Entrepreneurshipp-Business-Plan-Part-II-III-IV.pptx

education

1. EXECUTIVE SUMMARY, ENVIRONMENTAL ANALYSIS , AND BUSINESS DESCRIPTION Part of Business Plan

2. At the end of this lesson, the learner should be able to implement the business plan. Specifically, the learner must be able to : Describe the executive summary, Identify the major areas of an executive summary included in the environmental analysis, and business description. State the important areas to be included in the business description Objectives:

3. Executive - relating to or having the power to put plans or actions into effect. Summary - a brief statement or account of the main points of something. Environment - the circumstances, objects, or conditions by which one is surrounded. Analysis - detailed examination of the elements or structure of something. Model - a description or analogy used to help visualize something that cannot be directly observed. Business Model – defines the perspective of the business in terms of its structure, production, operation, and financial activities that will lead to the achievement of the Vision, Mission, Goals, and Objectives . Vocabulary list:

4. II - EXECUTIVE SUMMARY Executive summary is commonly the last section to be written after all other major parts have been completed, it is the next major part of the business plan after the introduction. It points out the overall highlights of the business plan as well as bird’s eye view of its sections. It must be written in a simple language that can be easily understood and at the same time attract the attention and influence the decision of the readers . The second part of Business plan

5. Investors, creditors , and other significant parties usually proceed to the details of the business plan once they find the executive summary interesting, convincing, and worthy of further reading. The executive summary must include the following sections: Vision, mission, goals, and objectives of the business Business model Business and product position Wealth improvement approaches Parties supporting the business

6. VISION, MISSION, GOALS, AND OBJECTIVES At the very outset, the business plan must depict the fundamental characteristics, nature, philosophical values, identity, and image of the business. These important concerns are embodied in the vision, mission, goals, and objectives (VMGO) of the business. The VMGO must be clearly stated and easily understood. They must be reviewed and revisited at least every three years to determine whether they are still reasonable and achievable in view of the rapid changes in the business community.

7. BUSINESS MODEL The business model defines the perspective of the business in terms of its structure, production, operation , and financial activities that will lead to the achievement of the VMGO. The business model must basically reflect certain innovations that will indicate the competitiveness of the business in the industry. It must define how the business gives importance to its relations with customers, creditors, supplies, and internal human resources.

8. BUSINESS AND PRODUCT POSITION The business and product position will help determine how the business defines its course and the process of accumulating wealth. It tells the size of the market and the target market share of the business and product. The business and product position must be able to convince the readers that the proposed business has a competitive advantage in the market.

9. WEALTH IMPROVEMENT APPROACHES This section of the executive summary describes the methodologies or approaches that will be taken by the business in order to Maintain a competitive advantage, Position the business in the market, Improve the market share, and Maximize the utilization of resources. This section also includes a brief discussion of the marketing policies and financial operations of the business.

10. PARTIES SUPPORTING THE BUSINESS The last section of the executive summary is a description of the parties that strongly support the business. The parties that have a direct relationship with the business are as follows: Consumers Creditors Suppliers Employees and staff Relevant information about individuals and parties that support the business is important since the proposed business may conduct transactions with them later. The executive summary must cover at least three pages but must not go beyond five pages. An executive summary that is either too short or too long may discourage the reader to continue reading.

11. III - ENVIRONMENTAL ANALYSIS The next major part or section of the business plan after the executive summary is the environmental analysis . It is a strategic tool that helps determine the external and internal factors affecting the performance of the business. These factors may be political, economic, social, or technological in nature. The environmental analysis may consist of at least 20 pages including the graphical representations , tables , and computations . The environmental analysis section is considered the heart of the business plan. The third part of Business plan

12. Environmental analysis is already a necessity. It is perceived as the basic element for business survival, It may consist of Global analysis , Societal analysis , and Industry analysis.

13. GLOBAL ANALYSIS The environmental analysis section may begin with a description of the global business situation to provide enough knowledge about the global perspective or horizon of the business. As a future entrepreneur , you should not devote the whole section of the global analysis by simply describing the business trends. Remember that, It is not the business trend that has the most significant bearing on the global analysis but rather the possible business opportunities or ideas that the global business trend offers.

