Mgt602 Assignment No. 2 Solution
Thursday, January 06, 2011 Posted In MGT Edit ThisAssignment 02
Dated: Jan 03, 11
Semester “Fall 2010” “Entrepreneureship (MGT602)”
This is to inform that next Assignment (covering video lecture no. 1 to lecture no 30) will be uploaded on VULMS according to the following schedule
Schedule
Opening Date and Time
January 05, 2011 At 12:01 A.M. (Mid-Night)
Closing Date and Time
January 10, 2011 At 11:59 P.M. (Mid-Night)
Note: Only in the case of Assignment, 24 Hrs extra / grace period after the above mentioned due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.
Important:
1. For acquiring the relevant knowledge, do not rely only on handouts but watch the course video lectures, which can be downloaded for free from Online VU Lectures, and also use other reference books.
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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.
Step 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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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.
............
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.
Step 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 maximisation – try to make the most profit possible – most like to be the aim of the owners and shareholders.
Profit satisficing – 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:
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 maximisation – try to make the most profit possible – most like to be the aim of the owners and shareholders.
Profit satisficing – 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 organisations have alternative objectives.
Examples of other objectives:
Ethical and socially responsible objectives – organisations 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 organisations 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 organisations – 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.
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 organisations have alternative objectives.
Examples of other objectives:
Ethical and socially responsible objectives – organisations 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 organisations 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 organisations – 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.
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You are planning to start a fast food restaurant. Being an entrepreneur, you are required to develop below mentioned portiontions of business plan.
1.Define Specific and realistic business objectives
2.Define Marketing Strategy and actions programs
ANSWER:
(1). Specific Business objectives:
“Business objectives are a way for an organization to define its goals and directions.” Generally business has single objective that is to make profit.
Being a entrepreneur, first I will decide that “where we want to go”? OR “What we want to action”?
objectives of business may be classified as -
a. Economic Objectives
b. Social Objectives
c. Human Objectives
d. National Objectives
e. Global Objectives
Now we shall discuss all these objectives in details.
A. Economic Objectives Economic objectives of business refer to the objective of earning profit and also otherobjectives that are necessary to be pursued to achieve the profit objective, which include, creation of customers, regular innovations and best possible use of available resources. Let us learn about these.
Profit earning Profit is the lifeblood of business, without which no business can survive in a competitivemarket. Infect profit making is the primary objective for which a business unit is brought into existence. Profits must be earned to ensure the survival of business, its growth and expansion over time. Profits help businessmen not only to earn their living but also to expand their business activities by reinvesting a part of the profits. In order to achieve this primary objective, certain other objectives are also necessary to be pursued by business, which are as follows:
Creation of customers A business unit cannot survive unless there are customers to buy the products and services. Again a businessman can earn profits only when he/she provides quality goods and services at a reasonable price. For this it needs to attract more customers for its existing as well as new products. This is achieved with the help of various marketing activities.
Regular innovations Innovation means changes, which bring about improvement in products, process of production and distribution of goods. Business units, through innovation, are able to reduce cost by adopting better methods of production and also increase their sales by attracting more customers because of improved products. Reduction in cost and increase in sales gives more profit to the businessman. Use of power-looms in place of handlooms, use of tractors in place of hand implements in farms etc. are all the results of innovation.
Best possible use of resources
As you know, to run any business you must have sufficient capital or funds. The amount of capital may be used to buy machinery, raw materials, employ men and have cash to meet day-to-day expenses. Thus, business activities require various resources like men, materials, money and machines. The availability of these resources is usually limited. Thus, every business should try to make the best possible use of these resources. This objective can be achieved by employing efficient workers, making full use of machines and minimizing wastage of raw materials.
B.Social Objectives Social objectives are those objectives of business, which are desired to be achieved for the benefit of the society. Since business operates in a society by utilizing its scarce resources, the society expects something in return for its welfare. No activity of the business should be aimed at giving any kind of trouble to the society. If business activities lead to socially harmful effects, there is bound to be public reaction against the business sooner or later. Social objectives of business include production and supply of quality goods and services, adoption of fair trade practices and contribution to the general welfare of society and provision of welfare amenities.
Production and supply of quality goods and services Since the business utilizes the various resources of the society, the society expects to get quality goods and services from the business. The objective of business should be to produce better quality goods and supply them at the right time and at a right price. It is not desirable on the part of the businessman to supply adulterated or inferior goods which cause injuries to the customers. They should charge the price according to the quality of the goods and services provided to the society. Again, the customers also expect timely supply of all their requirements. So it is important for every business to supply those goods and serviceson a regular basis.
