1. Reveal a content of business plan with their short explanation.

If you want to start a business, you must prepare a business plan.

A business plan tells the story of your business concept, provides an overview of the industry in
which you will operate, describes the goods or services you will provide, identifies your
customers and proposed marketing activities, explains the qualifications of your management
team, and states your projected income and borrowing needs.

In your business plan, you make strategic decisions in the areas of management, operations,
marketing, accounting, and finance. Developing your business plan forces you to analyze your
business concept and the industry in which youll be operating. Its most common use is
persuading investors and lenders to provide financing.

A business plan generally includes the following sections:

1. Executive summary. One- to three-page overview.

2. Description of proposed business. Brief description of the company that answers such
questions as what your proposed company will do, what goods or services it will provide,
and who its main customers will be.
3. Industry analysis. Short introduction to the industry in which you propose to operate
4. Mission statement and core values. Declaration of your mission statement, which are
fundamental beliefs about whats important and what is (and isnt) appropriate in
conducting company activities.
5. Management plan. Information about management team qualifications and
responsibilities, and designation of your proposed legal form of organization.
6. Goods, services, and the production process. Description of the goods and services that
youll provide in the marketplace; explanation of how you plan to obtain or make your
products or of the process by which youll deliver your services.
7. Marketing. Description of your plans in four marketing-related areas: target market,
pricing, distribution, and promotion.
8. Global issues. Description of your involvement, if any, in international markets.

9. Financial plan. Report on the cash youll need for start-up and initial operations, proposed
funding sources, and means of repaying your debt.

10. Appendices. Supplemental information that may be of interest to the reader.

2. What is to your opinion 2 most important section of the business plan except

Executive summary? Explain why.

Sections of the Business Plan

Though formats can vary, a business plan generally includes the following sections: executive
summary, description of proposed business, industry analysis, mission statement and core values,
management plan, goods or services and (if applicable) production processes, marketing, global
issues, and financial plan.
1. Marketing Plan

The number one issue for small businesses is finding customers. For many business owners, this
is the most important section, and much time is devoted to developing it. For without demand,
there are no sales.

It should answer 4 marketed related questions:

- Target market. Describe future customers and profile them according to age, gender, income,
interests etc.

- Pricing. State the proposed price for each product...it should be market-share gaining.

- Distribution. Explain how your goods or services will be distributed to customers.

- Promotion. Explain your promotion strategy and advertising channels.

2. Management plan

Investors want to align themselves with management teams they believe have the capability of
successfully executing the strategies outlined in the plan--and be good stewards of the capital the
investors put into the company. The management discussion has to go well beyond just a rehash
of resume-type information. It must show how each team members background and
accomplishments contribute essential elements needed to succeed with this new venture. Prior
success is highly valued by investors. Give the reader of the plan a clear indication that your
team is a group of winners and people of good character -- with a strong drive to succeed.

3.What questions would you highlight in Industry analysis of Business

plan?
The industry analysis that you performed before sitting down to write your business plan can
be incorporated into it to provide data on the industry and markets in which your company
conducts business. Drawing upon the data you collected by using the various industry
analysis resources mentioned earlier allows you to identify the risks and opportunities
confronting the company as it prepares to enter the marketplace with its products or services.
This information permits you to develop strategies to take full advantage of the opportunities
presented to business while minimizing or avoiding the identified risks.

This section provides a brief introduction to the industry in which you propose to
operateand accompanying questions are:

- How large is the industry?

What are total sales for the industry, in volume and dollars?

- Is the industry mature or are new companies successfully entering it?

- What opportunities exist in the industry? What threats exist?

- What factors will influence future expansion or contraction of the industry?

- What is the overall outlook for the industry? Who are your major competitors in the industry?

- How does your product differ from those of your competitors?

4.What core values would you follow in establishing your business and why?

