Q3) What are the pros and cons of using your social network for

business purposes?
Ans) The pros and cons of using social network for business purposes
are as follows:
Pros of using social network are:
Relationship building The one-to-one dialogue in social media
makes it a powerful platform for building a closer affinity with
customers and brand loyalty.
Word of mouth/ viral marketing Social media can spread offers
and messages amongst 1000s of people very quickly. And the best
part is that its customers themselves who are spreading the
information.
Brand personality Posting messages everyday can develop
peoples perception on ones brands personality very quickly
through writing style and tone of voice.
Learn more about customers By listening and participating in the
online conversations one can find out more about the customers
problems, likes, dislikes, taste, preferences, etc., and accordingly
deal with them.
Low cost of entry Creating profiles and pages on Facebook and
Twitter is quick, easy and free to do.

 Customer service People dont rely on email and the phone to get
their questions answered anymore. Theyre now posting messages
in blogs and forums to get them resolved. Engaging with social
media enables to respond to the evolving nature of customer
service, and improve loyalty as a result.
Cons of using social network are:
Time consuming Social media is often described as an online
conversation, so it becomes necessary to constantly feed pages
and profiles with interesting comments and links to keep people
interested. Being consistently interesting and relevant all the time
can also be difficult to maintain and it consumes more time.
Long time before ROI Social media is a long haul strategy. It
could be months, or even years, before one start seeing it
translating into increased customer loyalty and sales.
Dilutes brand voice If there are more than one person posting
messages on social media sites then this can lead to a mish mash of
phraseology(terminology) and tone.
Risk of negative comments If social network is used clumsily,
theres a risk of a public backlash and damage to brands
reputation, which can lead to loss of customers and increase in
wastage.

 Loss of control Anything published is open to comment and

criticism. Providing an arena for people to post negative comments
about the company is the stuff of nightmares for marketers.

Q4) List the ways in which different a firm can grow.

Ans) Different ways in which a firm can grow are as follows:

 Licensing product: This can be an effective, low-cost growth

medium, particularly if we have a service product or branded
product. Licensing also minimizes risk and is low cost in
comparison to the price of starting our own company to produce
and sell our brand or product.
Diversify: "Diversifying is an excellent growth strategy, as it
allows one to have multiple streams of income that can often fill
seasonal voids and, of course, increase sales and profit margins,".
Diversifying offers various benefits and ways to increase the sale
of product or service which generally covers:
Selling complementary products or services
Teaching adults about education or other types of classes
Importing and exporting of products and services
Brand, Brand, and Brand: Todays economy requires business
leaders to create positive memories for customers. The emotional
attachment that links customers to our product(s), as opposed to
any other, translates into sustainable growth. There are some basic
rules to connect, shape, influence, and lead with the brand:
Pre-defining the target audience
Connecting with the public: developing an emotional attachment
between the customer and the brand.
Inspiring and influencing the audience: An inspirational brand
message is far more influential than one that just highlights product
feature functions.

 Reinforcing the brand image within company.

Scaling sales t regular intervals: Creating a unique product and a
unique brand isnt enough. It takes repeatable sales processes to
create a scalable business. It is one thing to sign up a few
customers; it is another thing entirely to identify, design, and
implement repeatable sales processes and customer delivery
processes. A repeatable sales model builds the platform to scale.
Increase in the number of visits by the customers: an increase in
the number of visits by customers can be helpful in reaching to
new customers by coming with exiting offers keeping the price in
mind which matches the customers pockets along with the quality
which is of utmost importance and also coming up with new, ecofriendly products which are not harmful to anyone and on which
the customers are ready to pay.

Another way is to provide

additional customer value and ultimately building customer

loyalty. Outside of customer loyalty programs, here are a few areas

to consider improving which covers:

Responsiveness to requests, calls, emails.
Consistency in offering.
Follow-up and follow-through on meetings.
Maintaining accuracy in timely billing.

Q5) What are the various steps in writing a business plan?