Adoption of fair trade practices In every society, activities such as hoarding, black-marketing and over-charging are considered undesirable. Besides, misleading advertisements often give a false impression about the quality of products. Such advertisements deceive the customers and the businessmen use them for the sake of making large profits. This is an unfair trade practice. The business unit must not create artificial scarcity of essential goods or raise prices for the sake of earning more profits. All these activities earn a bad name and sometimes make the businessmen liable for penalty and even imprisonment under the law. Therefore, the objective of business should be to adopt fair trade practices for the welfare of the consumers as well as the society.
Contribution to the general welfare of the society Business units should work for the general welfare and upliftment of the society. This is Possible through running of schools and colleges for better education, opening of vocational Training centers to train the people to earn their livelihood, establishing hospitals for medical facilities and providing recreational facilities for the general public like parks, sports complexes etc.
C.Human Objectives Human objectives refer to the objectives aimed at the well-being as well as fulfillment ofExpectations of employees as also of people who are disabled, handicapped and deprived of proper education and training. The human objectives of business may thus include economic Well-being of the employees, social and psychological satisfaction of employees and Development of human resources.
Economic well being of the employees In business employees must be provided with fair remuneration and incentives for performance, benefits of provident fund, pension and other amenities like medical facilities, housing facilities etc. By this they feel more satisfied at work and contribute more for the business.
Social and psychological satisfaction of employees It is the duty of business units to provide social and psychological satisfaction to their Employees. This is possible by making the job interesting and challenging, putting the right person in the right job and reducing the monotony of work. Opportunities for promotion and advancement in career should also be provided to the employees. Further, grievances of employees should be given prompt attention and their suggestions should be considered seriously when decisions are made. If employees are happy and satisfied they can put their best efforts in work.
Development of human resources Employees as human beings always want to grow. Their growth requires proper training as well as development. Business can prosper if the people employed can improve their skills and develop their abilities and competencies in course of time. Thus, it is important that business should arrange training and development programmes for its employees.
Well being of socially and economically backward people Business units being inseparable parts of society should help backward classes and also People those are physically and mentally challenged. This can be done in many ways. For Instance, vocational training programme may be arranged to improve the earning capacity of backward people in the community. While recruiting it staff, business should give preference to physically and mentally challenged persons. Business units can also help and encourage meritorious students by awarding scholarships for higher studies.
D.National Objectives Being an important part of the country, every business must have the objective of fulfilling national goals and aspirations. The goal of the country may be to provide employment opportunity to its citizen, earn revenue for its exchequer, become self-sufficient in production of goods and services, promote social justice, etc. Business activities should be conducted keeping these goals of the country in mind, which may be called national objectives of business. The following are the national objectives of business.
Creation of employment One of the important national objectives of business is to create opportunities for gainful employment of people. This can be achieved by establishing new business units, expanding markets, widening distribution channels, etc.
Promotion of social justice As a responsible citizen, a businessman is expected to provide equal opportunities to all persons with whom he/she deals. He/She is also expected to provide equal opportunities to all the employees to work and progress. Towards this objective special attention must be paid to weaker and backward sections of the society.
Production according to national priority Business units should produce and supply goods in accordance with the priorities laid down in the plans and policies of the Government. One of the national objectives of business in our country should be to increase the production and supply of essential goods at reasonable prices.
Contribute to the revenue of the country The business owners should pay their taxes and dues honestly and regularly. This will increase the revenue of the government, which can be used for the development of the nation. To help the country to become self-reliant, business units have the added responsibility of Restricting import of goods. Besides, every business units should aim at increasing exports and adding to the foreign exchange reserves of the country.
E.Global Objectives Earlier India had a very restricted business relationship with other nations. There was a very rigid policy for import and export of goods and services. But, now-a-days due to liberal economic and export–import policy, restrictions on foreign investments have been largely abolished and duties on imported goods have been substantially reduced. This change has brought about increased competition in the market. Today because of globalisation the entire world has become a big market. Goods produced in one country are readily available in other countries. So, to face the competition in the global market every business has certain objectives in mind, which may be called the global objectives. Let us learn about them.
Raise general standard of living Growth of business activities across national borders makes available quality goods at reasonable prices all over the world. The people of one country get to use similar types of goods that people in other countries are using. This improves the standard of living of people.
Reduce disparities among nations Business should help to reduce disparities among the rich and poor nations of the world by expanding its operation. By way of capital investment in developing as well as underdeveloped countries it can foster their industrial and economic growth.
