Unit 5:

OTHER PARTS OF THE BUSINESS  PLAN

Ngô Quý Nhâm Email: quynham@gmail.com Web: sites.google.com/site/ngoquynham

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Lecture outline

F Operation plan F Organization plan F Financial Plan

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ORPERATIONS PLAN

F Operation plan covers:

§

... outline how your business will be run & ...how your product or service will be produced

F Operation plan covers:

§

§ Operational model and procedure § Business location § Facility and equipment § Operation strategy and plans

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Operational model and procedure

F General approach to operations in terms of

what’s most important and what the make­or­ break issue are.

F Operations flow diagram

shows the key steps in the production of a product  or delivery a service

§

Dell’s Supply Chain Video

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Business location

F Good geographic location of you firm could

promote your business

F Poor location may hamper your growth

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Group discussion

Describe a good geographic location of: F A supermarket F A cement plant F A Computer producer

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Example of good location of a business

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Facility and equipment

F The list of most important facilities and

equipment

F How facilities and equipment are acquired, in

terms of: § Purchased § Leased § Acquired through other means

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Operation strategy and plans

F Determine the portion of your production process

§ Made or Buy?

F How operations are supportive to business strategy

§ Operations design for differentiation strategy  § Operations design for low­cost strategy

F

Firm’s overall approach to quality control, production  control, inventory control,...

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MANAGEMENT TEAM AND COMPANY  STRUCTURE

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Management team

F Management team (CEO, manager)

F Management team ownership structure &

compensation § Board of directors § Board of advisors

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Common mistakes in build a  management team

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Attributes of an effective BOD

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Organizational Structure

Key dimensions of an organizational structure: F Division of labor F Departmentalization F Assignment of authority and responsibility F Span of control F Level of decentralization F Formalization

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The Main Types of Structure

The Main Types of Structure: F Simple Structure F Functional Structure F Divisional Structure

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F Team­based structure F Matrix Structure

§ By Product § By Geographical Location § By Customers

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Functional Structure

F Activities are grouped on the basis of the

essential functions that must be performed to  attain the enterprise's goals.

Managing Director

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Chief Accounting Personnel Manager Production Manager Marketing Manager

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Geographic structure

President

Vice­President Vice­President Vice­President Vice­President

Marketing R&D HR Finance

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Regional Director Regional  Director Regional  Director

Asia­ Pacific

North American West ­  European

Accounting Operation Sales

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Team­based Structure

F

The entire organization is made up of workgroups or teams.

F Employee empowerment is crucial

Designing Purchasing Accounting Marketing Manu­ facturing

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Project Manager Project Manager

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PROJECTED FINANCIAL PLAN

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Source and use of fund

F How much money a firm needs? F Where the money will come from? F What the money will be used for?

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Pro forma financial statements

F Pro forma income statement F Balance sheet F Cash flow F Break­even analysis F Ratio analysis

§ Profitability ratios § Liquidity ratios § Overall financial stability ratios

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