DISCUSSION: 

Answer the following questions

1. What do you think is the best definition for BUSINESS PLAN? is a document
describing and explaining a business to be carried out, as well as different
aspects related to it, such as its objectives, the strategies to be used to achieve
those objectives, the production process, the investment required and the
expected profitability.

2. How important is a business plan in any business? Is to analyze the business

idea in detail, examining both technical, economic, financial, social and
environmental feasibility. Procedures, strategies and other actions will also be
described so that the business idea can become a real company.

3. Write the most important characteristics of a business plan. 

 It must be effective, this means that you must prioritize the

characteristics and key factors of business success, you must
answer the possible questions of the investors.

 It should be clear, do not leave ideas on the air and use precise
terms without many turns.

 It should be brief, usually does not exceed 30 pages, meaning

that a great power of synthesis must be applied.

 It must be structured, it must be very organized to allow a simple

reading.

 The presentation should be impeccable, good font size, wide

margins, all figures should be organized into tables, etc.

4. Is a business plan the same as an investment proposal? It is not the same

investment proposal because is limited to describe a set of activities that have
to be performed to achieve a particular objective, with a certain cost and
time.and A business plan is a document of analysis for making decisions about
how to implement an idea, initiative or business project.

5. Analyze the following statement: “A business plan is a document that

summarizes the operational and financial objectives of a business”. Give your
points of view.

I think that when making a business plan is summed up in a clear and accurate
way the company that wants to create and the objectives that will be achieved
analzing all the aspects that are necessary to develop the project both
operational and financial

II. VOCABULARY

Before you read the text, look for the following terms and write the best
definition for each one of them.

1. Marketing plan Is the basic management tool that should be used by any
market-oriented company that wants to be competitive.
2. Investment proposal. describe a set of activities that have to be performed to
achieve a particular objective, with a certain cost
3. Market Analysis is the identification of business opportunities, the
identification of the size and composition of the market, the prospects for market
growth, the discovery of unexplored niches, the characteristics of the target
market, the competition, the design or adaptation of the product and / or
services for export, consumption patterns, demand forecasts, and sales.
4. Competitive Analysis is a process that consists of relating the company to
its environment. Competitive analysis helps identify the strengths and
weaknesses of the company as well as the opportunities and threats that affect
it within its target market.
5. Financial Plan is probably the most important part of the business plan.
For it contains all the information developed and quantified - in monetary units -
of each of the action plans, which correspond to each of the functional areas of
the company.
6. Management Plan contains the projects to be developed during the year.
These can be permanent or of temporary nature depending on whether the
activities are executed in years to come or are carried out in a certain time
respectively.
7. Executive Summary is the first part of a business plan. It consists of a
summary of the most important points of the other parts of the plan, so it must
be at the beginning of the plan, but be elaborated after completing the other
parts

III. Classify the following elements according to their function and what you think must
be included in a BUSINESS PLAN.

a) Funding requirements.
b) Business physical location.
c) Geographical location
d) Overcome entry barriers in a market.
e) Sales strategy.
f) Kinds of employees needed.
g) Demographics.
h) Proposed advertising.
i) Direct and indirect competitor.
j) Detailed Financial statements.
k) Facilities and equipment.
l) Target market.
m) Promotion activities.
n) Outline of business legal structure.
o) Pricing plan.
p) Market’s needs
q) Internal, external and human resources.

MARKET COMPETITIVE MARKETING MANAGEMENT OPERATING FINANCIAL

ANALYSIS PLAN PLAN PLAN PLAN
ANALYSIS

1. 1. 1. 1. 1. 1.

2. 2. 2. 2. 2. 2.

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READ THE FOLLOWING TEXT AND CONTRAST YOUR ANSWERS IN THE
PREVIOUS EXERCISE WITH THE INFORMATION GIVEN.

“Business Plan”
A business plan is a document that summarizes the operational and financial
objectives of a business and contains the detailed plans and budgets showing
how the objectives are to be realized.
Because the business plan contains detailed financial projections, forecasts
about your business's performance, and a marketing plan, it's an incredibly
useful tool for business planning.
For anyone starting a business, it's a vital first step.
My Writing A Business Plan series provides detailed instructions for working
through each section of the business plan. Business Plan Outline, is the starting
page; it includes a brief explanation of the contents of each section of the
business plan.
How does the business plan differ from the investment proposal? Not much.

The business plan and the investment proposal have the same contents. You
can think of an investment proposal as a business plan with a different
audience. The business plan is considered an internal document, unlike the
investment proposal, which is designed to be presented to external agencies.

Business Plan Outline

The Writing A Business Plan Series
From Susan Ward

Thinking of writing a business plan? Here is a business plan outline, listing the
sections of the business plan in the order in which they will appear in your
completed business plan with a brief explanation of each section to help you get
organized.

The Executive Summary

While appearing first, this section of the business plan is written last. It
summarizes the key elements of the entire business plan.

The Industry
An overview of the industry sector that your business will be a part of, including
industry trends, major players in the industry, and estimated industry sales. This
section of the business plan will also include a summary of your business' place
within the industry.

Market Analysis
An examination of the primary target market for your product or service,
including geographic location, demographics, your target market's needs and
how these needs are being met currently.
Competitive Analysis
An investigation of your direct and indirect competitors, with an assessment of
their competitive advantage and an analysis of how you will overcome any entry
barriers to your chosen market.

Marketing Plan
A detailed explanation of your sales strategy, pricing plan, proposed advertising
and promotion activities, and product or service's benefits.

Management Plan
An outline of your business' legal structure and management resources,
including your internal management team, external management resources,
and human resources needs.

Operating Plan
A description of your business' physical location, facilities and equipment, kinds
of employees needed, inventory requirements and suppliers, and any other
applicable operating details, such as a description of the manufacturing
process.

Financial Plan
A description of your funding requirements, your detailed financial statements,
and a financial statement analysis.