Make available globally competitive goods and services Business should produce goods and services which are globally competitive and have huge demand in foreign markets. This will improve the image of the exporting country and also earn more foreign exchange for the country.
ANSWER (2)Marketing Strategy And Actions Plans:See page of book 58,59,(lesson 26)
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Question: 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)
Solution Q 1:
Business Objectives
Best objective of a business must be S.M.A.R.T
S: means that we must have a Specific objective that must be following our plan
M: our objective should be Measurable that can help us to check our progress
A: the objectives must be Agreed by all stakeholders concerned to the business
R: It should be Realistic because an unrealistic objective cannot be measured and it remains unachievable
T: objectives should be Time Bounded so that we can check our performance after a specific period of time
In this case the realistic and specific, also these are measurable and time bounded, objectives can be
Developing a niche market by introducing at least 5 unique products/items
Introducing 20 minutes home delivery service within the radius of 5 km
Raising the business to breakeven level within 2 years
Although the objectives can be amended or changed with the passage of time
Define Marketing Strategy and Action Programs. (10)
Solution Q 2:
There are 5 important steps to be taken for an action program including marketing strategy.
Product
Pricing
Promotion
Product
It is consist of a description of the product it could also be including more than the physical properties. As I had an objective to develop my own special product including existing market products I will introduce some of my own recipe products as other brands have developed for them like (Zinger Burger by KFC and Big Mac by Mc Donald)
Pricing
One of the difficult decisions is to determine an appropriate price for the product. Initially I’ll search out about the prices of the products I am going to offer at my outlet and then according to my recipe and other cost I’ll budget the price. Best thing is that if I introduce my product with the same quality as my compotators are providing and little bit less price or some kind of opening offers or discounts to the customers so that I can attract more customers at the initial stage.
Promotion
Being the business owner I need to inform customers as to the product’s availability using different marketing tools. As the promotion will be a major part of my business I will marketize my product through electronic media as well as print media.
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Solution from Virtual University
“Entrepreneurship (MGT602)”
Assignment No. 02 Marks: 20
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)
I. Define specific and realistic business objectives Objectives can be set in following areas:
• Advertising and promotion objectives
• Customer service objectives
• Product modification objectives
• Sale increasing objectives
• New product objectives
• Expense control objectives
• Market research objectives
• Workforce objectives
• Personnel training objectives
II. Define marketing strategy and action program
The students answer may vary. But this portion must incorporate the explanation of following points.
Product and service
Customer service
Pricing
Distribution
Promotion
Here, detail the action steps, priorities and schedules relating to each of the set objectives. If for example one of your objectives was to increase 15% of sales, now is the time to pinpoint specific customers and explain who must do, what, when and how to achieve objective.
If one of your objectives was to introduce new produce then here show the details and deadlines, production schedule, market introduction plans, advertising and merchandising support, sales and services training needed etc. define responsibility and dates of each step
Explain in case of any delay or mishap what alternatives plans are available to overcome the situation.
Assignment-2(idea solution)
Entrepreneurship
You are planning to start a fast food restaurant. Being an entrepreneur, you are required to develop below mentioned portiontions of business plan.
1.Define Specific and realistic business objectives
2.Define Marketing Strategy and actions programs
ANSWER:
(1). Specific Business objectives:
“Business objectives are a way for an organization to define its goals and directions.” Generally business has single objective that is to make profit.
Being a entrepreneur, first I will decide that “where we want to go”? OR “What we want to action”?
objectives of business may be classified as -
a. Economic Objectives
b. Social Objectives
c. Human Objectives
d. National Objectives
e. Global Objectives
Now we shall discuss all these objectives in details.
A. Economic Objectives Economic objectives of business refer to the objective of earning profit and also otherobjectives that are necessary to be pursued to achieve the profit objective, which include, creation of customers, regular innovations and best possible use of available resources. Let us learn about these.
Profit earning Profit is the lifeblood of business, without which no business can survive in a competitivemarket. Infect profit making is the primary objective for which a business unit is brought into existence. Profits must be earned to ensure the survival of business, its growth and expansion over time. Profits help businessmen not only to earn their living but also to expand their business activities by reinvesting a part of the profits. In order to achieve this primary objective, certain other objectives are also necessary to be pursued by business, which are as follows:
Creation of customers A business unit cannot survive unless there are customers to buy the products and services. Again a businessman can earn profits only when he/she provides quality goods and services at a reasonable price. For this it needs to attract more customers for its existing as well as new products. This is achieved with the help of various marketing activities.
