Working curriculum of the course

 

 

 

 

 

Complex of lectures

 

 

Course: BP 3208  «Business Planning»

 

Speciality: 5B050600 “Economics” 3(4), 5B050700 “Management” 3(4), 5B050900 “Finance” 3(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Almaty 2012

 

Subject 1 Essence and value planning business

The lecture purpose – to study a role and value and economic essence of business planning

Lecture questions

1. Essence and value of the business plan in enterprise economy.

2. Requirements to development plan business

3. Choice of the goods and competitive strategy.

4. Business and its participants

5. Business as system

6. Rules in business.

Content of lecture

Business planning (business planning) – an independent look planned деятельноcти which is directly connected with business.

In the conditions of the market is unreal to achieve стабильногоуспеха in business if not to plan effectively its development, not to accumulate constantly information about own a condition and prospects, about a condition of the target markets, position of competitors on them etc.

It is necessary not only to represent precisely the requirements on prospect in material, labor, intellectual, financial resources, but also to provide sources of their receiving, to be able to reveal efficiency of use of resources in the course of enterprise work.

The quarter and annual financial statements are represented according to the Order of the Ministry of Finance, the statistical reporting – on указаниюГоскомстата etc. As to business planning, certain requirements or instructions for development of business plans while aren't present. About the allowed mistakes, miscalculations and losses of business activity it becomes known after drawing up of quarter balance. However and detailed state-of-the-art reviews to balances aren't made, therefore timely measures for correction of a situation aren't accepted.

So, any adoption of the current decisions, even the most timely, doesn't replace planning which in comparison with decision-making represents administrative activity of much higher order.

Thus, business planning is an objective assessment of own business activity of the enterprise, firm and at the same time the necessary tool of design and investment decisions according to requirements of the market and managing current situation.

Generally business planning provides the solution of the strategic and tactical tasks facing the enterprise.

Formal planning, certainly, demands efforts, but it provides also considerable benefits:

1) forces heads to think it is perspective;

2) provides a basis for adoption of effective administrative decisions;

3) increases possibilities in providing firm with necessary information;

4) promotes decrease in risks of business activity;

5) conducts to accurate coordination of actions of all participants of business;

6) allows to expect expected changes, to be prepared for sudden change of a market situation.

For the successful organization of business planning in the commercial organization existence of four indispensable conditions (components) is necessary.

First, the commercial organization should have the corresponding methodological and methodical base of development, control and the analysis of execution of the business plan, and employees of financial and economic services should be rather qualified to be able to put this methodology into practice.

Secondly, to develop financial plans, internal information on activity of the enterprise and external information is necessary.

Basis of the information block (component) of process of business planning are:

1) economic information;

2) registration information;

3) messages of financial bodies, information of establishments of a banking system, information of the commodity, currency exchanges and other financial information;

4) political information etc.

Besides, functioning of system of business planning is carried out within operating standard legal support.

Thirdly, process of business planning is always realized through corresponding organizational structure and a control system making the organizational block of process.

Fourthly, in the course of financial planning and control there is a registration and processing of big arrays of information.

Business planning is the ordered set of stages and the actions connected with situation analysis of environment, statement of the purposes of business planning, planning implementation (development of the business plan), promotion of the business plan for the market of intellectual property, implementation of the business plan, control of its performance.

It is possible to allocate the following main stages of process of business planning:

1) preparatory stage;

2) stage of development of the business plan;

3) stage of promotion of the business plan for the market of intellectual property;

4) stage of implementation of the business plan.

The business idea is an idea of a new product or service, the technical, organizational or economic solution, etc. Sources of new ideas can be:

1) response of consumers;

2) production which is let out by competitors;

3) opinion of employees of department of marketing;

4) publications of the federal government about patents;

5) carried-out research and developmental works.

The word "business" (from English business) means any occupation, the business which is bringing in the income. The person who is engaged in business, is a businessman (from English businessman), i.e. the businessman, the businessman, the businessman. In new economic directories economic activity of the subject in the conditions of the market economy, aimed at receiving profit by creation and realization of certain production (the goods, works, services) is called as business. Also the concept "business" can be considered as a concept "business" synonym. Business activity, business represents initiative independent activity of citizens and their associations, directed on receiving profit, is carried out by citizens on the risk and under property responsibility in the limits defined by an organizational and legal form of the enterprise.

Thus, business is an activity of the citizens having a property bringing in the income. Besides, business is and set of the relations between all his participants making team of adherents for the purpose of obtaining of the income, profit, development of firm, the enterprise, the organization. As participants of business the following groups of people act:

1) actually businessmen, i.e. the persons which are carrying out initiative activity on the risk, under the economic and legal responsibility, and also groups of businessmen. In the course of the activity they enter business relationship, and also in the relations with other participants of business, forming as a result sphere of enterprise business. The last includes three components: production, commerce (trade) and commercial mediation;

2) individual and collective consumers of production offered by businessmen, and also groups of the consumers forming the unions, associations and t. п;

Business interest of participants of business of this group – acquisition of the goods and services. It is realized by means of adjustment of contacts to producers and sellers of production on the basis of mutual benefit;

3) the workers who are carrying out labor activity on hiring, on contract or other basis, and also their trade unions. Extraction of the income – is realized by means of work in firm, the organization, at the enterprise. If for businessmen benefit in transactions is the final income of firm, for hired workers – the personal income received as a result of executed work;

4) state authorities, establishments and the organizations when they act as direct participants of transactions.

