This document provides an overview of key components to include in a business planning process. It discusses strategic planning, financial goals, customer goals, processes goals, and learning and growth analysis. It also covers external analysis including PEST, SWOT, competitor profiles and Porter's Five Forces. For internal analysis, it outlines assessing strategic profile, financial analysis, VRIO/value chain, issues, and linking analysis to strategy development. The document then discusses strategy implementation including action plans and risk assessment. Key models for planning include PEST, SWOT, marketing mix, segmentation, and various pricing strategies.

1. BUSINESS PLANNING

2. PLANNING – THE COMPONENTS
Strategic
Plan
Financial Goal
Customer Goal
Processes Goal
Learning & Growth
Analysis
External
PEST
Internal
Ratios
Risks
Budgets
Value Chain
TOWS or SWOT
Growth
Opportunities
Marketing &
Sales,
Service Plan
Customer or Market
Targets
How Reach Them?
The Four P’s
Operations
Plan
(Processes)
Inbound Logistics
Operations
Outbound logistics
HR Plan
Financial
Plan
Forecasts
F/C Cash Flow
P & L
Budgets
3-5 Yrs
Strategic KPI’s Operational
KPI’S
Financial KPI’sMarketing
KPI’S
Business Plan

3. EXTERNAL ANALYSIS
Industry Profitability
Driving Forces
Outlined two key objectives
Explain how they are changing the industry
Key Success Factors
Outline the two most important factors
Explain why they are necessary
Show industry specificity
Industry Profile
•Industry Definition
•Size
•Growth Rate
•Stage in Life Cycle
•Number of Companies
•Customers (Number of
Buyers)
•Ease of Entry/Exit
•Capital Requirements
•Economies of Scale
•Experience Curve
Competitor Profile &
Strategic Groups
•Two Independent dimensions
•Where and how competitors fit
the dimensions
•Outline Key Competitors or
Groups in terms of:
•Name
•Products
•Current Strategy
•Strategic Intent
•Other Strategic Information
Porter’s Five Forces
•Threat of new Entrants
•Buyer Power
•Who are they?
•Supplier Power
•Who are they?
•Substitute Power
•What are they?
•Rivalry
TO
ISSUE
S

4. INTERNAL ANALYSIS
Strategic Profile
•Company Name
Which Industry it operates in
•Vision
•Mission
•Goals
•Size
•Structure
•Business Segments
•Products / Markets &
Industries (Current NOT
historical)
•Corporate Level Strategy
•Business Level Strategy
Financial Analysis
•Profitability
•Liquidity
•Gearing Ratios
•Strategic Implications
(THE SO WHAT!)
•Any other relevant
information
•Overall financial situation
VRIO / Value Chain
•Key SCA’s,
•TCA’s
•CD’s
•Problems caused by these
•Justify why they are this type
of CI
•Identify and justify any Core
Competencies (Or lack of
them)
ISSUES
Key Internal and External Issues
Articulated why they are important to the organisation
Ranked in order of the overarching issue being your issue followed on with your other issues
LINKED TO YOUR ANALYSIS
FROM
EXTERNAL
ANALYSIS

5. STRATEGY DEVELOPMENT
Potential Strategies
•Develop and Outline 2 strategies
•Explain how they solve the issues
•Linked to the analysis
Decision Criteria
•Explain key reasons for one strategy over another
•Included a detailed appendix table on decision criteria
which:
•Includes key decision criteria (Financial
Outcomes; Solves Issues)
•Shows a points scale
•Explains the points scale
•Justifies why each strategy received its
respective score
Recommended Strategy
•Outlined the Chosen Strategy
•Explained What’s good about it
•Discussed Financial Implications
•LINKED TO ANALYSIS
Industry
Analysis
Segments
Driving
Forces
Key Success
Factors
ISSUES
Internal & External
Mission
& Goals
Corporate
and
Business
Strategy
Culture
INPUTS FROM LINKING TO
VISION
Mission
& Goals
Corporate and
Business
Strategy
Culture

6. STRATEGY IMPLEMENTATION
Action Plan
•Explained key steps regarding implementation
•Given the financial cost/benefit of each stage
•LINKED TO THE ANALYSIS
•Included a detailed table in the appendix which gives
sufficient information
•Who, What, When, Deliverables, Key time
points, SMART goals. Project management.
Conclusion
•Sum up the benefits that your strategy brings to the company
•SELL IT AND CONCLUDE
EXECUTIVE SUMMARY
Risk Assessment
Overall
Implications
Any other
models/headings/sections
as appropriate
PRESENTATION:
Defence against any
objections
What questions may
be raised
Final Report Publication
Signoff – Project start

