Part of Business Plan

EXECUTIVE SUMMARY,
ENVIRONMENTAL
ANALYSIS,
AND
BUSINESS DESCRIPTION
Vocabulary list:
Executive - relating to or having the power to put plans or actions into
effect.
Summary - a brief statement or account of the main points of
something.
Environment - the circumstances, objects, or conditions by which one
is surrounded.
Analysis - detailed examination of the elements or structure of
something.
Model - a description or analogy used to help visualize something that
cannot be directly observed.
Business Model – defines the perspective of the business in terms of
its structure, production, operation, and financial activities that will lead
to the achievement of the Vision, Mission, Goals, and Objectives.
The second part of Business plan

II - EXECUTIVE SUMMARY
Executive summary is commonly the last section to
be written after all other major parts have been
completed, it is the next major part of the business
plan after the introduction.
It points out the overall highlights of the business
plan as well as bird’s eye view of its sections. It must
be written in a simple language that can be easily
understood and at the same time attract the attention
and influence the decision of the readers.
Investors, creditors, and other significant parties
usually proceed to the details of the business plan once
they find the executive summary interesting, convincing,
and worthy of further reading.
The executive summary must include the following
sections:
1. Vision, mission, goals, and objectives of the business
2. Business model
3. Business and product position
4. Wealth improvement approaches
5. Parties supporting the business
VISION, MISSION, GOALS, AND OBJECTIVES

At the very outset, the business plan must depict the

fundamental characteristics, nature, philosophical
values, identity, and image of the business. These
important concerns are embodied in the vision, mission,
goals, and objectives (VMGO) of the business. The
VMGO must be clearly stated and easily understood.
They must be reviewed and revisited at least every
three years to determine whether they are still
reasonable and achievable in view of the rapid changes
in the business community.
BUSINESS MODEL
The business model defines the perspective of the
business in terms of its structure, production,
operation, and financial activities that will lead to
the achievement of the VMGO. The business
model must basically reflect certain innovations
that will indicate the competitiveness of the
business in the industry. It must define how the
business gives importance to its relations with
customers, creditors, supplies, and internal human
resources.
BUSINESS AND PRODUCT POSITION
The business and product position will help
determine how the business defines its course
and the process of accumulating wealth. It tells
the size of the market and the target market
share of the business and product. The
business and product position must be able to
convince the readers that the proposed
business has a competitive advantage in the
market.
WEALTH IMPROVEMENT APPROACHES
This section of the executive summary describes
the methodologies or approaches that will be taken
by the business in order to
1.Maintain a competitive advantage,
2.Position the business in the market,
3.Improve the market share, and
4.Maximize the utilization of resources.
This section also includes a brief discussion of the
marketing policies and financial operations of the
business.
PARTIES SUPPORTING THE BUSINESS
The last section of the executive summary is a description of the
parties that strongly support the business. The parties that have a
direct relationship with the business are as follows:
1. Consumers
2. Creditors
3. Suppliers
4. Employees and staff
Relevant information about individuals and parties that support the
business is important since the proposed business may conduct
transactions with them later.
The executive summary must cover at least three pages but must not go beyond five
pages. An executive summary that is either too short or too long may discourage the
reader to continue reading.
The third part of Business plan

III - ENVIRONMENTAL ANALYSIS

The next major part or section of the business plan after the
executive summary is the environmental analysis. It is a
strategic tool that helps determine the external and internal
factors affecting the performance of the business.
These factors may be political, economic, social, or
technological in nature. The environmental analysis may
consist of at least 20 pages including the graphical
representations, tables, and computations. The
environmental analysis section is considered the heart of
the business plan.
Environmental analysis is already a
necessity. It is perceived as the basic
element for business survival, It may
consist of
1. Global analysis,
2. Societal analysis, and
3. Industry analysis.
GLOBAL ANALYSIS
The environmental analysis section may begin with a
description of the global business situation to provide
enough knowledge about the global perspective or
horizon of the business. As a future entrepreneur,
you should not devote the whole section of the global
analysis by simply describing the business trends.
Remember that, It is not the business trend that has
the most significant bearing on the global analysis but
rather the possible business opportunities or ideas
that the global business trend offers.
SOCIETAL ANALYSIS
After describing and possibly convincing the reader of the
bright business prospect in the world market, the next step
is to present the societal analysis and determine the
different variables affecting the societal environment.
These variables include
1. Political forces,
2. Economic forces,
3. Socioeconomic forces,
4. Technological forces,
5. Ecological forces,
6. Legal forces
INDUSTRY ANALYSIS

