Business Plan To Achieve Funding And Growth Goals Marketing Essay

vexation Plan To Achieve Funding And Growth Goals market searchBusiness architectural plans so-and-so second perform a number of tasks for those who write and read them. Theyre used by investment-seeking entrepreneurs to convey their vision to potential investors. They may likewise be used by firms that atomic number 18 trying to attract primal employees, prospect for new air, deal with suppliers or simply to understand how to manage their companies better. lay you goals and ideas d hold on paper helps you organize your thinking. Your employees and opposite stake gainers understand what you plan for the telephone line and it helps keep the presidential term focused on the big picture. Simply stated, a business plan conveys your business goals, the strategies youll use to meet them, potential problems that may confront your business and ways to solve them, the organizational structure of your business (including titles and responsibilities), and fin eithery, the hail of capital call for to finance your venture. Preparing a business plan can be a time- go finished and daunting task. However, the importance of a business plan to achieve funding and growth goals cannot be ignored. So one should grasp down to it and start composing a business plan.Planning is alpha to managers within an organization due to following reasons1) It will provide the future direction and path to the managers2) It will help in optimal utilization of the resources3) It will help in dogmatic the actionand thereby helps to take the corrective action.4) It helps in coordination between different departments5) It acts as a training to the managers6) It compels managers to think before at that nonplus can be some limitations of planning1)It may tether to rigidity in the organization2) It may be too costly and time consumingHence planning provides a blueprint to the organization telling ab reveal the actions to be taken in future.Business Plan and outline schema provid es capacious term direction to the organization. It helps the organization in achieving the competitive advantage to the organization. It as well tells about the organization about its market place, grades and the way to handle the resources in ordination to meet the objectives of the organization.As per tutor2u.net Strategy is the direction and scope of an organization over the long-term which achieves advantage for the organization through its configuration of resources within a ambitious environment, to meet the needs of markets and to fulfill stakeholder expectations.In other words, dodging is about* Where is the business trying to get to in the long-term (direction)* Which markets should a business compete in and what kind of activities atomic number 18 involved in such markets? (markets scope)* How can the business perform better than the competition in those markets? (advantage)?* What resources (skills, assets, finance, relationships, technical competence, facilitie s) are required in order to be able to compete? (resources)?* What external, environmental factors affect the businesses ability to compete? (environment)?* What are the values and expectations of those who have power in and or so the business? (stakeholders)Process of strategic management is as follows1) Screening of Ideas2) Development of Mission and Setting of Objectives3) SWOT analysis4) dealion of Best alternative5) Strategy Formulation6) Implementation7) ControlExample of Apple Inc.Apple Inc. is one of the top most companies in this globe dealing in consumer electronics and computer bundle reapings. It has got popular products such as Macintosh computers, the iPod and the iPhone, Mac OS X direct system, the iTunes media browser, the iLife suite of multimedia and creativity software, the iWork suite of productivity software, and Final be intimate Studio, a suite of professional audio and film-industry software products. Apple has about 35,000 employees worldwide and had w orldwide annual exchanges of US$32.48 billion in its fiscal year ending September 29, 2008. Fortune magazine named Apple the most admired lodge in the United States in 2008 and in the world in 2009. (Wikipedia, 2009)Successful Business strategy- Good Business modeliTunes Music Store is a good source of revenue, especially with the iPod, iPhone and its availability on Windows platform.Apples conquest is create on its product offerings such as iTunes Music Store, iTunes, I Phone and the iPod. (Sampublishing) Apples strategy has been two fold skimming and discriminatory with respect to Ipod and Itunes. The skimming price strategy is presented at two levels. First, the price of the very(prenominal) model is diminishing with time, especially when Apple is issuing the newest version of theiPod. Second, the price of every next propagation model launched on the market is less expensive than its predecessor. (christophe.benavent)Apple seems to reduce its prices in order to make it aff ordable and popular among other competitive products.Apples iPhone and iPod prices alteration according to its customers as well as geographical locations.Also Apple has been reducing price of iTunes, As itsdecision to offer a new price strategy is welcome news by the record labels, who are trying everything to boost revenues.CD sales were down dramatically again in 2007, and the sale of online music was much slower in 2008 than in 2007.Three new price levels were announced, ranging from .69 to .99 to $1.29 in 2009 . (GlgGroup)Moreover Apple has continuously launched superior products to remain ahead in the market. Recently it introduced Apple iPad and yesterday