7. REMEMBER
SO.....
SO WHAT.....
WHAT
NOW......
7

8. PEST
 Political
 Economic
 Social
 Technical
Sometimes PESTLE
(PEST + Legal and Environment)

9. SWOT
 Strengths
 Weaknesses
 Opportunities
 Threats
Strengths
Things that are
good now, maintain
them, build on
them and use as
leverage
Weaknesses
Things that are
bad now,
remedy, change
or stop them.
Opportunities
Things that are
good for the future,
prioritize them,
capture them, build
on them and
optimize
Threats
Things that are
bad for the
future, put in
plans to manage
them or counter
them
POSITIVE/ HELPFUL
to achieving the goal
NEGATIVE/ HARMFUL
to achieving the goal
INTERNALOrigin
facts/factorsofthe
organization
EXTERNALOrigin
facts/factorsofthe
environment

10. NOTE
A PEST analysis most commonly
measures a market;
A SWOT analysis measures a
business unit, a proposition
or idea.

11. THE MARKETING MIX (4 PS)
Success in the marketplace depends upon the best combination
of the following elements:
The Marketing Mix
Product Price Place
(distribution)
Promotion
Objectives
Features/options
Range/styles/size
s
Quality
Service Level
Guarantee/Warran
ty
Branding
Packaging
Objectives
Strategies/policies
Costs
Discounts
Allowances
Geographical
considerations
Credit facilities
Objectives
Channels chosen
Extent of
coverage
Wholesaling
Retailing
Transportation
Location
Objectives
Budget
Advertising
Sales promotion
Public relations
Personal selling
Direct marketing

12. BOUNDARY SCANNING
3. The marketing oriented phase:
Research
•Customers needs and wants
Develop
•The product or service
•Matching customer needs and wants
Provide
•The product or service they want

13. BOUNDARY SCANNING
 What are my competitors doing
 What is the Market doing
 What is happening overseas
 What will the impact be here
 Economy
 National
 Global

14. THE DIFFERENT TYPES OF MARKETS
 The three main categories are:
1. Consumer
2. Organisational or business
3. International

15. SEGMENTING WHO ARE MY CUSTOMERS?
 When dividing a large market into sub-markets several
segmentation methods may be utilised
Segmentation Example
An antique shop may deliberately locate in an up-market
suburb thus segmenting
 geographically (location)
 psycho graphically (lifestyle) and
 behaviourally– informing customers when new pieces
of Royal Doulton become available

16. THE SEGMENTATION PROCESS
 Ways of segmenting an organisational market by:
 Geographics – same as consumer markets
 Account characteristics – size, loyalty, credit
rating
 Buying behaviour – purchase formality and
criteria, factors of importance
 Product usage – assist firms operation, used in
production process

17. WHERE DO I FIND IT ALL?
 http://www.stats.govt.nz/tools_and_services/t
ools/business-toolbox.aspx

18. UNDERSTANDING CONSUMER BEHAVIOUR

19. THE USE OF PROMOTIONAL TOOLS – ‘PUBLIC
RELATIONS’
 Public relations tools – “used to create good will and
understanding”
 Publicity: news worthy items about the organisation and is not
paid for (remember the definition of advertising)
 Sponsorship: can be leveraged to be seen as a supporter of a
worthy cause (environmental, social responsibility)
 Prepared material: newsletters, house magazine, financial
reports
 Trade shows: variety of expos/fairs to promote image
 Hospitality events: Entertaining the Media or trade evenings
 Media training/grooming/speech-writing: promoting the right
executive approach

20. THE MARKETING PLAN- CONTROL AND EVALUATION
The evaluation and control aspects of the Marketing plan should include critical
key performance indicators (KPI’s) to measure and monitor the marketing plan
Target Market
Surveying Customers Conducting Market
Research
Analysing Sales Figures
The Marketing Mix
Product KPI’s
Production spot checks for efficiency
Quality control check on product
Promotion KPI’s
Advertising
Checking advertising proofs on time
Monitoring sales after advertising
Sales Promotion
Monitoring sales during and after promotion
Personal Selling
Noting individual staff sales
Price KPI’s
Checking competitors price
Noting Competitor advertising
Place KPI’s
Shopping at competitors stores
Counting in store customer foot traffic

21. CHANNEL LENGTH TYPES
(HOW DO I GET TO MARKET)
Producer Consumer
Producer Retailer Consumer
Producer Wholesaler Retailer Consumer
Producer Agent Wholesaler Retailer Consumer
Types of distribution channels for the consumer market

22. PRICING CONSIDERATIONS
A number of factors influence the selection of a price
Influences
On Price
Selection
Organisational
Market Place
Firms overall Objectives Marketing Costs
Production Costs
Distribution Costs
Promotional Costs
Total Costs
Marketing Objectives
Competitors pricing strategy Market Supply and Demand
Legal regulatory requirements Level of value to customer

23. THE INFLUENCE OF COST
AND MARKETPLACE FACTORS ON PRICE
 Consumer perception:
 Price may indicate degree of quality?
 “If consumers believe extra benefits will be gained
by paying more, and those benefits are important
to them, then a higher price can be asked for”

24. ANALYSING COST AND MARKETPLACE FACTORS ON PRICE
 Costs:
 Total costs are made up of fixed costs and variable costs.
 Fixed costs are those which in theory remain constant,
regardless of the level of production activity – rent, rates,
insurance, salaries of administrators (overheads). Even when no
production is taking place, these costs will continue.
 Variable costs are those which vary according to the level of
production and include direct labour and materials.
 Not only should the above costs be taken into account when
price setting, so also should R&D and set-up costs.

25. PRICING STRATEGIES, TECHNIQUES AND ADJUSTMENTS
 Cost-related pricing techniques:
 Two basic methods can be used to calculate a price
on the basis of costs when setting a price:
1. Cost-plus method – most common in the retail sector entails
adding a standard mark-up to the cost of goods to provide a
profit margin.
 Different categories will historically adopt different mark-ups –
supermarkets will use 1%-2% for some lines while food service
may use 100%-300%!

26. PRICING STRATEGIES, TECHNIQUES AND ADJUSTMENTS
Cost Plus Pricing Continued…
Mark ups are determined by:
 The speed of stock turn over
ie fast turnover of stock and lower margins
supermarkets),
slow turnover of stock and higher margins
 Product type ie cars vs clothes
 The cost pricing formula is:
 Cost + Mark Up = Sales Price

27. PRICING STRATEGIES, TECHNIQUES AND ADJUSTMENTS
 Break-even pricing:
 Rossini Pasta produce a variety of convenience meals. These
meals are sold for $8.00 each. Annual fixed costs (overheads)
amount to $35,000 and variable costs (direct material and
labour) are $3.50 per meal. The number of meals that need to
be produced and sold to break-even, is calculated as follows:
Fixed costs
Price – variable costs, therefore:
$35,000 = $35,000 = 7,778 meals
($8.00 - $3.50) $4.50

28. BREAKEVEN – A QUICK ATTEMPT
 FIXED COSTS
 Rent $
 Machinery
Sewing Machines – Computers etc.
 Finance $
 Depreciation $
TOTAL $
 Power $
 Phone $
 Survival Income $
 Admin
 Marketing setup costs $
 Printing costs $
 Office Equipment $
TOTAL $
TOTAL FIXED COSTS $__________

29. VARIABLE COST
 Fabric
 # of meters x cost per metre $
(Include an allowance for wastage - offcuts etc. say 10%)
 Labour
 Hours at $ per Hour $
 Accessories / Ancillary Items
 Thread, Buttons, Trim, Lace $
 Machine Wear
 Maintenance per month/max garments $
 Packaging / Labelling $
 Freight to Customer $_________
TOTAL VARIABLE COST $

30. BREAKEVEN CALCULATION
 FIXED COST $
 Variable Cost $
 Sell Price (Excl GST) $
 Margin per unit $
(Sell – Variable)
Unit Sales to Fixed = _______ =
Break Even SELL
SO, Breakeven Units X Sell = required Turnover in $
What if we drop the sales price by 20% or even 30% (i.e. End of season)

31. BUDGETED SALES
 Prepare three budgets
 Worst Case scenario (Break even?)
 Best Case Scenario (The Dream Result!)
 Most likely (Mid point)
The “Most Likely” Budget is done after the worse
and best case scenarios.