The third level of environmental analysis is the

industry analysis. The industry analysis basically
involved three important related tasks as follows:
1.Conducting a critical evaluation of the forces in
the industry that affect the proposed business
2.Evaluating the probable position of the
business in the industry
3.Determining the most appropriate strategy that
may be adopted by the proposed business
Conducting a Critical Evaluation

Conducting a critical evaluation is the most

delicate, tedious, and difficult task in industry
analysis. There are some business plans that
do not even show any indications that a critical
analysis has been conducted. Only those forces
that are deemed to have substantial effects,
either positive or negative, to the proposed
business must be critically analyzed and
properly described.
The industry analysis needs substantial work in the
process of establishing the projected demand and
supply.
The demand and supply analysis, also called the
consumer and competitor analysis, is the
backbone or the foundation of all other analyses.
Where there are no consumers or buyers of the
product, the business will never be created. The
presence of the consumers is the ultimate reason
for the existence of any business endeavor.
Evaluating the Business Position
After conducting a critical analysis of the factors in
the industry environment that primarily affect the
proposed business, the next step is to evaluate the
possible business position in the industry. This
deals with market share and growth. Entrepreneurs
may use a perceptual map, also called
positioning map, to help them understand their
position against their competitors in the market. It
also shows how the consumers respond to their
products and services.
Determining the Most Appropriate Business Strategy
The last important task in the industry analysis
is to describe the most appropriate strategy that
may be adopted by the business. The strategy is
highly influenced by the analysis of the business
strengths, weaknesses, opportunities, and threats.
The reason for the selection of the strategy must
likewise be clearly indicated.
The fourth part of Business plan
IV - BUSINESS DESCRIPTION
The business description section presents the nature
and form of the business to be undertaken, and may
cover two to three pages. As to nature, the business
may be a merchandising, services, manufacturing, or
a hybrid. The description must include the innovative
features of the business. As to form, it may either be a
sole proprietorship, a partnership, or corporation. The
reason/s for the selection of the form must also be
indicated.
In case the study is about an already existing business, the
present status of the business must be provided, including
the intended innovation.
In addition, the business description also includes the
following:
1. Product or service that it plans to produce or serve
2. Various plant and office equipment
3. Size of the proposed business
4. Future parties with whom contracts may be necessary
5. Personal requirement
6. Administrative operation
 EXECUTIVE SUMMARY

This section presents the VGMO, the business model, the business and
production positions, wealth improvement approaches, and the parties supporting
the study.

Vision, Mission, Goals, and Objectives

Business Model

Business and Product Position

Wealth Improvement Approaches

Parties Supporting the Business

 ENVIRONMENTAL ANALYSIS

This section presents the industry analysis covering the following forces
directly affecting the proposed business: the trend in the industry, the consumers,
the competitors, market forecast, market share, market position, and marketing
strategy.

Trend in the industry

Consumer Analysis
• Markey segmentation and targeting
• Demand analysis
Competitor Analysis
• Supply analysis
Market Forecast
• Demand and supply forecast
Market Share
Market Position
Marketing Strategy
 BUSINESS DESCRIPTION

This section shall describe the product to produce, the equipment needed in
the small business, the size of the business in terms of capitalizations and scope,
and the personnel required to handle the operation.

Product Description

Equipment/Materials Needed

Size of the Business

Personnel Requirement
Thank
you!..