Working curriculum of the course

Within research of the market market segmentation is carried out, the sizes and capacity of the markets are determined by enterprise production.

The size of the market – the territory on which there is a realization of the goods (services) of the enterprise.

Market capacity – volume (services) realized on a commodity market during the certain period of time. Market capacity when planning pays off in monetary and natural expression.

Methods of calculation of market capacity for the various goods differ. At determination of market capacity of consumer goods the factors forming demand of consumers are analyzed.

The comprehensive approach to studying of market condition assumes use of various, complementary sources of information, use of set of various methods of the analysis and forecasting.

Most often the following methods are applied to collecting and the analysis of information:

1) supervision;

2) poll;

3) experiment;

4) modeling.

In practice of the environment analysis supervision gives more objective and authentic estimates, than other methods of collection of information.

Experiment represents research of influence of one factor on another in a real situation.

In the course of preparation of this section of the business plan answers to questions of the one who, why, how many and when it will be ready to buy production tomorrow, the day after tomorrow and in general within the next 2,3 and more years are given. In addition, here:

1) how quickly production (services) will affirm in the market is analyzed, possibilities of its further expansion locate;

2) the major factors influencing expansion of the market are estimated;

3) the main competitors are traced and estimated. Are allocated and analyzed strong and weaknesses of the competitor and the originator of the business plan, competitiveness of the made goods, services;

4) being based on an assessment of advantages of the made goods, services, the possible sales volume in natural and terms of money is defined.

Research and sales market analysis – one of the most important stages of preparation of business plans which should give answers to questions of the one who why and in what quantities buys or will buy enterprise production.

Domestic and foreign experience testifies that the weak knowledge of the market is one of the main reasons of insolvency of many commercial projects. To number of the main objectives of the enterprise solved in this section of the business plan, determination of demand and capacity of each concrete market by each type of the goods (services) belongs. These indicators will characterize possible sales volumes of the goods (services). From that, level and structure of demand, a tendency of its change are how carefully studied and defined, will depend both success of the enterprise in the market, and time during which it can hold on it the positions.

For the Russian businessmen drawing up of this section of the business plan is extremely complicated. It is very difficult to find authentic summary researches of the market. Foreign businessmen can obtain demanded data in local chambers of commerce, and also in the branch and trading associations. Such associations – the free unions of businessmen of a certain branch of production or trade – are widespread around the world. At us they take the first steps.

Meanwhile the small office of such association constantly conducts very useful work on generalization of conditions of supply, production and sale of production made by the enterprises – chlenamiassotsiatsiya. All members of association represent information voluntary and free of charge, and also free of charge (all expenses are paid by membership dues) receive regular summary reviews: as demand for production of the branch changes, what shifts occurred or were outlined in its structure that occurs to the prices for resources bought by branch. As collecting, processing and the analysis of information on the market – rather difficult process, it is expedient to involve the specialized organizations that can demand considerable expenses which are in most cases justifiable in carrying out research. Experience shows that failure of the majority of commercial projects failing over time is connected with weak studying of the market and reassessment of its cost.

Process of research of the market is necessary for beginning with definition of its type on each goods or service, thus in the course of business planning it is possible to lean on the following approaches to classification of the markets.

1. On the sphere of a social production:

1) commodity market of production of goods (raw materials, food, cars, equipment);

2) commodity market of spiritual production (achievements of a science, technologies, works of art, books).

2. On nature of final use:

1) commodity market of production appointment;

2) commodity market of consumer appointment.

3. On use term:

1) commodity market of long-term using;

2) commodity market of short-term using;

3) commodity market of disposable using.

4. On territorial coverage:

1) the world;

2) the internal;

3) the regional.

