eMBA Nov12 Session 4

7/28/2019 eMBA Nov12 Session 4

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Entrepreneurship

Course

EMBA Batch

April 2013

Session 4


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The ProgramSession Topic Curriculum Date

1 Introduction

Welcome the students Explain course and schedule The Contract Students expectation of the course InteractionI the Business Case Study #1 InteractionThe Name Ball Interaction-I the Investor Part 1 Discussion Singapore Incorporated and Entrepreneurship

9th April7.00 pm to 8.15pm

2 Entrepreneurship

Presentation Entrepreneurship Process

Presentation Leadership and Entrepreneurship explained InteractionI the Business Case Study #2 Discussion Doing Business in India and China

9th April9.00 pm to 10.15 pm

3 The Entrepreneur

Interaction Jockey Quiz Presentation Myths about entrepreneurship Presentation The ten mistakes a new entrepreneur make InteractionI the Business Case Study #3 Self Assessment - Are you the entrepreneurial type? Discussion Challenges of an Entrepreneur


4 Business Planning

Presentation Generating ideas and opportunities Presentation Types of Business Plan Presentation Making assumptions and identifying constraints InteractionI the Business Case Study #4 Interaction Briefing on The Coffee Stall Business Discussion Business Entertainment


5Site Visit at DignityKitchen

Understanding of social entrepreneurship Learning the value of business (The Coffee Stall Business)


6


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The ProgramSession Topic Curriculum Date

7 Getting Started in Business

Presentation Understanding and evaluating business risks Presentation Taking Risk Presentation Funding Types and Process Presentation Closing the Deal Interaction - I the Investor Part 2 InteractionI the Business Case Study #5 Discussion - My Business Values

13th April2.00 pm to 3.15pm

8 Doing Business

Presentation Business structures & its incorporation

Presentation Processes and System Presentation Maintaining a business Presentation Growth of a Business InteractionI the Business Case Study #6 Discussion Learning from the $100 Experience


9 Success in Business

PresentationDeath of a business Presentation Why business failed Presentation Element of Success in Business

Discussion Bad Business Practice


10 Assessment I the Business Individual Assessment14th April

10.00 am to 11.15 am

11 Assessment The $100 Experience Business Plan Presentation14th April

12.00 pm to 1.15 pm

12 Conclusion

Course Review Result of your Assessment Review of The Contract



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Session 4Business Planning

Christopher Benjamin Consultancy Services 4

Presentation :Generating Ideas and OpportunitiesBusiness PlanningApproach to Strategic Planning

Interaction :I the Business Case Study #4Briefing on The Coffee Stall Business

Discussion

Guan Xi and Business EntertainmentBackground ReadingQuestions and Answers


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Ideas and Opportunities

PresentationChristopher Benjamin Consultancy Services 5


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1 9 9 0

ChristopherBenjaminConsultancy

Services

6


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2 0 0 7

Ch

ristopherBenjaminConsultancyServices

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Marina Bay Sands Integrated Resort

Opportunities?

.. back in Singapore




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What is an opportunity?

The dictionary defines opportunity as:

1: a favorable juncture of circumstances;

2: a good chance for advancement or progress.

Opportunities exist when there is a problem to solve,

where there is a need or a want.

What is an idea?

An idea is a plan for action.

I n entrepreneurship, it is cri tical to understand how these two concepts are diff erent

as well as how they relate.



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Opportunities can be defined as problems or needs,

while an idea may be identified as the solution.

An innovative idea is of no value if there is noopportunity or market.



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Ideas Opportunities

Instant Noodles World War 2 and the need for food

Avon Cosmetics Sell direct

Cadbury Chocolate Therapeutic potion to pleasant drink with sugaradded

Heinz Baked Beans No artificial preservatives, no impurities, nocoloring and money back guarantee

Yale Hobbs Lock for security

Macdonald Franchise for ease of business startupSony Walkman Personalise music system

Mobile Phone Need for communication

Many more.



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Identify the needs not wants



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Self Actualisation

Esteem NeedsSelfesteem

Recognition

Status

Social Needs

Sense of belonging

Love

Safety Needs

Security

Protection

Physiological Needs

Hunger

Thirst

Maslows Hierarchy of Needs



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According to a study by The National Federation of

Independent Business:

"2,994 start-ups showed that founders who spent along time in study, reflection, and planning were no

more likely to survive their first three years than

people who seized opportunities without planning."

Procrastination.



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InteractionGiven a recent HEADLINE

What are the opportunities?

Then what are the ideas??????



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The World Trade Centre

September 11th 2001

Ideas &

Opportunities???




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Evaluating Opportunity1. Has the opportunity been considered by others?

If yes, have others selected or acted upon it?

2. Can I determine how long the opportunity may last?

3. Am I satisfied that I have accurate and sufficient information about the opportunity?

4. Have I specifically defined the opportunity?

5. Will people care about the opportunity?

6. Is this the best opportunity I can envision?

7. Can I generate a good idea to match the opportunity?

8. Does the opportunity suit my personal goals?

9. Are there any regulatory systems that may restrict or limit the opportunity I envision?

Regulatory systems may include laws, bylaws, school rules or others.

10. What is the target market?

Have I studied the lifestyle and created a customer profile of the type of consumers that wouldtake interest in this opportunity.



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Missed Opportunities

Missed Opportunity = EMOTIONAL BLOCK

An emotional blockmay be overcome with greater self confidence and self

esteem.

Fear, distrust, desire for security, and the inability to change may prevent you

from generating creative ideas.

Staying flexibility is a great method for overcoming an emotional block.

Decision in seizing opportunity has to look at in the context of GOOD andBAD; not RIGHT and WRONG.

This is your LifeChristopher Benjamin Consultancy Services 24


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Chrisbens Axis of Strategic

Directions

InteractionChristopher Benjamin Consultancy Services 25


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Chrisbens Three Axis Approach

Value Chain

Demographic

Industry

Globalisation

Application

To Customers



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Business Planning

PresentationChristopher Benjamin Consultancy Services 27


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What is a business plan?A business plan is a formal presentation (often a document and/or

Power Point slides) that outlines how you will launch, market,

manage and finance your business idea. It shows how well you

and your partners are qualified to run the business. Anyonereviewing your business plan should be able to see how much

thoughtyou have put into your business idea and opportunity.

a basic planning tool that bridges the gap

between thinking and doing

a physical printout of your mental idea



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Why is business planning so important?

A business plan precisely defines your business, identifies yourgoals, and serves as your firms resume.

The basic components include a current and pro forma balance sheet,

an income statement, and a cash flow analysis. It helps you allocateresources properly, handle unforeseen complications, and make goodbusiness decisions.

Additionally, it informs sales personnel, suppliers, and others about your

operations and goals.

From the US Small Business Association



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Type of Business Plans

STRATEGIC PLANS outline the actions necessary to achieve long-range goals. Applies mainly to on-going business.

TACTICAL OR OPERATING PLANS focus on the short-run, usually

one year. Normally as a result of changes affecting the business,where a review was necessary

FUNCTIONAL PLANS specify short- to medium-range actions havingto do with specific aspects of the business, such as marketing,

finance, manufacturing, or personnel.

INVESTMENT PLAN, used by small business owners to gain accessto financing from banks or venture capitalists.



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Who will see my business plan?

Anyone who is willing to take a risk on being a part of yourbusiness venture will see your plan. This includes investorssuch as a bank or other supporting organization orindividuals that may lend you money to get started.

Other interested parties include organizations that maychoose to partner with you, as well as suppliers and buyers

who will depend on your business to buy or sell theirproducts.



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Approach to Investment

Planning

Presentation



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Details of a Investment Plan

1. Executive Summary

2. Company BackgroundBusiness HistoryGrowth and Financial ObjectivesLegal Structure and Ownership

Company Location and Facilities

3. Plans for Financing the Business



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Executive SummaryThe Executive Summary is the most critical

element of the business plan.

If it does not grab the investor's attention, theinvestor will neither read nor request the full

business plan. As such, spend time developing the

best possible summary.

Work to get it in the hands of the right investors bycreating two versions :

Stand-alone executive summary Plan predecessor



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Executive SummaryThe Plan Predecessor

When the Executive Summary precedes the business plan, its lengthshould be short, typically only one to two pages and certainly no longerthan three pages. This is because the Executive Summary is not meantto tell the whole story of the business opportunity. Rather, the summary

must simply stimulate and motivate the investor to learn more about thecompany in the body of the plan.

