YP CMA WS Part1

CMA Young Post Green Manufacturing CompetitionWriting Business Proposal : 

1 CMA Young Post Green Manufacturing CompetitionWriting Business Proposal Alex Tham Teaching Fellow Department of Marketing City University of Hong Kong

Recommended Structure of the Business Proposal(25 slides excluding appendix) : 

2 Recommended Structure of the Business Proposal(25 slides excluding appendix) Executive Summary Company Summary Products and Services Market Analysis Strategy and Implementation Management Financial Plan Risk management and contingency plan Bibliography and Appendix

Marketing Scheme (Senior Level) : 

Marketing Scheme (Senior Level) 3

Marking Scheme : 

4 Marking Scheme Innovation / creative thinking 30% Originality / modification (15%) Is the business idea an original one? Zero mark would be given if there is adequate evidence of cheating Creativity (15%) Does it have a creative approach?

Commercial viability (50%) : 

5 Commercial viability (50%) Profitable (15%) Does the business idea offer an attractive and realistic opportunity? Investment ability (15%) Does it have a sound business strategy? Is the proposed technology or skill capable of creating a commercial advantage? Market potential (10%) Is there a demand for its products services? Are the market and financial projections realistic? Long-term growth (10%) Does the business have a good growth prospects?

Communication Skills (20%) : 

6 Communication Skills (20%) Paper presentation (10%) Is the business plan clear and well written? Presentation (5%) Does the team present the business plan clearly and convincingly? Response (Q&A) (5%) Can the team quickly and appropriately respond to the Judging panel’s inquiries?

Executive Summary : 

7 Executive Summary Highlights of your business Mission of the company Value proposition (less than 30 words) Objectives of your business Keys to success for the business Market potential (local and global) Growth prospects and sustainability

Company Summary : 

8 Company Summary Valid assumptions Company Ownership e.g. Limited Company or Partnership Start-up Plan, including start-up expenses, assets and liabilities, investment and total capital

Considerations of the Mission Statement(from Wikipedia) : 

9 Considerations of the Mission Statement(from Wikipedia) Purpose and values of the organization Which business the organization wants to be in (products or services, market) or who are the organization's primary "clients" (stakeholders) What are the responsibilities of the organization towards these "clients" What are the main objectives that support the company in accomplishing its mission Haschak, Paul G. (1998). Corporate statements: the official missions, goals, principles and philosophies of over 900 companies. Jefferson, N.C: McFarland. ISBN 0-7864-0342-X

Samples : 

10 Samples "To enable people and businesses throughout the world to realize their full potential."—Microsoft "Organize the world's information and make it universally accessible and useful."—Google

Value Proposition : 

11 Value Proposition A statement summarizing the core differentiation of one's product from the offerings of competitors. A clear statement of the tangible results a customer gets from using your products or services. The more specific your value proposition is, the better.

McKinsey & Company - Corporate Finance - value proposition : 

12 McKinsey & Company - Corporate Finance - value proposition Our value proposition rests on an unrivalled package of strategic, transactional and financial advisory services, uniquely linked with independent judgment and deep industrial/commercial insight.

Product and Services : 

13 Product and Services Product and Service Description e.g. special features and functions, technology, materials used and sourcing of products and services Any patent, copyright, license needed or acquired Future development of products or services

Green Manufacturing : 

Green Manufacturing A method minimizes waste and pollution. CMA – bring green manufacturing to Hong Kong. Range from solutions for waste reduction and carbon emissions to ways to use renewable energy such as water. find ways to 'green' industries that already exist or come up with a new concept to manufacture green products. Your product or service can be a new one or an enhanced version of a current one on the market. It should bring out the message of promoting a sustainable green living and environment, with a target audience in mind. 14

Market Analysis : 

15 Market Analysis Market Segmentation Target Market /Customers, , market needs and wants, buying behavior, trends and growth Competition and major competitors, suppliers, substitutes etc Who, What (business model, strategy, and entry barrier) Market Research (primary and/or secondary) Market environment (PESTLE Model)

A Famous Story: Marketing shoes : 

Contemporary Marketing, 2005 FB 2601 Marketing A Famous Story: Marketing shoes Business all around the world Find a country where they don’t have their business there. According to the secondary data, the purchasing power is “ok”; able to buy as least one pair of shoes made by this company and the the target population is large enough. Question So, what will you do if you are the boss of this company?

Send a team to have a market survey : 

Contemporary Marketing, 2005 FB 2601 Marketing Send a team to have a market survey Facts True secondary data Blue sky, dusty ground No one wearing shoes Question What is Demand? Conclusion No Demand No need => No habit => No desire => No market Same as selling a comb to a monk who has no hairs. Give up this market

Send the 2nd Team : 

Contemporary Marketing, 2005 FB 2601 Marketing Send the 2nd Team Facts The same facts Conclusion A huge market!!! Question Why ? Currently no competition > Enter it as quickly as possible to get the first mover advantage. As long as you can sell your benefits to the market, people will buy your products.

Send the 3rd team : 

Contemporary Marketing, 2005 FB 2601 Marketing Send the 3rd team Facts Same as the previous two Conclusion They don’t need it because they can’t see the benefits of wearing shoes. Question So, what are the critical success factors to market shoes there? What should this company do to market shoes there?

Summary : 

Contemporary Marketing, 2005 FB 2601 Marketing Summary

Slide 21: 

Contemporary Marketing, 2005 FB 2601 Marketing Marketing is the delivery of customer satisfaction at a profit. Kotler & Armstrong, Principles of Marketing, 12h edition

What is a Market? : 

22 What is a Market? Having desire to buy Willing to buy Having authority to buy Having money to buy

Market Potential : 

23 Market Potential You need users and customers. Who and where are your customers? How many? (Now and Future) Research support Useful Links: Business Source Complete Euromonitor / Global Market Information Database WiseNews www.bcg.com

Competition : 

Competition Direct Competitors Indirect Competitors Barriers to entry 24

Strategy and Implementation : 

25 Strategy and Implementation Specific Objectives, with dates, budgets and targeted results (five years) Competitive Edge and Value to customers Marketing Strategy, including product, pricing, promotion, and distribution as well as marketing programs Sales Strategy, with sales forecast and programs

Timeline (Gantt Chart) : 

Timeline (Gantt Chart) 26

Marketing Objectives : 

27 Marketing Objectives

Financial Objectives : 

28 Financial Objectives

Management : 

29 Management Organizational Structure Management Team Personnel Plan

Financial Plan : 

30 Financial Plan Important Assumptions e.g. if your projected sales are based on certain percentage of GDP growth, pricing, cost, margin, working capital, you should state it. Fund raising: the required initial investment? Break-even Analysis (Where is the turning point?) Income Statement Projected Profit and Loss, Cash Flow, Balance Sheet for 5 years Growth milestones Ratio analysis e.g. gross margin, return on asset, inventory turnover Long-term Plan Financing strategy (stages, and size)

Key Financial Forecasts : 

Key Financial Forecasts Budgeted Income Statement 31

Budgeted Balance Sheet : 

Budgeted Balance Sheet 32

Budgeted Statement for Cash Flow : 

Budgeted Statement for Cash Flow 33

Risk and Contingency : 

Risk and Contingency 34

Important Notes : 

35 Important Notes Acknowledge sources of reference, information and data Attach supporting researches or documents

Common Errors : 

36 Common Errors Not large enough in customer base No clear business model to make money Not focus enough Technically infeasible Not enough capital, cost and benefit analysis All cost elements Startup capital requirements (How to finance?) Ongoing running costs like operating expenses Upgrading costs Unjustified figures

Good Luck : 

37 Good Luck