Core values are fundamental beliefs about whats important and what is (and isnt)
appropriate in conducting company activities. Core values are not about profits, but
rather about ideals. They should help guide the behavior of individuals in the
organization. Coca-Cola, for example, intends that its core valuesleadership, passion,
integrity, collaboration, diversity, quality, and accountabilitywill let employees know
what behaviors are (and arent) acceptable.
Simply put, I use my personal core values as decision guidelines that keep me true to
myself, and out of trouble. Here are mine with brief descriptions:
Truth
Some people are skilled liars. I am not. I function best when people are direct and honest.
I make it clear in conversation and in writing that truth is necessary in my world, no
matter how painful. This is probably why I thrive as a New Yorker.
Diligence
I am a contact management freak. I focus on punctuality, returning phone calls and e-
mails within the hour or at least the day whenever possible. I hear screaming in my head
if I have left anyone hanging. I also make sure my statements are substantiated, hence the
reason you'll rarely see me speak in absolutes without doing my homework.
Consistency
Since people pay attention to my writing and talks, credibility is critical, and I have a lot
to live up to. Hypocrisy is deadly in my world and this core value reminds me to integrate
humor, the Awesome Experience, ROAR!and all my other lessons into my life and work,
every single day.
Creativity
You would think a writer, marketer, and theater graduate wouldn't need creativity as a
core value. But when it's been a long month of travel, it's 3 a.m. and the column, speech,
or book chapter is pending, I have to remind myself that I need to take that extra step to
make my material compelling so I can intrigue, entertain, and connect with my audience.
Impact
Like most entrepreneurs, I see potential everywhere. This value reminds me to disregard
when my brain is saying: "I can do that!" and instead ask the question: "Should I do
that?" The criteria are simple: Maximum results for minimum effort. Each shiny new
opportunity gets evaluated this way.
 5.What basic questions should Marketing answer in business plan?

Marketing Plan

The number one issue for small businesses is finding customers. For many business owners, this
is the most important section, and much time is devoted to developing it. For without demand,
there are no sales.

It should answer 4 marketed related questions:

- Target market. Describe future customers and profile them according to age, gender, income,
interests etc.

- Pricing. State the proposed price for each product...it should be market-share gaining.

- Distribution. Explain how your goods or services will be distributed to customers.

- Promotion. Explain your promotion strategy and advertising channels.

6.Put activities of HRM process

The HRM process consists of planning, attracting,developing and retaining the human
resources(employees) of an organization. Each of these activities is complex. Attracting
talented employees involves the recruitment of qualified candidates and the selection of
those who best fit the organizations needs. Development encompasses both new-
employee orientation and the training and development of current workers. Retaining
good employees means motivating them to excel, appraising their performance,
compensating them appropriately, and doing whats possible to retain them.
A strategic HR plan lays out the steps that an organization will take to ensure that it has
the right number of employees with the right skills in the right places at the right times.

To ensure that the organization is properly staffed, managers engage in strategic human
resource planningthe process of developing a plan for satisfying the organizations
human resource needs.

7.What do you think would be advantages of contractor-employees (non-

regular ones)?
 Small business owners usually prefer to hire freelance workers for jobs when they need
help. There are distinct advantages to sticking only to independent contractors:
Although you usually pay more per job or per hour, you will most likely save
money overall since you arent required to pay them any benefits and do not need to
commit to a salary.
You have greater flexibility. When you work with an independent contractor and
it isnt a good match, you simply dont hire them again. When you have an employee that
doesnt work out, you may need to fire them, which isnt always easy.
You can hire the right person for the task needed, contracting someone with a
specialized service. They often have many years of experience, so you dont need to train
them.
They are responsible for their own permits and professional licenses.

OR:

Benefits of Using Independent Contractors

There are several major advantages to using independent contractors rather than employees, with
financial savings topping the list.

You will probably save money. Even though most employers pay ICs more per hour than they
would pay employees to do the same work, it usually ends up costing employers more to hire
employees. When you hire an employee, you will have to pay a number of expenses that you
don't have to pay for ICs, including employer-provided benefits, office space, and equipment.
You will also have to make required payments and contributions on behalf of your employees,
including:

your share of the employee's Social Security and Medicare taxes, which totals 7.65% of
the employee's compensation

state unemployment compensation insurance, and

workers' compensation insurance.

All together, these expenses can easily increase your payroll costs by 20% to 30% -- or more.

You have staffing flexibility. Working with ICs allows employers greater leeway in hiring and
letting go of workers, which can be especially advantageous for employers with fluctuating
workloads. You can hire an IC for a specific task or project, knowing that the worker will be
gone when the job is finished. You won't have to face the trauma, expense, and potential legal
trouble that can accompany firings and layoffs.

You may also enjoy greater efficiency when you use ICs. Because most ICs bring specialized
expertise to the job, they are usually productive immediately, eliminating the time and cost of
training.

You reduce your exposure to lawsuits. Employees have a wide array of rights under state and
federal laws -- and therefore, a variety of legal claims they can potentially bring against their
employers for violating those rights. Because ICs are independent businesspeople, they are not
protected by many of these laws. Among the rights that are available to employees but not to ICs
are:

the right to receive at least the minimum wage and, for employees who qualify, overtime
compensation at the rate of one-and-a-half times their regular hourly wage

protection from employment discrimination on the basis of national origin, color,

religion, gender, and so on (ICs are still protected from race discrimination, however)

the right to form a union, and

the right to take time off to care for a sick family member or bond with a new child.

8.What are the advantages of having a regular staff?

Advantages to hiring full time employees
When you hire full time e mployees, they will work for you thirty or more hours a week
(fewer hours makes them part-time) and will usually have a long-term commitment to
you and your business. The advantages to this type of relationship for you, the employer,
are:
These employees will feel pride in their position in your company. Most people
want the security of a job, but they also want to feel the satisfaction of working for a
company that they can call home. They want to feel that they are an important part of the
team. If you give them that, they may go the extra mile.
The hourly wage for a full time employee is often much less, because they have
job security. If you were to hire out for the same work with a freelancer, you can often
expect to pay quite a bit more.
You dont need to scramble to find help when your workload increases. If you
only rely on independent contractors and need urgent help, your favorite freelancer might
be booked. Or it might cost you a lot more to hire one last minute.
You dont have to wear all the hats of your business yourself. Instead you can
delegate tasks permanently to others. This frees up your time to do the tasks best suited
for you.
You dont need to continually train staff on how you like things done. Your
employees know you and can do the work without the need for continual direction.
If you want to take a vacation, you can be assured that someone is holding down
the fort for you in your absence.

9.What are functions of general management?

Henri Fayol was the first to describe the four managerial functions when he was the CEO
of a large mining company in the later 1800s.
Fayol noted managers at all levels, operating in a for profit or not for profit organization,
must perform each of the functions of:
 1)Planning,
2)organizing,
3)leading,
4)controlling.
1.Planning is the process used by managers to identify and select appropriate goals and
courses of action for an organization.
3 steps to good planning :
1. Which goals should be pursued?
2. How should the goal be attained?
3. How should resources be allocated?
The planning function determines how effective and efficient the organization is and
determines the strategy of the organization.

2.In organizing, managers create the structure of working relationships between

organizational members that best allows them to work together and achieve goals.
Managers will group people into departments according to the tasks performed.
Managers will also lay out lines of authority and responsibility for members.
An organizational structure is the outcome of organizing. This structure coordinates and
motivates employees so that they work together to achieve goals.

3.In leading, managers determine direction, state a clear vision for employees to follow,
and help employees understand the role they play in attaining goals.
Leadership involves a manager using power, influence, vision, persuasion, and
communication skills.
The outcome of the leading function is a high level of motivation and commitment from
employees to the organization.

4. In controlling, managers evaluate how well the organization is achieving its goals and
takes corrective action to improve performance.
Managers will monitor individuals, departments, and the organization to determine if
desired performance has been reached.
Managers will also take action to increase performance as required.
The outcome of the controlling function is the accurate measurement of performance and
regulation of efficiency and effectiveness.

10.Count and explain managerial skills.

There are three skill sets that managers need to perform effectively.
1. Conceptual skills: the ability to analyze and diagnose a situation and find the cause and
effect.
2. Human skills: the ability to understand, alter, lead, and control peoples behavior.
3. Technical skills: the job-specific knowledge required to perform a task. Common
examples include marketing, accounting, and manufacturing.
All three skills are enhanced through formal training, reading, and practice.
 (Interpersonal Skills, Communication Skills, Time-Management Skills Decision-Making
Skills,

11. Which managerial skill is most crucial for top management?..Elaborate

Top managers need strong conceptual skills, while those at midlevel need good
interpersonal skills and those at lower levels need technical skills. All managers
need strong communication, decision-making, and time-management skills.
Top-level management consists of boards of directors, presidents, vice-presidents, CEOs,
general managers and senior managers, etc.

They develop goals, strategic plans, and company policies and make decisions about the
direction of the business.

Top managers need to have more conceptual skill than technical skill. They understand how
competition, world economies, politics, and social trends affect organizational effectiveness.

Conceptual Skills

Conceptual skills present knowledge or ability of a manager for more abstract thinking. That
means he can easily see the whole through analysis and diagnosis of different states in order to
predict the future of the business or department as a whole.

(OR: Managers at the top, who are responsible for deciding whats good for the organization
from the broadest perspective, rely on conceptual skillsthe ability to reason abstractly and
analyze complex situations. Senior executives are often called on to think outside the boxto
arrive at creative solutions to complex, sometimes ambiguous problems. They need both strong
analytical abilities and strong creative talents.)

Why managers need these skills?

As a first, an company have more business elements or functions as selling, marketing, finance,
production All these business elements have different goals even completely opposed. Think
about marketing and production as a business function and their separate goals. Youll see the
essential difference. The conceptual skills will help managers to look outside the goals of a
single business department and make decisions that will satisfy overall business goals.