The Stand-aloneThe second type of Executive Summary is a stand-alone document.That is, it is given, by itself, to investors for their initial review. Purpose isto entice interest in your plan. If interested, the investor will then requestthe full business plan. A stand-alone Executive Summary is often used tolimit the flow of information. That is, if an investor is not interested in thegeneral opportunity that your summary presents, you don't want toreveal to them intimate details of your plan.



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Details of a Investment Plan4. Organization

Team MembersOrganizational StructureOther Key Employees

5. Shareholding Structure and Principal Shareholders

6. Market AnalysisSummaryIndustry AnalysisTarget MarketCustomer ProfileMajor competitors and participantsMarket SegmentationProjected Market Growth and Market Share Objectives



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Details of a Investment Plan7. Product / Service Offering

Product / Service SummaryProduct / Service UniquenessProduct / Service Descriptions

Competitive ComparisonsResearch and DevelopmentPatents and Trademarks

9. Manufacturing / Production Plan (optional)

Production IssuesCurrent Plant Production and CapacityQuality ControlLabor Force



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Details of a Investment Plan10. Marketing Plan

Creating and Maintaining CustomersProduct Pricing StrategyProduct Positioning

Sales and Distribution PlanPromotional Strategy

11. Financial Plan and AnalysisBalance Sheet

Income StatementCash Flow BudgetStartup CostAssumptions



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Where do I begin?

Be aware of some general rules for preparing a plan:

BE HONEST with yourself and your teammates, investors, and others involved in your plan.

PRACTICE GOOD WRITING SKILLS: use clear language, accentuating the positive.

SHOW YOU HAVE DONE YOUR HOMEWORK: make sure it is clear that you have carefully evaluatedyour business idea and opportunity, and that you have taken the time to look at other business cases,both the successes and the failures

STRESS YOUR UNIQUENESS: how do you and your business idea stand out from the crowd?

MAKE THE PLAN LEGIBLE AND NEAT: use appropriate print and paper.

USE CHARTS, TABLES, ILLUSTRATIONS AND PHOTOGRAPHS when applicable

BE REALISTIC: do not exaggerate what you will be able to do with your time and resources.



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Financial for a Culinary School

Presentation



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Phase 1 Phase 2 Phase 3 TotalFrom From From From

M1 M7 M13 M1

To To To To

M6 M12 M24 M24

(6 months) (6 months) (12 months) (24 months)

Capital Expenditure $ $ $ $

Renovation 295,415 0 0 295,415

Fixtures and Fittings 82,690 0 0 82,690

Equipments 93,750 0 0 93,750

Total 471,855 0 0 471,855

Downpayment (20%) 94,371 0 0 94,371

Hire Purchase and Leasing (80%) 377,484 0 0 377,484

Finance Cost (5% PER ANNUM) 9,437 9,437 18,874 37,748

Installment Payable (5 YEARS) 47,186 47,186 94,371 188,742

Projected Capital Expenditure and Equipping Plan



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Renovation

Plumbing & Waste Work $63,200Fire Fighting (Provisional) $28,000Air Cond and Exhaust $87,000

Flooring / Ceiling / Wall Work $92,215Electrical Work $25,000

Total $295,415

Fixtures and FittingsReception / Admin $14,450

Training Room $14,750Food Court Dining Area $39,040

Stalls & Catering Kitchen $14,450Total $82,690

EquipmentsComputer and Peripherals $10,000

Teaching Aids $15,000Kitchen Equipment $56,000

Changing Rooms Lockers $6,750Signages and Graphics $6,000

Total $93,750

Projected Capital Expenditure and

Equipping Plan - Detailed



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Phase 1 Phase 2 Phase 3 Total

From From From FromM1 M7 M13 M1

To To To To

M6 M12 M24 M24


Staff $ $ $ $

Assume OperationalM4

Executive and Admin Office

Executive director ($5,000:$8,000 per month) 30,000 30,000 96,000 156,000

Accountant ($4,000 per month) 24,000 24,000 48,000 96,000

Business development executive ($2,500 pm) 0 15,000 30,000 45,000Clerical staff (2 pax at $1,500 per month each) 0 9,000 36,000 45,000