14. SOCIETAL ANALYSIS After describing and possibly convincing the reader of the bright business prospect in the world market, the next step is to present the societal analysis and determine the different variables affecting the societal environment. These variables include Political forces, Economic forces, Socioeconomic forces, Technological forces, Ecological forces, Legal forces

15. INDUSTRY ANALYSIS The third level of environmental analysis is the industry analysis. The industry analysis basically involved three important related tasks as follows: Conducting a critical evaluation of the forces in the industry that affect the proposed business Evaluating the probable position of the business in the industry Determining the most appropriate strategy that may be adopted by the proposed business

16. Conducting a Critical Evaluation Conducting a critical evaluation is the most delicate, tedious, and difficult task in industry analysis . There are some business plans that do not even show any indications that a critical analysis has been conducted. Only those forces that are deemed to have substantial effects, either positive or negative, to the proposed business must be critically analyzed and properly described.

17. The industry analysis needs substantial work in the process of establishing the projected demand and supply. The demand and supply analysis , also called the consumer and competitor analysis , is the backbone or the foundation of all other analyses. Where there are no consumers or buyers of the product, the business will never be created. The presence of the consumers is the ultimate reason for the existence of any business endeavor.

18. Evaluating the Business Position After conducting a critical analysis of the factors in the industry environment that primarily affect the proposed business, the next step is to evaluate the possible business position in the industry . This deals with market share and growth. Entrepreneurs may use a perceptual map , also called positioning map , to help them understand their position against their competitors in the market. It also shows how the consumers respond to their products and services.

19. Determining the Most Appropriate Business Strategy The last important task in the industry analysis is to describe the most appropriate strategy that may be adopted by the business. The strategy is highly influenced by the analysis of the business strengths, weaknesses, opportunities, and threats. The reason for the selection of the strategy must likewise be clearly indicated.

20. IV - BUSINESS DESCRIPTION The business description section presents the nature and form of the business to be undertaken, and may cover two to three pages. As to nature , the business may be a merchandising, services, manufacturing, or a hybrid. The description must include the innovative features of the business. As to form , it may either be a sole proprietorship, a partnership, or corporation. The reason/s for the selection of the form must also be indicated. The fourth part of Business plan

21. In case the study is about an already existing business, the present status of the business must be provided, including the intended innovation. In addition, the business description also includes the following: Product or service that it plans to produce or serve Various plant and office equipment Size of the proposed business Future parties with whom contracts may be necessary Personal requirement Administrative operation

22. EXECUTIVE SUMMARY This section presents the VGMO, the business model, the business and production positions, wealth improvement approaches, and the parties supporting the study. Vision, Mission, Goals, and Objectives Business Model Business and Product Position Wealth Improvement Approaches Parties Supporting the Business

23. ENVIRONMENTAL ANALYSIS This section presents the industry analysis covering the following forces directly affecting the proposed business: the trend in the industry, the consumers, the competitors, market forecast, market share, market position, and marketing strategy. Trend in the industry Consumer Analysis • Markey segmentation and targeting • Demand analysis Competitor Analysis • Supply analysis Market Forecast • Demand and supply forecast Market Share Market Position Marketing Strategy

24. BUSINESS DESCRIPTION This section shall describe the product to produce, the equipment needed in the small business, the size of the business in terms of capitalizations and scope, and the personnel required to handle the operation. Product Description Equipment/Materials Needed Size of the Business Personnel Requirement

25. Write True if the statement is correct. Otherwise write False and state your reason briefly 1. The executive summary is the first major section that is prepared in writing the business plan. 2. The executive summary is the summary of the different sections in the business plan. 3. The executive summary appears at the end of the business plan and summarizes the details of the plan .

26. 5. It is necessary that the executive summary presents the business and product position to the reader. 6. In conducting the global analysis, the primary consideration is the trend in the world scenario followed by the business idea or opportunity that the trend may present. 4. The business model defines the perspective of the business in terms of its structure, production, operation, and financial activities that will lead to the achievement of the VGMO.

27. 8. The foundation of the industry analysis is the evaluation or study conducted on the customers and competitors. 10. It is enough to describe the proposed business as a sole proprietorship in the business description section. 9. The primary objective in conducting the consumer analysis is to determine whether there is a demand for the product. 7. All forces in the societal environment must be critically evaluated.

28. Thank you!..

29. 1.False, last 2. False, must not 3.False, beginning 4. True 5.True 6. False, business idea first 7. True 8. True 9. True 10. false, not enough Answers Key: