business planning management
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BUSINESS PLANNING
PRESENTED BY :-BABASAB PATIL
4/10/2013 Babasabpatilfreepptmba.com
BUSINESS PLANNING
(M.B.P)
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CONTENTS
Introduction
Being aware of opportunities (SWOT)
Setting objectives or goals
Indentifying alternatives
Evaluating Alternatives
Selecting an alternative
Formulating Supportive Plan
Numberising Plans By Making Budget
4/10/2013 Babasabpatilfreepptmba.com
Planning Definition:
Planning is a particular type of decision
making that addresses the specific future that
manager desire for their organizations.
Planning is the first managerial function
to be performed in the process of management.
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Importance of Planning:
• It offsets future uncertainty and change.
• It tackles increasing complexity in modern
business.
• It helps in co-ordination.
• It helps in exercising effective control.
• It helps in the proper utilization of the
company’s resources.
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Cont…
• It facilitates unity of action.
• It helps in avoiding business failures.
• Focuses attention on organization’s goals.
• Improves competitive strength.
• Improves adaptability.
• Guides decision-making
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Introduction
• Business plans can help to perform a number of tasks.
They are used by investment-seeking entrepreneurs to
convey their vision to potential investors. They may a
be also used by firms that are trying to attract key
employees, prospect for a new business, deal with
suppliers or simply to understand how to manage
their companies better.
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Environment scanning
To start our new business we selected Navanagar, i.e.
near by Akshay International Lodge and restaurant,
Vidyagiri Bagalakot.While considering bagalakot as a
developing area we have a lot of opportunities to start
new business finally scanning of the areas we got many
alternatives to start new business.
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Like as:
Yoga centre
Milk Parlor
Travelling Agency
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SWOT Analysis Strengths:
o In bagalakot as we found only few business
existing like our alternatives.
o Sound finance.
o No competitors.
o Mutual understanding in between our business
and public.
o Affordable price.
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Weakness:
o Problem of location.
o Government rules and regulation.
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Opportunities:
o Customer satisfaction.
o Promotional activities.
o Total quality management (TQM).
o Switch on to others.
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Threats:
o High oligopoly.
o Government intervention.
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Establishing objectives
• Employment opportunities.
• To increase standard of living.
• To giving extraordinary service.
• To become a market leader.
• To maximize profit.
.
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Evaluating alternatives
After knowing out of the alternatives next
step is to evaluate the alternatives through
analysis of strong and weak points of
alternatives as below:
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• Yoga centre
Strong Points:
1.Mental and physical health.
2.Some extent target customers are all .
Weak Points:
1.Maintenance problem.
2.Impact of mass media.
3.Busy in their routine schedule.
4/10/2013 Babasabpatilfreepptmba.com
• Milk parlor:
Strong Points:
1.Easily available of raw materials.
2.Cost is low.
3.100% quality .
4.Demand is more
Weak Points:
1. Competition.
2.Maintenance cost is high.
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Travelling agency:
Strengths:
Navanagar is the heart of the Bagalkot.
Sound finance.
Proper professional guiders,maps,periodicals etc.
Habits.
Maintaining with security.
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Weaknesses:
• Season based.
• Improper roads.
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Selecting an alternative
Analysis of strengths and weakness of
alternatives ,we are giving to more priority about
strengths not at all about weak points because to
survive the business long run with the profit.
Our business is very nearer to Akshay
International Lodge and Restaurant obliviously
we are Switch on to them .
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Formulating Supporting Plans Natural Resources
* Climate-seasons
* Water resources-lakes, streams, waterfall * Geological resources-topography, soils, sand dunes, beaches, caves, rocks & minerals, fossils * Scenery-combinations of all of the above Cultural Resources
* Historic buildings, sites * Monuments, shrines * Industry, government, religion, etc. * Local celebrities
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Human Resources:
* Hospitality skills
* Management skills
* Infrastructure-transportation roads, airports,
railroads, walkways
* Infrastructure: utilities water, power, waste
treatment, communications
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Numberizing plans by making budgets
Once we have decided on one or more budgets we must
answer certain questions about each before making final
draft, the questions are
*can we make it ?
*Can we sell it?
*can we earn from if?
Then only business run smoothly.
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FIXED CAPITAL
Si no particulars period amount
1 Land/building 1 year 1,75,000
2 Machinery/equipment
1year 55,000
3 Furniture and fixtures
1year 25,000
4 Total 2,50,000
Business Plan or Budget
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Working capital:-
Si no particulars period Amount
1 Utilities 1 year 55,000
2 Wages/salaries
1year 75,000
3 Other 1year 50,000
4 Total 1,70,000
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Total cost of project
Si No Particulars Period Amount
1 Fixed capital 1 Year 2,50,000
2 Working capital
1 Year 1,70,000
3 Preliminary expenses
1Year 15,000
4 Total 4,20,000
1 year
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Means of finance
Si no particulars period amount
1 Term loan 1 year 15,000
2 Working capital loan
1 year 5,000
3 Own investment
1 year 1,00,000
4 Total 1,20,000
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Profitability Analysis
Particulars Amount
Sales revenue 6,00000
Fixed capital 2,50,000
Working capital 1,70,000
Interest (12.5%) 75,000
Gross Profit 1,05,000
Income tax 25,000
Net profit 80,000
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Conclusion
Finally we conclude that Travelling Agency
is the best alternative to start new business in
Bagalkot with great support of business
planning process.
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Open For Queries
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