Downturns are prime territory for disruptive innovation.
One way to cut down on costs that make sense both in the short and long term is productivity improvements.
Process automation and innovation are probably the most obvious example of these kind of improvement.
1) Develop a business plan for a company that wants to implement process innovation.
2) Please use the following business plan outline when developing your business plan and ensure that you explain and justify your claims with proper research and analysis how process innovation has increased the business and lowered the cost.
In developing your business plan, it is important to always consider where your proposed venture sits within its existing industry and how it will relate to other players in the market including suppliers, competitors and customers.
Include a cover page with your name, course name and assignment.
1. The Executive Summary. This is a concise summary illustrating the key points that are detailed in each section of the ensuing business plan. It summarizes in a concise manner the business overview, the unique selling proposition, the market/industry analysis, the products and services, its competition, marketing plan, financial projections and the execution plan.
Concisely describe what your business does and what market need it solves. The rule of thumb to follow here is that if a senior manager or investor has only enough time to review this section, they will still have a good overview of your business idea.
Business overview description of the business, includes:
· The legal structure
· Business formation history
· The type of business
· Process innovation leading to a new means of doing business (Internet, storefront operation, mail order etc)
The Executive Summary should stand on its own as a separate document.
2. Operations Plan. Offer an explanation describing how the business will function, including the physical setup and responsibilities for specific tasks.
Detail the key operational processes your organization needs to accomplish daily to achieve success.
3. Market Analysis. Include an overview of the market, with specific data and charts or graphs, if appropriate how large it is, what trends are affecting it.
4. Customer Analysis. Define your target market. Include demographic and psychographic make-up of your customers.
5. Products and Services. Describe the products manufactured or sold or the services offered. Classify the different types of products or services and provide a brief description of each.
6. Sales and Marketing. Outline your desired brand position, pricing and sales information. Include rationalizations for why your audience will buy your products or services and how you will reach them through marketing and advertising efforts. (e.g., newspaper ads, direct mail, email campaigns, website, social media etc).
Finally, discuss your distribution plan describing what channels you will use to get your product or service to your customers.
7. Competitive Analysis. Analyse the strengths and weaknesses of your direct and indirect competitors. Importantly, demonstrate how you will gain a competitive edge against your competition.
8. Management Team. Provide concise background information on all ‘potential’ key players involved in the business.
9. Financial Plan. Include all financial information, from start-up costs to ways in which your product or service generates revenues and highlight the key assumptions which govern your financial projections.
The financial section should outline:
· The amount necessary to start or maintain the business
· The anticipated additional amount needed over the next two, three, and even five years
· Primary plans to use funds
· Ongoing business expenses, including salaries, insurance costs, promotional expenses, etc.
At the end of your business plan, attach supporting documents, such as articles on the company, résumés of key personnel, etc. Plan in case someone wants to refer to further details.
In addition, it should identify the milestones you need to accomplish over the next 1-3 years in order to achieve success
Marking Rubrics (total marks =60)
1. For the overall clarity in the describing the business idea in the executive summary – 12 marks
2. For each of the subsequent 8 sections (Operation Plan, Market Analysis, Customer Analysis, Products and Services, Sales and Marketing, Competitive Analysis, Management Team, Financial Plan) – 6 marks for each section