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1、BUSINESS PLAN: FIRST STEPSJulia Rastopchina Oksana KikhtenkoEurasia Regional Advising ConferenceMoscow, 2004WHAT IS A BUSINESS PLAN?A document developed to justify a request for fundingAn action plan to develop business ideasAs a strategic planning tool: describes business strategy, market position,
2、 identifies goals, defines budgetKEY QUESTIONS OF A BUSINESS PLANWhat is our business and its mission?Who are our clients and how well do we know them?What are the customers needs, what do they want?What do we supply and how does our product create value for our customers?KEY QUESTIONS OF A BUSINESS
3、 PLANHow is our business developing?How it can/ should develop?How can we prevent others from entering our market?How do we compete with other players on the market?BUSINESS PLAN GOAL:To guarantee that our efforts are aimed at maintaining and enhancing our competitivenessBUSINESS PLANNING PROCESSBus
4、iness planning includes:Analysis of the current situation and trends including competitionSWOT analysis (strengths, weaknesses, opportunities and threats)Defining/refining our business mission checking for validity/ applicabilityKey success factors and strategic decision-making main directionsGoal-s
5、etting (SMART specific, measurable, agreed upon, realistic, time-bound)SITUATION ANALYSISMicro environment (immediate surrounding)Macro environment (global/national/regional level)Analysis of micro environment (immediate surrounding)Customers/ clientsSuppliersLabor forceCompetitionAnalysis of macro
6、environmentEconomic environmentLegal aspectsPolitical environmentTechnological factorsSocial factorsGlobal economic conditionsMACRO ENVIRONMENTof your businessExternal factorsTrendsImpact on businessReactionEconomicenvironmentMICROENVIRONMENT(IMMEDIATESURROUNDINGS)ofyourbusinessExternal factorsTrend
7、sImpact on businessReactionClients/customersCompetitorsOpportunities and threats for company developmentOpportunities Threats SWOT - analysisSTRENGTHSSTRENGTHSKey Key internal internal advantagesadvantagesa manager can usea manager can useWEAKNESSESWEAKNESSESInternal Internal obstacles obstacles a m
8、anager should be a manager should be aware ofaware ofOPPORTUNITIESOPPORTUNITIESKey Key externalexternal advantages advantages a manager should usea manager should useTHREATSTHREATSKey Key externalexternal events or events or future changes that mayfuture changes that maynegatively affect the negativ
9、ely affect the companys businesscompanys businessSWOT-ANALYSIS: STRATEGIC MEANING CompanyMarketSWOT analysis: purpose and applicationsSummarizes: results of macro and micro environments;opportunities and threats (based on macro environment analysis);strengths and weaknesses (based on micro environme
10、nt analysis);Helps to develop: strategic action plan based on SWOT-matrix;company strategy STRENGTHS Competent leadership Available financial resources Qualified personnel Good reputation with the customers Market leadership Protection against competition Technological supremacy Cost advantages Comp
11、etitive advantages Innovation capability and ability to implement innovation Seasoned management Better production facilities Potential for external investmentWEAKNESSES No clear strategy declining competitive position obsolete equipment low profits lack of managerial experience and insight low comp
12、etence weak or no follow-up on strategy implementation internal problems vulnerability under pressure from competition weak R&D low capacity insufficient market knowledge/awareness bad marketing lack of finance to implement strategy undeveloped distribution/ sales high costs (higher than competition
13、) narrow product rangeOPPORTUNITIESnewmarkets/marketsegmentsexpandingproduction/servicesexpandingproductrangesupplementaryproductsorservicesweakeningofcompetitorsmarketgrowthorexpansionlowertradebarriersonnewgeographicmarketsverticalintegration(upordown)newtechnologiesavailabilityofexternalfundingTH
14、REATS new competitors growing sales of substitute products or services slowing market growth unfavorable government policy growing pressure from competition growing negotiating power of suppliers and customers changes in customer needs and preferences unfavorable demographic situation unfavorable cu
15、rrency fluctuations high dependence on demand levels and life cycle of businessKEY QUESTIONS OF A BUSINESS PLANWhat is our business and its mission?Who are our clients and how well do we know them?What are the customers needs, what do they want?What do we supply and how does our product create value for our customers?How is our business developing?How it can/ should develop?How can we prevent others from entering our market?How do we compete with other players on the market?THANK YOU!
