comparison of strama and business plan

Comparison of Strama and Business Plan

Lecture by Prof. Jorge Saguinsin for Entrepreneurship Class at the Ateneo

Graduate School of Business

Makati, Philippines

Questions:

Which is more challenging to do?Are they the same?

Strategic Planning

•Answer: If your goal is to be a top corporate honcho,

then strama mastery is a must for you. This is for a few souls;

However, most of if not many may put up their own business and thus need to master business plan writing.

Many MBA students (and graduates) lack business plan writing skills.

Business plan if contracted to consultants is pricey.

Similarities:

Both need a lot of data and disciplined study and hard work;

They go either top down or bottom up A lot of iteration take place Both have the following: VMO: vision, mission and objectives KRAPI: key result areas, and

performance indicators

Similarities Both need to be SMART (SPECIFIC,

MEASUREABLE, ACHIEVABLE, REALISTIC & TIME BOUND

Both have external environment scanning (which could be PESTEL, EPISTE, STEER, PESTE) to arrive at market/sales estimate. The common term for entrepreneurship is opportunity seeking, screening, and seizing

Both cover the four functions of business: marketing, finance, operations, and human resources management.

SMART

Similarities:

Both need financials: cash flow, p & l. balanced sheet; The sales projection is based on a

market study that is based on opportunities relevant to the business;

Both need competitive analysis

Differences:

l. A business plan is synthetic and creative; a strama is analytical and destructive

2. A business plan details the business concept model, founding organization

3. It is common to see micromarket analysis for business plan.

Micromarket

4. Product design testing is detailed in a business plan.

5. The SWOT analysis usually does not apply to a start up. There is no strength to speak of; to talk about the risk is to abort the bp outright….

6. There is no internal analysis for the BP; only enterprise delivery system which is long and detailed. It covers: inputs, throughputs, outputs and matching (marketing actually)

7. A business plan has exit strategy which covers failure (divestment and liquidation)and success scenario(ipo,harvesting)

Exit strategy

Thank you

Profjorge.entrep@gmail.com

8. It is more important and urgent for BP’s vision and product, MVP to be compelling; for the product to be clearly differentiated to assure success

9. The three steps of strategic planning do not apply to bp writing: strategy analysis, formulation, and implementation do not apply to business plan writing. No strategy tools measurement are used except for KRAPI.

10. Business plan writing develops the rigor and discipline to write a strama paper.

Thank you

Profjorge.entrep@gmai.com

Acknowledgement

The images and diagrams are from google images’

The ideas are from existing literature on business plan, business model and strategy