Transcript Business Plan Competition

Business Plan Competition
Presented by:
Omar Shawky
Give a man a fish and you feed
him for one day…
Teach him how to fish and you
feed him forever …
Chinese Wisdom
Business Plan Competition
• The Idea of the Business Plan Competition
• Learning: what is a Business Plan
• Writing: how to write a Business Plan
• Presenting: the Business Plan in the competition
• Implementation: Writing the Business Plan
Key Questions for Business Planning
1- Where is the NEED?
2- What are your:
Strengths, Weaknesses, Opportunities, Threats
3- Where do you want to go at the end?
4- Whom do you live for?
5- How to get to achieve your objectives?
4.1 How do you grow?
4.2 How do you compete?
4.3 How to implement?
6- What do you need?
7- How do you measure performance?
8- How do you ensure sustainability?
Idea Generation
SWOT Analysis
Vision
Mission
Strategy
Corporate Strategy
Business Strategy
Functional Strategy
Resources Needed
KPIs
Corporatization
Business Planning Model
Evaluation
Environmental
Scanning
Strategy Formulation
Strategy Implementation
&
Control
External
Societal
Environment:
General Forces
Task
Environment
Industry Analysis
Internal
Structure:
Chain of
command
Culture:
Beliefs,
Expectations
Mission
Reasons
for
existence
Objectives
What
Strategies
results to
accomplish Plan to
when
achieve
mission &
objectives
Policies
Broad
guidelines
for
decision
making
Programs
Activities
Budget
needed
to
Cost of the
accomplish
programs
a plan
Resources:
Assets, skills
Competencies
knowledge
Feedback Learning
Procedures
Sequences
of steps
needed to
do the job
Performance
Actual
Results
Business Plan Competition Criteria
1- Market Analysis
2- Strategy Formulation
3- Implementation
4- Financial Modeling
5- Measuring Performance
6- Corporatization: Sustainability
7- Social Responsibility
1- Market Analysis
1- Identifying the NEED of specific Targeted Group
2- External Analysis: Opportunities & Threats
- Country: Political, Economical, Socio-Cultural & Technological Forces (PEST)
- Industry: New Entrants, Competitors, Substitute, Buyers & Suppliers (Porter 5 Forces)
3- Internal Analysis: Strengths & Weakness
- Company: Value-Chain Analysis
4- SWOT Analysis:
Strengths
How maximize them
Internal
Weaknesses
How minimize their effects
Opportunities
How you capitalize on them
External
Threats
How you avoid them
1. The Idea
• Innovative product or service
• Visualize a market gap – you can
add value
• Imported idea
Be Marketing Oriented:
Marketing is:
Satisfying Needs Profitably
Why write a Business Plan
1. Because I have to…
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Needed for financing
Strategic partnering
Attract key people/investors
Organize my thoughts
Why write a Business Plan
2. 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
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Who are my customers?
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?
Country Analysis – PEST
Political-Legal
Forces
Economic
Forces
Socio-Cultural
Forces
Technological
Forces
•Anti-trust regulations
•Tax laws
•Attitude toward
foreign companies
•Employment laws
•Stability of government
•Foreign trade laws
•Customs regulations
•GDP
•Interest Rates
•Money Supply
•Inflation rate
•Unemployment Level
•Wages
•Price control
•Devaluation
•Reevaluation
•Energy costs and
availability
•Disposal income
•Life Style changes
•Population growth rate
•Age distribution
•Life expectancies
•Birth rate
•Mortality rate
•Religious orientation
•Government Spending
on R&D
•Industry Spending
on R&D
•Patent protection
•Telecom infrastructure
•Internet availability
•Availability of certain
Technology need to
improve productivity
Industry Analysis
Porter’s 5-Forces
Entry Barriers
Bargaining Power
Of Suppliers
Rivalry among
Competition
Threat of
Substitute
Bargaining Power
Of Buyers
Threat of new Entrants
Barriers to entry:
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Economies of scale
Product differentiation
Switching costs
Capital requirement
Access to distribution Channels
Government Policy
Rivalry among Competition
Intense rivalry related to :
• Number of competitors (Monopoly, Monopolistic
Competition, Fragmented)
• Rate of industry growth
• Product or service characteristics
• Amount of fixed costs
• Capacity
• High exit barriers
Threat of Substitute
Threat of substitute :
• Availability of substitutes
• Switching costs
Bargaining Power of Buyers
Buyers Power :
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Buyer buys large portion of seller’s product
Buyer can integrate backward
Undifferentiated product
Availability of sellers
Buyer orientation (price oriented vs quality oriented )
Switching costs
Bargaining Power of Suppliers
Suppliers Power :
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Number of suppliers and buyers (Petroleum)
Suppliers product characteristics (unique or commodity)
Switching costs
Availability of substitutes
Suppliers forward integration
Amount purchased from supplier
Firm’s Resources
Resource: an asset, competency, skills, knowledge
controlled by the corporation
1. Value: does it provide competitive advantage?
2. Rareness: Do other competitors possess it?
3. Imitability: is it costly for others to imitate?
4. Organization: is the firm organized to exploit the resource?
Value Chain Analysis
Value Chain:
Set of value-added activities begins with basic raw material
sourcing and ending with handling the product to the consumer
Center of Gravity:
The part of the value chain where the company has its greatest
expertise and capabilities.