Business interest of participants of this group – implementation of nation-wide programs (scientific and technical, research-and-production, social, etc.) with a view of satisfaction of requirements as the states as a whole, and all his citizens.

Business as the system represents the phenomenon allocated with four properties – expediency, integrity, discrepancy and activity.

Expediency means that business in it gives to any element a rational orientation on the beginning uniting these elements – obtaining the income, profit. The prime targets of business usually deduce from requirements of the so-called law of free competition. The prime targets, in turn, are subdivided into more specific goals acting as means of receiving first.

Integrity means that business penetrates all spheres, sectors, territories and economy elements in that measure in what it is necessary for complete realization of its prime target, – increases arrived. In other words, business should get into those spheres which for it are vital in these conditions freely. A ban and restrictions should be reduced to reasonable level. It is impossible to present business without the environment and the main elements to which refer management, marketing, a financial system, the right etc.

Discrepancy means that business should consist of contradictions, as they – a source of any development. In business it is possible to observe a set of contradictions: between businessmen and hired workers, consumers and producers, businessmen and trade unions or public authorities. All these contradictions serve in normal conditions as sources of development of business, strengthening and hardening of its integrity. However in conflict situations which leave from under reasonable public control, events full historical dramatic nature, not only not strengthening, and, on the contrary, considerably weakening business system are possible and known. These are sociopolitical revolutions, civil wars etc. They lead sometimes to complete loss of fundamental bases of business: private property, competition and economic freedom of the citizen.

Activity means that business – the phenomenon social, closely connected with social systems, activity of people. Each of businessmen should freely and on a legal basis to choose the business, without putting an illegal damage to other people, without preventing to develop it the business. Reasonable activity of business people is realized usually in richness of individuals and societies, the sizes of a gross national product of the country, the republic, a standard of living of citizens, appeal of this or that country to accommodation in it.

Modern business it isn't simple the system possessing necessary signs of expediency, integrity, discrepancy and activity. Business is and internally adjustable or self-regulating system. Businessmen are interested not only in free rivalry with each other, but also in coordination of the separate parties of the market behavior. Modern advanced production pays for separate erroneous steps to business expensive price. Bankruptcy even an average on the sizes of the enterprise means hundreds dismissed workers, loss of the million capitals, default of contractual partner obligations, a stop of adjacent productions etc. If the chain of such adverse events is closed in a whole, it can cause crisis of destructive force when economic losses exceed benefits from business.

The state institutes (bodies, committees, the parliament commissions) act in the developed states as some kind of arbitrators at an aggravation of the conflicts between businessmen and workers. Rules of the game in business are directed on counteraction of monopolization of economy, an unfair competition from businessmen, the enterprises of public sector, workers.

Besides, business is the phenomenon developing as it is connected with the direction on profit. And the profit can be, as a rule, received where demand for the goods and services isn't saturated and finally stimulates development of new professional spheres of production. As a result business rejuvenates, pouring the capitals there where the profit is higher, than in traditional spheres.

At a certain stage of economic development of the country actual there is this or that factor of business. For development of national economy there is important a production improvement on the basis of new technologies, increase of efficiency of the sphere of realization of the goods, a production ekologizatsiya. On set priority at present factors of economic development experts reconsider the approaches to business, developing its new concepts. Certainly, they absorb in themselves and earlier, proved the effectiveness. It expands the theory and practice of business.

As the basis of business is made by a private property, depending on its types allocate also the main forms of business.

In the 1980th there was an intraprenerstvo concept as specific intra firm business. Intraprenera are the innovators who achieved realization of the innovative ideas and have brought to the firm big profits.

Creation of favorable enterprise climate is promoted in many respects by business infrastructure: unions of businessmen and association, advice and information centers. Thus, formation of the market relations in the country began in the conditions of lack of many elements and market signs.

Questions for self-examination

1. A role and value of business planning in modern conditions

 2. Purposes of development of the business plan

 3. Essence of business

 4. Business as system

 5. Modern business

 

Literature

1. Ershov V. F. Business design: Application guide / Century F.Ershov. - SPb.: St. Petersburg, 2005. - 288 pages.

2. Small business program. Management in small business. Business plan. - M: "DECK" IKK, 1993. - 59 pages.

3. Small business program. Management in small business: How to make financial decisions. - M: "DECK" IKK, 1993. - 70 pages.

