تخطيط المنافسات التجارية

Business Plan Competition

Presented by:Mohamed Hossany Negm

Senior Technical Support Specialist and MarketingMaster’s Degree, Poultry Science

TEL:00201123223874

Faculty of Agriculture Zagazig University

Bill Gates

• Born 1955

• 15 years: first virus

• 18 years: Harvard Law School

• 21 years: started Microsoft

• 22 years: launched MS DOS

• 23 years: Sold 2 million copies of MS

• NOW: 45+ Billion USD

Why write a Business Plan

1. Because I have to…

– Needed for financing

– Strategic partnering

– Attract key people/investors

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

• 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?

The Right Ingredients

• A TEAM with Relevant Experience

• Market Size

• Idea

• Technology

• Competitive Advantage

• Reasonable Projections

• Exit Strategy

Company

Structure

Financials

Operations

Production

Market

Competitive

Marketing

Strategy

Business

Business Planning Steps

1. Idea generation, Vision, Mission, Objectives, Strategies

2. Market research and Analysis

3. Marketing strategy

4. Production planning

5. Management and Organization

6. Financial plan

7. Company formulation

1. The Idea

• Innovative product or service

• Visualize a market gap – you

can add value

• Imported idea

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? Idea Generation

2- What are your:

Strengths, Weaknesses, Opportunities, Threats SWOT Analysis

3- Where do you want to go at the end? Vision

4- Whom do you live for? Mission

5- How to get to achieve your objectives? Strategy

4.1 How do you grow? Corporate Strategy

4.2 How do you compete? Business Strategy

4.3 How to implement? Functional Strategy

6- What do you need? Resources Needed

7- How do you measure performance? KPIs

8- How do you ensure sustainability? Corporatization

Business Planning Model

Performance

Actual

Results

Evaluation

Control

Programs

Budget

Procedures

Activities

needed

accomplish

a plan

Cost of the

programs

Sequences

of steps

needed to

do the job

Objectives

StrategiesWhat

results to

accomplish

when Plan to

achieve

mission &

objectivesBroad

guidelines

decision

making

Mission

Reasons

existence

Environmental

Scanning

Policies

Societal

Environment:

General Forces

Environment

Industry Analysis

Internal

Structure:

Chain of

command

Culture:

Beliefs,

Expectations

Resources:

Assets, skills

Competencies

knowledge

External

Strategy Formulation Strategy Implementation

Feedback Learning

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:

How you capitalize on them

How you avoid them

How maximize them

How minimize their effects

Strengths

Weaknesses

Opportunities

Threats

Internal

External

Country Analysis – PEST

Economic

Forces

•GDP

•Interest Rates

•Money Supply

•Inflation rate

•Unemployment Level

•Wages

•Price control

•Devaluation

•Reevaluation

•Energy costs and

availability

•Disposal income

Technological

Forces

•Government Spending

on R&D

•Industry Spending

on R&D

•Patent protection

•Telecom infrastructure

•Internet availability

•Availability of certain

Technology need to

improve productivity

Political-Legal

Forces

•Anti-trust regulations

•Tax laws

•Attitude toward

foreign companies

•Employment laws

•Stability of government

•Foreign trade laws

•Customs regulations

Socio-Cultural

Forces

•Life Style changes

•Population growth rate

•Age distribution

•Life expectancies

•Birth rate

•Mortality rate

•Religious orientation

Industry Analysis

Porter’s 5-Forces

Rivalry among

Competition

Bargaining Power

Of Suppliers

Entry Barriers

Bargaining Power

Of Buyers

Threat of

Substitute

Threat of new Entrants

Barriers to entry:

• 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 :

• 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 :

• 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.

Firm Infrastructure(general management, accounting, finance, strategic planning)

Human Resource Management (recruiting, training, development)

Technology Development(R&D, product and process improvement)

Procurement (purchasing of raw material, machines and supplies)

Inbound

Logistics

(raw material

Handling and

Warehousing)

Operations

(machining,

Assembling,

Testing)

Outbound

Logistics

(warehousing,

distribution

Of finished

goods)

Marketing

And Sales

promotion

Pricing,

Channel )

Services

(insulation,

Repair,

Parts)

Company - Value Chain Analysis

Profit

Margin

Support

Activities

Primary Activities

How you capitalize on them

How you avoid them

How maximize them

How minimize their effects

Strengths

Weaknesses

Opportunities

Threats

Internal

External

SWOT Analysis

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: How to grow?

- Business Strategy: How to compete?

- Functional Strategy: How to do it? Strategic Marketing Plan.