Company - Value Chain Analysis
Firm Infrastructure
(general management, accounting, finance, strategic planning)
Human Resource Management
Support
Activities
(recruiting, training, development)
Technology Development
(R&D, product and process improvement)
Procurement
(purchasing of raw material, machines and supplies)
Outbound Marketing
Logistics
And Sales
(warehousing,
(Ads,
(machining,
(raw material
distribution promotion
Assembling,
Handling and
Of finished
Pricing,
Testing)
Warehousing)
goods)
Channel )
Inbound
Logistics
Operations
Primary Activities
Services
(insulation,
Repair,
Parts)
Profit
Margin
SWOT Analysis
Strengths
How maximize them
Internal
Weaknesses
How minimize their effects
Opportunities
How you capitalize on them
External
Threats
How you avoid them
2- Strategy Formulation
1- Vision: what do you want to be?
2- Mission: what do you exist for?
3- Objectives: SMART Short - Medium and Long Term
4- Strategies:
- Corporate Strategy:
- Business Strategy:
- Functional Strategy:
How to grow?
How to compete?
How to do it? Strategic Marketing Plan.
Strategic Management Model
Evaluation
Environmental
Scanning
Strategy Formulation
Strategy Implementation
&
Control
External
Societal
Environment:
General Forces
Task
Environment
Industry Analysis
Internal
Structure:
Chain of
command
Culture:
Beliefs,
Expectations
Mission
Reasons
for
existence
Objectives
What
Strategies
results to
accomplish Plan to
when
achieve
mission &
objectives
Policies
Broad
guidelines
for
decision
making
Programs
Activities
Budget
needed
to
Cost of the
accomplish
programs
a plan
Resources:
Assets, skills
Competencies
knowledge
Feedback Learning
Procedures
Sequences
of steps
needed to
do the job
Performance
Actual
Results
Vision
Where do you want to go at
the end?
Vision
Objectives
What is the road
map and major mile
stones?
4th Objective
Strategy
3rd Objective
2nd Objective
1st Objective
How will
you reach
your
objectives?
Who are your stakeholders and what is
your mission to each one of them?
Religion
Community
Country
Family
Mission:
Stakeholders
Work
Friends
Who are your stakeholders and what is
your mission to each one of them?
Suppliers
Community
Country
Shareholders
Mission:
Stakeholders
Employees
Customers
SMART Objectives
Specific
Measurable
Achievable
Relevant
Time-Bound
Hierarchy of Strategy
Corporate Strategy
How To Grow ?
Business Strategy
How To Compete?
Functional
Functional
Strategy
Strategy
How To Do Implement?
Corporate Strategy
Forward Integration
Customers
Retail
New Product
Horizontal Integration
Manufacturing
Primary
Manufacturing
Feeding Industry
Raw Material
New Region
Horizontal Integration
Backward Integration
Vertical Integration
Distribution
Business Strategy
Business Strategy:
Emphasizes improvement of the competitive position:
1- Competitive (Apple Computers)
2- Cooperative (British Airways)
Competitive Advantage
High
Degree
of
Differentiation
Low
Maintain Specialty
(Swiss)
Outstanding Success
(Coca-Cola / Pepsi)
Hope for
market growth
Maintain Cost
advantage
(Egyptian FIAT 128)
High
(China)
Low
Relative Cost
Functional Strategy
Functional Strategy:
How to achieve corporate and business unit strategy by
maximizing resource productivity:
1- Marketing Plan
2- Production Plan
3- R&D Plan
4- HR Plan
5- Financial Plan
Your Marketing Plan
What is Marketing: Satisfying Needs Profitably
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The Target Market
The Strategic Marketing
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Segmentation
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Targeting
•
Positioning
The Marketing Mix
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Product
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Price
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Place (Push / Pull)
•
Promotions
Value-Delivery Process
(a) Traditional Physical Process Sequence
Make the Product
Product
Design
Procure
Sell the Product
Make
Price
Sell
Advertise
Distribute
Promote
Service
(b) Value Creation and Delivery Sequence
Provide the Value
Choose the Value
Customer
Segmentat
ion
Market
Selection/
Focus
Targeting
Value
Positioning
Strategic Marketing
Product
Developm
ent
Service
Developm
ent
Pricing
Communicate the Value
Sourcing
Distributing
Making
Serving
Tactical Marketing
Sales
Force
Sales
Promotion
Advertising
Marketing Plan Process
Defining Target Market
Needs, Wants, Demand
Marketing Mix
4 Ps
Marketing Research
Segmenting Targeting
Positioning
Product
Price
Place
Promotion
Variety
Quality
Design
Features
Brand
Packaging
Size
Services
Warranty
Return
Price List
Discounts
Allowances
Payments
Credit
Channels
Coverage
Assortment
Location
Inventory
Transport
Promotions
Advertising
Sales Force
Public
relation
Direct
marketing
Marketing Mix
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4 Ps
Product
Price
Place
Promotion
4 Cs
Customer Solution
Customer Cost
Convenience
Communication
Segmentation
A process of subdividing the market into distinct subsets of
customers that behave in the same way or have similar need.