Training Division

Training director ($5,000 per month) 30,000 30,000 60,000 120,000

Trainers (6 pax at $2,000 per month each) 12,000 72,000 144,000 228,000

Program coordinator ($1,500 per month) 0 9,000 18,000 27,000

Training coordinator ($1,500 per month) 0 9,000 18,000 27,000

Food Court Division

Operation manager ($3,000 per month) 18,000 18,000 36,000 72,000

Catering staff (2 pax at $1,000 per month each) 6,000 12,000 24,000 42,000Cashier (2 pax at $1,500 per month each) 0 36,000 36,000 72,000

Cleaner (2 pax at $1,500 per month each) 0 36,000 36,000 72,000

Gross Salary 120,000 300,000 582,000 1,002,000

Employer's CPF (14.5%) 15,660 35,670 73,950 125,280

Skill Development Levy (0.25%) 300 750 1,455 2,505

Total Payroll Cost 135,960 336,420 657,405 1,129,785

Projected Staffing Plan



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M1 M7 M13 M1To To To To

M6 M12 M24 M24

(6 months) (6 months) (12 months) (24 months)Fixed Expenses $ $ $ $

Rental 21,732 21,732 43,464 86,928

Utilities 28,800 28,800 57,600 115,200

Telecommunication 2,700 2,700 5,400 10,800

Maintenance and upkeep 21,000 21,000 42,000 84,000

Advertising & Promotion 15,000 10,000 12,000 37,000

Miscellaneous 12,000 12,000 24,000 48,000

Operating Expenses 101,232 96,232 184,464 381,928

Projected Essential Operating Expenses



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Projected Essential Operating Expenses - Assumptions

(sq ft) Total Cost

Training Centre area 7244 $3,622.00Rental per sf $0.50

Utilities per month $4,800

Telecom per month $450

Maintenance per month $3,500

Miscellaneous per month $2,000

Projected Essential Operating

Expenses - Assumptions



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M1 M7 M13 M1

To To To To

M6 M12 M24 M24


Income $ $ $ $

Assume OperationalM4

Training Income

Number of students per month 30 60 90Average training fee charged per student per month 800 800 900

Total training fee received for the phase 72,000 288,000 972,000 1,332,000

Food Court Income

Food Stalls

Number of stalls 6 6 10

Average sales proceeds per stall per month 7,200 7,200 7,200Total Food Stalls Sales for the phase 129,600 259,200 864,000 1,252,800Drink Stall

Average sales proceeds per month 10,080 10,080 10,080

Total Drink Stall Sales for the phase 30,240 60,480 120,960 211,680

Catering Income

Average 3 meals per day for 24 days per month 72 72 72

Cost of per meal 1.50 1.50 1.50

Number of person per month 400 400 2,000

Total catering sales for the phase 129,600 259,200 2,592,000 2,980,800

Total Revenue 361,440 866,880 4,548,960 5,777,280

Projected Income and Revenue

Received



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M1 M7 M13 M1

To To To ToM6 M12 M24 M24


Profit and Loss $ $ $ $

REVENUE 361,440 866,880 4,548,960 5,777,280

COST OF SALES (177,840) (427,968) (2,761,776) (3,367,584)

GROSS PROFIT 183,600 438,912 1,787,184 2,409,696

STAFF COST (135,960) (336,420) (657,405) (1,129,785)

ESSENTIAL OPERATING COST (101,232) (96,232) (184,464) (381,928)

PROFIT/(LOSS) BEFORE DEPRECIATION (53,592) 6,260 945,315 897,983

DEPRECIATION OF FIXED ASSETS (5 YEARS) (47,186) (47,186) (94,371) (188,742)

PROFIT/(LOSS) AFTER DEPRECIATION (100,778) (40,926) 850,944 709,241

FINANCE COST (9,437) (9,437) (18,874) (37,748)

PROFIT/(LOSS) BEFORE TAXATION (110,215) (50,363) 832,070 671,493

TAXATION (18%) 0 0 (149,773) (149,773)