Regular innovations Innovation means changes, which bring about improvement in products, process of production and distribution of goods. Business units, through innovation, are able to reduce cost by adopting better methods of production and also increase their sales by attracting more customers because of improved products. Reduction in cost and increase in sales gives more profit to the businessman. Use of power-looms in place of handlooms, use of tractors in place of hand implements in farms etc. are all the results of innovation.
Best possible use of resources
As you know, to run any business you must have sufficient capital or funds. The amount of capital may be used to buy machinery, raw materials, employ men and have cash to meet day-to-day expenses. Thus, business activities require various resources like men, materials, money and machines. The availability of these resources is usually limited. Thus, every business should try to make the best possible use of these resources. This objective can be achieved by employing efficient workers, making full use of machines and minimizing wastage of raw materials.
B.Social Objectives Social objectives are those objectives of business, which are desired to be achieved for the benefit of the society. Since business operates in a society by utilizing its scarce resources, the society expects something in return for its welfare. No activity of the business should be aimed at giving any kind of trouble to the society. If business activities lead to socially harmful effects, there is bound to be public reaction against the business sooner or later. Social objectives of business include production and supply of quality goods and services, adoption of fair trade practices and contribution to the general welfare of society and provision of welfare amenities.
Production and supply of quality goods and services Since the business utilizes the various resources of the society, the society expects to get quality goods and services from the business. The objective of business should be to produce better quality goods and supply them at the right time and at a right price. It is not desirable on the part of the businessman to supply adulterated or inferior goods which cause injuries to the customers. They should charge the price according to the quality of the goods and services provided to the society. Again, the customers also expect timely supply of all their requirements. So it is important for every business to supply those goods and serviceson a regular basis.
Adoption of fair trade practices In every society, activities such as hoarding, black-marketing and over-charging are considered undesirable. Besides, misleading advertisements often give a false impression about the quality of products. Such advertisements deceive the customers and the businessmen use them for the sake of making large profits. This is an unfair trade practice. The business unit must not create artificial scarcity of essential goods or raise prices for the sake of earning more profits. All these activities earn a bad name and sometimes make the businessmen liable for penalty and even imprisonment under the law. Therefore, the objective of business should be to adopt fair trade practices for the welfare of the consumers as well as the society.
Contribution to the general welfare of the society Business units should work for the general welfare and upliftment of the society. This is Possible through running of schools and colleges for better education, opening of vocational Training centers to train the people to earn their livelihood, establishing hospitals for medical facilities and providing recreational facilities for the general public like parks, sports complexes etc.
C.Human Objectives Human objectives refer to the objectives aimed at the well-being as well as fulfillment ofExpectations of employees as also of people who are disabled, handicapped and deprived of proper education and training. The human objectives of business may thus include economic Well-being of the employees, social and psychological satisfaction of employees and Development of human resources.
Economic well being of the employees In business employees must be provided with fair remuneration and incentives for performance, benefits of provident fund, pension and other amenities like medical facilities, housing facilities etc. By this they feel more satisfied at work and contribute more for the business.
Social and psychological satisfaction of employees It is the duty of business units to provide social and psychological satisfaction to their Employees. This is possible by making the job interesting and challenging, putting the right person in the right job and reducing the monotony of work. Opportunities for promotion and advancement in career should also be provided to the employees. Further, grievances of employees should be given prompt attention and their suggestions should be considered seriously when decisions are made. If employees are happy and satisfied they can put their best efforts in work.
Development of human resources Employees as human beings always want to grow. Their growth requires proper training as well as development. Business can prosper if the people employed can improve their skills and develop their abilities and competencies in course of time. Thus, it is important that business should arrange training and development programmes for its employees.
Well being of socially and economically backward people Business units being inseparable parts of society should help backward classes and also People those are physically and mentally challenged. This can be done in many ways. For Instance, vocational training programme may be arranged to improve the earning capacity of backward people in the community. While recruiting it staff, business should give preference to physically and mentally challenged persons. Business units can also help and encourage meritorious students by awarding scholarships for higher studies.
D.National Objectives Being an important part of the country, every business must have the objective of fulfilling national goals and aspirations. The goal of the country may be to provide employment opportunity to its citizen, earn revenue for its exchequer, become self-sufficient in production of goods and services, promote social justice, etc. Business activities should be conducted keeping these goals of the country in mind, which may be called national objectives of business. The following are the national objectives of business.
Creation of employment One of the important national objectives of business is to create opportunities for gainful employment of people. This can be achieved by establishing new business units, expanding markets, widening distribution channels, etc.
