1. Business Plan Competition
Presented by:
Omar Shawky

2. Give a man a fish and you feed him for one day… Teach him how to fish and you feed him forever … Chinese Wisdom

3. 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

4. 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

5. Business Planning Model
Environmental
Scanning
Strategy Formulation
Strategy Implementation
Evaluation
&
Control
External
Societal
Environment:
General Forces
Task
Environment
Industry Analysis
Mission
Reasons
for
existence
Objectives
What
results to
accomplish
when
Strategies
Plan to
achieve
mission &
objectives
Policies
Structure:
Chain of
command
Culture:
Beliefs,
Expectations
Resources:
Assets, skills
Competencies
knowledge
Internal
Broad
guidelines
for
decision
making
Programs
Activities
needed to
accomplish
a plan
Budget
Cost of the
programs
Procedures
Sequences
of steps
needed to
do the job
Performance
Actual
Results
Feedback Learning

6. Business Plan Competition Criteria
1- Market Analysis
2- Strategy Formulation
3- Implementation
4- Financial Modeling
5- Measuring Performance
6- Corporatization: Sustainability
7- Social Responsibility

7. How minimize their effects How you capitalize on them
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:
Strengths
How maximize them
Internal
Weaknesses
How minimize their effects
Opportunities
How you capitalize on them
External
Threats
How you avoid them

8. 1. The Idea Innovative product or service
Visualize a market gap – you can add value
Imported idea
Be Marketing Oriented:
Marketing is:
Satisfying Needs Profitably

9. Why write a Business Plan
1. Because I have to…
Needed for financing
Strategic partnering
Attract key people/investors
Organize my thoughts

10. 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?

11. Country Analysis – PEST
Political-Legal
Forces
Anti-trust regulations
Tax laws
Attitude toward
foreign companies
Employment laws
Stability of government
Foreign trade laws
Customs regulations
Economic
Forces
GDP
Interest Rates
Money Supply
Inflation rate
Unemployment Level
Wages
Price control
Devaluation
Reevaluation
Energy costs and
availability
Disposal income
Socio-Cultural
Forces
Life Style changes
Population growth rate
Age distribution
Life expectancies
Birth rate
Mortality rate
Religious orientation
Technological
Forces
Government Spending
on R&D
Industry Spending
Patent protection
Telecom infrastructure
Internet availability
Availability of certain
Technology need to
improve productivity

12. Industry Analysis Porter’s 5-Forces
Entry Barriers
Bargaining Power
Of Suppliers
Rivalry among
Competition
Bargaining Power
Of Buyers
Threat of
Substitute

13. Threat of new Entrants Barriers to entry: Economies of scale
Product differentiation
Switching costs
Capital requirement
Access to distribution Channels
Government Policy

14. 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

15. Threat of Substitute Threat of substitute :
Availability of substitutes
Switching costs

16. 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

17. 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

18. Firm’s Resources
Resource: an asset, competency, skills, knowledge controlled by the corporation
Value: does it provide competitive advantage?
Rareness: Do other competitors possess it?
Imitability: is it costly for others to imitate?
Organization: is the firm organized to exploit the resource?

19. 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.

20. Company - Value Chain Analysis
Firm Infrastructure
(general management, accounting, finance, strategic planning)
Profit
Margin
Human Resource Management
(recruiting, training, development)
Support
Activities
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
(Ads,
promotion
Pricing,
Channel )
Services
(insulation,
Repair,
Parts)
Primary Activities

21. How minimize their effects How you capitalize on them
SWOT Analysis
Strengths
How maximize them
Internal
Weaknesses
How minimize their effects
Opportunities
How you capitalize on them
External
Threats
How you avoid them

22. 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.