5. On a ratio of sellers and buyers:

1) market of free competition. Consists of a large number of independently acting sellers and buyers of any homogeneous product in the high-organized market (at the price of balance of the general of supply and demand);

2) market of the monopolistically competition. Consists of a great number of buyers and the sellers making transactions not at uniform market price, and in a wide range of the prices. Presence of the last speaks ability of sellers to offer different options of the goods differing from each other by quality, properties, external registration;

3) the oligopolistichesky market is characterized by small number of sellers, general interdependence of producers, and also ability of the separate enterprise to predict reciprocal actions of competitors on price or volume of production change. A small amount of sellers speaks that to new applicants is difficult to get on this market;

4) market of pure monopoly. One seller with the goods which have no analog or substitute that allows the producer to dictate the conditions to consumers. The monopoly on the party of demand is called as a monopsony. If one seller is resisted by one buyer, the market structure is called as bilateral monopoly.

6. On realization volume:

1) the main market where the main part of the goods is realized;

2) the additional (auxiliary) market on which the firm leaves with a small part of the goods;

3) the selective market which gets out for definition of possibilities of realization of the new goods, carrying out trial sales.

In the analysis of a sales market its structure is studied, i.e. carried out market segmentation operation – divisions of the general set of consumers into certain groups (segments) for which the general requirements, requirements to the goods and motives of its acquisition are characteristic. From that, the market segment is how correctly chosen, the success of the enterprise in competitive fight for the market in many respects depends. By means of segmentation the following purposes of business planning are reached:

1) the best satisfaction of needs and needs of people, goods adjustment under preferences of the buyer;

2) competitiveness increase as goods, and producer, strengthening of competitive advantages;

3) evasion from competitive fight by transition to an undeveloped segment of the market;

4) orientation of work of firm to the specific consumer.

The sense of segmentation consists not only in allocating any special groups of consumers, and in finding those who now (or in the future) makes various demands to these goods. Work on segmentation should be carried out continuously and constantly in connection with changes in the competitive environment.

The uniform method of market segmentation isn't present. It can be carried out on the basis of different signs or their combination. The sign of segmentation is an indicator of a way of allocation of this segment in the market.

Now the following signs of segmentation are used:

1) social and demographic parameters: nationality, religion, age, sex, marital status, education, cultural traditions, nature of labor activity, etc.;

2) economic parameters: shower income and its structure, property cost, size of savings, shelter provision level, etc.;

3) geographical signs: economic and political division into districts, population, its density, climatic zone, etc.;

4) behavioural features of buyers: reasons for shopping, intensity of consumption, impulsiveness etc.;

5) psychographic signs: lifestyle, personal qualities;

6) consumer signs: price, quality, profitability, brand etc.

Market condition – this condition of the market characterized by a ratio between supply and demand of the goods.

Demand represents solvent requirement. It is studied at various levels.

Demand volume – this that quantity of the goods which the buyer is ready to get under existing conditions during a certain period. At changes at least one of the listed factors the volume of demand for these goods will change also.

Demand for the goods of firm acts as a certain share in the general market demand.

The majority of experts consider that this share is proportional to marketing efforts of firm.

Demand existence – the basis for production of the goods. But for determination of the optimum amount of production it is necessary to know demand size. Various methods of calculation are applied to determination of the current and perspective demand. The size of the current demand can be estimated by means of scoping of the goods, a total cost of their realization on this segment and detection of number of potential consumers of these goods living in the region of an arrangement of the market.

Determination of perspective demand is made by means of forecasts taking into account action of various factors and expected marketing efforts. Supplements procedure of forecasting of demand definition of factor of elasticity of demand at the price. In practice the price of the final product happens constant very seldom therefore in the business plan look-ahead level of future demand should be coordinated to price changes in the goods directly.

Price elasticity shows, on how many percent demand will change at change of the price for 1 %. It defines sensitivity of buyers to change of the prices, influencing quantity of the goods which they get.

In an ideal in the business plan it is possible to construct mathematical dependence of possible volume of demand on a price level.

Exact assessment of a form of a curve of elastic demand – business quite difficult and expensive, demanding involvement of experts. But to do without it in general it is impossible. It is possible to try to define a type of this curve at least approximately on the basis of expert estimates of skilled experts in trade in the goods of this type which the firm is going to let out.