Promotion of social justice As a responsible citizen, a businessman is expected to provide equal opportunities to all persons with whom he/she deals. He/She is also expected to provide equal opportunities to all the employees to work and progress. Towards this objective special attention must be paid to weaker and backward sections of the society.
Production according to national priority Business units should produce and supply goods in accordance with the priorities laid down in the plans and policies of the Government. One of the national objectives of business in our country should be to increase the production and supply of essential goods at reasonable prices.
Contribute to the revenue of the country The business owners should pay their taxes and dues honestly and regularly. This will increase the revenue of the government, which can be used for the development of the nation. To help the country to become self-reliant, business units have the added responsibility of Restricting import of goods. Besides, every business units should aim at increasing exports and adding to the foreign exchange reserves of the country.
E.Global Objectives Earlier India had a very restricted business relationship with other nations. There was a very rigid policy for import and export of goods and services. But, now-a-days due to liberal economic and export–import policy, restrictions on foreign investments have been largely abolished and duties on imported goods have been substantially reduced. This change has brought about increased competition in the market. Today because of globalisation the entire world has become a big market. Goods produced in one country are readily available in other countries. So, to face the competition in the global market every business has certain objectives in mind, which may be called the global objectives. Let us learn about them.
Raise general standard of living Growth of business activities across national borders makes available quality goods at reasonable prices all over the world. The people of one country get to use similar types of goods that people in other countries are using. This improves the standard of living of people.
Reduce disparities among nations Business should help to reduce disparities among the rich and poor nations of the world by expanding its operation. By way of capital investment in developing as well as underdeveloped countries it can foster their industrial and economic growth.
Make available globally competitive goods and services Business should produce goods and services which are globally competitive and have huge demand in foreign markets. This will improve the image of the exporting country and also earn more foreign exchange for the country.
ANSWER (2)Marketing Strategy And Actions Plans:See page of book 58,59,(lesson 26)
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Question: 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)
Solution Q 1:
Business Objectives
Best objective of a business must be S.M.A.R.T
S: means that we must have a Specific objective that must be following our plan
M: our objective should be Measurable that can help us to check our progress
A: the objectives must be Agreed by all stakeholders concerned to the business
R: It should be Realistic because an unrealistic objective cannot be measured and it remains unachievable
T: objectives should be Time Bounded so that we can check our performance after a specific period of time
In this case the realistic and specific, also these are measurable and time bounded, objectives can be
Developing a niche market by introducing at least 5 unique products/items
Introducing 20 minutes home delivery service within the radius of 5 km
Raising the business to breakeven level within 2 years
Although the objectives can be amended or changed with the passage of time
Define Marketing Strategy and Action Programs. (10)
Solution Q 2:
There are 5 important steps to be taken for an action program including marketing strategy.
Product
Pricing
Promotion
Product
It is consist of a description of the product it could also be including more than the physical properties. As I had an objective to develop my own special product including existing market products I will introduce some of my own recipe products as other brands have developed for them like (Zinger Burger by KFC and Big Mac by Mc Donald)
Pricing
One of the difficult decisions is to determine an appropriate price for the product. Initially I’ll search out about the prices of the products I am going to offer at my outlet and then according to my recipe and other cost I’ll budget the price. Best thing is that if I introduce my product with the same quality as my compotators are providing and little bit less price or some kind of opening offers or discounts to the customers so that I can attract more customers at the initial stage.
Promotion
Being the business owner I need to inform customers as to the product’s availability using different marketing tools. As the promotion will be a major part of my business I will marketize my product through electronic media as well as print media.
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Solution from Virtual University
“Entrepreneurship (MGT602)”
Assignment No. 02 Marks: 20
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)
I. Define specific and realistic business objectives Objectives can be set in following areas:
• Advertising and promotion objectives
• Customer service objectives
• Product modification objectives
• Sale increasing objectives
• New product objectives
• Expense control objectives
• Market research objectives
• Workforce objectives
• Personnel training objectives
II. Define marketing strategy and action program
The students answer may vary. But this portion must incorporate the explanation of following points.
Product and service
Customer service
Pricing
Distribution
Promotion
Here, detail the action steps, priorities and schedules relating to each of the set objectives. If for example one of your objectives was to increase 15% of sales, now is the time to pinpoint specific customers and explain who must do, what, when and how to achieve objective.
If one of your objectives was to introduce new produce then here show the details and deadlines, production schedule, market introduction plans, advertising and merchandising support, sales and services training needed etc. define responsibility and dates of each step
Explain in case of any delay or mishap what alternatives plans are available to overcome the situation.
