Business Plan – Organisation Review

Facilitator:
Richard Toh P K

Lesson 1: 6 April 2011

 Course Objective

 To build up the competencies (knowledge,

skills, attitude) required of a Professional in
Design Management Business
 in organisational diagnostics (i.e. review &
analysis)
 and prescription for actionable
recommendations
 leading to improvements upon successful
implementation.
Recommended Reference

Management 8th Edition

 Stephen Robbins / Mary Coulter
 Pearson Education Int’l 2005

The Definitive Business Plan

2nd Edition
 Richard Stutely
 FT Prentice Hall 2005
 What do you want in Life?

 MONEY
 TIME

 SECURITY

 FREEDOM
 Completeness in Life

60,000
 Ways to Get Rich

 Savings
 Insurance

 Investment

 What’s so good about being in

Business?
 Be Yourself!
Business Planning Generic Approach
 What to Plan, Why?
 Define Business Vision & Activities
 Define Current Business Situation
 Define External Macro Environments
 Define External Micro Environments
 Define your Core Objectives & Plan Strategy
 Identify Risks & Opportunities
 Define Strategies to Reduce Risks + Increase
Opportunities
 Refine Strategies
 Project Costs, Revenues, Cash Flow
 Finalise Plans
 What environment is the business in?
 Review the larger environments impacting
on the business
 Political (e.g. stable?)
 Economic (e.g. high growth?)
 Social (e.g. lifestyle patterns?)
 Technological (e.g. advanced? changing?)

 Environmental
 Regulatory / Legal
 Five Forces Driving Industry Competition
NEW POTENTIAL
ENTRANTS
Threat of new entrants
Barriers to entry:
• Economies of scale
• Product differentiation
• Capital requirements
• Switching costs
• Access to distribution channels
• Cost disadvantages additional to scale
• Government policy
• Entry-deterring price
• Experience

Bargaining power Bargaining power

of suppliers INDUSTRY COMPETITORS of buyers
Intense rivalry if:
• Numerous or similar-sized competitors
• Slow industry growth
SUPPLIERS • High fixed costs BUYERS
• Lack of differentiation
• Diverse nature of competitors
Powerful if: • High strategic stakes Powerful if:
• Few suppliers • High exit barriers • Large proportion of seller’s
• No substitutes sales
• Industry not important (Rivalry among existing firms) • High proportion of the buyer’s
customer of suppliers group costs
• Supplier group’s products are • Undifferentiated product
differentiated • Low buyer switching costs
• Threat of forward integration Threat of substitute products or services • Threat of backward
integration
SUBSTITUTES • Seller’s product not important
to quality of buyer’s product
What business is the organisation in?
 Business Industry (Industry Life Cycle)
 Product or Service (Product Life Cycle)
 Customer / Needs Fulfilled
 Key Success Factors e.g. capital, innovation
Maturity

Decline
Growth

Inception/ LIFE CYCLE

Formation
 Organization Life Cycle
Maturity

Systematization Integration Complacency

Entrepreneurial

Formalization & Elaboration of-

Dynamic Stage Collectivity Stage Decline Stage
Control Stage Structure Stage

• Ambiguous goals • Informal • Formalization • More complex • High employee

• High creativity communication of rules structure turnover
& structure • Stable structure • Decentralization • Increased
• High • Emphasis on • Diversified conflict
commitment efficiency markets • Centralization
 Management Functions

 PLANNING: defining goals, establishing strategies for

achievement, and developing plans to integrate/coordinate
activities
 ORGANIZING: determining the tasks to be done (&
grouping), who to do them, who reports to whom, & where
decisions are made
 LEADING: motivating subordinates, influencing individuals
& teams, communicating & dealing with behavioral issues
 STAFFING: human resources management & development
 CONTROLLING: monitoring actual performance, comparing
actual to plan, and taking action
Management Skills Sets
Conceptual Conceptual Conceptual

Human
Human
Human

Technical Technical Technical

SUPERVISORY MIDDLE TOP

MANAGEMENT MANAGEMENT MANAGEMENT
 Exercise 1: Who Will Win

 There are 2 groups of animals preparing

to compete.
 Group 1: A Group of Sheep led by a Lion
 Group 2: A Group of Lions led by a
Sheep
 Which group will win? Why?
 Quote examples.
 Exercise 1: Learning Outcome

 Who are the Leaders?

 What are important in Leaders.

 Are the attributes born or learnt?

 Strategic Planning & Management

 The process of establishing the organization’s

overall goals, and seeking to position the
organization in terms of its environment
 Combine external environmental factors and
internal resources
 Sun Tze: know thy environments/
competitors and thyself, and thou
shalt not encounter defeat in a
hundred battles (知彼知己,百战不殆)
 Exercise 2: Know Yourself

 How many behaviours do you

demonstrate?
 Which one is the Real one?
 Test it now.
 To Know Yourself Better!
 Exercise 2: Learning Outcome

 What have been the drivers that

brought you Results in Life?
 What have been the factors that
slowed you down?
 Think, Reflect and then Improve!
 Practice Assignment

 Review the lesson and practices today,

against your own experiences
 Identify / re-visit the contents you’ve learnt
& skills you demonstrated.
 Set your Business / Career Goals & devise
Action Plans for achieving them
 Share with the class in the next lesson

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