ENTERPRISE MIDTERM REVIEWER

Business Plan
❖ Management tool, which focuses on the nature of the business in a logical and
organized manner.

❖ Document that guides an entrepreneur on what, how and when to do or implement

enterprise and goals and objectives.

❖ The business plan covers both a study of whether a product or service idea is
both possible and feasible.
➔ Possible-involves the availability of manpower, money, machinery, materials,
machinery to set up a business.

➔ Feasible- area of financing and profitability of a business idea.

I. BACKGROUND OF THE ENTERPRISE

1. What is your product or service idea?

2. What are the reasons for choosing the products?

3. Under what economic sector does your product or service belong?

4. Present an economic statistics on the chosen sector

5. Where is the location of your enterprise?

6. Is your target market in the same location as your enterprise/

7. What is the population of your target market?

8. Present a demographic data on your target market.

II. STRATEGIC PLANNING

1. What is your mission statement?

2. What are your management objectives?

3. What are your marketing objectives?

4. What are your operations objectives?

5. What are your finance objectives?

6. What are your internal objectives?

A. Vision Statement
- is often explained to answer the question, where do we want to go.
- Is an affirmation of the enterprise wants to become.
B. Mission Statement
- is the declaration of the purpose of the organization.
- Often defines the scope of its operations in product and service.
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Guide questions in formulating the mission statement
➢ What business are we in or what business do we want to be in?

➢ What customer needs are we satisfying and how do we intend to satisfy

them?

➢ What type of work environment do we intend to provide fo our employees?

➢ Who are our shareholders and what do we expect in terms of returns of

investment?

➢ What can we contribute to the external community?

C. Goals And Objectives

- Goals are short term directions often stated in specific metrics, such as
periodic and other numerical terms.
- Allows organization to be directed toward specific sites or locations
Example: to earn maximum profit.

❖ OBJECTIVES
- Objectives are specific targets set by entrepreneurs to direct them into
achieving their goals.

❖ GOALS MAYBE LIMITED TO

➔ Marketing Objectives- sales volume and value targets for the period cover
➔ Financial Objectives- gross profit or net profit percentage
➔ Management Objectives- such as enterprise type choice and completion of
business regulation requirements
➔ Internal Objectives- expected learnings from the business simulation
➔ Customer Objectives-surveys from clients for product and survey
improvement and customer satisfaction

III. ENVIRONMENTAL ANALYSIS

Analysis of the external and internal environment that an enterprise belongs to.
● PESTEL - Political, Economic, Sociological, Technical Environment and legal
factors.
● SWOT - Strengths, Weaknesses, Opportunities, and Threats
● STRATEGIES - Market Penetration, Market Development, and Product or
Service Development
❖ EXTERNAL ENVIRONMENT
➔ Government
➔ Economic conditions
➔ Social
➔ Other factors that affect generally the organization
➔ PESTEL
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➔ Some of the occurrences include:
1. Possibility of getting business offers from external communities
2. Sudden shifts in customer’s tastes, which favor the entrepreneur’s
products.
3. Changes in market trends due to new development
The Analysis of the external government gives rise to opportunities and threats for
the enterprise.
➔ Opportunities- are external possibilities or chances that may occur and benefit
the business. Such occurrences may or may not happen.
➔ Threats- are undesirable occurrences in the market and are disadvantageous to
the business and may include the following:
1. Entry of low cost companies into the market
2. A rise in the sale of substitute goods.
3. Costly regulatory requirements.
4. Changing customer/buyer needs and tastes.

❖ INTERNAL ENVIRONMENT
➔ Internal resources may include management, manpower, money, materials
and machinery, including technology.
➔ Strengths and weaknesses refer to the presence or absence of internal
resources in a given enterprise.
STRENGTHS AND WEAKNESSES (EXAMPLES)
1. Strengths: skilled manpower, positive returns, cutting edge equipment, high
quality products, affordable but profitable prices, ability of the product to meet
customer’s tastes, efficiency and effectiveness in serving customers.
2. Weaknesses: lack of reliable suppliers of materials and limited production
capacity, being new in the market and having a weak market image, higher unit
costs relative to customers, inaccessible location to customers.

STRATEGIES

➢ MARKET PENETRATION- increasing market share for products and services in

existing markets through market efforts.
➢ MARKET DEVELOPMENT- introducing products and services in new geographic
areas.
➢ PRODUCT OR SERVICE DEVELOPMENT- modifying products and services

IV. MANAGEMENT STUDY

1. Organizational chart
➢ is a traditional picture of the positions in a firm, how they are
arranged, who reports to whom and what specific positions execute in
the enterprise.

➢ Vertical structure or top to bottom line in an organization, is rooted

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on the basic concepts of authority, span of control and delegation.

2. Business name
3. Salaries and wages
4. Started capital

V. MARKETING STUDY
1. Target market description:
➔ Potential Buyer
➔ Population number
➔ Demographics such as age, gender, occupation, income.
➔ Observation such as lifestyle, behavior, usage, patterns, interest,
activities
2. Product or service description: features of your product/characteristics
(such as benefits, color, size, shape, various flavor, aroma, texture, etc)
➔ graphic illustrations/representation
➔ pictures
➔ Visuals
➔ Drawing of your product

Cost of the product including the purchase cost, cost of delivery.

● Price- computation, Pricing methods used.

a. Cost Oriented Pricing- an amount is added to the cost of the product
(price from your supplier)
➔ Cost Plus Pricing - specified amount is added to the cost of the
product
➔ Standard markup pricing - specific percentage is added to the cost
of the product
b. Target profit pricing - target profit is allocates and added to the cost of
the product
c. Competition Based Pricing
● Place- Distribution, location of the enterprise
a. Direct Distribution - seller to buyer
b. Indirect Distribution - agent/ intermediaries
c. Hybrid Distribution - combination of direct and indirect
● Promotion- promotional materials(pictures)
● Projected sales volume.

VI. OPERATIONS STUDY

- decision areas include the following:
1. Product Or Service Description
➔ Does the product have a shelf life or best before feature?
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➔ Is there a product liability?

➔ Does the product comply with established quality standards

➔ How long would each service unit delivery take?

➔ What are the steps involved in the service delivery?

2. Supplier/Partner Description
3. Cost Of Product Or Service
➔ Rental Of Shop Or Outlet

➔ Renovation Or Construction Of Facilities

➔ Salaries And Wages

➔ Utilities Expense

➔ Transportation Expense

➔ Communication Expense

VII. FINANCIAL STUDY

➢ How much money do you need for the business enterprise ?

➢ Where will you get the money?

➢ How will you spend the money?

A. Cash Budget Preparation

B. Culminating Report
C. Environmental Analysis
D. Financial Statement Analysis
E. Financial Study
F. Implementation Plans
G. Management Study
H. Marketing Study
I. Operations Study
J. Performance Reports

1. This is the business simulation activity where graphic illustrations, pictures or

testimonials for the product and service descriptions.
2. Part of the business plan where the organizational chart is completed.
3. Part of the business plan where it utilizes Porter’s Model.
4. In this business simulation activity, the teams divide the work assignments given
by the owner.
5. Part of the business plan where team members complete the financial plan.
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A. Business Implementation And Execution

B. Culminating Report

C. Enterprise Study

D. Financial Statement Analysis

E. Financial Study

F. Management Study

G. Marketing Study

H. Environmental Analysis

I. Operations Study

J. Performance Reports

K. Scope And Limitation

1. Part of business plan where price is in this section of business plan

2. Cost of sales

3. Organizational chart

4. Strategies

5. Business name