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Improve Business Practice with B.plan.pptx

  1. LO #1- Diagnose the business INTRODUCTION • To improve business performance you need to understand your business current performance and familiar with your business goal and targets.
  2. Organizational Diagnosis • Organizational Diagnosis is a process that help organizations to improve their capacity to assess and change inefficient patterns of organizational behavior as a basis for greater effectiveness. • Organizational diagnosis is an effective ways of looking at an organization to determine gaps between current and desired performance and how it can achieve its goals.
  3. • There are six step processes for major organization development efforts. These are: 1. Clarification of whole organization objectives 2. Data gathering and sharing 3. Diagnosis of organization strength and weakness,
  4. 4. Joint action presentation of organizational development intervention to current weaknesses. 5. Implementation of organizational development intervention, and 6. Periodic progress review of results.
  5. • Diagnosis is a cyclical process that involves data gathering, interpretation/clarification and identification of the problem areas and possible action programs. • Each organizational culture profile reflects underlying attributes including the management style, strategic plans, reward system, leadership, and basic values of the organization.
  6. Some major data gathering methods are: Secondary source of data:- • Which are generated for other organizational purposes that can be used in identifying problem areas, such as: performance indicators, accounting data, productivity and quality data.
  7. Primary source of data:- • Direct observation of people behaviors is another important source of data. This can include member actions or reactions to specific situations, and communication patterns.
  8. • The other method of data collection is employee survey. The data provide a snapshot of an existing situation, and can be used to compare an organization's current state with some desired state. • Questionnaire-based surveys are one of the most effective tools for organizational diagnosis practitioners to understand and evaluate organizational issues.
  9. • Interviews (can be structured, semi-structured or informal) are also the most widely used data gathering technique in organizational diagnosis programs. • SWOT Analysis S=strength W=weakness O=opportunity T=threat
  10. SWOT analysis A. Strengths/Internal strength : • good communication skills, on time for shifts, handles customers well, gets along well with all departments, physical strength, good availability.
  11. • Some common employee strengths include: – Loyalty/faithfulness – hard work ethic, – humour, flexibility, ambition, – excellent written communication, – excellent verbal communication, – creativity, tech-savvy, – thinking outside of the box, – strong interpersonal skills, – persuasiveness and industry-specific skills and knowledge
  12. • The best managers place employees in positions in which they can best use their strengths and build on them. • Revise job descriptions, change employees' positions, add or change responsibilities, and do what you need to in order to place employees in positions where they can succeed and use their skills.
  13. B. Weaknesses/Internal weakness: • takes lengthy smoke breaks, low technical skill, very prone to spending time chatting. Evaluate your employees' weaknesses as well. • Consider factors such as tardiness/lateness, communication problems, lack of enthusiasm or energy, poor understanding of materials or programs, and difficulty getting along with others.
  14. • Create a system to track each employee's progress and check in regularly • For more subjective areas, such as people skills, consider holding office seminars on topics such as diversity, cooperation or communication or paying for employees to attend training. • Offer incentives for the training – such as lunch for all participants or a certificate.
  15. c. External opportunity • Opportunities are chances for something positive to happen, but you'll need to claim them for yourself! • They usually arise from situations outside your organization, and require an eye to what might happen in the future.
  16. D. Threats (External ) • Threats include anything that can negatively affect your business from the outside, such as supply chain problems, shifts in market requirements, or a shortage of workers. • It's vital to expect threats and to take action against them before you become a victim/target of them and your growth stands.
  17. LO #2- Benchmark the business What is benchmarking? • Benchmarking is simply the process of measuring the performance of one’s company against the best in the same or another industry. • Benchmarking is basically learning from others.
  18. • Therefore, benchmarking is a continuous, systematic/ structured/ formal process for assessing/ measuring/ comparing the organizations. • In business, benchmarking has come to mean variety of things. It has assumed a very special significance in todays competitive world.
  19. Role of Benchmarking • The role of benchmarking is to provide management with knowledge of what constitutes ‘best performance’ or ‘superior performance’ in a particular field. • Best performance relates to output, efficiency, quality and any other measurement relevant to performing the job.