Strategic Management Model

Performance

Actual

Results

Evaluation

Control

Programs

Budget

Procedures

Activities

needed

accomplish

a plan

Cost of the

programs

Sequences

of steps

needed to

do the job

Objectives

StrategiesWhat

results to

accomplish

when Plan to

achieve

mission &

objectivesBroad

guidelines

decision

making

Mission

Reasons

existence

Environmental

Scanning

Policies

Societal

Environment:

General Forces

Environment

Industry Analysis

Internal

Structure:

Chain of

command

Culture:

Beliefs,

Expectations

Resources:

Assets, skills

Competencies

knowledge

External

Strategy Formulation Strategy Implementation

Feedback Learning

Vision

1st Objective

2nd Objective

3rd Objective

4th Objective

Strategy

Where do you want to go at

the end?

What is the road

map and major mile

stones? How will

you reach

objectives?

Vision

Objectives

Mission:

Stakeholders

Family

Friends

Religion

Country

Community

Who are your stakeholders and what is

your mission to each one of them?

Mission:

Stakeholders

Shareholders

Employees

Customers

Suppliers

Country

Community

Who are your stakeholders and what is

your mission to each one of them?

SMART Objectives

Specific

Measurable

Achievable

Relevant

Time-Bound

Hierarchy of Strategy

Functional

Strategy Functional Strategy

How To Do Implement?

Corporate Strategy

How To Grow ?

Business Strategy

How To Compete?

Corporate Strategy

Manufacturing

Feeding Industry

Primary

Manufacturing

Retail

Distribution

Raw Material

Customers

New Product New Region

Horizontal Integration

Business Strategy Business Strategy:

Emphasizes improvement of the competitive position:

1- Competitive (Apple Computers)

2- Cooperative (British Airways)

Competitive AdvantageCost Leadership – Differentiation

Focused –integrated %

Relative Cost

Outstanding Success

Maintain Cost

advantageHope for

market growth

Maintain SpecialtyDegree

Differentiation

(Swiss) (Coca-Cola / Pepsi)

(China)(Egyptian FIAT 128)

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 PlanWhat is Marketing: Satisfying Needs Profitably

• The Target Market

• The Strategic Marketing

• Segmentation

• Targeting

• Positioning

• The Marketing Mix

• Product

• Price

• Place (Push / Pull)

• Promotions

6. Financial plan

Segmentation

A process of subdividing the market into distinct subsets of

customers that behave in the same way or have similar need.

Bases for Segmenting Consumer Markets

These segmentation variables can be used singly or in combination

Geographic

Calls for dividing

the market into

different

geographical

units such as

states,

regions,counties

& neighborhood

• Region

• City or Metro size

• Density

• Climate

Demographic

• Age

• Family Size

• Family lifecycle

• Gender

• Income

• Education

• Occupation

• Religion

• Race

• Generation

• Social Class

• Nationality

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

• Attitude toward

product

Segmentation

Targeting

The act of evaluating and comparing the identified groups and

then selecting one or more of them as the prospects

Selecting the Market Segments

Targeting

M1 M2 M3

Single segment

Concentration

The company

selects a single

segment, it

gains a strong

knowledge of

the segments

needs &

wants&

achieves a

string market

position in the

segment

M1 M2 M3

Selective

Specialization

The company

selects a

number of

segments all fits

objectives &

resources.

& all promises

to be money

makers

M1 M2 M3

Product

Specialization

The company

concentrates on

a certain

product that it

sells to several

segments.

It builds a

strong

reputation in the

specific product

M1 M2 M3

Market

Specialization

The company

concentrates on

serving many

needs of a

particular

customer group.

It builds a

strong

reputation in

serving this

customer group

M1 M2 M3

Full Market

Coverage

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

Product

• Features Characteristics that supplement the product’s basic

function

• Performance QualityThe level at which the product’s primary characteristics

operates

• Conformance QualityDegree to which produced units are identical & meet

promised specs

(Perceived quality is more imp. than technical quality)

• DurabilityThe product operating lifecycle under natural & stressful

conditions

• ReliabilityThe measure of the probability that a product will not

malfunction or fail within a specified period of time

• StyleThe product’s looks & feel to the customer

• Design

• Reparability

Service

• Ordering Ease

• DeliverySpeed, accuracy &care attending

• InstallationWork done to make a product operates in its planned

location

• Customer trainingTraining customer employees

• Customer ConsultingData information & advising services

• Maintenance & repairHelping customers to have the product in a good

working order

• Miscellaneous Services

Tools for competitive Differentiation

McDonald’s

Mercedes

Pizza Hut

McDonald’s

Tools for competitive Differentiation

Personnel

• Competence Required skill & knowledge

• CourtesyFriendly respectable & considerate

• CredibilityTrustworthy

• ReliabilityThe employees perform the service

consistently & accurately

• ResponsivenessRespond quickly to request &

problems

• CommunicationMake an effort to understand

customers & communicate clearly

Channel

• Coverage

• Expertise

• Performance

• Identity Vs ImageIdentity 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

• SymbolsTriggers company or brand recognition

(Brand Logos)

• Written & audiovisual MediaConvey a storyline or mood or a performance

• AtmospherePhysical space in which the company

produces or delivers its products

• EventsThe company could build an identity through

the type of event it sponsors

Differentiation & Positioning

Marlboro

Malaysia

Morgan Stanley

Vodafone

Chipsy

New Product Development Process

“How to launch a new product ?”