it has launched Apple iPhone 4. Response to i-Pad has been excellent and has led to increase its sales and profits.Its Pricing has been reasonable as the entry-level 16GB Wi-Fi-only iPad costs $499. (Re gain,cnet.com) This is through to capture higher market share and to beat high priced competitors like Plastic Logic Que p roReader, which starts at $649 and to take on the big competitors like virago and Sony..Components of Planningstrategic plan is the blueprint for an organizations workMission A mission arguing answers the questions Why does our organization exist? What business are we in? What values will guide us? A Mission statement tells you the fundamental purpose of the organization. It defines the customer and the critical processes. It informs you of the desired level of process. (Answers Corporation, 2010).Hence Factors influencing Mission statement areStakeholdersInternal resources and Power set of top managementPast development of firmMission statement should understandably define the organizations products, markets and function (Technology and Processes. )A vision statement outlines what the organization wants to be, or how it wants the world in which it operates to be. It concentrates on the future. It is a source of inspiration. It provides clear decision-making criteria. (Answers Co rporation, 2010). A vision is more encompassing. It answers the question, What will success look like? It is the pursuit of this image of success that really motivates people to work together.Values are hypothetical thought of what we think is good or important. They direct the way we feel and act about certain ideas, things, situations, and people. They are principles which lead us decisions and actions. Organizational values define the acceptable standards which govern the expression of individuals within the organization. (Teal, 2010)Vision answers this questionWhat aspirations does the organization have for the world in which it operates and has some influence over.Mision answers this questionWhat can (and /or does) the organization do or contri exclusivelye to fulfill those aspirations?.Values help in aligning the behavior of individuals with organization. Without values, individuals will pursue behaviours that are in line with their own individual value systems, which may lea d to behaviours that the organization doesnt wish to encourage.Example of Star BucksStarbucks MissionTo inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time.Starbucks ValuesHere are the principles of how we live that every dayOur CoffeeIt has always been, and will always be, about quality. Were passionate about ethically sourcing the finest coffee beans, junctioning them with great care, and improving the lives of people who grow them. We care deeply about all of this our work is never done.Our PartnersWere called partners, because its not just a job, its our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard.Our CustomersWhen we are fully engaged, we connect with, laugh with, and uplift the lives of our customers- even if just for a few moments. Sure, it starts with the promise of a perfectly make beverage, but our work goes far beyond that. Its really about human connection.Our StoresWhen our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. Its about enjoyment at the speed of life-sometimes slow and savored, sometimes faster. Always full of humanity.Our NeighborhoodEvery store is part of a community, and we take our responsibility to be good neighbors seriously. We want to be invited in wherever we do business. We can be a force for positive action- delivery together our partners, customers, and the community to contribute every day. Now we see that our responsibility-and our potential for good-is even larger. The world is looking to Starbucks to set the new standard, yet again. We will lead.Starbucks VisionAccording to the companys profile, (2006) its vision is to make Starbucks coffee the most recognized and respected brand in the world by using high quality roast beans to make coffee beverages along with other products. The company wants to develop enthusiastically satisfied customers at all times. They want to make positive contributions to their communities and their environment.Vision, Mission and Values has helped the Starbucks to formulate its Strategy and also give it a clear road map.Objectives These refine the mission and address key issues like market standing, innovation, productivity, physical and financial resources, profitability, management and work force performance and efficiency.Goals are defined as statements that are formulated and lack of specificity while objectives are promising to appear in exact form (Strategic Planning). Goals statements compose of five elements task, what, who, timeframe and deadline (Lukaszewski, 1990)These are rational estimates of anticipated results. The goals are usually Specific, Measurable, Attainable, Rewarding, and Timed (SMART).Planning as a ProcessAs per tutor2u.net, Planning is the process of* Setting objectives* De termining what should be done to progress to them* Implementing the plan* EvaluatingA plan is a statement of intended means to accomplish a goal. Hence planning provides a blueprint to the organization telling about the actions to be taken in future. Organizing helps in allocating the resources, power and responsibilities in the organization. It creates organization structure, span of control and organization culture.Leading is about motivating the employees to work for the organizational objectives. Leadership is the process by which one person provides direction, implements the plans or strategies and