Business planning ppt bec bagalkot mba

BUSINESS PLANNING

PRESENTED BY :-BABASAB PATIL

BUSINESS PLANNING

(M.B.P)

CONTENTS

Introduction

Being aware of opportunities (SWOT)

Setting objectives or goals

Indentifying alternatives

Evaluating Alternatives

Selecting an alternative

Formulating Supportive Plan

Numberising Plans By Making Budget

Planning Definition:

Planning is a particular type of decision making that addresses the specific future that manager desire for their organizations.

Planning is the first managerial function to be performed in the process of management.

Importance of Planning:

• It offsets future uncertainty and change.• It tackles increasing complexity in modern business.• It helps in co-ordination.• It helps in exercising effective control. • It helps in the proper utilization of the company’s

resources.

Cont…

• It facilitates unity of action.• It helps in avoiding business failures.• Focuses attention on organization’s goals.• Improves competitive strength.• Improves adaptability.• Guides decision-making

Introduction

Business plans can help to perform a number of tasks. They are used by investment-seeking entrepreneurs to convey their vision to potential investors. They may a be also used by firms that are trying to attract key employees, prospect for a new business, deal with suppliers or simply to understand how to manage their companies better.

Environment scanning

To start our new business we selected Navanagar, i.e.

near by Akshay International Lodge and restaurant,

Vidyagiri Bagalakot.While considering bagalakot as a

developing area we have a lot of opportunities to start

new business finally scanning of the areas we got many

alternatives to start new business.

Like as:

Yoga centre

Milk Parlor

Travelling Agency

SWOT AnalysisStrengths:

o In bagalakot as we found only few business existing

like our alternatives.

o Sound finance.

o No competitors.

o Mutual understanding in between our business and

public.

o Affordable price.

Weakness:

o Problem of location.o Government rules and regulation.

Opportunities:

o Customer satisfaction.o Promotional activities.o Total quality management (TQM).o Switch on to others.

Threats:

o High oligopoly.o Government intervention.

Establishing objectives

Employment opportunities.

To increase standard of living.

To giving extraordinary service.

To become a market leader.

To maximize profit.

.

Evaluating alternatives

After knowing out of the alternatives next step

is to evaluate the alternatives through analysis of

strong and weak points of alternatives as below:

Yoga centre

Strong Points:

1.Mental and physical health.

2.Some extent target customers are all .

Weak Points:

1.Maintenance problem.

2.Impact of mass media.

3.Busy in their routine schedule.

Milk parlor:

Strong Points:

1.Easily available of raw materials.

2.Cost is low.

3.100% quality .

4.Demand is more

Weak Points:

1. Competition.

2.Maintenance cost is high.

Travelling agency:

Strengths: Navanagar is the heart of the Bagalkot. Sound finance. Proper professional guiders,maps,periodicals etc. Habits. Maintaining with security.

Weaknesses:

Season based. Improper roads.

Selecting an alternative

Analysis of strengths and weakness of alternatives ,we are giving to more priority about strengths not at all about weak points because to survive the business long run with the profit.

Our business is very nearer to Akshay International Lodge and Restaurant obliviously we are Switch on to them .

Formulating Supporting PlansNatural Resources

* Climate-seasons * Water resources-lakes, streams, waterfall * Geological resources-topography, soils, sand dunes, beaches, caves, rocks & minerals, fossils * Scenery-combinations of all of the above

Cultural Resources

* Historic buildings, sites * Monuments, shrines * Industry, government, religion, etc. * Local celebrities

Human Resources:

* Hospitality skills

* Management skills

* Infrastructure-transportation roads, airports,

railroads, walkways

* Infrastructure: utilities water, power, waste

treatment, communications

Numberizing plans by making budgets

Once we have decided on one or more budgets we must

answer certain questions about each before making final

draft, the questions are

*can we make it ?

*Can we sell it?

*can we earn from if?

Then only business run smoothly.

FIXED CAPITAL

Si no particulars

period amount

1 Land/building

1 year 1,75,000

2 Machinery/equipment

1year 55,000

3 Furniture and fixtures

1year 25,000

4 Total 2,50,000

Business Plan or Budget

Working capital:-

Si no particulars

period Amount

1 Utilities 1 year 55,000

2 Wages/salaries

1year 75,000

3 Other 1year 50,000

4 Total 1,70,000

Total cost of project

Si No Particulars

Period Amount

1 Fixed capital

1 Year 2,50,000

2 Working capital

1 Year 1,70,000

3 Preliminary expenses

1Year 15,000

4 Total 4,20,000

1 year

Means of finance

Si no particulars

period amount

1 Term loan 1 year 15,000

2 Working capital loan

1 year 5,000

3 Own investment

1 year 1,00,000

4 Total 1,20,000

Profitability Analysis

Particulars Amount

Sales revenue 6,00000

Fixed capital 2,50,000

Working capital 1,70,000

Interest (12.5%) 75,000

Gross Profit 1,05,000

Income tax 25,000

Net profit 80,000

Conclusion

Finally we conclude that Travelling Agency is the best alternative to start new business in Bagalkot with great support of business planning process.

Open For Queries

THANK YOU