to
later including when and how we are going to do
• The scope of planning activities may cover long
or short period of time/range.
• Short-term planning evaluates your progress in
the present and creates an action plan to
improve performance daily.
• However, long-term planning is a
comprehensive framework that comprises of
goals to be met within a four- to five-year period.
Long Term Planning/Strategic Plan
• Strategic plan is a plan that matches an
organization’s resources with it’s market
opportunity, over the long-run.
• Long-range strategy is designed to provide
information about an organization’s vision,
mission, direction and objectives.
• Implementation planning, explains the details of
the policies and procedures, which are required to
accomplish the strategies of the firm.
Benefits of Business Planning
The benefits of business planning include
1. Helps the company to formulate and achieve
objectives and goals clearly
2. Aims at the long-range plan rather than short-
3. Integrates/Combines the company plan with
the national plans and priorities
4. Helps to see both the internal and external
5. Contributes for the achievement of high rate
6. Helps to determine potential growth and
Proactive and Reactive Management
• The best management is primarily proactive and then
How to be proactive
1. They should plan for short and long term periods of
2. They should work closely with technical and
marketing staff to determine marketing opportunities.
3. They should encourage innovation.
5. They should consider opinions and
suggestions of employees.
6. They should take calculated risks.
What is a value chain?
• value chain is sequence of activities that an
enterprise operating in a specific sector performs
in order to deliver a valuable product or service to
Benefit/importance of value chain analysis
• There are sets of reasons why values chain analysis is
important in this era of rapid globalization.
Simple and better way to identify gabs
Increase efficiency and systematic competitiveness of local
Reduces production costs and improves profitability
Improves client satisfaction by providing quality product and
A way to identify opportunities to improve added value
SWOT analysis for enterprise
• What advantages does your organization have?
• What do you do better than anyone else?
• What do people in your market see as your
• What could you improve?
• What should you avoid?
• What are people in your market likely to see
• Can you introduce new products or
remarket existing ones to seem new?
• Is there a gap in the market?
• Can you sell more cheaply?
• Are you costs lower? Or production methods more
• Do you have resources that can be used or used
• Are there opportunities to co-operate? Or join
• Is the political, Economic, social, or technological
environment changing to your advantage.
• Can your competitor offer better quality
• Will legislative, political, economic,
Technological, commercial, personal, Resource
level, or financial changes, threaten your market?
Preparing a Business Plan
What Is a Business Plan?
• A business plan is a document that describes your
business, the products and services you sell, and
the customers that you sell to.
• It explains your business strategy.
• How you’re going to build and grow your business,
what your marketing strategy is, and who your
Why do you need a business plan?
• Here are the top reasons why you need a business
– Businesses that plan grow 30% faster.
– Lenders and investors need business plans
– Business plans reduce risk
– Business planning helps you make smart
How is a business plan written?
• By identifying all the questions that might be asked
relating to the business
• By determining what further information needs to
be gathered to answer all the questions
• By obtaining all the necessary information
• By comparing various alternatives
• By making a decision on each question
1. Generation of idea
• It is the first step in the business planning
• It distinguishes entrepreneurs from the usual
business. Sources of new ideas that
entrepreneurs can get are from-
– Existing companies
– Research and development
– Dealers and retailers
2. Environmental scanning
• The next step is to scan the factors that will affect
the business ideas. The elements are external and
internal environment surrounding the business
• External environment includes-
– Socio-cultural appraisal
– Technological appraisal
– Economic appraisal
– Demographic appraisal
– Government appraisal
3. Feasibility analysis
• It refers to conduct a detailed report on every aspect
that is relevant to the business.
• The analysis includes-
– Market analysis is undertaken to calculate the demand and
market share of products and services in the future.
– Technical and operational analysis is conducted to assess
the functional ability of the proposed business enterprise
4. Project report preparation
• It is a document which describes step by step
strategies involved in running the business.
5. Evaluation, Control And Review
• The company operates in a dynamic
environment, so it has to monitor and review
strategies as well as policies to compete in an
What is the content of the project
• Cover page of the project report contains the
title of the project, name, address so that the
person reading the report can quickly contact
the entrepreneur if there are any queries of
Table of contents:
• Table of content consists of topics covered in the
project report along with the page number.
• It has to be written after the completion of the
project report as it gives brief gist of the project
Company information and industry:
• The ownership form of the company, which
contain the reason for forming into the proposed
plan and It can also consist of the SWOT analysis
of the company
• The critical aspect is analyzed during the technical
feasibility. This report should be highlighted. The
choice of the product and service that is to be
offered should be justified.
• This plan should focus on the industry and
market feasibility that is conducted at an
• It describes the pricing policy, market
research, product to be offered by the
company, marketing strategy promote the
product and target customers.
• It explains the innovative idea that is involved in the
process of production, which makes it better when
compared to existing competitors.
• It provides information about the management team
who are part of the company. It focuses on the technical
skills possessed by the employees in the company.
• It includes the network diagram, which illustrates the
time duration required for the project.
• The graph shows the various activities in the project,
which are organized and the time duration required for
the execution of the project.
Critical risk and assumption:
• It explains the various assumption made during the
creation of the company like considering the previous
• There can be multiple risks involved in the product and
kind of service company is planning to offer
• It is an essential part of the report which will contain
brief content all the sections with monetary terms.
• It explains the financial composition of the company,
sources through which the company has acquired
finance, the total expenditure incurred by the
• The report should be ended on a positive note so that
the readers develop a positive image of the report.