Segmentation
Bases for Segmenting Consumer Markets
These segmentation variables can be used singly or in combination
Geographic
Demographic
Calls for dividing
the market into
different
geographical
units such as
states,
regions,counties
& neighborhood
• Age
• Family Size
• Family lifecycle
• Gender
• Income
• Education
• Occupation
• Religion
• Race
• Generation
• Social Class
• Nationality
• Region
• City or Metro size
• Density
• Climate
Psychographic
• Lifestyle
• Personality
Behavioral
• Occasions
• Benefits (Unique
selling
proposition) Crest
• User status
• Usage Rate
• Loyalty Status: high-core loyals –
Split loyals –
Shifting loyals switchers
• Buyer-readiness
stage
• Attitude toward
product
Targeting
The act of evaluating and comparing the identified groups and
then selecting one or more of them as the prospects
Targeting
Selecting the Market Segments
Single segment
Concentration
Selective
Specialization
Product
Specialization
Market
Specialization
Full Market
Coverage
M1 M2 M3
M1 M2 M3
M1 M2 M3
M1 M2 M3
M1 M2 M3
P1
P1
P1
P1
P1
P2
P2
P2
P2
P2
P3
P3
P3
P3
P3
The company
selects a single
segment, it
gains a strong
knowledge of
the segments
needs &
wants&
achieves a
string market
position in the
segment
The company
selects a
number of
segments all fits
objectives &
resources.
& all promises
to be money
makers
The company
concentrates on
a certain
product that it
sells to several
segments.
It builds a
strong
reputation in the
specific product
area
The company
concentrates on
serving many
needs of a
particular
customer group.
It builds a
strong
reputation in
serving this
customer group
The company
serves all
customer groups
with all the
products they
might need.
Only very large
firms can
undertake a full
market coverage
strategy
Differentiation & Positioning
Differentiation & Positioning
Tools for competitive Differentiation
Product
Service
• Features
• Ordering Ease
Characteristics that supplement the product’s basic
function
McDonald’s
• Delivery
• Performance Quality
The level at which the product’s primary characteristics
operates
Mercedes
• Conformance Quality
Degree to which produced units are identical & meet
promised specs
(Perceived quality is more imp. than technical quality)
Metro
Speed, accuracy &care attending
Pizza Hut
• Installation
Work done to make a product operates in its planned
location
• Customer training
McDonald’s
• Durability
Training customer employees
The product operating lifecycle under natural & stressful
conditions
• Customer Consulting
• Reliability
Data information & advising services
The measure of the probability that a product will not
malfunction or fail within a specified period of time
• Maintenance & repair
• Style
The product’s looks & feel to the customer
Helping customers to have the product in a good
working order
• Design
• Reparability
• Miscellaneous Services
Cisco
Differentiation & Positioning
Tools for competitive Differentiation
Personnel
Channel
Image
• Competence
• Coverage
• Identity Vs Image
Required skill & knowledge
• Courtesy
Friendly respectable & considerate
• Credibility
Trustworthy
• Reliability
The employees perform the service
consistently & accurately
• Responsiveness
Respond quickly to request &
problems
• Communication
Make an effort to understand
customers & communicate clearly
Chipsy
• Expertise
• Performance
Identity is the ways that the company aims to
identify itself or position its product.
Image is how the public perceives the
company or its products
Marlboro
• Symbols
Triggers company or brand recognition
(Brand Logos)
Apple
• Written & audiovisual Media
Convey a storyline or mood or a performance
level
Malaysia
• Atmosphere
Physical space in which the company
produces or delivers its products
Morgan Stanley
• Events
The company could build an identity through
the type of event it sponsors Vodafone
Product
New Product Development Process
“How to launch a new product ?”
New Product Development Process
“How to launch a new product ?”
1- Idea Generation
2- Idea Screening
3- Concept Development & Testing
4- Marketing Strategy Development
5- Business Analysis
6- Product Development
7- Market Testing
8- Commercialization
Product Life Cycle
Maturity
Emerging
Growth
Sales
Profits
Decline
3- Implementation
1- Action Plan: Programs needed to achieve the targeted objectives
2- Procedures: Sequences of the programs
3- Budgets for such programs
4- Tools & resources needed
4- Financial Modeling
1- Projected Income Statement
2- Projected Cash Flow Statement
3- Projected Capital Expenditure
4- Projected Investments Required
5- Measuring Performance (KPIs)
1- Measuring Profitability
2- Measuring Feasibility: Return on Investments
3- Measuring Market Penetration
4- Measuring Satisfaction
6- Corporatization: Sustainability
1- Legal Structure
2- Organization Structure
3- Logo & Slogan
4- Team
7- Social Responsibility
1- What target market will be your project benefit (non-financially)
2- What specific programs or action will your project perform to benefit
such segment
3- How do you measure the effect?
4- How do you ensure sustainability?
Thank You
&
God Bless You
Omar Shawky