1、BUSINESS PLAN: FIRST STEPS,Julia Rastopchina Oksana Kikhtenko Eurasia Regional Advising Conference Moscow, 2004,WHAT IS A BUSINESS PLAN?,A document developed to justify a request for funding An action plan to develop business ideas As a strategic planning tool: describes business strategy, market po

2、sition, identifies goals, defines budget,KEY QUESTIONS OF A BUSINESS PLAN,What 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

3、OF A BUSINESS PLAN,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?,BUSINESS PLAN GOAL:,To guarantee that our efforts are aimed at maintaining and enhancing our competitiveness,BUSINESS

4、 PLANNING PROCESS,Business planning includes: Analysis of the current situation and trends including competition SWOT analysis (strengths, weaknesses, opportunities and threats) Defining/refining our business mission checking for validity/ applicability Key success factors and strategic decision-mak

5、ing main directions Goal-setting (SMART specific, measurable, agreed upon, realistic, time-bound),SITUATION ANALYSIS,Micro environment (immediate surrounding) Macro environment (global/national/regional level),Analysis of micro environment (immediate surrounding),Customers/ clients Suppliers Labor f

6、orce Competition,Analysis of macro environment,Economic environment Legal aspects Political environment Technological factors Social factors Global economic conditions,MACRO ENVIRONMENTof your business,MICRO ENVIRONMENT(IMMEDIATE SURROUNDINGS)of your business,Opportunities and threats for company de

7、velopment,Opportunities,Threats,SWOT - analysis,STRENGTHS Key internal advantages a manager can use,WEAKNESSES Internal obstacles a manager should be aware of,OPPORTUNITIES Key external advantages a manager should use,THREATS Key external events or future changes that may negatively affect the compa

8、nys business,SWOT-ANALYSIS: STRATEGIC MEANING,S STRENGTHS,Company,Market,!,NO WAY!,Solve problems first!,Loss of time,W WEAKNESSES,O OPPORTUNITIES,T THREATS,SWOT analysis: purpose and applications,Summarizes: results of macro and micro environments; opportunities and threats (based on macro environm

9、ent analysis); strengths and weaknesses (based on micro environment 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 Protecti

10、on against competition Technological supremacy Cost advantages Competitive advantages Innovation capability and ability to implement innovation Seasoned management Better production facilities Potential for external investment,WEAKNESSES,No clear strategy declining competitive position obsolete equi

11、pment low profits lack of managerial experience and insight low competence 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

12、 undeveloped distribution/ sales high costs (higher than competition) narrow product range,OPPORTUNITIES,new markets/ market segments expanding production / services expanding product range supplementary products or services weakening of competitors market growth or expansion lower trade barriers on

13、 new geographic markets vertical integration (up or down) new technologies availability of external funding,THREATS,new competitors growing sales of substitute products or services slowing market growth unfavorable government policy growing pressure from competition growing negotiating power of supp

14、liers and customers changes in customer needs and preferences unfavorable demographic situation unfavorable currency fluctuations high dependence on demand levels and life cycle of business,KEY QUESTIONS OF A BUSINESS PLAN,What 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