It might include inventory or storage of manufactured products shipping

It might include inventory or storage of manufactured

This preview shows page 14 - 16 out of 19 pages.

services from production to the customer. It might include inventory or storage of manufactured products, shipping, inventory control procedures, and customer support services. A non manufacturer such as a retailer or service provider would also need this section in the business plan in order to explain the-chronological steps in completing a business transaction. It is important to note here that the major distinction between services and manufactured goods is services involve intangible performances. This implies they cannot be touched seen, tasted, heard, or felt in the same manner as manufactured products. Airlines, hotels, car rental agencies, theaters, and hospitals, to name few, rely on business delivery or quality of the service. For these firms, performance often depends on location, facility layout, and personnel that can, in turn, affect service quality (including such factors as reliability, responsiveness, and assurance). The process of delivering this service quality is what distinguishes one new service venture from another and thus needs to be the focus of an operation plan. Some key questions or issues for both the manufacturing and non-manufacturing new venture are summarized in Figure 7.7 Marketing Plan The marketing plan (to be discussed in the next session) is an important part of the business plan since it describes how the product(s) or service(s) will be distributed, priced, and promoted. Marketing research evidence to support any of the critical marketing decision strategies as well as for forecasting sales should be described in this section. Specific forecasts for product(s) or service(s) are indicated in order to project profitability of the venture. The budget and appropriate controls needed for marketing strategy decisions will also be discussed in detail in the next session. Potential investors regard the marketing plan as critical to the success of the new venture. Thus, the entrepreneur should make every effort to prepare as comprehensive and detailed a plan as possible so that investors can be clear as to what the goals of the venture are and what strategies are to be implemented to effectively achieve these goals. Marketing planning will be an annual requirement (with careful monitoring and changes made on a weekly or monthly basis) for the entrepreneur and should be regarded as the road map for short-term decision making.
Image of page 14

Subscribe to view the full document.

F0092 The Business Plan *Property of STI Page 15 of 19 Organizational Plan The organizational plan is the part of the business plan that describes the venture's form of ownership—that is, proprietorship, partnership, or corporation. If the venture is a partnership, the terms of the partnership should be included. If the venture is a corporation, it is important to detail the shares of stock authorized, share options, as well as names, addresses, and resumes of the directors and officers of the corporation. It is also helpful to provide an organization chart indicating the line of authority and the responsibilities of the members of the organization. Figure 7.8 summarizes some of the
Image of page 15
Image of page 16
  • Summer '17

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes