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Introduction This report comprises a critical appraisal of the business planning process.

The business planning process through a critical appraisal of the contribution each element makes to the creation of a successful entrepreneurial venture. The critical elements will present by summary, it may make the investor and reader easier to understand and a successful entrepreneurial. The critical elements are including executive summary, introduction, market analysis, competitor analysis, target and object, commercial strategy and financial projection. A very good example of Multinational enterprises (MNEs) such as Starbucks will be carry out of this case study in order to make this report more realistic and wonderful. 2. Executive Summary This is the section that show initially of the business plan and prepared after the whole plans is done. Normally is about one or two pages, the executive summary is consisting of industry analysis, marketing plan and analysis, target and objective, financial statement and so on. This section is very important for the business plan, because the executive summary is similar with Elevator Pitch, it should stimulate the reader or potential investors interest. Therefore, it must be concise and straight to the key points in the business plan. For instant: Starbucks Corporation is one of the largest food and beverages multinational enterprises (MNEs), its industry included restaurants, retail coffee and tea, beverages, entertainment and etc. Starbucks operate in over 50 countries and it has more than 17,000 stores in the world (Starbucks, 2011). Starbucks starts its first store in Seattles Pike Place Market, at 1971. After 25 years, Starbucks opens the first store outside of North America in Japan. Starbucks Mission is To inspire and nurture the human spirit one person, one cup and one neighbourhood at a time. According Starbucks 2011 Annual report show the consolidated net revenues is increased 9% from year 2011 compare to year 2010, which from $10.7 billion to $11.7 billion (Starbucks, 2011). Today, Starbucks has always been a place located in every nook and corner in every major city where you can find the worlds best coffees. Starbucks is doing great things for both for its customers and community that people coming to Starbucks to chat, meet up or even work. They are neighbourhood gathering place, a part of the daily routine. Starbucks Chief Executive

Howard Schultz said that, We arent in the coffee business, serving people. We are in the people business, serving coffee (Anon, 2010), it is the philosophy of Starbucks. At present, Starbucks is the largest coffeehouse in the world. 2.1 Introduction The investor or reader can learn the basic detail from the introduction, included name and background of company, business concept and model, which kind of strategies is going to use, the industry current structure and etc. The introduction is one of the important parts because it is a part of the business plan which leads the way to know the main road. 2.2 Intellectual property Commercial value of intellectual property are regarding to knowledge,

creative ideas or expressions of human mind, it are protectable under copyright, patent, service mark, trademark, or trade secret laws from imitation, infringement, and dilution (BusinessDictionary, 2011). Besides that, intellectual property includes registered design, inventions, software, brand names, and works of artistic, musical naturel and so on. As this reason, the intellectual property is very important; it can let the investor to know the company product and creative ideas is under licence and improve their confident as well. A creative trademark and slogan also can capture the consumer mind. For instance, trademark of McDonald is I'm Lovin' It (McDonald, 2011). 3. Market Analysis The market analysis is a part of the industry analysis and it will be in turn of the global environmental analysis. Market environment consists of microenvironment and macro environment. The strategies analysis tool will be interpreting through SWOT, PESTLE, and Porters 5 forces and so on. It is important because the company unable to predict the external elements on the market. Through the analysis tool, the company can understand and gauge the strengths and weakness of the opposition. Based on the analysis, company can be achieved success in business by constantly improvement.

4. Competitor Analysis According to the Sun Tzu said that Know the enemy and know yourself, and you can fight a hundred battles with no danger of defeat (Wu and Vecsey, 1996). As this reason, the company should always understand their competitor because it is very important in business plan. It will help the company to understand their competitive strengths and weakness with their competitors. Company can learn from the competitor strategies from past, present and future strategies, it may help company to forecast the respond of competitor when the company are launching new products. For example, the main competitor of Starbucks is Caribou Coffee, Dunkin Donuts and McDonald (McCafe). Appendix 1 is shown that competitor analysis checklist. 5. Target For the target market, this is an important step that can be affecting the decision in choosing a new business location. Most of the company will select or aim a target for their focus point such as age and family life cycle, student, income and gender. The company normally will evaluating different segments and decides which and how many segment it will target. This is because each buyer has unique need and wants, thus in order to fulfil the customers need and wants the company will looks for the segments of buyers. Market targeting can carried out at several different levels such as: Undifferentiated (mass) marketing: Coca-Cola selling with a single product or concentrate with one offer to penetrate into a whole market

(Learnmarkeitng.com, n.d.). Differentiated (segmented) marketing: Airlines companies are offering first class and economic class tickets for differentia segmented

(Learnmarkeitng.com, n.d.). Concentration (niche) marketing: Rolls Royce cars aim its vehicles at the premium segment; it is focus on particular segment (Learnmarkeitng.com, n.d.).