motivates people.Strategic control is concerned with the monitoring progress in accomplishing the strategic goals of the organization. It is very critical to any organization, because without it the results could be chaotic. Organization have to improve their operational performance by proper evaluation and control mechanisms.http//www.2gc.co.uk/pdf/2GC-FAQP02.pdfOrganizingOrganizin g focuses on division, coordination, and control of tasks and the current of information within the organization Organizational structure is the formal decision-making framework by which job tasks are divided, grouped, and coordinated. Organizational structure determines the role and responsibilities within the organization. Organizational structure depends on the product to be developed. Wheelwright and Clark define a continuum of organizational structures between two extremes, functional organizations and project organizations. Functional organizations are organized according to technological disciplines.DirectingLeadership is defined as the ability to lead and inspire people towards a common goal.This quality is very important because it can determine the success or failure of an organization.If the objectives and goals of the people are not aligned with the companys mission and vision, this will have detrimental impact on the financial bottom-line and eventual survivability of t he company.There are various leadership titles, each stemming out from the leaders personality and the culture of the organization.It is also dependent on the circumstances relating to the people and the organizations goals.Here is a description of each leadership style supercilious (autocratic) here, the leader uses his authority and power position to direct people in doing the right things, regardless of their opinions.This style is useful when there is urgency and the people are not really motivated to participate.Participative (democratic) when the leader asks for input from his subordinates, he recognizes the fact that each one has something special to contribute for the task on hand.The traditional view of a leader is someone who can think and do better than others.However, the specialization of skills allow for the possibility that some people may actually be better than him.Thus, its important to allow each staff to participate in the decision-making process.Delegative ( free reign) when the leaders subordinates have very specialized skills, he may allow them to fall apart full control and responsibility of certain tasks.This doesnt mean that the leader is shunning his own responsibilities, but rather delegating specialized tasks to experts within his group.This leadership style is used when the leader has a high level of trust of his staff, or if delegation is really needed in order for him to do other important things. This perhaps is the most important function of all management functions. It has been said that the nature of a man is to avoid work. A manager influences the behavior of an employee through motivation, communication, education, group dynamics, leadership and discipline. Thus we will have participative leadership and we will guide the employees accordingly.Good communication between leaders and workers to ensure that everyone interprets their intent the same and every one works together in harmony can be the basis for a very succes sful endeavor. The purpose of direction is to broadcast the behavior of all personnel to accomplish the mission while helping them accomplish personal goal as well prepare them to take your position. coerciveIt is a process of comparing the standards with the actual results to find out variation and then to take corrective action. control programs are critical to any organization, because without it the results could be chaotic.It helpsIn maximizing efficiency and minimize waste.To facilitate management and control.In Effectiveness and efficiency of operations include the use of the entitys resources.Help in strategy implementationControl activities occur at all levels and functions of the entity. We will include a wide range of diverse activities. Top level revaluations of actual performance,Reviews by management at the functional or activity level,Management of human capital,Controls over information processing,Physical control over vulnerable assets,Establishment and review of performance measures and indicators,Segregation of duties,Proper execution of transactions and events,Accurate and timely recording of transactions and events,Access restrictions to and accountability for resources and records, andCONTENT OF BUSINESS PLAN1. executive summary2. Business description3. Environmental analysis4. Marketing Plan5. Design and Operational plan6. Management plan7. Financial factorsCommon Pitfalls of a Business PlanOnly a summary of a project and its potentialWait for all analysis to be completedBecome a prisoner of the plans and the contents thereinDifficulty in deviating from the planPush with the plan, hiding weaknesses under the carpetMake unrea add upic assumptionsQuality of a strategy is as good as its implementationTypical mental attitude of promotersI have a good product / run others will sullyEverybody is waiting to help meTheir priorities are same as mineOthers (all stakeholders) will stick to their promisesCustomer will pay and give me feedback fo r me to improve the product / redevelopmentEnvironment / government policies will remain the same (blinkers of an entrepreneur)Lack of contingency plans for time and cost overrunBlind faith in consultants non clearly understanding regulatory requirementsOptimistic assessment of project cost and fundingLack of