BU 121

Week 2 Business Planning & Business Models

Inspiring Lives of Leadership and Purpose

Opening Thoughts
Plan your work, and then work your plan.
- Vince Lombardi

It is always wise to look ahead, but difficult to look further than you can see.
- Sir Winston Churchill

Inspiring Lives of Leadership and Purpose

Agenda
Reminders/Clarifications Tips re: Blending Learning Business Planning Key Concept Review Discussion Introduction of Project

Inspiring Lives of Leadership and Purpose

Lab Registration
sincere apologies for closures/shifts contact Head TA or I if you are having any difficulty re-scheduling a lab time attend this week regardless finalize by Friday, Jan. 13th

Inspiring Lives of Leadership and Purpose

Additional Resources
Included with Text CengageNow online chapter quizzes
coursekeys by lab and powerpoint instructions are posted on MyLearningSpace under Assignments

Write Experience individual writing assignment

instructions and codes will be posted on MyLearningSpace and discussed in labs and lectures KEEP THE CODE INCLUDED WITH THE TEXT IN A SAFE PLACE!

Inspiring Lives of Leadership and Purpose

Additional Resources (contd)

Included with Lab Manual DISC assessment download or print the report, complete the exercises, and TAKE IT TO YOUR FIRST LAB EQi assessment you must TAKE YOUR ASSESSMENT COUPON TO YOUR FIRST LAB to get the access code and password to complete the assessment due by 11:59 p.m. Sunday, Jan. 15th once completed, you should be reflecting on this information, using this new knowledge about yourself, and keeping notes for your written Reflection due at the end of term

Inspiring Lives of Leadership and Purpose

Additional Resources (contd)

Top Hat Monocle
If you wish to register, please do so by January 16th $10/semester

SI (Supplemental Instruction MLS Discussion Board

Keep up the good work!

Inspiring Lives of Leadership and Purpose

Blended Learning Objectives

engaging students in learning process

assessment is more formative

moving towards greater responsibility for your own learning

class time is more interactive

customized, selfpaced learning

Inspiring Lives of Leadership and Purpose

Blended Learning Requirements

initiative, organization and effort!
read assigned material prior to class without taking notes Complete assigned quizzes* to test your knowledge
pre-test, study tools, post-test

take detailed lecture notes (plus note key concepts) make notes from the readings on key concepts to add to your lecture notes on the topic focus on the learning objectives instructor available to answer questions about assigned material

Inspiring Lives of Leadership and Purpose

Key Concepts from the Readings

Why Write a Business Plan?
model of business planning

Components of a Business Plan

Key questions answered Characteristics of a well-prepared plan The executive summary Critical risks Milestones Seven deadly sins

Useful for the project/not for exam purposes

Other sections of a business plan good guide Intangibles Making an Effective Business Plan Presentation
Inspiring Lives of Leadership and Purpose

Chapter Concept Review

Inspiring Lives of Leadership and Purpose

Business Planning

Inspiring Lives of Leadership and Purpose

The most important things an entrepreneur must accomplish

Complete this sentence: If your organization never existed the world would be worse off because
Inspiring Lives of Leadership and Purpose

A sacred verbal formula repeated in prayer, meditation, or incantation, such as an invocation of a god, a magic spell, or a syllable or portion of scripture containing mystical potentialities
Inspiring Lives of Leadership and Purpose

Inspiring Lives of Leadership and Purpose

Inspiring Lives of Leadership and Purpose

Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything

we do, we strive for honesty, fairness and integrity.

Refresh Everything
Inspiring Lives of Leadership and Purpose

Dont worry about being embarrassed. Dont wait to develop the perfect product or service. Good is good enough. There will be plenty of time for refinement later. Its not how great you start its how great you end up.
Inspiring Lives of Leadership and Purpose

Who has your money in their pockets? How are you going to get it into your pocket?
Inspiring Lives of Leadership and Purpose

Business Models Made Easy (Don Debelak)

GEL Factor Analysis
G = great customers E = easy sales L = long life

The objective is to fine-tune your business so that it delivers all the GEL factors and youll be able to write a great business plan

Inspiring Lives of Leadership and Purpose

GREAT Characteristics CUSTOMERS Value to You

Number Ease of Finding Spending Patterns $ Value of Sale Repeat Sales Ongoing Sales Support

High Easy Prolific High Many Low

EASY SALES Value to Customer

Customer Acquisition Cost LONG LIFE Profit per Sale

How Important Competitive Advantage Price/Value Relationship

Entry Points Sales Support Required Promotional Activities Margins Up-Selling and Cross-Selling Ongoing Product Costs To Enter Business To Keep Market Share To Stay on the Cutting Edge

Important High Low

Many Little Low High Much Low Low Low Low

Investment Required

Inspiring Lives of Leadership and Purpose

Must Have Winners Customers Ease of Finding Value to Customer Price-Value Relationship Profit per Sale - Margins Must Not be a Concern Customers Spending Patterns Customer Value to Company Ongoing Sales Support Investment Required To Keep Market Share Winners: 1. 2. 3 ___ No ___ No ___ No Concerns: 1. 2. 3 All must be checked No or the model is flawed ___ Yes ___ Yes ___ Yes All must be checked Yes or the model is flawed

Winners need to outnumber concerns by three to one in order to proceed. Work through Figures 8-1 to 8-4
Inspiring Lives of Leadership and Purpose

What is a Business Model?

a business model describes the rationale of how an organization creates, delivers, and captures value
Alexander Osterwalder Business Model Generation

how a company intends to make money how your idea actually becomes a business that makes money

different companies can have similar offerings but different business models model affects strategy/ways of operating

Inspiring Lives of Leadership and Purpose

 to understand the scope of what youre undertaking, test assumptions quickly, and provide a method to find and fix the large flaws in your thinking.

a heavy woven net of ropes or wire cable placed over a blasting site to keep debris from scattering.

Inspiring Lives of Leadership and Purpose

Group Marketing Project & Individual Pitch

Instructions will be posted on MLS Objectives of project:
identify business idea assess feasibility of idea using GEL analysis build a marketing plan

Objective of pitch:
persuade listeners your business idea is worthy of consideration

Inspiring Lives of Leadership and Purpose

To do before next week:

1. 1. 2. 3. 4. Any questions at all? Register for Cengage NOW Obtain EQi access code in first lab and complete EQi assessment before Sunday, Jan. 15th at 11:59 p.m. Finalize lab registration before Friday, Jan. 13th at 4 p.m. Read and prepare for Week 3 lectures and Lab 2 (as listed in Course Outline). NOTE: Text Chapters are about writing and are for reference only!

Inspiring Lives of Leadership and Purpose