Assignment
You are planning to start a fast food restaurant. Being an entrepreneur you are required to develop below mentioned portions of business plan.
• Define specific and realistic business objectives (10)
• Define marketing strategy and action programs (10)
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Question#2 Idea...
Marketing Strategy and Action Programs
1. Product or Service
This includes a description of the product and may include more than the physical
characteristics. It involves packaging, brand name, price, warranty, image, service,
features, and style.
2. Customer Service
• Meeting customer needs and creating loyalty involves a number of low-cost steps:
• In writing develop a statement of customer service principles. Train those employees who
have direct contact with customers.
• Establish a process for evaluating customer service.
• Reward employees who are most effective in providing quality customer service.
• Make regular contact with customers.
• Invest in quality telephone equipment.
• Meet customer expectations.
• Customer service is especially important for e-businesses.
3. Pricing.
One of the difficult decisions is determining the appropriate price for the product.
Factors such as costs, discounts, freight, and markups must be considered. Marketing
research can help determine a reasonable price that consumers are willing to pay.
4.Distribution.
This factor provides utility or makes the product convenient to purchase when it is
needed. This variable must be consistent with other marketing mix variables. Type of
channel, number of intermediaries and location of members should be described.
Regardless of the type of business, it is usually necessary for the new venture to have a
website. The Internet will become an increasingly important medium for information
and distribution. Direct mail or telemarketing may be considered. Direct mail marketing
is one of the simplest and lowest in entry costs. But the direct-marketing or Internet
strategies are not a guarantee for success. The entrepreneur should evaluate all possible
options for distribution.
5.Promotion.
The entrepreneur needs to inform customers as to the product’s availability using
advertising media such as print, radio, or television. Usually television is too expensive
unless cable television is a viable option. Larger markets can be reached using direct
mail, trade magazines, or newspapers. A website may also create awareness and
promote the product and services of the venture. It is possible to make use of publicity
as a means of introduction. It is important that the marketing strategy and action
programs be specific and detailed enough to guide the entrepreneur through the first
year.
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Question # 1 Part 1
How to Create Monthly Realistic Business Goals
Step 1) Monthly Small Business Financial Goals are pivotal if you are to remain afloat. Revenue is the lifeblood of all businesses, whether they are large or small. At the beginning of the business venture, set your FINANCIAL GOALS for that year. These financial goals should be broken down into 12 monthly segments for each month of that year. How much money will you bring in this year? How much money will you bring in this month? How much money will you bring in this week? How much money will you bring in today? Make these financial goals realistic especially if it's a new small business. That brings us to step 2.
Step 2) Make a STRATEGY for achieving those goals. If your small business is to gross $20,000 this month, how will that goal be achieved? You have to know the means of achieving your financial objectives at all times or your goals will just be an illusion. A carefully conceived and thoughtfully implemented marketing plan is essential if you're going to hit your goals. Please don't fly by the seat of your pants; it's better to be a steady Betty. That brings us to step 3.
Steps 3) TRACK YOUR STRATEGY. Is your strategy working in achieving your financial objective? If not, you need to modify it. Be patient for a month or two, then change it. There's no use being stubborn in the business world--we're entrepreneurs to make money, not to stroke our own egos. If you're implementing your marketing plan, but it's not bringing in the numbers, change it. That brings us to step 4.
Step 4) BE ACCOUNTABLE to your financial objectives. If you were planning on bringing in $20,000 in revenue this month, then you need to achieve that objective and try to surpass it. Do not get into the habit of coming up short. You can modify your strategy, but do not modify your financial goals because that's why we become entrepreneurs in the first place. Work hard!
I'm a professional business book how to writer which means that I meet with entrepreneurs from a lot of different industries to write the books. All the professionals I meet with stress the importance of financial goal setting with their businesses. That's why these entrepreneurs become a success--they have a goal, they have a plan, they modify their plan if need be, and the achieve their objectives.
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Helping Material
Introduction
When a sole trader sets up they may have some unstated aims or objectives - for example to survive for the first year. Other businesses may wish to state exactly what they are aiming to do, such as Amazon, the Internet CD and bookseller, who wants to “make history and have fun”.
An aim is where the business wants to go in the future, its goals. It is a statement of purpose, e.g. we want to grow the business into Europe.
Business objectives are the stated, measurable targets of how to achieve business aims. For instance, we want to achieve sales of €10 million in European markets in 2004.
A mission statement sets out the business vision and values that enables employees, managers, customers and even suppliers to understand the underlying basis for the actions of the business.
Business Objectives
Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It also enables the business to measure the progress towards to its stated aims.
The most effective business objectives meet the following criteria:
S – Specific – objectives are aimed at what the business does, e.g. a hotel might have an objective of filling 60% of its beds a night during October, an objective specific to that business.
M - Measurable – the business can put a value to the objective, e.g. €10,000 in sales in the next half year of trading.
A - Agreed by all those concerned in trying to achieve the objective.
R - Realistic – the objective should be challenging, but it should also be able to be achieved by the resources available.
T- Time specific – they have a time limit of when the objective should be achieved, e.g. by the end of the year.
The main objectives that a business might have are:
Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis.
Profit maximization – try to make the most profit possible – most like to be the aim of the owners and shareholders.
Profit satisfying – try to make enough profit to keep the owners comfortable – probably the aim of smaller businesses whose owners do not want to work longer hours.
Sales growth – where the business tries to make as many sales as possible. This may be because the managers believe that the survival of the business depends on being large. Large businesses can also benefit from economies of scale.
A business may find that some of their objectives conflict with one and other:
Growth versus profit: for example, achieving higher sales in the short term (e.g. by cutting prices) will reduce short-term profit.
Short-term versus long-term: for example, a business may decide to accept lower cash flows in the short-term whilst it invests heavily in new products or plant and equipment.
Large investors in the Stock Exchange are often accused of looking too much at short-term objectives and company performance rather than investing in a business for the long-term.
Alternative Aims and Objectives
Not all businesses seek profit or growth. Some organizations have alternative objectives.
Examples of other objectives:
Ethical and socially responsible objectives – organizations like the Co-op or the Body Shop have objectives which are based on their beliefs on how one should treat the environment and people who are less fortunate.
Public sector corporations are run to not only generate a profit but provide a service to the public. This service will need to meet the needs of the less well off in society or help improve the ability of the economy to function: e.g. cheap and accessible transport service.
Public sector organizations that monitor or control private sector activities have objectives that are to ensure that the business they are monitoring comply with the laws laid down.
Health care and education establishments – their objectives are to provide a service – most private schools for instance have charitable status. Their aim is the enhancement of their pupils through education.
Charities and voluntary organizations – their aims and objectives are led by the beliefs they stand for.
Changing Objectives
A business may change its objectives over time due to the following reasons:
A business may achieve an objective and will need to move onto another one (e.g. survival in the first year may lead to an objective of increasing profit in the second year).
The competitive environment might change, with the launch of new products from competitors.
Technology might change product designs, so sales and production targets might need to change.
