Business Plan Execution | Entrepreneurship Class 11 - CBSE
Summary
TLDRThis module delves into the critical factors behind the success and failure of a business plan, emphasizing the importance of strategic groundwork and execution. It distinguishes between a feasibility study, which assesses a business's potential for success, and a business plan, which outlines strategies for achieving goals. Key to a successful plan is alignment, effective communication, and a structured approach involving strategy formulation, resource evaluation, initiative identification, budget planning, and regular review processes.
Takeaways
- 🚀 The success of a business plan is not guaranteed by its quality alone but is heavily influenced by how well it is executed.
- ⏳ Companies often fail due to incorrect strategies, which stem from insufficient groundwork and market understanding.
- 🔗 Alignment is crucial for successful plan execution, linking strategy, personnel, and work processes effectively.
- 🗣️ Communication is key within an organization; lack of it can lead to misaligned objectives and internal frustration.
- 🔄 A business plan's execution requires a cycle of developing, implementing, and reviewing action plans at every phase.
- 💡 Formulating a strategy involves setting clear, quantifiable goals and core competencies for the organization.
- 👥 Evaluating human resources involves assigning the right people to the right jobs and considering reallocation when necessary.
- 📈 Identifying key initiatives and broad actions involves recognizing transitional issues and pushing initiatives across departments.
- 💼 Planning the budget is about raising the necessary capital to support the business plan and ensuring financial stability.
- 🔄 Establishing a review process is essential for analyzing market dynamics and adjusting goals and plans accordingly.
- 📊 A feasibility study is conducted before a business plan to determine if the investment is likely to yield worthy returns.
- 📋 The business plan follows the feasibility study and outlines specific strategies and tactics for business growth and sustainability.
Q & A
What is the primary reason for the failure of a business plan?
-The primary reason for the failure of a business plan is often attributed to a wrong strategy, which stems from companies not spending enough time and energy on groundwork, such as understanding their markets, competitions, and customers.
How does the execution of a business plan impact its success?
-The success of a business plan is not determined by its excellence but by how well it is executed. The key to successful plan execution is alignment, which involves a proper link between strategy, people, and work processes.
What role does communication play in the success of a business plan?
-Communication plays a crucial role in the success of a business plan. Lack of communication can lead to different departments understanding company goals differently, resulting in frustration and cynicism within the organization.
Why is it important to have action plans and review processes in business planning?
-Action plans and review processes are important because they ensure that the business plan is not only developed but also implemented and adjusted as needed. Regular reviews help analyze market dynamics and adjust goals and plans accordingly.
What are the steps involved in formulating a successful business strategy?
-The steps involved in formulating a successful business strategy include establishing mission, vision, and strategy, identifying core competencies and quantifiable goals, evaluating human resources, identifying key initiatives and broad actions, planning the budget, communicating effectively, and establishing a review process.
How does a feasibility study differ from a business plan?
-A feasibility study is conducted before preparing a business plan to determine if the business idea is economically viable. A business plan, on the other hand, comprises specific strategies and tactics to achieve business goals and follows the feasibility study.
What is the purpose of a feasibility study in the context of business planning?
-The purpose of a feasibility study is to ascertain whether the investment in a business idea would yield worthwhile returns. It involves analysis, calculations, and estimates to evaluate the potential success of the business venture.
What is the significance of alignment in the execution of a business plan?
-Alignment is significant in the execution of a business plan as it ensures that the strategy, people, and work processes are properly linked. This coordination is crucial for the successful implementation of the plan and achieving the desired outcomes.
How can a company ensure that its strategic plan is understood by all members of the organization?
-A company can ensure that its strategic plan is understood by all members by communicating effectively, introducing rewards and recognition to motivate stakeholders and employees, and creating decision filters to guide the organization through the thought process.
What are the key components of a business plan that contribute to its success?
-The key components of a successful business plan include a well-formulated strategy, proper evaluation of human resources, identification of key initiatives and broad actions, a well-planned budget, effective communication, and a regular review process.
Outlines
📈 Understanding Business Plan Success & Failure
This paragraph discusses the reasons behind the success and failure of a business plan. It emphasizes that a company's failure is often due to a wrong strategy, which stems from insufficient groundwork. Successful companies spend time understanding their markets, competition, and customers. The execution of the business plan is key to success, not just the plan itself. Alignment between strategy, people, and work processes is crucial. Communication between departments is highlighted as vital for understanding company goals and avoiding frustration. The paragraph outlines steps for successful plan execution, including formulating strategy, evaluating human resources, identifying key initiatives, planning the budget, communicating effectively, and establishing a review process.
🔍 Feasibility Study vs. Business Plan
The second paragraph distinguishes between a feasibility study and a business plan. A feasibility study is conducted before preparing a business plan to determine if a business is economically viable. It involves analysis, calculations, and estimates. If the study deems the business feasible, a business plan is then developed, which includes specific strategies and tactics for achieving business goals. The feasibility study can be transformed into a business plan, and it helps in deciding the business direction for growth and sustainability. The paragraph reiterates the importance of executing the business plan effectively, with a focus on alignment and communication. It concludes by summarizing the steps for successful plan execution: formulating strategy, evaluating human resources, identifying key initiatives, planning the budget, communicating well, and establishing a review process.
Mindmap
Keywords
💡Business Plan
💡Execution
💡Strategy
💡Alignment
💡Communication
💡Feasibility Study
💡Human Resource
💡Key Initiatives
💡Budget
💡Review Process
Highlights
Reasons for the success and failure of a business plan are explored.
Wrong strategy is often due to insufficient groundwork by companies.
Companies that develop strategic business plans understand their markets, competitions, and customers better.
Execution of the business plan is more critical than the plan itself for success.
