Business Model

If you keep doing what you have always done, you will continue to get results you always got.
Your business needs to plan growth, when one wishes to achieve significant growth organically or wishes to restructure the business or one is not sure about one’s business direction. The sequence of strategic Planning:

Step 1: Environment Scan:
We evaluate the environment with which the firm is expected to deal. This leads to identification & analysis of the driving forces that will have an impact on the future profitability of the client.

Step 2: SWOT Analysis:
Internal scanning looks at the strengths & weaknesses of the client. This leads to a subsequent identification of the core competencies of the client. Opportunities &threats are derived from the Environment Scan done in the earlier step. This identifies not only supposed future opportunities for management evaluation, but also areas of weakness that the firm should avoid.

Step 3: Mission Statement:
Once the firm’s Core Competencies & weaknesses are identified, the firm is ready to develop a mission statement. The purpose of the mission statement is to keep the client’s focus on areas where it has competitive advantages & to avoid areas where it has disadvantages.

Step 4: Objectives:
The idea behind organizational objectives is to translate the mission statement (a qualitative statement) into specific targets that support the mission (a quantitative statement).

Step 5: Strategy:
Creating the detailed steps to reach the objectives within a stipulated period of time. It should ideally develop at the Strategic Business Unit (SBU) level to capture segmental details.

Step 6: Policies:
Specific policies are developed that will guide the general operation of the client. Policies might involve setting minimum IRR statistics for the use of R&D funds, for example.

Step 7: Integrated Operational Plan:
SBU Strategies are translated in to actionable Plans that are integrated across all departments of the organization. The Plans specify the actions that all the departments of the SBU need to take to achieve the objectives of the client in quantitative terms.

Step 8: Procedures:
Each aspect of the Plan is converted in to specific procedures that ideally will apply to every employee.

Step 9: Monitoring:
After implementation, performance is compared with goals & objectives in order to assess the client’s success in putting the strategies in to operation.

 

COMPREHENSIVE BUSINESS PLAN
Not only the usual financials, will the features contain, in considerable detail:
▸Revenue Plan for each type of products. It will be geographically segmented for each team, if such a necessity exists.
▸Direct expense for each type of products. It will also be geographically segmented for each team, if such a necessity exists.
▸Operating Expense: Five distinct and major activity based lumps for better monitoring:

  • Service & Operations Support Activities
  • Product/ Product Line Support Activities
  • Material Support Activities
  • Customer Support Activities
  • General & Administrative Support Activities.

Strategic Business Plan Deliverables

  • Business objective
  • Market study/segmentation
  • Key Strategy choices
  • Org Structure
  • Capacity planning (Production/resource)
  • Supply Chain & Logistics planning
  • Infrastructure & investments planning
  • Operations planning
  • Key Policies
  • 5 years financials
  • Investment evaluation
  • Key performance measures