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Strategic Planning for New Businesses

1. SETTING UP THE COMPANY


1.1 Product Concept
a. Features or Design
b. Value Proposition
c. Target Market or Buyer Group
d. Rival Brands
e. Price Range
1.2 The Company
a) Name and Logo
b) Business Model
c) Type of Firm
d) Nature of Business
e) Vision, Mission and Values

2. BUSINESS STRATEGY
2.1 Macro-Environmental Analysis
a. Analysis of Changes in the Broad Environmental Factors
i. Demographic
ii. Economic
iii. Natural
iv. Technological
v. Political and Cultural
b. Industry Analysis (Porter’s 5 Forces Model)
i. Competitive Competitors Created by Rivalry
ii. Competitive Pressures Associated with Threats of New Entrants
iii. Competitive Pressures from Substitute Products
iv. Competitive Pressures from Supplier Bargaining Power and Supplier-Seller
Collaboration
v. Competitive Pressures from Buyer Bargaining Power and Seller-Buyer
Collaboration
2.2 Micro-Environmental Analysis
a. Strengths, Weaknesses, Opportunities and Threats (SWOT)

2.3 Strategy Formulation

a. SWOT Matrix Analysis

3. MARKETING STRATEGY
3.1 Situation Analysis
a. Understanding the Customer
b. Market Analysis
c. Competition, Market Trends and Forecast
3.2 Marketing Strategy
a. Type of Strategy
b. Strategic Marketing Goals
3.3 Annual Objectives
3.4 STP Strategy
a. Segmentation
b. Targeting
c. Positioning
3.5 Marketing Mix
a. Product Strategy (Introduction, Growth, Maturity, Decline)
b. Price Strategy
c. Placement/Channel Strategy (IGMD)
d. Promotion Strategy

4 OPERATION HIGHLIGHTS
4.1 Product and Process Specifications
4.2 Cost of Production
4.3 Capex Requirements

5 FINANCE STRATEGY
5.1 Sourcing of Funds
5.2 Financial Projections
a. Balance Sheet
b. Income Statement
c. Statement of Cashflow
5.3 Financial Ratios
a. Gross Profit Margin
b. Net Profit Margin
c. Total Asset Turnover
d. Fix Asset Turnover
e. Current Ratio
f. Quick Ratio
g. Debit-To-Asset Ratio
h. Debit-To-Equity Ratio
5.4 Break-Even Computation
5.5 ROI and Payback Period
a. Internal Rate of Return
b. Net Present Value
c. Payback Period
d. Return on Equity

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