Ans) 7 steps in writing a business plan are as follows:
STEP 1: The Business Plan Outline
STEP 2: Write the Plan
STEP 3: Review the Plan
STEP 4: Finalize the Plan
STEP 5: Review the Finalized Plan
STEP 6: Create the Cover Letter
STEP 7: Start the Business
Description of each above mentioned step is as follows:

 STEP 1: The Business Plan Outline The first thing to do is create

an outline for an effective business plan. The outline should cover
the main topics or points that will be important to the people. The
main points include Executive Summary, Business Description and
Vision, Definition of the Market, Description of the Products and
Services, Organization and Management, Marketing and Sales
Strategy, Financial Management, and Conclusion.
STEP 2: Write the Plan This step basically targets writing the
business plan by taking one heading or main topic at a time which
is mentioned in STEP 1. A proper research has to be carried out to
ensure than the business plan is fully developed.
STEP 3: Review the Plan In this step we make use of spell check
and other tools to help correct the basic errors in writing a business
plan. This gives a good impression to one who takes into account
the plan generated by us for implementing in his business.
STEP 4: Finalize the Plan In this step after we have received all
the comments from different persons reading our plan and made
changes in the drafted plan, the next step is to finalize the plan.
STEP 5: Review the Finalized Plan In this step, after we have
finalized the plan, the next step is to review the finalized plan. This
step is very much essential because in case if we have missed out a
much needed point or if we want to make further adjustments or if

we want to add some new points, then we can perform the task
with ease which can make the business plan look more stuffed with
every essential requirements.
STEP 6: Create the Cover Letter In this step, after reviewing the
finalized plan, the next step is to create the cover letter which is
required to send along with the plan and it gives a good impression
of the plan designer when someone is having a look at it for
possible investment. The designed finalized business plan
comprises of basic introduction of designer of the plan and a brief
explanation about the plan and why we are presenting it.
STEP 7: Start the Business In this step, after finalizing and
creating the cover letter of the business plan, we need to get
moving with the plan by putting things together and work on
certain areas which require more attention.

Q6) What are the various kinds of business plan?

Ans) Business plans are also called strategic plans, investment plans,
expansion plans, operational plans, annual plans, internal plans, growth
plans, product plans, feasibility plans, and many other names. These are
all business plans.
Start-up plan: The most standard business plan is a start-up plan,
which defines the steps for a new business. It covers standard
topics including the company, product or service, market,
forecasts, strategy, implementation milestones, management team,
and financial analysis. The financial analysis includes projected
sales, profit and loss, balance sheet, cash flow, and probably a few
other tables. The plan starts with an executive summary and ends
with appendices showing monthly projections for the first year.

 Internal plans: Internal plans are not intended for outside investors,
banks, or other third parties. They might not include detailed
description of company or management team. They may or may
not include detailed financial projections that become forecasts and
budgets. They may cover main points as bullet points in slides
(such as PowerPoint slides) rather than detailed texts.
Operational plan: An operational plan is normally an internal plan,
and it might also be called an internal plan or an annual plan. It
would normally be more detailed on specific implementation
milestones, dates, deadlines, and responsibilities of teams and
managers.
Strategic plan: A strategic business plan provides a detailed map of
a companys goals and how it will achieve them, laying out a
foundational plan for the entire company. a strategic business plan
includes five elements: business vision, mission statement,
definition of critical success factors, strategies for achieving
objectives and an implementation schedule. A strategic business
plan brings all levels of the business into the big picture, inspiring
employees to work together to create a successful culmination to
the companys goals.
Expansion plan: A growth plan or expansion plan or new product
plan will sometimes focus on a specific area of business, or a

subset of the business. These plans could be internal plans or not,

depending on whether or not they are being linked to loan
applications or new investment. An expansion plan requiring new
investment would include full company descriptions and
background on the management team, as much as a start-up plan
for investors. Loan applications will require this much detail as
well. However, an internal plan, used to set the steps for growth or
expansion funded internally, might skip these descriptions. It might
not include detailed financial projections for the whole company,
but it should at least include detailed forecasts of sales and
expenses for the company.
Feasibility plan: A feasibility plan is a very simple start-up plan
that includes a summary, mission statement, keys to success, basic
market analysis, and preliminary analysis of costs, pricing, and
probable expenses. This kind of plan is good for deciding whether
or not to proceed with a plan, to tell if there is a business worth
pursuing.