Conceptual skills are vital for top managers, less important for mid-level managers, and not
required for first-level managers. As we go from a bottom of the managerial hierarchy to the top,
the importance of these skills will rise.

13. What would be common managerial skill for both top and lower
management?

Technical Skills (answer from book)

Youll probably be hired for your first job based on your technical skillsthe ones you need to
perform specific tasksand youll use them extensively during your early career. If your college
major is accounting, youll use what youve learned to prepare financial statements. If you have
a marketing degree and you join an ad agency, youll use what you know about promotion to
prepare ad campaigns. Technical skills will come in handy when you move up to a first-line
managerial job and oversee the task performance of subordinates. Technical skills, though
developed through job training and work experience, are generally acquired during the course of
your formal education

Technical Skills

As the name of these skills tells us, they give the managers knowledge and ability to use
different techniques to achieve what they want to achieve. Technical skills are not related only
for machines, production tools or other equipment, but also they are skills that will be required to
increase sales, design different types of products and services, market the products and
services

For example, lets take an individual who work in sales department and have high developed
sales skills obtained through education and experience in his department or the same departments
in different organizations. Because of these skills he possess, this person can be a perfect
solution to become sales manager because he has great technical skills related to sales.

On the other hand, one person that become sales manager immediately will start to build his next
type of required skills, because if his task until now was only to work with the customers as sales
representative, now it will need to work with employees in sales department as addition to the
work with customers.

Technical skills are most important for the first-level managers, but for the top managers, these
skills are not something with high significance level. As we go through a hierarchy from the
bottom to higher levels, the technical skills lose their importance.

13. What would be common managerial skill for both top and lower
management?
Communication Skills

Effective communication skills are crucial to just about everyone. At all levels of an
organization, youll often be judged on your ability to communicate, both orally and in writing.
Whether youre talking informally or making a formal presentation, you must express yourself
clearly and concisely. Talking too loudly, rambling, and using poor grammar reduce your ability
to influence others, as does poor written communication. Confusing and error-riddled documents
(including e-mails) dont do your message any good, and they will reflect poorly on you.

Realistically, most organizations need leaders who can view their teams analytically and
objectively, evaluating inefficiencies and making unpopular choices. However, it is misleading
to think that a manager has to be distant from or disliked by subordinates to execute these
responsibilities. Creating a healthy environment conducive to development, criticism, and higher
degrees of achievement simply requires strong human skills, particularly in the realm of
communication
14. Define the term of marketing.
Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large.

In other words, marketing isnt just advertising and selling. It includes everything that
organizations do to satisfy customer needs

Here are the activities that marketing comprises of:

Coming up with a product and defining its features and benefits

Setting its price
Identifying its target market
Making potential customers aware of it
Getting people to buy it
Delivering it to people who buy it
Managing relationships with customers after it has been delivered

15. Define the term of marketing concept.

Marketing concept is to balance between meeting commercial goals and to implement a

marketing goal which is:

1. Find out what customers or potential customers need.

2. Develop products to meet those needs.

3. Engage the entire organization in efforts to satisfy customers.

The marketing concept puts the customer first: as your most important goal, satisfying the
customer must be the goal of everyone in the organization. But this doesnt mean that you ignore
the bottom line; if you want to survive and grow, you need to make some profit. What youre
looking for is the proper balance between the commitments to customer satisfaction and
company survival

16. Elaborate on components of marketing mix.

"The Marketing Mix often refers to the application of the four Ps of marketing:

1. Developing a product that meets the needs of the target market

2. Setting a price for the product

3. Distributing the productgetting it to a place where customers can buy it

4. Promoting the productinforming potential buyers about it

17. Which marketing segmentations do you know?

The next step in identifying a target market is to divide the entire market into smaller portions, or

arket segmentsgroups of potential customers with common characteristics that influence their
buying decisions. You can use a number of characteristics to narrow a market.

Demographic segmentation divides the market into groups based on such variables as age,
marital status, gender, ethnic background, income, occupation, and education.

Geographic segmentationdividing a market according to such variables as climate, region,

and population density (urban, suburban, small-town, or rural)is also quite common. Climate
is crucial for many products: try selling snow shovels in Hawaii or above-ground pools in
Alaska. Consumer tastes also vary by region. Thats why McDonalds caters to regional
preferences, offering a breakfast of Spam and rice in Hawaii, tacos in Arizona, and lobster rolls
in Massachusetts. [5] Outside the United States, menus diverge even more widely (you can get
seaweed burgers or, if you prefer, seasoned seaweed fries in Japan).

