Business Plan Development

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Business Plan Development

• ?? qpan_at_se.cuhk.edu.hk
• seg3610_at_se.cuhk.edu.hk

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Agenda

• Key point of each part
• Case study
• Question Answer

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Key point of each part
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Content

• Executive summary
• Business description
• Marketing plan
• Competitor analysis
• Operations plan
• Financial plan

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Executive Summary

• Key Point short, entire, accurate, excite
• How long should an executive summary be? The
  answer is short
• The executive summary is a synopsis of the key
  points of the entire e-business plan, containing
  the accurate key point of each part

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Executive Summary

• One effective way to begin the executive summary
  is with an interesting and compelling statement
  that grabs the reader's attention (short story, a
  question, or a startling statistic)
• Then try to highlight a key point from each
  section of the plan

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Example

• 1 Executive Summary
• (excite the reader enough to read the entire plan
  )
• 1.1 Objectives
• (Ex sales, income, etc)
• 1.2 Mission
• (abstract of your business service)
• 1.3 Key to Success
• (Ex technology, service, market, etc)

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Business Description

• Key Point product/service
• The most important part is description of
  products and services.
• Mission statement
• Business goal
• Project Objectives

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Example

• 2 Company summary
• (the form of your company)
• 2.1 Start-up summary
• (total Start-up expense)
• 2.2 Service Description
• (Detail of your service/systems)
• 2.21, 2.22 .

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Example

• Mission statement McDonald's vision is to be the
  world's best quick service restaurant experience.
  Being the best means providing outstanding
  quality, service, cleanliness, and value, so that
  we make every customer in every restaurant smile
• Business goal Implement an on-line store that
  contains a range of top quality SEG4630-made
  products that our customers will want to buy

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Marketing Plan

• Key Point
• Market analysis
• Pricing strategy
• Promotion plan
• Distribution plan
• Demand forecast
• (Do not need to go into so detail)

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Marketing Plan

• Market analysis a definition and description of
  prospective customers, including target markets,
  size and structure of the customer base, and
  growth prospects.
• Pricing strategy setting the price of the
  product or service based on methods such as
  cost-plus pricing, demand pricing, and
  competitive pricing and the use of innovative
  pricing strategies such as penetration pricing,
  flexible pricing, and market skimming.

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Marketing Plan

• Promotion plan the communication channels you
  will use to make the customer aware of your
  product/service and convince them to purchase
  (e.g., advertising, on-line demonstration videos,
  packaging). Promotion also includes tracking your
  customers (e.g., confirming who are your
  customers and how did they hear about you) and
  encouraging them to purchase again.
• Distribution plan the distribution channel you
  will use to move the product or service to the
  customer (e.g., direct sales, wholesale
  distributors, brokers) and, if necessary, back
  again (e.g., returns).
• Demand forecast estimates of product or service
  sales, based on the market analysis and
  assumptions about the effectiveness of the
  pricing, promotion, and distribution strategies.

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Example

• 3 Marketing Analysis Summary
• (Market analysis, Pricing strategy, Promotion
  plan, Distribution plan, Demand forecast)
• 3.1Market Segmentation
• (Pie)
• 3.2 Market Trend
• (Chart)

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Competitor analysis

• Key Points who, strength, weakness
• Identify who is Your Competitors?
• Analyzing Your Competitors strength and weakness

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Example

• 4 Competitor analysis
• 4.1 Main Competitor
• (Direct competitors, Indirect competitors, Future
  competitors )
• 4.2 Analyzing Competitor
• (Strength, weakness)
• 4.3 Competitive strategies
• (Your Competitive Position)

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4.1 Main Competitor

• Direct competitors are businesses that are
  offering identical or similar products or
  services as your business.
• Indirect competitors are businesses that are
  offering products and services that are close
  substitutes.
• Future competitors are existing companies that
  are not yet in the marketplace that you intend to
  occupy, but could move there at any time.

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4.2 Analyzing Competitor

• Competitor analysis Template

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4.3 Competitive strategies

• You can use SWOT to analyze your competition
• And then make your strategy
• (how your product or service will be perceived by
  customers as different, and better )

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Operations Plan

• Key Points input, procedures, output, web
• operations is the process through which resource
  inputs are converted into useful outputs
• Establishing a Web Presence

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Example

• 5 Operations Plan
• 5.1 Inputs of Operations
• (equipment, labor, etc)
• 5.2 Outputs of Operations
• (services, information, etc)
• 5.3 Operating procedures
• (new technology, customer service policies )
• 5.4 Establishing a Web Presence
• (Web site development, including construction and
  maintenance )

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Financial Plan

• Key Points
• Income and expense statement
• Balance sheet
• Cash flow statement

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Example

• 6 Financial Plan
• (General description)
• 6.1 Income and expense statement
• (Figures or Tables)
• 6.2 Cash Flow
• (Figures or Tables)
• 6.3 Balance sheet
• (Figures or Tables)

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• All templates can be download from
  http//myphliputil.pearsoncmg.com/student/bp_turba
  n_introec_1/TutIntro.html

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QA