PLANNING AS A

PERFORMANCE TOOLS
Chapter 5
BUSINESS MODEL
CANVAS
Introduced by Based on 9 areas
Osterwalder (2008) 1. Customer segments
Method of analyzing, 2. Firm’s value
designing, strategizing propositions 2
and testing business
model 3. Marketing channels
Put on board all at 4. Customer
once so that it can be relationships
relate to other 5. Key partners
strategies 6. Key activities
7. Key resources
8. Cost structures
9. Revenue streams
 Key Partners Key Activities Value Customer Relationship Customer Segment
Proposition
- Harumanis - Harumanis sales - Return policy - Harumanis
orchard - Managing Harumanis - Harumanis enthusiast and
- Cardboard stock fruit Harumanis juice
box supplier - Juice sales - Harumanis lover
- Plastic cup Key Resources Juice Channels
supplier
- Ice - 2 Stall workers - Stalls
- Harumanis suppliers - Facebook
- Material suppliers advertisement/page 3
(CArdbox, - Word of mouth
Cost Structures Revenue Streams

- Cost of acquiring Harumanis - Harumanis fruit sales

- Cost of juice process (Water, sugar) - Harumanis juice sales
- Cost of Cardboard boxes and cupholder
- Cost of rent, electricity and water (utilities)
 What is a Business Plan?
 A written document that details the proposed venture:
› Describes the current status, expected needs, and
projected results of the new business.
› Covers the project, marketing, research and
development, manufacturing, management, critical
risks, financing, and milestones or a timetable.
› Demonstrates a clear picture of what that venture is,
where it is projected to go, and how the entrepreneur
proposes it will get there—a roadmap for a successful
enterprise.
 Definition of Business Plan

• A business plan is a detailed programme or

roadmap outlining every conceivable aspect of
the entrepreneur’s proposed business venture
(Patricia Utton, 2001)
Business Plan?

* Where am I now? – individual current

position, the people, resources, asset
and cash.

* Where am I going? – the visioning part

of the process.

* How am I getting there? What are the

milestones?
 The Importance of Planning
– Increased opportunity for success : level of performance
that is supposed to be achieved
– Development of a business mission : clear vision &
mission of the business
– Determining the main competitors : identify strength &
weakness & strategies to face them
– Determining the right way of managing a business :
opportunities to develop effective strategies to run the
business
– Increasing stakeholders confidence : important for the
investor to determine the returns of their investment
 Individuals Who Need a
Business Plan

Entrepreneurs
Shareholders
Bankers/Creditors/Financial Institutions
Investors
Management/ Employees
Clients/Customers
Suppliers
 Appendix
Essentials Elements of a

Financials
Good Business Plan

Funding Request
Svc/Product line
Mktg. & Sales Strategies
Firm & Mgt.
Mkt. Analysis
Exec. Summary
 Realistic &
GUIDELINE FOR PREPARING

objective
Information
based on study
BUSS. PLAN

Avoid jargon
Who is involved &
the role
Focus
Keep it short
 Incomplete info
Failed team
WHY FAIL?

members
Fail to recognise
barrier
Not realistic
Just a dream/not
documentized