budgeting of trial production trial production expenses, incidental and invisible expensesNot taking fully into account the cost implications of the business activities and operating plansNot including cost implications of regulatory complianceImproper assessment of components of working capitalThe transgress between sanction and disbursementLack of efforts in confidence building with investorsLack of contingency plans for time and cost overrunsBusiness Plan- Risk Evaluation pose best-case and worst-case scenarios with key parameters of the business to help assessMarket risksCompetition risksTechnology risksRegulatory risksFinancial risksManagement risksWhat measures are pro posed to counter these risksSensitivity analysis of key factors to simulate the impact of changesExercise 1Business PlanningReview the following business plan Anywhere Remodeling Corporationhttp//www.bplans.com/residential_remodeling_business_plan/executive_s ummary_fc.cfmAfter carefully reviewing this business plan discuss following issues1. The industry that this venture is in2. The riskiness of this venture3. The potential for growths4. Your long-term plan for this companyExercise 2Shahnaz ibn Talal HusseinContributed byRajeev Roy,Professor of EntrepreneurshipXIM B, India(Adapted from NEN)Shahnaz ibn Talal Hussein is acknowledged as one of the most successful women entrepreneurs in India.Her company, Shahnaz Husain Herbals, is one of the leading manufacturers of herbal products inthe world. The company sells over 350 herbal products and operates over 200 salons in morethan 130 countries. The brand, Shahnaz Husain, was valued at over $100 million in 1996 andnow it is likely to be worth much more. Shehnaz is from an aristocratic Muslim family and her father was a Chief Justice. Her upbringing was both traditional and modern. At the age of 15, she was married and she became a mother at the age of 16.When her husband was posted in Tehran, she became interested in beauty treatments and shedecided to formally study cosmetology. After an introduction to the put down in Tehran, she wanted to know more and over the next ten years, she studied the subject extensively in London, Paris and other parts of Europe.On returning to India in 1977, she started her first salon in Delhi with a capital investment ofRs.35,000. She had also studied Ayurveda and her interest in that field has kept growing. Shestarted formulating her own products and these were very successful.The company was able to grow systematically and currently operates three major complementarybusinesses Herbal productsShehnaz Husain has an extensive range of over 350 herbal cosmetic products. These are div idedinto 15 distinct categories for skin, hair and body care. The distribution of these products iscarried out in a fashion similar to that of other consumer goods. The products are available in allleading stores around the world like Harrods (London), Bloomingdale (New Yory) and GalleriesLafayette (Paris). Recently, the company has decided to launch four skin care products in league with Elder Pharma.Beauty SalonsMostly operated on a franchise basis, there are over 200 Shehnaz Husain spas and salonsworldwide. The company provides support in mount up and training and provides ongoingsupport too. The franchisee pays an initial fee but there are no ongoing royalty payments. Thecompany is able to get a revenue stream from sale of their products through the salon.TrainingShahnaz Husain also operates training institutes where students can obtain professionalqualifications in beauty therapy. The institutes also operate a number of short term vocationalcourses. The institutes provide a s teady flow of people trained in the use of Shehnaz Husainproducts, in addition to contributing to profits of the group.Shehnaz Husain Herbals is still a privately held company even after 30 years of its formation butthat has not hampered its growth. Shehnaz Husain continues to look ahead and her story is aninspiration for many others. For her contribution to business and in promoting Ayurveda, Shahnaz Husain was conferred the Padmashree. She has also won numerous other awards from all over the world.Q- What are the critical success factors of Shahnaz Husain. Give reasons.ReferencesAll year 2011http//www.buzzle.com/articles/the-importance-of-strategic-planning-in-business.html. http//tutor2u.net/business/strategy/what_is_strategy.htm.http//www.quickmba.com/strategy/strategic-planning/http//www.answers.com/topic/strategic-planningJames E. Lukaszewski, APR. Focus on Success Choosing Corporate Goals You Can Actually Achieve. http//www.e911.com/exacts/EA021.htmlshttp//en.wikipedia.org/wi ki/Apple_Inc.http//www.glgroup.com/News/New-Pricing-Strategy-by-Apple-a-Hope-to-Boost-Sales-31248.htmlhttp//www.samspublishing.com/articles/article.asp?p=602978seqNum=1rl=1christophe.benavent.free.fr//AINI_2008_Apple_s_Pricing_Strategy.pdfhttp//www.answers.com/topic/strategic-planninghttp//www.teal.org.uk/mat/page6.htm.http//www.starbucks.com/mission/default.asp.Business Plan TemplateImportant Select file then Save As to first save this document to your desktop. If you make edits to this document without doing this you may not be able to save your changes.Business Plan inject your business nameEnter your nameMay 6, 2013 know apart 1 The Business ProfileDescription of My Business(Session 1) Describe your product or service.Targeted Market and Customers(Session 1) Describe your customer profile and why customers want or need your product or service.Growth Trends In This Business(Session 1) Is the market for your product or service growing or shrinking?Pricing Power(Session 1) Explain the unique