  20. • Generally, there are three reasons that benchmarking is becoming more commonly used in industry. These are: I. Benchmarking is a more efficient way to make improvements. II. Benchmarking speeds up organization’s ability to make improvements. III. Benchmarking has the ability to bring organizational performance up as a whole significantly.
  21. Types of Benchmarking • There are four primary types of Benchmarking. a) Process Benchmarking b) Performance Benchmarking c) Strategic Benchmarking d) Internal Benchmarking
  22. a) Process benchmarking • Focuses on the day-to-day operations of the organization. • It is the task of improving the way processes performed every day. • This type of benchmarking results in quick improvements to the organization. • Some examples of work processes that could utilize process benchmarking are: The customer complaint process, the billing process, and The order fulfillment process
  23. b) Performance benchmarking • focuses on assessing competitive positions through comparing the products and services of other competitors. • When dealing with performance benchmarking, organizations want to look at where their product or services are in relation to competitors on the basis of things such as: reliability, quality, speed, and other product or service characteristics.
  24. C. Strategic benchmarking • Strategic benchmarking deals with top management. It deals with long term results. • Strategic benchmarking focuses on how companies compete. • This form of benchmarking looks at what strategies the organizations are using to make them successful. • This is the type of benchmarking technique that most Japanese firms use.
  25. d) Internal /collaborative Benchmarking • Collaborative/ Internal benchmarking are the most widely used types of benchmarking because they are relatively easy to practice. • These forms of benchmarking are a more cooperative & helpful way of getting information. • In Internal benchmarking, organizations invite best in class organizations to meet with their benchmarking team to share knowledge. It is sometimes called “data sharing”. • During this process information flows one way. From the “best in class” organization to the benchmarking team organizations
  26. • There are four main steps that should to be followed to conduct Benchmarking. • Step 1- Plan the study Establish Benchmarking roles and responsibilities. Identify the process to Benchmark Document the current process Define the measures for data collection
  27. Step 2- Collect the data Record current performance level Find Benchmarking partners Conduct the primary study/analysis Make a site visit
  28. Step 3- Analyze the data Normalize the performance data Construct comparison matrix to compare your current performance Identify outstanding practices Isolate process enablers
  29. Step 4- Adapt enablers to implement improvements Set stretching targets “Vision “ an alternative process Consider the barriers to change Plan to implement the change
  30. LO #3- Develop plans to improve business performance PLANNING FOR THE BUSINESS GROWTH • Business planning has become a very important part of the top management function due to the influence of external environmental factors and systems approach to the business management. • Business planning is strategic planning because it is concerned mainly with the designing of business.
  31. What is Planning? • Planning is deciding now what we are going to later including when and how we are going to do it. • The scope of planning activities may cover long or short period of time/range.
  32. • Short-term planning evaluates your progress in the present and creates an action plan to improve performance daily. • However, long-term planning is a comprehensive framework that comprises of goals to be met within a four- to five-year period.
  33. Long Term Planning/Strategic Plan • Strategic plan is a plan that matches an organization’s resources with it’s market opportunity, over the long-run. • Long-range strategy is designed to provide information about an organization’s vision, mission, direction and objectives. • Implementation planning, explains the details of the policies and procedures, which are required to accomplish the strategies of the firm.
  34. Benefits of Business Planning The benefits of business planning include 1. Helps the company to formulate and achieve objectives and goals clearly 2. Aims at the long-range plan rather than short- range plan. 3. Integrates/Combines the company plan with the national plans and priorities
  35. 4. Helps to see both the internal and external environmental factors. 5. Contributes for the achievement of high rate of profit. 6. Helps to determine potential growth and profit.
  36. Proactive and Reactive Management • The best management is primarily proactive and then reactive. How to be proactive 1. They should plan for short and long term periods of time 2. They should work closely with technical and marketing staff to determine marketing opportunities. 3. They should encourage innovation.
  37. 5. They should consider opinions and suggestions of employees. 6. They should take calculated risks.
  38. What is a value chain? • value chain is sequence of activities that an enterprise operating in a specific sector performs in order to deliver a valuable product or service to the market.
  39. Benefit/importance of value chain analysis • There are sets of reasons why values chain analysis is important in this era of rapid globalization.  Simple and better way to identify gabs  Increase efficiency and systematic competitiveness of local enterprise  Reduces production costs and improves profitability  Improves client satisfaction by providing quality product and services  A way to identify opportunities to improve added value
  40. SWOT analysis for enterprise Strengths- • What advantages does your organization have? • What do you do better than anyone else? • What do people in your market see as your strength?
