Strategy in Action – Raging Bull

1. What role do you think business plans play when attracting funding?

A business plan is a document that in-depth defines the goals and objectives of a company. It
comprises the organization's operational, financial, and marketing strategies. An organization's
business plan is a crucial document when it comes to funding and is directed at both internal and
external stakeholders. The company strategy must outline how it will prosper and how much
profit may be expected from operations. Investors are concerned with these factors while
considering whether an investment is profitable. Investors therefore utilize the company plan to
evaluate the profitability of their capital.

The document that will persuade potential investors to fund a company is a business plan. The
startup and operating costs of the business are of interest to investors. The business plan can be
used to inform investors about costs including start-up costs, research costs, insurance costs,
production costs, and other pertinent operating expenditures.

Investors will closely examine every element of the suggested company strategy. They anticipate
a thorough business plan that outlines the company's future course in great detail. They don't
want to take chances if not. So, it stands to reason that written business plans serve as the
foundation for funding requests. Therefore business plan is very important.
2. If you were Martin, what additional information would you want to know about
CMGI and the value they would bring in exploiting this opportunity?

It's critical to understand how much experience CMGI has in the field Martin works in. Getting
investors not only means getting money to start a business, but it also means getting their
expertise because they can give organizations the right advise based on their earlier investments
in various sectors. Investors must have a thorough understanding of the sector in which the
organization plans to operate. Therefore, it is important to assess whether a candidate has
expertise leading, developing, and supporting both emerging and existing large organizations.
Also we should find out the nature of the CMGI. Because background is very important to deal
with the company. Also we should know about the interest rate of CMGI. Then we should know
about expected benefit of CMGI. Also if the interests, vision, brand, and culture of the start-up
and CMGI are compatible, an effective investor will always put the organization first and respect
its judgments when doing so is in the best interests of the business. Good investors will always
support your company like a pillar, automatically rectifying any errors in your choices.
Therefore, it's crucial to assess oneself to see if the investor is more focused on the organization's
growth potential than on owning shares and making money in the future.

3. What initial questions and information would you want to have prior to formulating
a “deal”?

 History of the investor's investments in the industry where the firm is located.
 Rules and Regulations
 The investor's present capacity for investment?
 Date
 Time
 Investment history of dealer
 The investor's decision-making process and timetable.
 More information the business must provide to investors in order for them to make an
investment choice.