23. Strategic Management Model Strategy Implementation
Environmental
Scanning
Strategy Formulation
Strategy Implementation
Evaluation
&
Control
External
Societal
Environment:
General Forces
Task
Environment
Industry Analysis
Mission
Reasons
for
existence
Objectives
What
results to
accomplish
when
Strategies
Plan to
achieve
mission &
objectives
Policies
Structure:
Chain of
command
Culture:
Beliefs,
Expectations
Resources:
Assets, skills
Competencies
knowledge
Internal
Broad
guidelines
for
decision
making
Programs
Activities
needed to
accomplish
a plan
Budget
Cost of the
programs
Procedures
Sequences
of steps
needed to
do the job
Performance
Actual
Results
Feedback Learning

24. Vision Vision Where do you want to go at the end? Objectives
4th Objective
What is the road map and major mile stones?
Strategy
How will you reach your objectives?
3rd Objective
2nd Objective
1st Objective

25. Mission: Stakeholders
Who are your stakeholders and what is your mission to each one of them?
Religion
Family
Mission:
Stakeholders
Work
Community
Friends
Country

26. Mission: Stakeholders
Who are your stakeholders and what is your mission to each one of them?
Suppliers
Shareholders
Mission:
Stakeholders
Employees
Community
Customers
Country

27. SMART Objectives
Specific
Measurable
Achievable
Relevant
Time-Bound

28. Hierarchy of Strategy Corporate Strategy How To Grow ? Functional
Business Strategy
How To Compete?
Functional Strategy
How To Do Implement?

29. Horizontal Integration Horizontal Integration
Corporate Strategy
Forward Integration
Customers
Vertical Integration
Retail
Distribution
New Product
Manufacturing
New Region
Primary
Manufacturing
Backward Integration
Horizontal Integration
Horizontal Integration
Feeding Industry
Raw Material

30. Business Strategy Business Strategy:
Emphasizes improvement of the competitive position:
1- Competitive (Apple Computers)
2- Cooperative (British Airways)

31. Competitive Advantage
High
Maintain Specialty
Outstanding Success
Degree of
Differentiation
(Swiss)
(Coca-Cola / Pepsi)
Maintain Cost
advantage
Hope for
market growth
Low
(China)
(Egyptian FIAT 128)
High
Low
Relative Cost

32. 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

33. Your Marketing Plan What is Marketing: Satisfying Needs Profitably
The Target Market
The Strategic Marketing
Segmentation
Targeting
Positioning
The Marketing Mix
Product
Price
Place (Push / Pull)
Promotions

34. Value-Delivery Process
(a) Traditional Physical Process Sequence
Make the Product
Sell the Product
Product
Design
Advertise
Promote
Procure
Make
Price
Sell
Distribute
Service
(b) Value Creation and Delivery Sequence
Choose the Value
Provide the Value
Communicate the Value
Market
Selection/
Focus
Targeting
Customer
Segmentation
Product
Development
Service
Development
Distributing
Serving
Value
Positioning
Sourcing
Making
Sales
Force
Sales
Promotion
Pricing
Advertising
Strategic Marketing
Tactical Marketing

35. Marketing Plan Process Defining Target Market
Needs, Wants, Demand
Marketing Mix
4 Ps
Marketing Research
Product
Variety
Quality
Design
Features
Brand
Packaging
Size
Services
Warranty
Return
Price
Price List
Discounts
Allowances
Payments
Credit
Place
Channels
Coverage
Assortment
Location
Inventory
Transport
Promotion
Promotions
Advertising
Sales Force
Public
relation
Direct
marketing
Segmenting
Targeting
Positioning

36. Marketing Mix 4 Ps 4 Cs Product Customer Solution Price Customer Cost
Place Convenience
Promotion Communication

37. Segmentation
A process of subdividing the market into distinct subsets of customers that behave in the same way or have similar need.