  41. Weaknesses • What could you improve? • What should you avoid? • What are people in your market likely to see as weaknesses?
  42. Opportunities • Can you introduce new products or remarket existing ones to seem new? • Is there a gap in the market? • Can you sell more cheaply?
  43. • Are you costs lower? Or production methods more efficiently? • Do you have resources that can be used or used more efficiently? • Are there opportunities to co-operate? Or join market? • Is the political, Economic, social, or technological environment changing to your advantage.
  44. Threats • Can your competitor offer better quality • Will legislative, political, economic, Technological, commercial, personal, Resource level, or financial changes, threaten your market?
  45. LO4: Develop marketing and promotional plans
  46. Preparing a Business Plan What Is a Business Plan? • A business plan is a document that describes your business, the products and services you sell, and the customers that you sell to. • It explains your business strategy. • How you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.
  47. Why do you need a business plan? • Here are the top reasons why you need a business plan – Businesses that plan grow 30% faster. – Lenders and investors need business plans – Business plans reduce risk – Business planning helps you make smart spending decisions
  48. How is a business plan written? • By identifying all the questions that might be asked relating to the business • By determining what further information needs to be gathered to answer all the questions • By obtaining all the necessary information • By comparing various alternatives • By making a decision on each question
  49. What is the business plan process?
  50. 1. Generation of idea • It is the first step in the business planning process. • It distinguishes entrepreneurs from the usual business. Sources of new ideas that entrepreneurs can get are from- – Customers – Existing companies – Research and development – Employees – Dealers and retailers
  51. 2. Environmental scanning • The next step is to scan the factors that will affect the business ideas. The elements are external and internal environment surrounding the business • External environment includes- – Socio-cultural appraisal – Technological appraisal – Economic appraisal – Demographic appraisal – Government appraisal
  52. • Internal environment includes- – Raw materials – Production – Finance – Market – Human resource
  53. 3. Feasibility analysis • It refers to conduct a detailed report on every aspect that is relevant to the business. • The analysis includes- – Market analysis is undertaken to calculate the demand and market share of products and services in the future. – Technical and operational analysis is conducted to assess the functional ability of the proposed business enterprise
  54. 4. Project report preparation • It is a document which describes step by step strategies involved in running the business. 5. Evaluation, Control And Review • The company operates in a dynamic environment, so it has to monitor and review strategies as well as policies to compete in an existing market.
  55. What is the content of the project report? Cover page • Cover page of the project report contains the title of the project, name, address so that the person reading the report can quickly contact the entrepreneur if there are any queries of the report
  56. Table of contents: • Table of content consists of topics covered in the project report along with the page number. Executive summary: • It has to be written after the completion of the project report as it gives brief gist of the project
  57. Company information and industry: • The ownership form of the company, which contain the reason for forming into the proposed plan and It can also consist of the SWOT analysis of the company Technical plan: • The critical aspect is analyzed during the technical feasibility. This report should be highlighted. The choice of the product and service that is to be offered should be justified.
  58. Marketing plan: • This plan should focus on the industry and market feasibility that is conducted at an earlier stage. • It describes the pricing policy, market research, product to be offered by the company, marketing strategy promote the product and target customers.
  59. Operations plan: • It explains the innovative idea that is involved in the process of production, which makes it better when compared to existing competitors. Organizational plan: • It provides information about the management team who are part of the company. It focuses on the technical skills possessed by the employees in the company.
  60. Project timeline: • It includes the network diagram, which illustrates the time duration required for the project. • The graph shows the various activities in the project, which are organized and the time duration required for the execution of the project. Critical risk and assumption: • It explains the various assumption made during the creation of the company like considering the previous sales forecast. • There can be multiple risks involved in the product and kind of service company is planning to offer
  61. Financial plan: • It is an essential part of the report which will contain brief content all the sections with monetary terms. • It explains the financial composition of the company, sources through which the company has acquired finance, the total expenditure incurred by the company. Conclusion: • The report should be ended on a positive note so that the readers develop a positive image of the report.
  62. Thank you for your attention!