ARELLANO UNIVERSITY

JOSE ABAD SANTOS CAMPUS

BASIC EDUCATION DEPARTMENT

Business Plan
- Business Concept and Business Model
- The Business Goals: Vision, Mission, Objectives and
Performance Targets

(Applied Entrepreneurship)
Prepared by:
Rona S. Bedico
Subject Teacher
 1. Identify the business concept
and business concept and
business model.

Objectives:
2. Appreciate the importance
of business model in building a
business.
Content of a Business Plan
I. Introduction
a. The Business Concept and Business Model
b. Business Goals: Vision, Mission, Objectives, and Performance Targets
II. Executive Summary
III. The Business Proponents: Organizers with their Capabilities and Contributions
IV. The Target Market
V. The Market, Market Justification based on the Industry Dynamics and the Macro
Environmental Factors Affecting the Opportunities and Threats in the Market, the
Size, Potential and Realistic Share of the Market.
VI. The Product and Service Offering: Description, Evolution, and Justification
VII. The Enterprise Strategy and Enterprise Delivery System
VIII. The Financial Forecast and Expected Returns, Risks, and Contingencies
IX. Environmental and Regulatory Compliance
THE BUSINESS CONCEPT AND
BUSINESS MODEL
A business model for a new enterprise should also cover
projected start-up costs and sources of financing, the
target customer base for the business, marketing
strategy, a review of the competition, and projections
of revenues and expenses.
THE BUSINESS CONCEPT AND
BUSINESS MODEL
A business model may also define opportunities for
partnering with other established businesses. An
example would be an advertising business that could
benefit from an arrangement for referrals to and from a
printing company.
THE BUSINESS CONCEPT AND
BUSINESS MODEL
A business concept contains the essence of the
enterprise in a concise but powerful manner. It stresses
the value of the product offering to the target
customers who would most likely buy it.
THE BUSINESS CONCEPT AND
BUSINESS MODEL
The product concept must then be translated into a
business model. A business model is a formula on how
the enterprise exactly plans to make money out of the
business. There are four areas of money making which
the business model must address:
THE BUSINESS CONCEPT AND
BUSINESS MODEL
1.How will business raise revenues? What critical factors will make the
revenues to materialize?
2. What will be the costs of the enterprise products and other costs of
doing business? How will these costs be managed to ensure comfortable
profits? What critical factors will drive the costs? How can these factors
be controlled?
3. What will be the major investment of the enterprise? Why will these
investments give the enterprise a competitive edge?
4. How will the enterprise finance the investments? How will the
enterprise fund its growth?
THE BUSINESS GOALS: VISION, MISSION,
OBJECTIVES AND PERFORMANCE TARGETS
The business goals show the future and long-term
prospects of enterprise. It is comprised of the vision,
mission, objectives, key result areas and performance
indicators of the enterprise.
THE BUSINESS GOALS: VISION, MISSION,
OBJECTIVES AND PERFORMANCE TARGETS
The Business Goals are communicated by articulating
the basic purpose of setting up the enterprise in a
mission statement. All business enterprise are
established for the purposed of making money for its
investors.
THE BUSINESS GOALS: VISION, MISSION,
OBJECTIVES AND PERFORMANCE TARGETS
The vision and mission statements must then be
translated into measurable and results called
objectives.
THE BUSINESS GOALS: VISION, MISSION,
OBJECTIVES AND PERFORMANCE TARGETS
To illustrate, an example of firm’s vision, mission,
objectives and key results areas are shown below:
THE BUSINESS GOALS: VISION, MISSION,
OBJECTIVES AND PERFORMANCE TARGETS
CASE EXAMPLE: TRIPLE A

The vision of Triple A is “to establish a commanding

presence and market leadership as a food chain
servicing major business terminals in Central Luzon
within the next five year”
THE BUSINESS GOALS: VISION, MISSION,
OBJECTIVES AND PERFORMANCE TARGETS
CASE EXAMPLE: TRIPLE A

For Triple A, its mission statement is “to provide quality

food and passenger convenience services that would
generate sufficient profits for the stockholders and improve
the lives of its employees”
THE BUSINESS GOALS: VISION, MISSION,
OBJECTIVES AND PERFORMANCE TARGETS
CASE EXAMPLE: TRIPLE A

Objectives must be more specific than the vision and

mission statements. They should be measurable,
achievable and time-bounded.
THE BUSINESS GOALS: VISION, MISSION,
OBJECTIVES AND PERFORMANCE TARGETS
For Triple A, the stated objectives are:
1. To establish a strong market presence in Central Luzon
2. To earn good financial returns for its owners
3. To delight customers with high quality food and
services; and
4. To make Triple A, a happy and rewarding place to
work in.
THE BUSINESS GOALS: VISION, MISSION, OBJECTIVES AND
PERFORMANCE TARGETS
In the Triple A, the key result areas for each of the objectives are the following:
THINGS TO REMEMBER:

MISSION: SHORT TERM OBJECTIVES OF THE BUSINESS

VISION: LONG TERM OBJECTIVES OF THE BUSINESS

OBJECTIVES: SPECIFIC MISSION AND VISION OF THE BUSINESS OR ENTERPRISE.

KEY RESULT AREAS: DESIRED OR EXPECTED RESULTS FROM THE BUSINESS’

OBJECTIVES.
THANK YOU!