The expert assessment of elasticity of demand at the price will show that ceiling price on which the goods can be accepted by the market at a certain sales volume.

After determination of size of the current demand it is necessary to establish degree of its satisfaction. For this purpose is defined market capacity .

Then we define degree of satisfaction of demand .

Target market – the most attractive to firm at present a market segment, mastering with which becomes the main task. It should be rather capacious, have development prospect, free or rather free from competitors be characterized by some pent-up demand. Selection of the target markets carry out by means of the accounting of criteria of segmentation, and also data of an assessment of market condition.

Criteria of segmentation – it is an indicator of that, how truly firm chose this or that target market for activity. Let's list criteria of segmentation most often used in practice of business planning:

1) quantitative borders. The potential capacity of a segment, i.e. answers to questions concerns them, how many the goods and what cost can be realized on it, how many obligatory to potential consumers, what area of a segment etc.;

2) availability of a segment;

3) information saturation of a segment;

4) importance of a segment;

5) profitability, profitability of a segment;

6) security from the competition.

For optimization of number of the possible target markets it is possible to use the concentrated and disperse methods.

For the target markets in the business plan the review of previous tendencies of development of the market is carried out, the major factors influencing growth of the market (a tendency of development of branch, a state policy are described, etc.), market growth is predicted.

Further it is necessary to make market positioning .

Market positioning – it is technology of definition of a position of a product on separate market segments.

Positioning purpose – research of the developed or being formed opinion, the analysis of estimates of buyers or their groups concerning product parameters to carry out their optimization according to wishes and requirements of consumers and respectively to create such position of the goods which will provide to a product competitive advantages on this segment of the target market.

Then, being based on an assessment of advantages of the goods made by the enterprise, define possible sales volume in natural and terms of money. The period of a sales forecast should be coordinated to the general planned period. In the business plan representation of the main indicators in the look-ahead prices is obligatory.

Forecasting in general serves in business planning for clarification of tendencies of development of firm in the conditions of continuous change of factors of the external and internal environment and search of rational actions in maintenance of stability of her economic behavior. When developing the business plan by the major direction forecasting of development of the market, its dynamics, structure, an environment, possibilities of the market to reproduce a supply and demand is.

As tools when forecasting the system of methods by means of which cause and effect parameters of last tendencies in enterprise activity are analyzed is used, and by results of the analysis changes in the long term social and economic development of firm are formed.

Questions for self-examination

1. Value of the section of the business plan branch Description

2. Contents of the section of the business plan branch Description

3. Sales market assessment

4. Definition of the target market

5. Market segmentation

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 6 enterprise Characteristic

The lecture purpose –  studying of the section of the business plan the enterprise Characteristic

Lecture questions:

1. Organizational and legal form of the enterprise

2. Creation purpose

3. Kinds of activity

Content of lecture

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.

This section contains the main data on the enterprise and the sphere of its activity. Here find reflection the main events which have affected emergence of ideas of offered business, and also the main problems facing the organization now. Actual position of the enterprise in the market is estimated, the directions of its development are pointed to prospect. Long ago the existing enterprise gives short history of the economic activity. The type of prospective business is specified. Those kinds of activity in which the enterprise assumes to be engaged are represented or already is engaged.

In the section positive and negative sides of a site of the enterprise are described. The major factors influencing are considered or capable (under certain conditions) to affect enterprise activity. Also this section contains a general characteristic of branch.

The section comes to an end with the formulation of mission and the purposes of activity of the enterprise and definition of strategy of business.

Questions for self-examination

1. To give the characteristic to organizational and legal forms of the enterprise (LLP, the joint venture, joint stock company, GU)

2. Purpose of creation of the enterprise

3. Kinds of activity at the enterprise

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 7 Choice of a kind of activity

The lecture purpose –  justification of a choice of activity of the enterprise

Lecture questions: