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What is business planning?What is the objective of a business plan? What are the main steps of a business plan? Business Planning (2)

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Presentation on theme: "What is business planning?What is the objective of a business plan? What are the main steps of a business plan? Business Planning (2)"— Presentation transcript:

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2 What is business planning?What is the objective of a business plan? What are the main steps of a business plan? Business Planning (2)

3 Business planning is to plan a business starting from the phase of thought till the phase of business generation. A business plan is a written explanation of the companies business model. business model A business plan is a summary which shows how the enterprise will be organized and which activities will be implemented for the ventures success. Business Planning (3)

4 Business plans are used internally for management and planning and are also used to convince outsiders such as banks or venture capitalists to invest money into a venture.banks venture capitalists Business Planning (4)

5 Many people think of business plans only for starting a new business. But they are also vital for running a business. Businesses need plans to optimize growth and development according to priorities. Business Planning (5)

6 Opportunity AnalysisMarketing PlanOrganization PlanFinancial Plan Business Planning (6)

7 Business Planning (7)

8 o Firm: Firm A o Products: Pumps, engines o Customers: Industrial companies o Geographical areas: Turkey

9 o Growth for P (Pump) o Divest for E (Engine) MGR RMS P E

10 Business Planning (10)

11 New Business Area: Refrigerator Business Planning (11)

12 4.1. Segmentation For families For singles Business Planning (12)

13 4.2. Targeting Business Planning (13)

14 4.3. Positioning Ideal Firm A Competitor StandardLuxury Business Planning (14)

15 Message: Affordable luxury products Media: TV / 10 sec / 50 days / year Sales promotion: Small scale refrigerator as a toy on sale Business Planning (15)

16 Price of refrigerator: Volume * 1 + Number of Doors * 200 Product varieties Product varieties: D1/V500, D1/V1000, D2/V500, D2/V1000 Price of (D1/1000) = 1000* * 200 = 1200 Business Planning (16)

17 T(21) = * Period index for S=1.1 T(21) = * 21 = 710 Y (21)= T(21) * S = 710 * 1.1 = 781 Sales of D1/V1000/Total Sales=0,50 Sales for D1/V1000= Y(21) * 0.50 X X X X X X Sales Time (period) 20 Business Planning (17)

18 8.1. Production Process P1P2 P3 Raw Material(Part A) Part B Refrigerator Business Planning (18)

19 8.2. Production Method D1/V1000 D2/V1000 PV Q Production Type: Product type for D1/V1000 and D2/V1000 Process type for others Business Planning (19)

20 8.3. Production flow P1 P2 P3 P1 P2 P3 P1 P2 P3 D1/V1000 D2/V1000 D1/V500 D2/V500 Business Planning (20)

21 Business Planning (21)

22 10.1. Variable cost Unit Variable Cost: Raw Material Cost + Unit Energy Cost : Unit Raw Mat. * Unit Price of RM + … = 1 (Part A) * (Part B) * … = = 250 Total Variable Cost at Year 1 = Total Production* UVC = 781 * 250 Business Planning (22)

23 10.2. Fixed cost Business Planning (23)

24 Gross Profit = Income – Manufacturing Cost = [1200 * (781 * 0.50) + …] – ( * 250) = Business Planning (24)

25 Current Asset - Bank Loan - Longterm Fixed Asset - Machines Equity Business Planning (25)

26 Ratios for Year 1 Profitability for Gross Profit: / Evaluation ratios: Decision: Enter Refrigerator business area Dont enter refrigerator business area Business Planning (26)


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