Module 6: Foundation Year Project

Classroom Rules

Be on time and be
Keep your mobile Ask only relevant
always prepared for
phone switched off questions during
your class. Bring your
or in a silent mode. teaching time.
laptop in class.

Be polite and
Do not interfere with
respectful of the
the teaching and
teacher, yourself, Always do your best.
learning of your
your classmates and
colleagues.
your institution.
Session Overview
Learning Objectives
By the end of this session students will be able to:

1. Learn about difference between goals, objectives, strategy and tactics

2. Discover how much control you want to have over your business
3. Learn some useful planning techniques
Business Strategy
Goals, Objectives and Strategies
Goals
• A goal is a general statement of desired direction or
improvement.
• Areas for improvement are identified through the
situational diagnosis, for example SWOT or PESTLE
analysis.
• Goals should be set for all areas of business.
• Goals should be set for each component of the
business proposal:
• management structure,
• employees,
• suppliers, and (Griffin, 2015)
• finance. (Image: STI, 2023)
Goals, Objectives and Strategies
Objectives
• An objective is a measurable statement of
accomplishment.
Strategies
• A strategy is a method of achieving goals,
objectives, or both.
• A strategy usually includes inputs as well as
desired outcomes, a time frame, and
milestones and may include some overall
assignments of responsibility.
• Tactics
(Griffin, 2015)
• Specific actions within the strategy (Image: STI, 2023)
Examples

(Griffin, 2015)
 How to Develop Goals and Strategies
Planning Process Flowchart Market:
• Identify your target customers.
Market
• What will be your Product/Service mix?
SWOT • How will you promote, distribute and
Production
Analysis price your product/service?
Develop Production/Operations:
Goals and Research &
Development - What will be your costs and where you
Strategies
PESTLE
will buy supplies?
Analysis Management - Define the operating process: who does
what?
Information R&D:
Technology
- What new products are possible?
(Software)

Finance
(Adapted from Griffin, 2015)
 How to Develop Goals and Strategies
Planning Process Flowchart Management:
- What productivity do you expect?
Market - How much will you pay to your
employees?
SWOT Production - Number of employees and where to
Analysis
Develop
get them?
Goals and Research & Information Technology
Strategies Development - Software needed to operate your
PESTLE business? Invoices, payment, etc?
Analysis Management
Finance:
Information - Where do obtain the financing?
Technology - How much of initial investment?
(Software) - Budgeting
Finance
(Adapted from Griffin, 2015)
(Abrams & Kleiner, 2003)
 Setting Goals – Personal Motivation
• For smaller enterprises or sole The Four Cs
proprietorships businesses in which
one or two key members of
management have primary control, C – Control
issues of personal satisfaction can be C – Challenge
a central element in determining
long-term success. C – Creativity
• Some businesses fail, and others C – Cash
flounder, because their founders,
owners, or key managers are
uncertain on what they really want to
achieve or because they did not
structure the company and their
responsibilities in ways that satisfy (Abrams & Kleiner, 2003)
their personal needs and ambitions.
 Setting Goals – Personal Motivation
Control Challenge Creativity Cash
How much control As you plan your Creativity comes High share of
you need to company, in many forms: the profit – more
exercise on a establish - Designing or financial risks.
day-to-day basis personal goals making new
things Share risk with a
influences how that provide you partner – share
large your with sufficient - Coming up with profits.
company can be. stimulation, while a new
also advancing production Outside
More control – process investors – less
your company the growth of
your business - Finding new control
better stay small. ways to make
Less immediate sales or handle
control – larger customers
companies.
Activity (40 minutes)
Print out the ‘Four Cs’ worksheet, complete it and save it. There is a
copy of it in Additional Resources. You can include it as an Appendix for
your Assignment One.

Alternatively, fill it out electronically.

Discuss and compare with another student your results. There is no

right or wrong answer, but it is interesting to compare preferences.
Activity (40 minutes)
Activity (40 minutes)
Activity (40 minutes)
PESTLE Analysis
Activity (15 minutes)
In groups, choose one topic and discuss how one of these factors would impact
a business?
• Railway strikes
• Gas and oil prices increase
• Blocking of Suez canal
• An unknown and contagious disease
• Internet
• Electric cars
• Insecurity

Share your findings with the rest of the class.

19
What is a PESTEL Analysis?
A PESTEL (PESTLE) analysis is a PESTLE Analysis
strategic framework commonly used
to evaluate the business
environment in which a firm
operates.
Traditionally, the framework was
referred to as a PEST analysis,
which was an acronym
for Political, Economic, Social,
and Technological; in more recent
history, the framework was extended
to include Environmental and Legal
factors as well.
(Perera, 2017)
Political Factors
Political factors are those driven by
government actions and policies. They
include, but are not limited to,
considerations like:

• Corporate taxation
• Bureaucracy and Corruption level
• Regulation/de-regulation
• Import restrictions/Tariffs
• Wars and conflicts
(Christodoulou & Culliane, 2019
Image: Consulterce.com)
Economic Factors
Economic factors relate to the broader
economy and tend to be expressly financial
in nature. They include:

• Interest rates
• Employment rates
• Inflation
• Exchange rates
• Disposable income – what is left to
spend after all the bills are paid

(Kolios and Read, 2013)

Social Factors
Social factors include demographics (age, gender, race,
family size); consumer attitudes, opinions, and buying
patterns; population growth rate and employment patterns;
socio-cultural changes; ethnic and religious trends; living
standards.
Social factors may have a shockingly outsized impact on
entire industries as we know them:
• Trends towards healthier and more active lifestyles have
ushered in the evolution of connected fitness
technologies
• Changes to the nature of food products we consume and
how these food products are packaged and marketed.

Kolios and Read, 2013

Technological Factors
In today’s business landscape, technology is everywhere –
and it’s changing rapidly.

• Automation
• How research and development (R&D) may impact both
costs and competitive advantage
• Technology infrastructure (like 5G, IoT, etc.)
• Cyber security

The speed and scale of technological disruption in the present

business environment are unprecedented, and it has had a
devastating impact on many traditional businesses and
sectors, for example Uber upending the transportation
industry or the advent of e-commerce revolutionizing retail
trade as we know it (Kolios and Read, 2013)
Environmental Factors
Environmental factors emerged as a sensible
addition to the original PEST framework as the
business community began to recognize that
changes to our physical environment can present
material risks and opportunities for organizations.
Examples of environmental considerations are:

• Carbon footprint
• Climate change impacts
• Increased incidences of extreme weather events
• Stewardship of natural resources (like fresh
water).
(Kolios and Read, 2013)
 Legal Factors
Legal factors are those that emerge from changes to the
regulatory environment, which may affect the broader
economy, certain industries, or even individual businesses
within a specific sector.

• Industry regulation
• Licenses and permits required to operate
• Employment and consumer protection laws
• Protection of IP (Intellectual Property)

For example, advertising bans for certain product

categories or special requirements for product design must
be considered and considered on a country-by-country
basis (Kolios and Read, 2013; Heubel, 2022)
 Put the factors under the correct heading

Political and Social, Cultural and Environmental Economical Technological

Legal Demographic

27
 Put the factors under the correct heading

Political and Social, Cultural and Environmental Economical Technological

Legal Demographic

28
Formative Activity 2
Formative Activity 2 (45-60 minutes)
1. Open the saved document with the Report that you started to write last
week.
2. Create a subheading: PESTLE Analysis
3. Insert a table that looks like this:

List 1-2 factors that can affect Explain in what way

your business
P
E
S
T
L
E
Formative Activity 2 (45-60 minutes)
4. Follow the example below to fill the table with Political, Economical,
Social, Technological, Legal and Environmental factors that might
affect your business. Briefly explain in what way.
5. Alternative: fill the table on a piece of paper. You MUST include it in
your Report later.
6. Show it to your tutor or a peer for a brief feedback.

List 1-2 factors that can Explain in what way

affect your business
Babyboomers retiring This generation has accumulated a lot of wealth and a demand for wise
S (Fletcher et al, 2018) investment options. It will help my business get generous customers.
Planning a Business
Research Project
Planning Activities

There are many ways to

plan a project:
• on paper,
• using sticky notes,
• creating a time-line or
a Gantt chart.

Gantt chart
Gantt chart
Benefits
• It enables you to see the entire
project at a glance.
• It shows:
• Task start and end dates
• The team members assigned
to task (for group projects)
• Any dependencies (for
example, you need to finish
one task to start the other)
• Project milestones (most
important achievements or
quick wins) (Keefe, 2022). Image: TemplateLab (2022)
How to Create a Gantt Chart

• Step 1: Identify and list the tasks

• Step 2: Estimate how long each
task will last
• Step 3: Place it on the timeline.
(Adapted from Keefe, 2022)

Reminder: Gantt chart is optional for

your business proposal
Image: WikiHow, 2022
References
• Griffin, M.P. (2015) How to Write a Business Plan: A Step-by-Step Guide to Creating a Plan That
Gets Results: AMA Self-Study.
• Christodoulou, A., Cullinane, K. 2019. “Identifying the Main Opportunities and Challenges from the
Implementation of a Port Energy Management System: A SWOT/PESTLE Analysis.” Sustainability
11(21): 1-15.
• Kolios, A., Read, G. 2013. “A Political, Economic, Social, Technology, Legal and Environmental
(PESTLE) Approach for Risk Identification of the Tidal Industry in the United Kingdom.” Energies
6(10): 5023- 5045.
• Heubel, M. (2022) PESTLE Analysis. Available at: https://consulterce.com/pestle-analysis/. (Accessed: 6
January 2024).
• Keefe, R. (2022) What is a Gantt Chart? (And How It Made Me A Better Manager). Available at:
https://toggl.com/blog/what-is-a-gantt-chart. (Accessed: 6 January 2024).
• Perera, R., 2017. The PESTLE analysis. Nerdynaut.