2. What is business planning?What is the objective of a business plan? What are the main steps of a business plan? Business Planning (2)

3. Business planning is to plan a business starting from the phase of thought till the phase of business generation. A business plan is a written explanation of the companies business model. business model A business plan is a summary which shows how the enterprise will be organized and which activities will be implemented for the ventures success. Business Planning (3)

4. Business plans are used internally for management and planning and are also used to convince outsiders such as banks or venture capitalists to invest money into a venture.banks venture capitalists Business Planning (4)

5. Many people think of business plans only for starting a new business. But they are also vital for running a business. Businesses need plans to optimize growth and development according to priorities. Business Planning (5)

6. Opportunity AnalysisMarketing PlanOrganization PlanFinancial Plan Business Planning (6)

7. Business Planning (7)

8. o Firm: Firm A o Products: Pumps, engines o Customers: Industrial companies o Geographical areas: Turkey

9. o Growth for P (Pump) o Divest for E (Engine) MGR RMS P E

10. Business Planning (10)

11. New Business Area: Refrigerator Business Planning (11)

12. 4.1. Segmentation For families For singles Business Planning (12)

13. 4.2. Targeting Business Planning (13)

14. 4.3. Positioning Ideal Firm A Competitor StandardLuxury Business Planning (14)

15. Message: Affordable luxury products Media: TV / 10 sec / 50 days / year Sales promotion: Small scale refrigerator as a toy on sale Business Planning (15)

16. Price of refrigerator: Volume * 1 + Number of Doors * 200 Product varieties Product varieties: D1/V500, D1/V1000, D2/V500, D2/V1000 Price of (D1/1000) = 1000* 1 + 1 * 200 = 1200 Business Planning (16)

17. T(21) = 500 + 10 * Period index for S=1.1 T(21) = 500 + 10 * 21 = 710 Y (21)= T(21) * S = 710 * 1.1 = 781 Sales of D1/V1000/Total Sales=0,50 Sales for D1/V1000= Y(21) * 0.50 X X X X X X Sales Time (period) 20 Business Planning (17)

18. 8.1. Production Process P1P2 P3 Raw Material(Part A) Part B Refrigerator Business Planning (18)

19. 8.2. Production Method D1/V1000 D2/V1000 PV Q Production Type: Product type for D1/V1000 and D2/V1000 Process type for others Business Planning (19)

20. 8.3. Production flow P1 P2 P3 P1 P2 P3 P1 P2 P3 D1/V1000 D2/V1000 D1/V500 D2/V500 Business Planning (20)

21. Business Planning (21)

22. 10.1. Variable cost Unit Variable Cost: Raw Material Cost + Unit Energy Cost : Unit Raw Mat. * Unit Price of RM + … = 1 (Part A) * 100 + 1 (Part B) * 100 + … = 200 + 50 = 250 Total Variable Cost at Year 1 = Total Production* UVC = 781 * 250 Business Planning (22)

23. 10.2. Fixed cost Business Planning (23)

24. Gross Profit = Income – Manufacturing Cost = [1200 * (781 * 0.50) + …] – (6000 + 781 * 250) = 100 000 Business Planning (24)

25. Current Asset - Bank 50 000 Loan - Longterm 10 000 Fixed Asset - Machines 100 000 Equity - 50 000 150 000 Business Planning (25)

26. Ratios for Year 1 Profitability for Gross Profit: 100 000 / 150 000 Evaluation ratios: Decision: Enter Refrigerator business area Dont enter refrigerator business area Business Planning (26)