4. Small business program. Management in small business: Budget drawing up. - M: "DECK" IKK, 1993. - 79 pages.

5. Ushakov I.I. Business plan / I.I.Ushakov. - SPb.: St. Petersburg, 2008. - 224 pages - (Practice of management)

6. Financial analysis and planning [Electronic resource]: A training course. - Electron. applied прогр. (520 Mb). - M: Kordis & Media, 2005. - 1 эл. wholesale. disk (CD ROM): зв. -

 

 

Subject 2 Methodological bases of development of the business plan

The lecture purpose – to study methodological bases of development of the business plan

Lecture questions:

1. Main development stages of the business plan: collecting business information; definition of the purposes of development of the business plan; identification of specific addressees of the business plan; creation of structure of the business plan.

2. Contents of the main sections of the business plan

Content of lecture

The business plan – the short, exact, available and clear description of prospective business, the major tool by consideration of a large number of the various situations, allowing to choose the most perspective decisions and to define means for their achievement.

The business plan is the document, allowing to operate business therefore it it is possible to present as the integral element of strategic planning and as the management for execution and control. It is important to consider the business plan as process of planning and the instrument of intra firm management. The business plan is some kind of document insuring success of prospective business, at the same time the business plan – the instrument of self-training.

Main objective of development of the business plan is planning of economic activity of firm for the next and remote periods according to requirements of the market and possibilities of receiving necessary resources. Along with the main, defining purpose originators of the business plan should reflect other purposes:

1) the social purposes – overcoming of deficiency of the goods and services, improvement of an ecological situation, improvement of psychological climate in the country, creation of new cultural and cultural values, development of scientific and technical and creative potential, expansion of business contacts, international relations;

2) increase of the status of the businessman – development and strengthening of economic potential of the businessman. It serves as a condition and pledge of possibility of successful carrying out the subsequent transactions, increases of prestige of the businessman generated by his popularity, kind reputation, quality guarantees of the goods and services; 3) other, special purposes and tasks – development of contacts, foreign trips, entry into different associations, etc.

Business plan basis – a kontsentrirovaniye of financial resources for the solution of strategic tasks, i.e. it is urged to help to solve to the businessman the following main problems connected with functioning of firm:

1) to define concrete activities, perspective sales markets and a firm place in these markets;

2) to estimate the expenses necessary for manufacturing and sale of production, to commensurate them with the prices, on which the goods will be on sale to define potential profitability of the project;

3) to reveal compliance of shots of firm and conditions for motivation of their work to requirements for achievement of goals;

4) to analyse a financial and financial position of firm and to define, whether there correspond material and financial resources to achievement of the planned purposes;

5) to count risks and to provide difficulties which can prevent implementation of the business plan.

In modern practice the business plan carries out five functions.

The first of them is connected with possibility of its use for development of strategy of business. This function is vital in enterprise creation, and also at development of new activities.

The second function – planning. She allows to estimate possibilities of development of new activity, to supervise processes in firm.

The third function allows to involve money – loans, the credits. The main reason consists not so much in a problem of the high interest rates, how many in the increased irrevocability of the credits. In this situation banks undertake the whole package of measures on ensuring return of money.

The fourth function allows to involve in implementation of plans of the company of potential partners which will wish to invest own capital or technology available for them in production.

The fifth function by involvement of all employees in process of drawing up of the business plan allows to improve their knowledge of the forthcoming actions, to coordinate efforts, to create motivation of achievement of the purposes.

Preparation and effective use of the business plan has paramount value. This plan can be developed by the manager, the head, firm, group of firms or the consulting organization. For definition of strategy of development of major company the developed business plan is made. Quite often already potential partners and investors are defined on stages of its preparation. As to temporary aspect of business planning, the majority of firms makes plans for year. In them various activities of firm during this period are in details considered and further development is fluently characterized. Some firms make plans for the term up to 5 years, and only large companies which are standing on the own two feet, plan for the period more than 5 years.

Along with intra firm functions business planning is of great importance at definition of strategy of planning at macrolevel. Set of long-term business plans of the enterprises makes information base which is a basis for development of national policy of planning within state regulation of economy.

Thus, most the business plan is used at an assessment of a market situation both out of firm, and in it by search of investors. It can help to expand to large businessmen business by means of purchase of actions of other firm or the organization of new production structure, and also forms a basis for formation of nation-wide strategy of planning.

In market economy there is a set of versions of business plans: in a form, the contents, structure etc. The greatest distinctions are observed within updatings of business plans in dependence of appointment: on business lines (production, works, services, technical solutions), on the enterprise as a whole (new or operating).

Initiators of the business plan don't develop it, and represent itself as customers. Developers of the business plan are the firms specializing in area of marketing activity, the groups of authors, certain authors. Consulting firms and experts are if necessary involved.

Interests and conditions of interested parties are subject to the mutual account and coordination:

1) the customer of the business plan being the independent investor or using involved capital, which interest – implementation of the project and obtaining the income;

2) the investor, which interest – return of invested funds and receipt of dividends;

3) the consumers using production, which interest – satisfaction of requirements for the goods;

4) the authorities defining requirements and priorities of development of business, a main which objective of work – satisfaction of public requirements.

In the business plan the perspective situation both in firm, and out of it is estimated. It is especially necessary for the management for orientation in the conditions of a joint-stock property. This plan is used at justification of actions for improvement and development of organizational and production structure of firm, in particular for justification of level of centralization of management and responsibility of employees.