Andrews Corporation Business Plan

Why Prepare a Business Plan? Determine where the company needs to go Forewarn of possible roadblocks along the way Formulate responses to contingencies Keep the business focused on success Crucial for obtaining outside funding

SWOT Analysis S trengths: attributes of the organization that are helpful to achieving the objective. W eaknesses: attributes of the organization that are harmful to achieving the objective. O pportunities: external conditions that are helpful to achieving the objective. T hreats: external conditions which could do damage to the business's performance.

Internal Analysis Factors should be evaluated across the organization in areas such as: Company culture Operational capacity Company image Brand awareness Organizational structure Market share Key staff Financial resources Access to natural resources Exclusive contracts Position on the experience curve Patents and trade secrets Operational efficiency Strengths: What advantages does your company have? What do you do better than anyone else? What unique or lowest-cost resources do you have access to? What do people in your market see as your strengths? What factors mean that you "get the sale"? Weaknesses: What could you improve? What should you avoid? What are people in your market likely to see as weaknesses? What factors lose you sales?

External Analysis Changes in the external environment may be related to: Customers Social changes Competitors New technology Market trends Economic environment Suppliers Political and regulatory environment Opportunities: Where are the good opportunities? What are the interesting trends? Changes in technology and markets on both a broad and narrow scale Changes in government Changes in social patterns, population profiles, lifestyle changes, etc. Local events Threats: What obstacles do you face? What is your competition doing that you should be worried about? Are the required specifications for your job, products or services changing? Is technology threatening your position? Do you have bad debt or cash-flow problems? Could any of your weaknesses seriously threaten your business?

Executive Summary Write this section last. Summarize the fundamentals of your business: –Who are your customers? –What will your product strategy be? –What is your marketing plan? –What is your production plan? –How will you finance your growth and success? What is your overall Corporate Strategy? Outline your company’s competitive advantage. Make it enthusiastic, professional, complete and concise

Vision Statement Clearly state your company’s philosophy. –Try to use words that are easily understood by employees and customers. Mission Statement Clearly state your company’s long-term mission. –Try to use words that will help direct the growth of your company, but be as concise as possible.

Business Philosophy What is important to you in business? To whom will you market your products? Describe your industry. –Is it a growth industry? –What changes do you foresee in the industry, short term and long term? –How will your company be poised to take advantage of them? Describe your most important company strengths and core competencies. What factors will make the company succeed? What are your major competitive strengths?

Research and Development Summarize your plans for new product introduction and product repositioning. –Will you introduce new products? How often? In what market? –Where and how aggressively will you position your products? –What impact does MBTF have on cost? –Will you ever phase out a product? –How will you manage the age of your products?

Marketing Summarize your market in the past, present, and future. –Who are your target customers? What % share of the market(s) do you have What % share of the market(s) will you have –What pricing strategies will you use? –What level of Promotion is appropriate for your products? –How will you do your marketing sales forecasts? –Review anticipated changes in market share, leadership, players, market shifts, costs, pricing, or competition that provide the opportunity for your company’s success.

Production What is your corporate philosophy regarding capacity increases vs. overtime charges? How aggressive / conservative will you be vs. your Marketing Sales Forecast? What level of automation is appropriate for your products? –Low tech –High tech Do you plan to liquidate and factories?

Financial Plan Outline a high-level financial plan that defines your financial model and pricing assumptions. –How will you raise capital? short-term debt long-term debt stock issues factory liquidation combination of these

Key Financial Measurements Identify the Key Financial Measurements that were selected by your company. Why were these chosen? What does your company need to accomplish to maximize these Measurements? How do they support your business plan and corporate strategy?

Resources Business Plans for a Startup Business