PROFIT AFTER TAXATION (110,215) (50,363) 682,297 521,720

Projected Profit and Loss Statement



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Phase 1 Phase 2 Phase 3 Total

From From From FromM1 M7 M13 M1

To To To To

M6 M12 M24 M24


Cash Flow $ $ $ $

Profit/(Loss) before taxation (110,215) (50,363) 832,070 671,493

Add:

Depreciation of fixed assets 47,186 47,186 94,371 188,742

Finance Cost 9,437 9,437 18,874 37,748

CASH FLOW/(IN USED) FROM OPERATION (53,592) 6,260 945,315 897,983

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of fixed assets (471,855) 0 0 (471,855)

(525,447) 6,260 945,315 426,128

CASH FLOW FROM FINANCING ACTIVITIES

Issurance of share capital 250,000 0 0 250,000

Hire purchase and leasing 377,484 0 0 377,484Repayment of hire purchase and leasing (47,186) (47,186) (94,371) (188,742)

580,299 (47,186) (94,371) 438,742

CASH SURPLUS/(DEFICIT) 54,852 (40,926) 850,944 864,870

CASH BROUGHT FORWARD 0 54,852 13,926 0

CASH CARRIED FORWARD 54,852 13,926 864,870 864,870

Project Cash Flow Plan



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Phase 1 Phase 2 Phase 3

From From From

M1 M7 M13

To To To

M6 M12 M24

(6 months) (6 months) (12 months)

Balance Sheet $ $ $

SHARE CAPITAL 250,000 250,000 250,000

PROFIT AND LOSS (110,215) (160,577) 521,720

Shareholders' equity 139,785 89,423 771,720

FIXED ASSETS 424,670 377,484 283,113

CURRENT ASSETS

Cash and cash equivalents 54,852 13,926 864,870

Total Asset 479,521 391,410 1,147,983

Less:

CURRENT LIABILITIES

Hire purchase creditors 339,736 301,987 226,490

Provision for taxation 0 0 149,773

Government grant 0 0 0

339,736 301,987 376,263

139,785 89,423 771,720

Projected Balance Sheet



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M1 M2 M3 M4 M5 M6 Total

IncomeCapital $250,000 $0 $0 $0 $0 $0 $250,000

Loan $0 $0 $0 $0 $0 $0 $0

Training fee $0 $0 $0 $24,000 $24,000 $24,000 $72,000

Food court revenue $0 $0 $0 $53,280 $53,280 $53,280 $159,840

Catering $0 $0 $0 $43,200 $43,200 $43,200 $129,600

Sponsorship $0 $0 $0 $0 $0 $0 $0Total Income $250,000 $0 $0 $120,480 $120,480 $120,480 $611,440

Expenditure

Cost of sales $0 $0 $0 $59,280 $59,280 $59,280 $177,840

Salary $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $120,000

CPF $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $15,660

Skill Development Levy $50 $50 $50 $50 $50 $50 $300

Capital expenditure $7,864 $7,864 $7,864 $7,864 $7,864 $7,864 $47,186

Rent $3,622 $3,622 $3,622 $3,622 $3,622 $3,622 $21,732

Utilities $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $28,800

Telecommunication $450 $450 $450 $450 $450 $450 $2,700

Maintenance & Upkeep $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $21,000

Downpayment $94,371 $0 $0 $0 $0 $0 $94,371

Advertising & Promotion $6,000 $3,000 $6,000 $15,000Miscellaneous $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $12,000

Total Expenditure 145,267 44,896 47,896 104,176 110,176 104,176 556,589

Cash Surplus (Deficit) 104,733 (44,896) (47,896) 16,304 10,304 16,304 54,852

Cash brought forward 0 104,733 59,837 11,940 28,244 38,548

Cash carried forward 104,733 59,837 11,940 28,244 38,548 54,852

Projected Monthly Cash Flow for

Year 1



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M7 M8 M9 M10 M11 M12 Total

IncomeCapital

Loan

Training fee $48,000 $48,000 $48,000 $48,000 $48,000 $48,000 $288,000

Food court revenue $53,280 $53,280 $53,280 $53,280 $53,280 $53,280 $319,680

Catering $43,200 $43,200 $43,200 $43,200 $43,200 $43,200 $259,200

SponsorshipTotal Income $144,480 $144,480 $144,480 $144,480 $144,480 $144,480 $866,880

