Benefits of a Business Development Strategy Provides direction & vision Contributes to informed decision making Increases competitiveness Builds on strengths Stimulates change & innovation Addresses weaknesses Exploits opportunities Helps overcome threats Improves financial performance Local Business
External Analysis Internal Analysis Key Development Areas Overview of a business development strategy Current Situation Action Plans Measures of Control Business Review
Internal Review ProductOperations Finance Marketing
Political Economic Social Technology Customers Competitors Suppliers Stakeholders Business Macro Environment Micro Environment Internal Environment
StrengthsWeaknesses OpportunitiesThreats SWOT Analysis
Strengths & Weakness- Internal Analysis areas Finance Pricing Financial performance Credit control Costs Purchasing Operations Suppliers Equipment Capacity Processes Management information systems Product Product range Features & benefits Unique selling points Packaging Quality Marketing Promotion Image/branding Distribution Sales Customer care
External FactorOpportunityThreat Macro Environment Political/Regulatory Economic Social Technology Deregulation Economic growth rate Cultural diversity Internet Waste legislation Increase in interest rates Shift in consumer tastes Policies/advancements Micro Environment Competitor Customer Supplier Stakeholder Strategic alliances Expanding market New processes Funding Substitute products Change in needs Increased prices Policies External Environment – Opportunities & Threats
Product Life Cycle Time Sales/Profits IntroductionGrowthMaturityDecline
Boston Matrix High Relative Market Share Low Low Market Growth Rate High StarQuestion Mark Dog Cash Cow
Features & Benefits FEATURE Characteristic of the product or service BENEFIT What the product or service does for the customer Local Service Convenient
Key Areas of Development Product development Marketing development Operational development Financial development
Product Development Strategies & Tactics Improve product quality Increase product range Refine product line Phase out a product Clearly identify features and benefits Develop unique selling points Obtain copyright, trademark, or patent
Marketing Development Strategies & Tactics Research customer needs and wants Keep up to date with market trends Develop a marketing strategy Revise logo/branding Develop a promotional plan Revise promotional materials/adverts/business stationery Develop a website Improve selling skills Networking Implement a customer care policy Develop marketing/selling skills Monitor and control marketing activities
Operational Development Strategies & Tactics Update computer systems & software/ improve IT skills Update telecommunications technology Purchase anti virus/firewall software/install broadband Update equipment/machinery/vehicle Relocate Review production processes Introduce quality control systems Undertake research & development Develop human resource policies & procedures Develop management information systems (MIS) Arrange appropriate insurance Join a professional body/trade association Improve administration systems
Financial Development Strategies & Tactics Revise pricing structure Reduce/minimise costs Negotiate credit/discount with suppliers Source funding Increase sales Improve credit control Improve existing bookkeeping system Develop a computerised bookkeeping system Implement online banking Complete tax/PAYE returns online Register for VAT Prepare financial budgets/projections Assess financial performance Develop financial management skills
Contents of an Action Plan Objective How Who When/Timeframe Resources Costs
SMART Objectives Specific Measurable Achievable Realistic Timebound
External Analysis Internal Analysis Key Development Areas Monitoring & Control Current Situation Action Plans Measures of Control