Alignment between strategy, people, and work processes is key to successful plan execution.
Communication between departments is crucial for business success.
Lack of communication can lead to frustration and cynicism within an organization.
Action plans must be developed, implemented, and reviewed at every phase.
Formulating the strategy is the first step in the business planning process.
Evaluating human resources involves allocating the right people to the right jobs.
Identifying key initiatives and broad actions involves addressing transitional issues and gaps.
Planning the budget involves raising capital to support the business plan.
Effective communication ensures all stakeholders and employees are aligned with the business goals.
Decision filters guide the organization through strategic planning challenges.
A regular review process helps analyze market dynamics and adjust goals and plans accordingly.
Feasibility study is conducted before preparing a business plan to determine if the business is viable.
A business plan outlines specific strategies and tactics for achieving business goals.
The feasibility study can be transformed into a business plan after confirming the business's viability.
The feasibility study helps determine if a business idea is economically viable.
The business plan helps decide the direction for growth and sustainability of the business.
Transcripts
[Music]
in this module you will learn about
reasons for success and failure of a
business plan difference between
feasibility study and business plan let
us understand the reasons for success
and failure of a business plan many
times companies fail to deliver on their
promises and the state reason for their
failure as wrong strategy the reason for
the wrong strategy is that the companies
would not have spent enough time and
energy in doing their groundwork
companies that spend time and energy to
develop a strategic business plan can
have a strong understanding about their
markets competitions and customers as
compared with the ones who fail to do so
however why do many of these plans fail
success of any company does not depend
on how excellent its business plan is
but it all depends on how this business
plan is executed generally the things
that were planned to execute just are
not executed therefore the failure to
execute a plan not the plan itself is
the most common problem for the
underperformance of the strategic plan
as a result business planning is
affected creating a frustration within
the organization as the success of a
plan is defined by its results of the
execution the key to a successful plan
execution is alignment there should be a
proper link between the strategy people
and all the work processes for instance
the strategic plan developed should be
understood by all the people involved in
the organization right people should be
be aligned to the right jobs for the
maximum work performance action plans
should exist
and must be implemented and reviewed
whenever needed communication between
departments plays a very important role
in success of the business if there is
lack of communication between the
departments each one of them is going to
understand the objectives of company's
goals differently and this will lead to
frustration and cynicism within an
organization the priority levels for
different departments such as sales
manufacturing and finance will differ a
lot of hard work and diligent
communication is required to bring a
plan into action to achieve maximum work
performance action plans must be
developed implemented and reviewed at
every phase as execution of the business
plan is the key to success single
process is not sufficient to bring the
plan into execution it requires some
basic process and fundamentals to be
followed formulate the strategy evaluate
the human resource identify key
initiatives and broad actions plan the
budget communicate well establish a
review process step 1 formulate the
strategy after the establishment of
mission vision and strategy of the
organization the strategy should be
formulated for its core competencies and
specific quantifiable goals step to
evaluate the human resource once the
goal and strategy is established
organization needs to be estimated few
of the areas that need evaluation are
allocation of the right job to the right
people with the required competencies
appropriate headcount in various
departments consideration to reallocate
the human resources
step 3 identify key initiatives and
broad actions the transitional issues
all the gaps must be identified as to
where are you today and where you plan
to be in future on the basis of this the
initiatives should be pushed in all the
functional departments of the
organization employees should be
encouraged to take up initiators to
accomplish his or her aspect of the plan
step 4
plan the budget raise the required
capital to support the plan an
entrepreneur may have to do this
multiple times over a period of time to
achieve the right combination of
financial stability strategy and tactics
step 5 communicate well communicate
effectively to all the stakeholders and
employees this ensures that everyone in
the organization are on the same page
and there is no communication gap
introduce rewards and recognition to
motivate the stakeholders and employees
towards the goal this will improve
productivity levels thum decision
filters need to be created to guide the
organization through a thought process
for the times when it struggles with a
strategy plan step 6
establish a review process regular
review process should be established to
analyze the dynamic behavior of the
markets customers competitors government
regulations and economy the priorities
as well as goals may change depending on
these behaviors if required necessary
goals and plans of implementation should
be altered according to current market
strategies difference between
feasibility study and business plan
meaning feasibility study is conducted
before the business plan is prepared
only after determining that the business
is feasible the
this plan is prepared the business plan
follows the feasibility study and the
identification of the business
opportunity objective stopping a
business requires the investment of time
money hardwork and other available
resources therefore the purpose of the
feasibility study is to know whether the
investment would yield worthy returns or
not it involves analysis calculations
and estimates business plan comprises of
the specific strategies and tactics that
need to be followed to achieve the
business goal linkage a feasibility
study can be transformed into a business
plan a business plan can be easily
derived from the feasibility study
benefit the feasibility study can be
used to determine whether a business
idea is an economically viable
opportunity or not on the other hand
business plan helps to decide the
business direction for the growth and
sustainability of the business in this
module you have learnt success of any
company does not depend on how excellent
its business plan is but it all depends
on how this business plan is executed
the key to a successful plan execution
is alignment there should be a proper
linked link between the strategy people
and all the work processes communication
between departments plays a very
important role in success of the
business if there is lack of
communication between the departments
then each one of them is going to
understand the objectives of companies
goes differently and this will lead to
frustration and cynicism within an
organization a lot of hard work and
diligent communication is required to
bring the plan into action as execution
of the business plan is the key to
success
single-process is not sufficient to
bring the plan into execution it
requires some basic process and
fundamentals to be followed step 1
formulate the strategy step to evaluate
the human resource step 3
identify key initiatives and broad
actions step 4
plan the budget step 5 communicate well
step 6 establish a review process
[Music]
[Music]
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