ExpenditureCost of sales $71,328 $71,328 $71,328 $71,328 $71,328 $71,328 $427,968

Salary $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $300,000

CPF $5,945 $5,945 $5,945 $5,945 $5,945 $5,945 $35,670

Skill Development Levy $125 $125 $125 $125 $125 $125 $750

Capital expenditure $7,864 $7,864 $7,864 $7,864 $7,864 $7,864 $47,186

Rent $3,622 $3,622 $3,622 $3,622 $3,622 $3,622 $21,732

Utilities $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $28,800Telecommunication $450 $450 $450 $450 $450 $450 $2,700

Maintenance & Upkeep $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $21,000

Downpayment $0 $0 $0 $0 $0 $0 $0Advertising & Promotion $4,000 $2,000 $4,000 $10,000

Miscellaneous $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $12,000Total Expenditure $153,634 $149,634 $151,634 $149,634 $153,634 $149,634 $907,806

Cash Surplus (Deficit) ($9,154) ($5,154) ($7,154) ($5,154) ($9,154) ($5,154) ($40,926)

Cash brought forward $54,852 $45,697 $40,543 $33,389 $28,235 $19,080

Cash carried forward $45,697 $40,543 $33,389 $28,235 $19,080 $13,926

Projected Monthly Cash Flow for

Year 1



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Common Mistakes in Business Plan


Some of the common mistakes business owners make when completing their businessplans :

Mistake 1: Incomplete financialsThis is perhaps the most important section of any business plan. Lenders want to know whenthey will have their loans repaid and assess the risk. You need to produce financial statementsthat accountants will endorse without question.

Mistake 2: Over ambitious projectionsEveryone thinks their business will grow exponentially in the first 12 months but in reality this israrely the case. Your business plan must show a realistic path to profitability that proves youractual revenues and profits are comparable with your written plan.

Mistake 3: Leaving something outEvery business plan follows a certain structure. Lenders and professional readers generallylook for 3 or 4 aspects of your plan. You need to ensure you have these elements correctlywritten in the right area of your business plan.


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Common Mistakes in Business Plan


Here are some of the common mistakes business owners make when completing theirbusiness plans :

Mistake 4: Incorrect formatYour readers do not expect a 100 page novel nor a 1 page overview. Getting this fundamentalarea wrong will show your readers just how inexperienced you are.

Mistake 5: Poor understanding of marketingCommunicating your products to your prospects is a critical success factor for every businessowner. You need to show you understand your target customers, what their needs are, whythey will buy from you and how you will communicate with them.

Mistake 6: An inability to sell your planHaving an accountant prepare your plan may save you a headache, but it is you who needs toexplain to your lender or investors every question they have about your plan. You need tounderstand everything that is written in your plan.


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Approach to Strategic Planning

Presentation



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Mission

&Objective

Setting

Pre-assessment

Workshop

Internal

Assessment

External

Assessment

SWOTReport StrategyWorkshop ActionPlanning ProcessRe-alignment

DIAGNOSTIC STRATEGY FORMULATION STRATEGIC

ALIGNMENT

Participants

Top Management

Stakeholders

Middle Management Staff

Suppliers

Customers

Top

Management

Middle

Management

Top Management

Middle

Management

Stakeholders

Middle

Management

Middle

Management

Deliverables

Project

Expectations

Customer Surveys

Climate Surveys

SWOT Report

Companys

Mission

Core Competence

Critical Success

Factor

Strategic Option Action PlansProcess Re-alignmentSales & Marketing

Procurement & Warehousing

Human Resources

Financial

Management Information

APPROACHTOSTRATEGIC PLANNING

C

hristopherBenjaminConsultan

cyServices



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Objectives

Strategy

Action Plan

Mission

How to Statement

Why and What Statement




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The Business Assessment

Internal

Functional aspects:

Sales/Marketing

ProductionInventory

Delivery

Finance

Human Resource

Business Processes

Infrastructures

Corporate Structure

Organisation Structure

Systems

External

Customers

current, future needs and

expectationshow they perceive your

services?

how they compare you with

your competitors?

