1. Santiago Ibarreche © November 20081 Strategic Management and Business Plans Global Entrepreneurship Week El Paso, Texas Dr. Santiago Ibarreche November 19, 2008

2. Santiago Ibarreche © November 20082 Content What is a Business Plan? IDEAS IDEAS IN ACTION © Identifying what is relevant Defining Parameters Expectations Analysis of Trends Synthesis IN IDEAS IN ACTION © Ideas for Strategies Nurturing Strategies

3. Santiago Ibarreche © November 20083 Content (Continued) ACTION IDEAS In ACTION © Analysis of Options Changes to Structures Training and Resource Allocation Implementation Organization for Continuous Improvement Nothing is as permanent as change

4. Santiago Ibarreche © November 20084 Content (Continued) Business Plan Structure Executive Summary Business Antecedents Environmental Analysis Present Market and Competitive Analysis Marketing Plan Management and Organization Goal and Objectives Financial Projections Additional Information and Annexes Conclusions

5. Santiago Ibarreche © November 20085 What is a Business Plan? A Business Plan is an instrument used to present a business or organization to different members of the business community that interact with the organization. Its main uses include obtaining credit, creating associations, obtaining certifications, and presenting different stakeholders with a description of future operations of the business or organization.

6. Santiago Ibarreche © November 20086 IDEAS IDEAS IN ACTION © I I dentifying what is relevant: Who are we? What do we do? Why do we do it? How do we do it? Where do we do it? Mission and Vision: Who we are How do we see ourselves in the future

7. Santiago Ibarreche © November 20087 Elements of a Mission Statement 1. What needs or wants do we satisfy? 2. To whom do we satisfy those needs or wants? 3. Where do we operate? 4. How do we do what we do? 5. What makes us different and better than our competitors? 6. Why do we do what we do and where do we want to go? 7. What are our basic Values? 8. Who are our stakeholders? 9. What is our self image? 10. What do we want our external image? 11. How do we increase the quality of life of people? 12. What is our concept of quality?

8. Santiago Ibarreche © November 20088 Defining a Vision Statement  How do you see your business in six Months?  … a Year?  … Two, Three, Four….?  Short but inspiring

9. Santiago Ibarreche © November 20089 IDEAS IDEAS IN ACTION © D D efinition of Parameters: Important questions: Who are our competitors? What is the size of the market? What are my resources?  Financial  Human  Technology  Time How are my present and potential customers? What unsatisfied wants or needs they have? How am I going to satisfy them?

10. Santiago Ibarreche © November 200810 IDEAS IDEAS IN ACTION © E E xpectations vs. Reality: Important questions: What market share do I want? How much sales I needs and when do I expect t have them? What investment do I need to achieve those levels? Where would I get those resources? What actions should I take to achieve my goals?

11. Santiago Ibarreche © November 200811 IDEAS IDEAS IN ACTION © A A nalysis of Trends: Important questions: What changes can I see in the economy that will affect my business? … in uses, customs, and mores? … in the legal system? … in technology? … in politics? … in my competition?

12. Santiago Ibarreche © November 200812 IDEAS IDEAS IN ACTION © Synthesis: Analysis and summary of aspects that we can control in: Strengths Weaknesses Analysis and summary of aspects that we cannot control in : Opportunities Threats

13. Santiago Ibarreche © November 200813 IN IDEAS IN ACTION© I I deas for Strategies Sources of Ideas Ideas File N N urturing of Strategies Strengthening the basic ideas Details of instrumentation and implementation

14. Santiago Ibarreche © November 200814 ACTION IDEAS IN ACTION © A A nalysis of options and scenarios Steps to follow: Defining element to consider Develop a basis scenario Use the same concepts tah are used in daily operations Examine basic assumptions Develop scenarios Select at least two and at most four scenarios

15. Santiago Ibarreche © November 200815 ACTION IDEAS IN ACTION © C C hange structures: Steps to follow: Define changes Define forms to produce change and people to carry them Empower people and give resources Establish controls for implementation Carry out changes Develop support systems

