Business Planning: Format, Process, and Contents with Goals, Key Areas, and Summary, Lecture notes of Accounting

Download Business Planning: Format, Process, and Contents with Goals, Key Areas, and Summary and more Lecture notes Accounting in PDF only on Docsity! Chapter I: Planning the Enterprise Business Plan Format and Process of Development What is a Business Plan for? A guide for the entrepreneur, like a navigational course Conveys to investors and cautious financiers the soundness and potential of a business Serves the managers and staffs so they will know the strategies and programs of the enterprise Introduction |. Introduction The content of this chapter must be concise but powerful. It should get the reader more interested about the business . The Introduction has 2 parts. a.) The Business Concept and the Business Model > How will the business get revenue? What will be the cost? What will be the major investment? How do we finance it? b.) The Business Goals » Future and long term prospects of the enterprise ° Vision ¢ Mission ° Objectives ¢ Performance Targets (Key Result Areas) DE LASALLE UNIVERSITY - MISSION © A leading learner-centered and research University bridging faith and scholarship, attuned to a sustainable Earth, and in the service of Church and society, especially the poor and marginalized. To establish a commanding presence and market leadership as a food chain servicing major bus terminals in Central Luzon within the next five years. meg To provide quality food and passenger convenience services that would generate sufficient profits for the stockholders and improve the lives of its employees. Establisha strong market presence in Central Luzon (Marketing) Earn good financial returns for its owners (Finance) Delight customers with high quality food and services (Operations) Make Double Happiness a happy and rewarding place to work in. (Human Resource) Key Result Areas How do we know if Number of Food Outlets 9 ' Sales Volume objectives are met? ene ; 5 Amount of net profit Repeat customers Return on investment, Establish a strong market presence in Central CES Belo Luzon (Marketing) Earn good financial returns for its owners (Finance) Delight customers with high quality food and services (Operations) Make Double Happiness a happy and rewarding place to work in. (Human Resource) Repeat customers Number of commendations Customer survey rating Amount of compensation and benefits of employees Employee turnover Il. Executive Summary @ A synthesis of the entire plan. Must contain the MAJOR argumentation 6 on why the business will work and succeed. , The executive summary should be written LAST. It must introduce and contain highlights about: ¢ The good qualities of the business proponents and partners ¢ The enterprise organization and its capabilities, it must justify the Enterprise strategy and Delivery System. e It must contain a section for environmental and regulatory compliance. ¢ Technology providers, suppliers and major service providers with their expertise and experience. @ Careful not to give everything on the Executive Summary. Take note, its purpose is to make the reader more interested about the whole content of the plan. Business Proponents Market Research Entrepreneur, know thy market! ¢ The entrepreneur should exert all efforts to know the market that he/she wants to exploit. And this will be his/her Target Customer. ¢ This can be possible through conducting a good market research. IV. Target Customer a.) Target Market Description ¢ A business should have a precise target customer Target customer should be of: a) Sufficient size b) Sufficient paying capacity c) Sufficient interest to purchase the product V The Market Vi Product and Service Offerings VI. Product and Service Offerings a.) Description - Features and attributes that would most appeal customers { ‘Ss - Main Value Proposition \ Re ~ e Unique selling proposition (= e—— Example: M&Ms’ “Melts in the mouth, not on your hand” ¢ This is a unique selling proposition because it conveys a message to customers that the coating prevents the chocolate from melting easily and making a mess. VI. Product and Service Offerings a.) Description - Features and attributes that would most appeal customers b.) Evolution c.) Justifications - Proof that the products and services would be accepted and carried by the distribution channels Designing, developing, and executing the Enterprise Delivery System is called managing The Operations Management Function Enterprise Delivery System The Enterprise Delivery System starts with... Input Resources Mobilized Money Men Machines Materials Methods Management Throughput Transformation process where input are converted to output Output The product or service rendered we Outcome Through the aid of Marketing efforts (7P’s), the enterprise achieves desired outcomes such as - Customer Satisfaction - Profits generated - Sales volume attained - High people productivity 30 The Marketing Management Function. Seven P’s of Marketing wo * Positioning ° Product * Packaging ° Place * People The marketing function and the marketing mix serve the * Promotion overall ® Price Business Strategy The Enterprise Delivery System is supported by The Human Resource Management Function Proper deployment and development of People. ee ¢ Eight R’s of HR - Recruiting - Routing - Retaining - Resonating - Reviewing - Rewarding - Retooling - Recycling ¢ Benefits and Compensation of Employees IV Environmental & Regulatory Compliance Environmental & Regulatory Compliance - Laws, Rules and regulations governing the business, and the industry that the enterprises is in. - Permits. Licenses, and authority to use proprietory intellectual capital - Local government ordinances and barangay ethics MEK PXya a alee Entrepreneurship for K-12 Dr. Eduardo Morato A. S40. 320. 60 ®. 144, 000.0° ( a8 mi 500. wo 257 D, ‘8 Gi ah nk Pare CSOVE DL