Behavioral Segmentation

Dividing consumers by such variables as attitude toward the product, user status, or usage rate is
called behavioral segmentation

Psychographic segmentation classifies consumers on the basis of individual lifestyles as

theyre reflected in peoples interests, activities, attitudes, and values.

Clustering Segments

Typically, marketers determine target markets by combining, or clustering, segmenting

criteria.

18. How would you split marketing strategy upon tasks? Explain in detail.
Marketing Strategy

Declaring that you intend to develop products that satisfy customers and that everyone in your
organization will focus on customers is easy. The challenge is doing it. As you can see in Figure
9.2 "Marketing Strategy", to put the marketing concept into practice, you need a marketing
strategya plan for performing two tasks:

1. Selecting a target market

2. Developing your marketing miximplementing strategies for creating, pricing, promoting,

and distributing products that satisfy customers
Well use Figure 9.2 "Marketing Strategy" as a blueprint for our discussion of target-market
selection, and well analyze the concept of the marketing mix in more detail in Section 9.2 "The
Marketing Mix".

Figure9.2

19. Put tools of marketing research as broadly as possible

20.How do you distinguish management from leadership?
Management: The process of using organizational resources to achieve the organizations goals
by Planning, Organizing, Leading, and Controlling.Managers are the people responsible for
supervising the use of an organizations resources to meet its goals.

Leadership is the process where a person exerts influence over others and inspires, motivates and
directs their activities to achieve goals.Effective leadership increases the firms ability to meet
new challenges.Leader: The person exerting the influence.

The main difference between leaders and managers is that leaders have people follow them while
managers have people who work for them.

A successful business owner needs to be both a strong leader and manager to get their team on
board to follow them towards their vision of success. Leadership is about getting people to
understand and believe in your vision and to work with you to achieve your goals while
managing is more about administering and making sure the day-to-day things are happening as
they should

Managers have employees. Leaders win followers.

Managers react to change. Leaders create change.

Managers have good ideas. Leaders implement them.

Managers communicate. Leaders persuade.

Managers direct groups. Leaders create teams.

Managers try to be heroes. Leaders make heroes of everyone around them.

Managers take credit. Leaders take responsibility.

Managers are focused. Leaders create shared focus.

Managers exercise power over people. Leaders develop power with people

21.What kind of leadership styles do you know?

Transformational leadership may be charismatic and have a vision of how good things can be.

But more often it is more than charisma since it enable to question not only established
views but also views of a leader.

Transformational leaders openly share information with workers.

Everyone is aware of problems and the need for change.

 Empowers workers to help with solutions.

Transformational leaders engage in development of workers.

Manager works hard to help them build skills

Charismatic leadership

Five characteristics were identified in charismatic leadership:

- having a vision

- articulation of that vision

- willing to take risks

- sensitivity to environmental constraints and

follower needs

- exhibit behaviour that is out of the ordinary

Team leadership

There are four specific leadership roles:

- liaison with external constituencies

- trouble shooters

- conflict managers

- coaches

Other types:Moral lidership and Online lidership

22. Name crucial leadership traits that you might know

Unsuccessful attempts to identify traits of leaders was followed by picking traits associated with
leadership (process, rather a person).

These studies were more or less successful.

Traits associated with effective leadership were seven:

1.Drive high effort level, ambitious, high energy, persistent, show initiative.

2.Desire to lead to influence and take responsibility.

3.Honesty and integrity.

 4.Self-confidence
5.Intelligence to create vision, solve problems, make correct decisions.

6. Job-related knowledge

7. Extraversion leaders are energetic and lively people. They are sociable, assertive,
rarely silent or withdrawn.

23. Put sources of leaders power and explain them

Used to affect others behavior and get them to act in given ways.
Legitimate Power:
Managers authority resulting by their management position in the firm.
Can be power to hire/fire workers, assign work.
Reward Power: based on the managers ability to give or withhold rewards.
Pay raises, bonuses, verbal praise.
Effective managers use reward power to signal employees they are doing a good job.
Coercive Power:
Based in ability to punish others.
Ranges from verbal reprimand to pay cuts to firing.
Can have serious negative side effects.
Expert Power:
Based on special skills of leader.
First & middle managers have most expert power.
Often found in technical ability.
Referent Power:
Results from personal characteristics of the leader which earn workers respect, loyalty
and admiration.
Usually held by likable managers who are concerned about their workers.

24.Put your opinion gender and leadership

The number of women managers is rising but still relatively low in top levels.
Stereotypes suggest women are supportive and concerned with interpersonal relations.
Similarly, men are seen as task-focused.
Research indicates that actually there is no gender-based difference in leadership
effectiveness.
However, women are seen to be more participative than men.