16. Santiago Ibarreche © November 200816 ACTION IDEAS IN ACTION © T T raining and Resource development: Training: Creation of Aptitudes and Attitudes Who will do what? What knowledge and abilities are needed? Where and when will they be produced? Resource development: Are there clear policies and procedures? What changes do we need to make? Who will carry them out? Establish deadlines and processes

17. Santiago Ibarreche © November 200817 ACTION IDEAS IN ACTION © I I nstrumentation, Implantation, and Institutionalization: Do we have the right instruments? Do we have resources available? Are there clear expectations? Do people know policies and procedures in place? How will we evaluate performance? Is there a feedback system?

18. Santiago Ibarreche © November 200818 ACTION IDEAS IN ACTION © O O rganization for continuous improvement: Are there performance evaluation systems? Is there an internal control system in place? Are there external information sources? How do we follow up customer performance? … suppliers and vendors? … competitors?

19. Santiago Ibarreche © November 200819 ACTION IDEAS IN ACTION © N N othing is as permanent as change: Steps to follow: Have periodic follow up meetings Establish forms of continuous improvement Review and improve support systems Strategic Review Define if there is a need for new planning Define what changes that happened were not considered Have feedback systems at all levels

20. Santiago Ibarreche © November 200820 Business Plan Structure Executive Summary Introduction Purpose for the plan General identification information Mission and Vision Strategy Information Result of environmental scanning Analysis of strengths, weaknesses, opportunities, and threats Main strategies and goals to achieve

21. Santiago Ibarreche © November 200821 Business Plan Structure Present Market and Competitive Analysis Marketing Plan Management and Organization Financial Projections Additional Information and Annexes

22. Santiago Ibarreche © November 200822 Present Market and Competitive Analysis Definition of present market Definition of expectations about market Growth projections Marketing mix strategy: Five “Ps” Product Price Place (distribution) Promotion People

23. Santiago Ibarreche © November 200823 Marketing Strategy How When Who How much Priorities Emphasis

24. Santiago Ibarreche © November 200824 Business Plan Structure Included in the Annexes we have projections and their basis for: Market Technology Finances General Evaluation General Conclusions

25. Santiago Ibarreche © November 200825 Management and Organization Basic structure Purpose and processes Resources and resource allocation Responsibility and authority Performance measurement Element of leadership

26. Santiago Ibarreche © November 200826 Financial Projections Basic Financial Statements: Cash Flow Balance Sheet Income Statement Capital Assets Budgeting system and controls Period? Depending on the Business Plan

27. Santiago Ibarreche © November 200827 Additional Information and Annexes Personal information of personal Guaranties Tax statements Main projects and experience Certifications Letters of intent and/or contracts Data Sources

28. Santiago Ibarreche © November 200828 Bibliography Small Business Planner from SBA http://www.sba.gov/smallbusinessplanner/index.html http://www.sba.gov/smallbusinessplanner/index.html Business Plan Pro and other available software http://www.bplans.com/business_plan_software/ http://www.bplans.com/business_plan_software/ The Complete Book of Business Plans: Simple Steps to Writing a Powerful Business Plan By Joseph A. Covello, Brian J. Hazelgren Published by Sourcebooks, Inc., 1994 ISBN 0942061411, 9780942061413 Business Plans That Work: Includes Actual Business Plans That Successfully Attracted Financing By Joan Gillman, Sarah White Published by Adams Media, 2001 ISBN 158062457X, 9781580624572

29. Santiago Ibarreche © November 200829 Bibliography (Continued) The Ernst & Young Business Plan Guide By Brian R. Ford, Jay M. Bornstein, Patrick Pruitt, Eric S. Siegel, Ernst & Young LLP Published by John Wiley & Sons, 2007 ISBN 0470112697, 9780470112694 How to Write a Business Plan By Mike P. McKeever Published by Nolo, 2007 ISBN 1413305628, 9781413305623 Business Plans Kit For Dummies By Steven Peterson, Peter E. Jaret Published by John Wiley & Sons, Incorporated, 2001 ISBN 0764553658, 9780764553653