38. Bases for Segmenting Consumer Markets
Segmentation
Bases for Segmenting Consumer Markets
These segmentation variables can be used singly or in combination
Geographic
Demographic
Psychographic
Behavioral
Calls for dividing the market into different geographical units such as states, regions,counties & neighborhood
Age
Family Size
Family lifecycle
Gender
Income
Education
Occupation
Religion
Race
Generation
Social Class
Nationality
Lifestyle
Personality
Occasions
Benefits (Unique selling proposition) Crest
User status
Usage Rate
Loyalty Status: - high-core loyals –Split loyals – Shifting loyals - switchers
Buyer-readiness stage
Attitude toward product
Region
City or Metro size
Density
Climate

39. Targeting
The act of evaluating and comparing the identified groups and then selecting one or more of them as the prospects

40. Selecting the Market Segments
Targeting
Selecting the Market Segments
Single segment
Concentration
Selective
Specialization
Product
Specialization
Market
Specialization
Full Market
Coverage M1 M2 M3 M1 M2 M3 M1 M2 M3 M1 M2 M3 M1 M2 M3 P1 P1 P1 P1 P1 P2 P2 P2 P2 P2 P3 P3 P3 P3 P3
The company selects a single segment, it gains a strong knowledge of the segments needs & wants& achieves a string market position in the segment
The company selects a number of segments all fits objectives & resources.
& all promises to be money makers
The company concentrates on a certain product that it sells to several segments.
It builds a strong reputation in the specific product area
The company concentrates on serving many needs of a particular customer group.
It builds a strong reputation in serving this customer group
The company serves all customer groups with all the products they might need.
Only very large firms can undertake a full market coverage strategy

41. Differentiation & Positioning

42. Tools for competitive Differentiation
Differentiation & Positioning
Tools for competitive Differentiation
Product
Service
Features
Characteristics that supplement the product’s basic function
Performance Quality
The level at which the product’s primary characteristics operates
Conformance Quality
Degree to which produced units are identical & meet promised specs
(Perceived quality is more imp. than technical quality)
Durability
The product operating lifecycle under natural & stressful conditions
Reliability
The measure of the probability that a product will not malfunction or fail within a specified period of time
Style
The product’s looks & feel to the customer
Design
Reparability
Ordering Ease
Delivery
Speed, accuracy &care attending
Installation
Work done to make a product operates in its planned location
Customer training
Training customer employees
Customer Consulting
Data information & advising services
Maintenance & repair
Helping customers to have the product in a good working order
Miscellaneous Services
Metro
McDonald’s
Pizza Hut
Mercedes
McDonald’s
Cisco

43. Tools for competitive Differentiation
Differentiation & Positioning
Tools for competitive Differentiation
Personnel
Channel
Image
Competence
Required skill & knowledge
Courtesy
Friendly respectable & considerate
Credibility
Trustworthy
Reliability
The employees perform the service consistently & accurately
Responsiveness
Respond quickly to request & problems
Communication
Make an effort to understand customers & communicate clearly
Coverage
Expertise
Performance
Identity Vs Image
Identity 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
Symbols
Triggers company or brand recognition (Brand Logos)
Written & audiovisual Media
Convey a storyline or mood or a performance level
Atmosphere
Physical space in which the company produces or delivers its products
Events
The company could build an identity through the type of event it sponsors
Chipsy
Marlboro
Apple
Malaysia
Morgan Stanley
Vodafone

44. Product
New Product Development Process
“How to launch a new product ?”

45. New Product Development Process “How to launch a new product ?”
1- Idea Generation
2- Idea Screening
3- Concept Development & Testing
4- Marketing Strategy Development
5- Business Analysis
6- Product Development
7- Market Testing
8- Commercialization

46. Product Life Cycle
Maturity
Decline
Growth
Emerging
Sales
Profits

47. 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

48. 4- Financial Modeling 1- Projected Income Statement
2- Projected Cash Flow Statement
3- Projected Capital Expenditure
4- Projected Investments Required

49. 5- Measuring Performance (KPIs)
1- Measuring Profitability
2- Measuring Feasibility: Return on Investments
3- Measuring Market Penetration
4- Measuring Satisfaction

50. 6- Corporatization: Sustainability
1- Legal Structure
2- Organization Structure
3- Logo & Slogan
4- Team

51. 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?

52. Thank You & God Bless You
Omar Shawky