qualities or circumstances concerning your product or service that will enable you to maintain profitable pricing.Section 2 The Vision and the People(Session 2) Describe convincingly that you are passionately committed to your new business and have the realism to make inevitable hard choices.The PeopleWork Experience Related to My Intended Business(Session 2) Describe your work experience in the business you plan to start including a list of your skills and knowledge, which will be required in your business.Personal Background and Education Credentials(Session 2) Describe yourself, including your education.Section 3 CommunicationsComputer and Communications Tools(Session 3) Furnish a tabulation of each piece of equipment you intend to use including a description and the budget for each. You can use the following as a guide.Resource RequirementsCommunicationsEnter a description and budget of all communications equipment.TelephonesEnter a description and budget for all tel ephone equipment.PagersEnter a description and budget for pagers.FacsimileEnter a description and budget for all fax equipment.ComputersEnter a description and budget for all computer equipment.InternetEnter a description and budget for necessary Internet access and providers.Section 4 OrganizationBusiness Organization(Session 4) Explain the form of business organization you intend to use and why it is best for your business.Professional Consultants(Session 4) List the names of your lawyer, accountant, restitution agent and any other professionals.Licenses(Session 4) List what licenses you will require to go into business.Section 5 Licenses, Permits and Business name callingDue Diligence Procedures for Licenses, Permits and Business Names (Session 14)List the followingDBA List the name you intend to do business as.Zoning Indicate if the zoning if stamp down for your intended office location.Licenses List the appropriate licenses you will need at the local, state, and federal level .LocalStateCentralTrademark Indicate your trademark intentions if any exist.Sellers Permit List any sellers permits that you may need.EIN Indicate if you will obtain an employers identification number.Section 6 InsuranceInsurance(Session 6) List the forms of insurance coverage including costs are anticipated.Section 7 PremisesLocation Criteria(Session 7) Outline your location criteria.space requirements.future requirements.site analysis study if needed (attach).demographic study if needed (attach).lease check-off list (attach).estimated occupancy cost as a % of sales.zoning and use approvals.Section 8 Accounting and Cash FlowAccounting(Session 8) Furnish, as a separate viewing of your starting balance sheet and projected income statements for the first six months to one year.Cash Flow Planning(Session 8) Provide a separate exhibit of your one year notes flow analysis including estimated sales, all costs and capital investments.Provide a checklist of all expense items for input int o your cash flow projection.Analysis of Costs(Session 8) What are all of my costs fixed, variable, product, delivery, etceteraInternal Controls(Session 8) Explain your Intended internal controls and cash controls, check signing policy, strategy for controlling shrinkage and dishonesty and control of incoming merchandise.Section 9 FinancingFinancing Strategy(Session 9) Provide a chart or spreadsheet showing all of the sources of your start-up capital. Explain any government assistance or loan guarantee programs you intend to apply for.If your business is for use with potential lenders, include a cash flow projection and projected income statements to show sources of repayment of loans. Be conservative in your forecasts.List your sources of referrals to lending institutions. (Your accountant, etc.)Section 10 E-CommerceE-Commerce Plans(Session 10) Describe in expatiate how you plan to use the Internet in marketing your product or service.E-Commerce Budgeting(Session 10) Provide a det ailed breakdown of the costs involved in creating, operating and maintaining your e-commerce activities.E-Commerce Competition(Session 10) Describe how your best competitors utilize e-commerce and your strategy to improve on their practices.Section 11 AcquisitionsDue Diligence Procedures for Acquisitions(Session 11) List the followingYour consulting team Attorney, accountant, banker, broker, etc.Verification of sellers revenues how you plan to authenticate.Sellers records to be inspected Financial statements, income tax returns, sales backlog, cash deposit records, utility bills, accounts payable and receivable, backlog, financial comparisons of similar businesses, etc.Inspections and approval of leases and contracts.Appraisals, as appropriate.If a franchise, interview with randomly selected franchisees.Finance plan for acquisitions include sources including seller financing.Market conditions.Value of goodwill.Method of purchase stock, assets, etc.Section 12 MarketingMarketing Plan( Session 12) Describe your overall marketing and sales strategy including how you plan to get and retain customers.Advertising and Promotion Plans(Session 12) Describe your plans and budgets for advertising and promotions. purchase and Inventory Control(Session 12) See how to buy checklist.Training Policies(Session 12) Describe your plans for hiring and training your sales associates.The Competition(Session 12) Describe your strongest competitors and how you intend to compete.How I Plan to Take payoff of Competitors Weak Points(Session 12) List your competitors shortcomings and how you can capitalize on them.Section 13 Growth ProgramExpansion(Session 13) Describe your growth You might include