ORGANIZATION AND

MANAGEMENT
PLANNING
 MARKETING TECHNICAL ORGANIZATION
PLAN PLAN PLAN

FINANCIAL
PLAN
What to sell?
Make, provide, or buy what is to be sold?

Who will manage the enterprise?

How much will it cost to start the business?
 ELEMENTS OF THE
ORGANIZATION PLAN
ELEMENTS OF THE ORGANIZATION PLAN

A. Legal form of Business

B. Qualifications of the Management

Team

C. Business Implementation Timetable

D. Estimates of Organization Expenses

(optional)
A. LEGAL FORMS OF BUSINESS

SingleProprietorship
Partnership
Corporation
Cooperatives
 LEGAL FORMS OF BUSINESS
Single Proprietorship

ADVANTAGES

• Allows you to be your own boss

• Easy to start
• Allows you to keep all profits
• Gives you complete control of the business
DISADVANTAGES

• Makes you liable for all the risks and losses

• Has limited access to capital
• Demands long hours of hard work on you
 LEGAL FORMS OF BUSINESS

Partnership
ADVANTAGES

• More money available

• More “heads” contribute in managing the business
• Losses are shared among the partners
DISADVANTAGES

• Control of business is shared (limited)

• Profits are shared (reduced profits)
• Decision made by a partner is binding to other partners
 LEGAL FORMS OF BUSINESS
Corporation
ADVANTAGES

• Capital is easily raised

• Liability for debts incurred by the business is limited
to your share capital
• Tasks usually done by hired employees
DISADVANTAGES

• Corporate and individual profits are taxed separately

• More rules and regulations to comply with
• Major decisions can’t be done by the owners without
board approval
 LEGAL FORMS OF BUSINESS
Cooperative
ADVANTAGES

• Easy to raise share capital

• Limited liability for cooperators
• Tax free up to a certain sales amount
DISADVANTAGES

• Control of business is shared

• Ideas and decisions made by the BOD have to be
accepted by the general membership
B. Qualifications of the Management Team

1. How shall the project be managed

during the pre-operating period?

Indicate firm or persons involved or to be

involved in studying the different aspects
of the project.
B. Qualifications of the Management Team

JOB DESCRIPTION OF KEY OFFICERS

• Name
• Position Title
• Responsible to
• Responsible for
• Duties and Responsibilities
• Qualifications
B. Qualifications of the Management Team

2. How shall the project be managed during

the operating period?

Indicate the type of business organization;

organizational chart and functions of each unit
management personnel specifying the duties
and time to be devoted to the project,
qualifications and compensation.
Management Personnel’s functions, qualifications,
compensation,incentives etc.
Manage-
Ment Per- Duties/ Time Incentive/
sonnel Functions Devoted Qualifications Compensation Benefits
Labor Requirements

No. of Labor Qualifications Compensation

Labor skills Required
 Organizational Structure/
Chart
Organizational Structure/Chart
Line

Owner/Manager

Production Marketing
Supervisor Supervisor

Asst. Supervisor
Organizational Structure/Chart
Line and Staff

Owner/Manager

Cashier

Production Marketing
Supervisor Supervisor

Asst. Supervisor
 Functional

General Manager

Cashier

Production Marketing

Supervisor Supervisor
C. Business Implementation
Timetable
 BUSINESS IMPLEMENTATION TIMETABLE

PRE- OPERATING PRE- OPERATING

ACTIVITIES PERIOD (weeks)
1. Prepare business plan xxxx
2. Raise financing xxxxxxxx
3. Register the business xx
4. Rent or construct facility xxxxxxxx
5. Purchase equipment xxxxx
6. Purchase materials and supplies xxxx
7. Hire (and possibly train) people xxxx
8. Trial run / COTR x
9. Start of normal business x
operations
 Gantt Chart
Example.
Jan-mer Food Products Plan
of Activities
YEAR 1
ACTIVITY 1 2 3 4 5 6 7 8 9 10 11 12
1. Construction of building
extension X
2. Testing product shelf life
and XX
analysis of nutrient
content
3. Ordering of packaging
materials X
4. Start of processing
operation X
 Gantt Chart
List of Activities
YEAR 1
ACTIVITY 1 2 3 4 5 6 7 8 9 10 11 12

1.

2.

3.

4.

5.
D. Estimates of
Organization Expenses
 PRE - OPERATING PRE - OPERATING
ACTIVITIES EXPENSES

1. Prepare business plan xxx

2. Raise financing xxx
3. Register the business xxx
4. Rent or construct facilities xxx
5. Purchase equipment xxx
6. Purchase materials & supplies xxx
7. Hire (and possibly train) people xxx
8. Trial run / COTR xxx
TOTAL xxx
Summary
ELEMENTS OF THE ORGANIZATION PLAN

A. Legal form of Business

(ex. Single proprietorship)
B. Qualifications of the Management
Team
(ex. Educational attainment, training
experience)
C. Business Implementation Timetable
(Gantt Chart, List of activities)
D. Estimates of Organization Expenses
(pre-operating expenses)