Competitors

what areas and why do they

do better than you?

what is their industry outlook?

how do they see current,

future customer needs and

expectations?

Industry Prospects

Analyse:

Weakness/Bottlenecks

Market Threats

Critical Success Factors

Strengths

Market Opportunities

Core Competence




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S W

O

T

Core Competence

Strategy Options

Critical Success Factors

SWOT Analysis




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ManagementCommitment

EmployeeOwnership

Mission

Objectives

Strategy

Warehousing&Logistics

HumanResource

Manufactur

ing

Financial&

Accounting

Purchasing

Manageme

ntInformation

Strategic Alignment




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School Holiday

Mission

Objective

Strategy

StrategicAlignment

= to have a good holiday time

= to go to Desasu

= to drive to Desaru

PeopleLogisticsMoney




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Action Planning Date:

Goals Prepared By :

Action Plan 2008

Main task Sub-task Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec By Whom Remark

Action planning



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Value

Customer

Industry Application

Demographic

Geographical

Chrisben Axis of Strategic Directions



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Corporate Vision

To beSouth East Asias foremost distr ibutorofqualitybolts and

nuts.

To establish overseas presence in 4 countries by 2010

Vietnam

Thailand

Indonesia

Brunei

T o have four additional strategic outlets

In Malaysia by 2010

Sabah

Sarawak

Penang

Johor

To achieve national business recognition award by 2010;

To publicly list the company by 2012

To have a fully automated logistic

hub by 2010.

To attain ISO 9000:2000 certification by year 2008.

EXAMPLEOFSTRATEGIC PLANNING



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Value

Customer

Industry Application

Global

Sales Points

Regional

Sales Points

S.E.A

East Malaysia

Europe

Middle East

R & D

Manufacturing

Value adding

Engineering ConsultationDiversification

Supply Chain Management

Trading

Strategic Overview

Example of Strategic Planning



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To construct newIntegrated logistic hub

Increase stock capacity

Reduce order lead time

Q2 2008 Q3 2008 Q4 2008

To set up sales office

In Penang, Johor &

East Malaysia

To attain ISO 9000:2000

certification

To establish sales

Presences in Vietnam, Thailand

Brunei & Indonesia

Q1 2009 Q2 2009 Q3 2009 Q4 2009 2010

MarketCoverage

Year

Integrated logistic hub commence

Operations,

Sales points commence business

in 4 countries,

Additional 4 outlets in Malaysia,

Total of 13 outlets to providewider market coverage

ASEAN FTA 0% Duty &

Tax by 2010

Example of Strategic Planning



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Action Planning 200X Team Johor Date: 7th July

Goals Increase sales revenue by 10% Prepared By : Steven

Action Plan 2007

Main task Sub-task Jul Aug Sep Oct Nov Dec By Whom Remark

A. Widen product range 1. Source one new product - Torx screw X Team

2. Find suppliers X X Michael

3. Requisition for sample X Steven

4. Product training for staff X Team Steven to liaise with supplier

5. Market new product X X X Michael

6. Review of sales result X Micheal / CG

B. Increase no. of customers 1. Target new sales area - Pasir Gudang X Micheal / Cheah

(Target 20 new customers) 2. List potential customers and contacts X Steven

3. Train sales staff X X Micheal / Cheah

4. Make sales calls and visit X X X X X Team One new custumer visit per week5. Review of sales performance X X Cheah

C.Sales promotion of old stock 1.List of old stock X Steven Non moving stock over 2 years old

2. Review pricing of old stock X Micheal / Cheah

3. Approval for sales of old stock X Mr. Lee / CG

4. List target customers for old stock X Steven

5. Contact target customers and sell X X X X X X Team

6. Review of sales performance X X Micheal / Cheah

Example of ACTION PLAN



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Case Study #4

NetFoodasia



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Interaction:I as the Business

Scenario:

Four friends got together in 1998 to develop a portal to assist restaurateurs / chefwith their purchasing operation.

One of the founder, a chef by professional realize that he needs to prepare andsent out purchase orders every night to his suppliers, a process that take morethan an hour per night. There is need to simplified this process hence Netfoodasiawas born.

Raise S$280,000 to develop a Internet B2BFood Portal business

ChristopherBenjaminConsultancyServices



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Phase 1Informational

Phase 2Transactional

Viewers

Food and Beverage industries members of the public governmental bodies suppliers (equipment / service providers) students (current / potential) Association (local / oversea)

Revenue Model

Advertising

Banners

e-Shop

Membership

Subscription

Consultancy /Brokerage /Data Mining

Fee Payment

InformationJob Opportunities

Student PlacementEvents / Activities

Forum

SearchNews

New Development

Criteria for Phase 2 Revenue generating Dynamic High eyeballs Platform for the F & B industries

Criteria for Phase 1 on-time information attractive appearance interactive nature interesting/relevant content fast access

Our E-Portal Proposal



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Guan Xi and Networking

Discussion


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Guan Xi

Discussion


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Guan Xi

network

Colleges

Affiliation/ Clans

InterestGroups



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Guan Xi

3-4 hoursuninterrupted

activities

Undividedattention

Preferablyenjoyable

Successful Networking



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Values

Support

TrustValues

Support

Trust

Maintenance of the Guan XiA relationship is based on three critical foundation Shared Values Mutual trust Support Financial, Physical, Emotional

A goodrelationship is like

an equilateraltriangle

But sometime therelationship is like

an isoscelestriangle


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Values

Support

Trust

Closing = (time ; event)

Maintenance of the Guan Xi

When the triangle is broken

Closing the triangle will require timeand events


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Maintenance of the Guan Xi Useful Tips1. Maintain contacts

a. Phone call I saw you at.

b. Email Can I have your autograph.

c. SMS Birthday Greetings

2. Maintain professionalisma. Never bad mouth anyone

b. Watch what you said to anyone, the world is a small place.

c. Never talk in a lift, you never know who is listeningd. Said what is good, may not be right


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Maintenance of the Guan Xi Useful Tips

3. Maintain recordsa. Get personal details Where last met, What was spoken, Number of

children etc

b. Update your Database regularly

4. Maintain statusa. Never be out of your circle of contacts and lost you

b. Constantly work on widening your contacts and find new Guan Xi

(relationship)


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Business Entertainment

Discussion


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Objective What you want to get out of it?

Whats the budget?

Who you are entertaining?

Status - Theirs and Yours

Type of Industry

With or without family

Time allocated

Day or Night

Duration


B i E t t i t


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Time of the Day Location Cost

Daytime

Golf JohorSingapore

S$40 per gameS$100 per game

Yachting / Fishing Southern Islands Half day - $800 for a 30 footerLuxury 100 footer about $10,000 includingmeal

Spa Hotel and Clubs $200 per person per session

Night

Dinner

Casual Seafood restaurant $25 to $40 per person excl Liqueur

Fine Les Mis From $80 onwards

After Dinner

Clubbing St James / Mohammad Sultan / Clarke Quay $30 - $200 per person per night out

Massage Parlour Clean & Special Foot reflexology $40 per hourFull Body $60 - $100per one hour

Karaoke High Class to Geyland Area Hourly Rate - $50 to $300 per sittingButterfly - $20- $50Liqueur - $300 to $800 per bottlesTime Booking - $200 to $300

Chickens and Ducks Call Girls and Pickups From $50 to $2000 excluding rooms


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The Coffee Stall Business

Interaction

Th C ff St ll B i


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The Coffee Stall Business


Coffee / Tea

Soft DrinksFruit JuiceSugarcaneBeerCigarettesTit bits

Cut fruitsSandwichesPopiahRojak


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Background Reading


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Background Reading


Confidence by Rosabeth Moss Kanter

Enterprise & Small Business by Michael Schaper & Thierry Volery


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AssignmentI the Investor - Part 1

Part 1 Submission1 A4 sheet

Invest or Not?Why did you

invest?

Do not open the newspaper prior to submission

Submit hard copy and soft copy to Administrator

Session 6 Thursday Midnight latest

Late submission will not be entertained



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Questions & AnswersMy email address: [email protected]

eMBA Nov12 Session 4

Documents

Transcript of eMBA Nov12 Session 4