Product

1- Idea Generation

5- Business Analysis

6- Product Development

7- Market Testing

8- Commercialization

2- Idea Screening

3- Concept Development & Testing

4- Marketing Strategy Development

New Product Development Process

“How to launch a new product ?”

GrowthDeclineMaturity

Emerging

Profits

Product Life Cycle

BCG Matrix

Relative Market Share

?Question Mark

DogCash Cow

StarMarket

Growth

Value-Delivery Process

Product

Design Procure Make Price Sell

Advertise

PromoteDistribute Service

Make the Product Sell the Product

Customer

Segmentat

Market

Selection/

Targeting

Positioning

Product

Developm

Service

Developm

Sourcing

Making

PricingDistributing

Serving

PromotionAdvertising

Choose the Value Provide the Value Communicate the Value

(a) Traditional Physical Process Sequence

(b) Value Creation and Delivery Sequence

Strategic Marketing Tactical Marketing

Marketing Plan Process

Marketing Research

Segmenting Positioning Targeting

Defining Target Market

Needs, Wants, Demand

Product

Variety

Quality

Design

Features

Packaging

Services

Warranty

Return

Price List

Discounts

Allowances

Payments

Credit

Promotion

Promotions

Advertising

Sales Force

Public

relation

Direct

marketing

Channels

Coverage

Assortment

Location

Inventory

Transport

Marketing Mix

4 Ps 4 Cs

• Product Customer Solution

• Price Customer Cost

• Place Convenience

• Promotion Communication

6. Financial plan

2. Market Analysis

• Market size

– How big is it NOW?

– Trends – how fast is it or will it grow?

• Market Players – Competitors

– Competitive Advantage

– Estimated market shares

– Existing/planned products in the marketplace

Market Analysis (cont’d)

• Market segmentation

– Demographical

• Age, gender, marital status, income…

– Geographical

– Life style

– Consumer buying behavior – decision makers

• Is this the RIGHT time for my product?

• Is there a gap that I can fill?

• Who are my TARGET customers?

• Why would they buy my product?

• How much would they pay?

• What are the special features in my product?

• What is my competitive advantage

• What are my 4 Ps: Product, Price, Place & Promotion

It is all about your EDGE

3. Marketing Strategy

Business Model

How Shall I reach my target customers?

• Direct Sales

• Mass Media - Advertising

• Retail

• The Web

• Telemarketing / Phone Sales

• Trade Shows and Conferences

• Channels, Distributors and Partners

1. Idea generation , Vision, Mission, Objectives, Strategies

6. Financial plan

4. Production plan

• Technology

• Equipment

• Raw Material Sourcing

• Operation Plan and Capacity

6. Financial plan

5. Management Plans

• Getting the RIGHT Team

on board

• Training

• Delegation

• Empowerment

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

Structure –control - benchmark

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?

6. Financial plan

6. Financial Plans

• Income Statement Projections – Revenues Assumptions

– Costs/Expenses Assumptions

– Depreciation Assumptions

– Interest Expenses Assumptions

– Taxes

• Cash Flow Projections– Initial investment

– Working Capital (Payables vs Receivables)

– Capital Expenditure (Capex)

– Debt Assumptions

Income StatementObjective: provides information about the firm’s operating activities over a

specific period of time.

Revenue: 100 100%

- Cost of Goods Sold (COGS): 60 60%

Gross Profit (Profit Margin) 40 40%

Operating Expenses:

General & Administration 8 8%

Sales & Marketing 12 12%

- Total Operating Expenses 20 20%

Earning Before Interest, Tax, Depreciation & Amortization (EBITDA)20 20%

- Depreciation & Amortization 5 5%

Earning Before Interest and Tax (EBIT) 15 15%

- Interest Expenses 5 5%

Net Income Before Tax 10 10%

-Taxes 2 2%

Net Income 8 8%

Financial Plans (cont’d)

• Financial Measures– ROI

– Break-even

– NPV

– IRR

• Providing needed Capital– Equity

– Debt

1. Idea generation

6. Financial plan

7. The Company

• Name – logo - slogan

• Legal structure

• Location

Mission – Values - Objectives

Elements of the

Business Plan

1. Executive Summary2. The opportunity, the company and

product/service3. Market research/analysis4. Economics of the business5. Marketing strategy and plan6. Design and development plan7. Manufacturing and operations plan8. Management team9. Action Plan: Schedule, risks, problems10. Financial plan

Thank You

God Bless You

Mohamed Hossany Negm

Senior Technical Support Specialist and

Marketing

Master’s Degree, Poultry Science

TEL:00201123223874

Faculty of Agriculture Zagazig University

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