6. Objective Every successful business must have a clearly objective and focus to achieve their objective. Therefore the company business plan objective should be SMART; there is combination by specific, measurable, achievable, realistic and timed (MarketingTeacher.com). For example, Starbucks has been created a timeline (Appendix 2) for achieving their company objective (Starbucks, 2011). The objective is important for the company because it will lead the company to achieving their mission and goal. Without any business objective, the company or the business plan may not able to success. The business objectives will guild the company understands what the position there stand and how to achieve their objectives. 7. Commercial Strategy Marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the market (Kotler and Armstrong, 2008). The marketing mix consist of everything the firm can do influence the demand for its product. There are four variables known as product, price, place and promotion. This is an important part for the business plan because it is describes how the product will be sell, using which pricing strategies, promotion and location. It is also in the key role for the potential investor to make a decision. For example, Starbuck are launching their new product instant coffee VIA Ready Brew in the worlds by marketing mixes. Product means the goods and services combination the company offers to the target market. Starbuck are come out an idea to design the high quality and lighting packing (Appendix 3) instant coffee for the middle and upper income workers (ZhiJing, 2010). Price is the amount of money customers have to pay to obtain the product. Starbucks used a skimming pricing strategy for launched this product (ZhiJing, 2010). Promotion means activities that communicate the merits of the product and persuade target customers to buy it. Starbucks through free samples in stores, taste tests present leverage on the online community to promotion (ZhiJing, 2010).

Place includes company activities that make the product available to target consumers. Distribution channel of Starbucks to launch VIA is their own retail shop and through on the move (train and airline) channel (ZhiJing, 2010). 8. Financial Projection The intelligent investor extremely take care with this section, it is an important part of the business plan. The main purpose of business plan is earning profit, if the company doesnt have the good financial statement, the investor, business partner and banker wont be interested as well. Indeed, a public company is through their annual report to show their profit and lost to the shareholders and potential investor. Company must have enough cash to sustain their company operation; cash can let the supplier keep supply, because Cash is the King (Hanson, 2011). Therefore, Cash flow is one of the issue will be influence the financial performance. Normally, financial statement is representing by balance sheet, income statement and cash flow statement. Appendix 4a, 4b, and 4c will show that Starbucks 2007 till 2005 financial statement. If for the new business plan, the cash flow will be forecast at least one year (Dwmbeancounter.com, n.d.). Appendix 5 will show a sample of cash flow forecast. Summary A business plan is one of the important plans that a company will be presenting to their potential investors. A successful business plan should be including some of the critical elements. First at all, executive summary is a simplified describes a business plan, and introduction is just a brief regarding to the company. Intellectual property shown that business plan is protectable under legal. Moreover, external and internal issue are discussing about the section market and competitor analysis. Target and objective will be accordingly created depend on the research of information, that will be a guideline for the company and helping them to achieve their target. With a commercial strategy that contain some different strategy in helping that company to launch their product in the market. Lastly, all the financial statement and situation is under consisting inside a financials projection.

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Introduction Entrepreneur is an owner of a business enterprise and they always earn money with initiative. To become a great or success of entrepreneur, there are some important critical characteristics as well as attitudes which may need to be learned, such as self-confident, creativity, gregarious, leadership, calculated risk-taker and problem solver. This report shows a discussion of entrepreneurial characteristics and also carries out the important way to help other to become a successful entrepreneur. By this reason, I will also sharing my own personal experiences and how I become a successful entrepreneur through the critical characteristics that I have mentioned above. In order to help all reader more easily to understand or realize how to be a successful entrepreneur, the following paragraph will be explaining the critical characteristic of entrepreneur with a simple summary. Self-confident Self-confident is a main principle of entrepreneur, it can be naturally instinctive, but does not mean we cannot learn and own it (Actioncoach, n.d.). Entrepreneurs should be confident and believe themselves to achieve their dreams or goals. They strongly believe that they can conquer every challenge or any enemy. We can learn the self-confident from the successful entrepreneurs and investors such as Steve Jobs, Bill Gates, Howard Schultz, Warren Buffett and George Soros. Since self-sensible, I already noticed that it is my instinctive ability. During my secondary school, I was a vice-president on the student union (prefect) and martial art society. My confident is carried out through performing the martial art and speech on the stage which is a great experience for me. As a vice-president and prefect, I am to be more extraversion, openness to experience, conscientiousness and emotional stability. These five personality traits influenced me in deciding to be an entrepreneur. Recently, I am a real estate negotiator and founder of my own business name as Love Equation (lovequation.com.my, 2011).My clients and shareholders trusted me due to my self-confident and vision which is part of my factor to success.

Creativity A creative thinking and innovative idea is very important to the entrepreneurs. An entrepreneur must have creativity which is unique, able to introduce new products and discover new markets (Kumar, n.d.). One creative and innovative idea can change the worlds. For example, Steve Jobs, the Apple founder and former CEO is a creative and innovative entrepreneur; he used technology to change the work through personal computer, iPhones, and Post-pc era and so on. "Think Different" is one of his advertisement slogan (Proposedsolution.com, 2009), it shows that creative thinking and innovative idea are somehow important for entrepreneurs. I started my business is because of one creative idea. The purpose of my business is to express the special gift to the receiver and supplies the special gift to the retailer and event. Why I will come out with this kind of idea? In my local country (Malaysia) online shopping is sent by post, where it is very inconvenience for the customers. As entrepreneur, I come out with my own idea to launch the online business via the special gifts (flowers, cup-cakes and action figure) and services. In order to save cost in logo making, I designed a creative logo (image 1) and innovative slogan Express Your Loveand website layout by myself (Appendix 6). Image 1

Source: Created by myself Gregarious At present, social relationship is very important to the entrepreneur, because business is all about people. Entrepreneurs must have more connection to maintain and establish good relationship with their partner, customers, employees and so forth. As entrepreneur should have the abilities to persuade and influence people

around such as sharing ideas, product and services, negotiate and so forth (Actioncoach, n.d.). For example, Howard Schultz, Starbucks Chief Executive Howard Schultz said that, We arent in the coffee business, serving people. We are in the people business, serving coffee (Anon, 2010), it is the people business. My personality trait is that I am extraversion; I like to know new friends and get more challenges. Therefore, I am good in social relationships. In my experiences, every entrepreneur should have their own customer base. Potential customers can be introduced by a previous or existing customer; therefore, entrepreneur must have a good social skill. After Id written the online business plan, the capital is a big challenge for me. During that time, I used my social relationships to persuade and influence the potential business partner in order to receive new business partner. In Asia, sometime customers not only concern about the ability or talent of the entrepreneur, they tend to believe in relationship. For this reason, entrepreneur must master this characteristic. Leadership A successful entrepreneur should have the ability of leadership. Besides leading someone to achieve the mission, it also leads his team to achieve target (Actioncoach, n.d. ; Kumar, n.d.). Besides that, entrepreneur knows the importance of teamwork and how to influence and support their teammate on the right track. Leader is like a soul of human, every decision he made will directly influences the company. For example, according to the survey by CEOs of the FT and PricewaterhouseCoopers (PwC), we found that Bill Gates is still in the list of most respected business leaders for the third year (Silicon.com, 2004). Bill Gates is leading his company to become top in the world, which means that how important is the leader in the team. I am the leader of my company; leadership is one of the characteristic I need to improve. As a leader, I will normally refer to the suggestions from my teammate before I make a right decision. Despite my decision is the final decision, I will listen to them first. From the suggestion, I can know their true thoughts. If my teammate has been well performed, I will reward them. When they make a mistake, I will try to lead them to the right tracks. I also like to organize event or trips, where these kinds of

activities can make me to understand more about my teammate which may be helpful for the future of the company. Calculated Risk-taker Level of risk is one of the barriers which hinder the entrepreneur from taking the chances; it can be success or fail. Many entrepreneurs are confused about risk taker; they just take the risk like gambles. What is the different between profession gamblers and gamblers? Gambler just simply depends on luck which is a high risk whereas the profession gambler is different as they can calculate the risk and take the high probability, and so they can always be the winner. Therefore, the way of how the entrepreneur will be taking a risk is important (entrepreneurshipinabox.com, n.d.). Every start-up businesses will have their risk. Before I start-up my business, Id calculated the risk and prepare to take it. If I fail my online business, my business partner and I will lose around RM 1000 and wasted the time. An old Yorkshire said that "Where there is muck there is brass (Paulgraham.com, 2005) many entrepreneurs could be successful because they grasp the opportunity. I make a decision to star-up business because I dont really care about the success or fail; but to me, the most important part is the process and the experiences obtained, and I never think that I will fail on this creative idea. As an entrepreneur, calculate risk is very important because it can influence the decision of investor. Problem solver When the business is processed, there are so many unpredictable problems to appear. The entrepreneur must have the ability to solve and prevent the problem (Anon, n.d.). The external issue will bring the impact for the business and it includes the competitor strategies, environment issue, global financial crisis, etc. Moreover, customers responds also being considered as problems as the entrepreneur have to fulfil the desire of customers and supplier and business related people. During set-up parts, my business has a lot of problems. First of all, none of us are professional in IT industry. In order to save cost and solve this problem, we learned by ourselves through books, internet, etc. Secondly, we are newbie and have no reputation and the relationship with the suppliers. Therefore, I did a lot of

hard work to persuade and negotiate with them to achieve a win-win situation. After the launch stage, we found that the problem is our main special services delivery of gift to the receiver. Reaching the destination can sometimes be very difficultly even by using a GPS. I come out with a solution which is by eliminating some potential area. Instead, we focus on the area which we are familiar with in order to keep and build our reputation. Summary Becoming a successful entrepreneur requires one to have own good characteristic with exert or apply it with own experiences. There are some critical characteristics which must be learned by every person who want to be an entrepreneur, such as self-confident, creativity, gregarious, leadership, calculated risk-taker and problem solver. Self-confident is a basic attitude that helps you to provide your client with confidence in a deal which is also a first step to become successful. However, a good or creative idea is also important in nowadays since there are a lot of competitors in a market. Other than creative, business always relates to human, and so, acquiring a good communication with other or gregarious as well as a good leadership is very important within a social network. Lastly, a good entrepreneur will never give up as they need to be good enough in calculating all the business risk and also try their best to solve any existing problem. (1593 words)

Appendix 1 Competitor Checklist

Oakes, S., n.d.. Find Your Pot Of Gold With Competitor Analysis. [image online] Available at: < http://www.m4bmarketing.com/find-pot-of-gold-with-competitoranalysis/> [Accessed 5 December 2011].

Appendix 2 Starbucks Company Timline

Starbucks, 2011. Starbucks Company Timeline. [online] Available at: < http://www.starbucks.com/assets/aboutustimelinefinal72811.pdf> [Accessed 3 November 2011].

Appendix 3 Packeging of VIA

Facebook Starbucks Malaysia, 2011. Starbucks Malaysia. [image online] Available at: < http://www.facebook.com/photo.php?fbid=10150798766830333&set=a.3873713503 32.361500.296802010332&type=3&theater > [Accessed 8 December 2011].

Facebook Starbucks Malaysia, 2011. Starbucks Malaysia. [image online] Available at: < http://www.facebook.com/photo.php?fbid=10150862732745333&set=a.3873713503 32.361500.296802010332&type=3&theater> [Accessed 8 December 2011].

Appendix 4a Balance Sheets

Msnmoney, 2011.Starbucks Corp (NASDAQ : SBUX) Balance Sheet. [image online] Available at: < http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?lstStatement=Ba lance&symbol=US%3aSBUX&stmtView=Ann> [Accessed 4 December 2011].

Appendix 4b Income Statement

Msnmoney, 2011.Starbucks Corp (NASDAQ : SBUX) income Statement. [image online] Available at: < http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?lstStatement=Inc ome&symbol=US%3aSBUX&stmtView=Ann> [Accessed 4 December 2011].

Appendix 4c Cash Flow

Msnmoney, 2011.Starbucks Corp (NASDAQ : SBUX) Cash Flow. [image online] Available at: < http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?lstStatement=Ca shFlow&symbol=US%3aSBUX&stmtView=Ann> [Accessed 5 December 2011].

Appendix 5 Cash flow forecast

Barclays, n.d.. Cash Flow Forcast. [image online] Available at: < https://www.barclaysmicrosites.co.uk/start_up/pdf/Start_up_guide_Cash_flow_foreca st.pdf> [Accessed 5 December 2011].

Appendix 6 Love Equation Web Page Layout

Loveequation, 2011. Love Equation. [image online] Available at: < http://lovequation.com.my/themes/brown1/index.asp> [Accessed 30 November 2011].

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ent=Income&symbol=US%3aSBUX&stmtView=Ann> [Accessed 5 December 2011]. Msnmoney, 2011.Starbucks Corp (NASDAQ : SBUX) Balance Sheet. [image online] Available at: < http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?lstStatem ent=Balance&symbol=US%3aSBUX&stmtView=Ann> [Accessed 5 December 2011]. Msnmoney, 2011.Starbucks Corp (NASDAQ : SBUX) Cash Flow. [image online] Available at: < http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?lstStatem ent=CashFlow&symbol=US%3aSBUX&stmtView=Ann> [Accessed 5 December 2011]. Barclays, n.d.. Cash Flow Forcast. [image online] Available at: < https://www.barclaysmicrosites.co.uk/start_up/pdf/Start_up_guide_Cash_flow _forecast.pdf> [Accessed 5 December 2011]. Dwmbeancounter.com, n.d.. Budgeting and Cash Forecast. [online] Available at: < http://www.dwmbeancounter.com/budgeting.html> [Accessed 5 December 2011].

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Paulgraham, 2005. Why Smart People Have Bad Ideas. [online] Available at: < http://www.paulgraham.com/bronze.html> [Accessed 30 November 2011]. Loveequation, 2011. Love Equation. [online] Available at: < http://lovequation.com.my/themes/brown1/index.asp> [Accessed 30 November 2011].

Loveequation, 2011. Love Equation. [image online] Available at: < http://lovequation.com.my/themes/brown1/index.asp> [Accessed 30 November 2011].

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