BUSINESS PLAN

Presented by:
E. Veera Pratap
Assistant Professor
Department of Mechanical Engineering
GITAM
Hyderabad Campus
MODULE III
Contents of business plan
The marketing plan
The organizational plan
The financial plan
Sources of finance
Institutional support to entrepreneurs
Management of business
­ Financial management
­ Human resource management
­ Marketing management
­ Production and operations management
BUSINESS PLAN
The business plan is a written document prepared by the
entrepreneur that describes all the relevant external and
internal elements involved in starting a new venture.
BUSINESS PLAN
§It is often an integration of functional plans such as marketing,
finance, manufacturing and human resources.

§Is the formal written expression of the entrepreneurial vision,

describing the strategy and operations of the proposed venture.

§In other words, business plan serves like a kind of road map to reach
the destination determined by the entrepreneur.
BUSINESS PLAN
§Potential investors will request a business plan.

§Entrepreneur would consider external factors such as new regulations,

the economy, competition, social changes, changes in customer needs
and new technology.

§Entrepreneur will be able to determine how much money will be

needed from existing sources or new sources to achieve the plan.
CONTENTS OF BUSINESS PLAN
I. Introductory Page VII.Marketing Plan
II. Executive Summary VIII.Organizational Plan
III. Industry Analysis IX. Assessment of Risk
IV. Description of Venture X. Financial Plan
V. Production Plan XI. Appendix
VI. Operations Plan
 CONTENTS OF BUSINESS PLAN
I. Introductory Page
A. Name and address of business
B. Name(s) and address(es) of principal(s)
C. Nature of business
D. Statement of financing needed
E. Statement of confidentiality of report
II. Executive Summary—Two to three pages summarizing the complete
business plan
 CONTENTS OF BUSINESS PLAN
III. Industry Analysis V. Production Plan
A. Future outlook and trends A. Manufacturing process (amount
B. Analysis of competitors subcontracted)
C. Market segmentation B. Physical plant
D. Industry and market forecasts C. Machinery and equipment
IV. Description of Venture D. Names of suppliers of raw
A. Product(s) materials
B. Service(s)
C. Size of business
D. Office equipment and personnel
E. Background of entrepreneur(s)
 CONTENTS OF BUSINESS PLAN
VI. Operations Plan E. Controls
A. Description of company’s operation VIII. Organizational Plan
B. Flow of orders for goods and/or A. Form of ownership
services
B. Identification of partners or principal
C. Technology utilization shareholders
VII. Marketing Plan C. Authority of principals
A. Pricing D. Management team background
B. Distribution E. Roles and responsibilities of members
of organization
C. Promotion
D. Product forecasts
 CONTENTS OF BUSINESS PLAN
IX. Assessment of Risk E. Break-even analysis
A. Evaluate weakness(es) of business F. Sources and applications of funds
B. New technologies XI. Appendix (contains backup
material)
C. Contingency plans
A. Letters
X. Financial Plan
B. Market research data
A. Assumptions
C. Leases or contracts
B. Pro forma income statement
D. Price lists from suppliers
C. Cash flow projections
D. Pro forma balance sheet
 CONTENTS OF BUSINESS PLAN
Introductory Page:
The introductory page should contain the following:
§The name and address of the company.
§The name of the entrepreneur(s), telephone number, fax number, e-mail address, and
Web site address if available.
§A paragraph describing the company and the nature of the business.
§The amount of financing needed. The entrepreneur may offer a package (e.g., stock
or debt). However, many venture capitalists prefer to structure this package in their
own way.
 CONTENTS OF BUSINESS PLAN
Executive Summary:
§This section of the business plan is prepared after the total plan is written. About
two to three pages in length, the executive summary should stimulate the interest
of the potential investor.
Generally the executive summary should address a number of questions, For
Example:
§ How is this business concept or model unique?
§Who are the individuals starting this business?
§How will they make money and how much?
 CONTENTS OF BUSINESS PLAN
Industry Analysis:

Industry demand: Demand as it relates to the industry is often available from published

sources. Knowledge of whether the market is growing or declining, the number of new

competitors, and possible changes in consumer needs are all important issues in trying to
ascertain the potential business that might be achieved by the new venture.
 CONTENTS OF BUSINESS PLAN
Description of Venture:
Provides complete overview of the product(s), service(s), and operations of a new venture
1. What is the mission of the new venture?
2. What are your reasons for going into business?
3. Why will you be successful in this venture?
4. What development work has been completed to date?
5. What is your product(s) and/or service(s)?
6. Describe the product(s) and/or service(s), including patent, copyright, or trademark status.
7. Where will the business be located?
 CONTENTS OF BUSINESS PLAN
Production Plan:
If the new venture is a manufacturing operation, a production plan is necessary. This plan
should describe the complete manufacturing process.
1. Will you be responsible for all or part of the manufacturing operation?
2. If some manufacturing is subcontracted, who will be the subcontractors?
3. What are the costs of the subcontracted manufacturing?
4. What will be the layout of the production process? (Illustrate steps if possible.)
5. What equipment will be needed immediately for manufacturing?
6. What raw materials will be needed for manufacturing?
7. What are the costs of manufacturing the product?
 CONTENTS OF BUSINESS PLAN
Operations Plan:
It might include inventory or storage of manufactured products, shipping,
inventory control procedures, and customer support services.
 CONTENTS OF BUSINESS PLAN
Marketing Plan:
Describes market conditions and strategy related to how the product(s) and
service(s) will be distributed, priced, and promoted.
 CONTENTS OF BUSINESS PLAN
Organizational Plan:
Describes form of ownership, lines of authority and responsibility of members of
new venture.
 CONTENTS OF BUSINESS PLAN
Assessment of Risk:

Identifies potential hazards and alternative strategies to meet business

plan goals and objectives.
 CONTENTS OF BUSINESS PLAN
Financial Plan:
§Projections of key financial data that determine economic feasibility and
necessary financial investment commitment.
§Forecasted sales and the appropriate expenses for at least the first three years.
§Balance sheet.
 CONTENTS OF BUSINESS PLAN
Appendix:
§The appendix of the business plan generally contains any backup material that
is not necessary in the text of the document.

§Letters from customers, distributors, or subcontractors

§Leases, contracts, or any other types of agreements that have been initiated
also may be included in the appendix.

§Price lists from suppliers and competitors may be added.

 MARKETING PLAN
What is Marketing?

§Planning, integrating and executing a set of strategies for selling

products and services for the benefit of seller and buyer.

§Recognises and analysis of customer needs.

§It provides guidance for product pricing, packaging, promotion and

distribution.
 MARKETING PLAN

§Marketing plan is a written statement of marketing objectives,

strategies and activities to be followed in business plan.
 CHARACTERISTICS OF A MARKETING PLAN
A marketing plan should be designed in a way to meet following criteria’s:-

§Provide a strategy to meet company mission or goal.

§Be based on facts and valid assumptions (considering available resources such
as finance, equipment, human resource, technology etc).

§Provide for continuity means short-term goals should be align to achieve long
term marketing objectives.
 CHARACTERISTICS OF A MARKETING PLAN
§Be simple and short but the plan should not be so short that details on how to
accomplish a goal is excluded.

§The success of the plan may depend on its flexibility. the plan should have the

enough flexibility to incorporate counter strategies.

§Specify organisation performance criteria that could be monitored for control

purpose such as 10% market share, 50% growth in sales etc.
MARKETING PLAN: THE MARKETING SYSTEM

§Marketing system is the interacting internal and external

factors that affect venture’s ability to provide goods and
services to meet customer needs.
MARKETING PLAN: THE MARKETING SYSTEM
MARKETING PLAN: THE MARKETING SYSTEM

§External environment factors are typically uncontrollable but need

to be recognized as part of the marketing plan.

§Internal environment factors are controllable by the entrepreneur.

MARKETING PLAN: THE MARKETING MIX
§Marketing mix is the combination of product or service, price, promotion,
and distribution and other marketing activities needed to meet marketing
objectives.

§The short-term marketing decisions in the marketing plan will consist of four
important marketing variables: product or service, Pricing, Distribution and
Promotion.
 MARKETING PLAN: THE MARKETING MIX
Critical Decisions for Marketing Mix
Marketing Mix Critical Decisions
Variable
Product or Quality of components, style, features, options, brand name, packaging,
Service sizes, service availability and warranties.
Price Quality image, list price, quantity, discounts, allowances for quick payment,
credit terms, and payment period.
Channels of Use of wholesalers and/or retailers, type of wholesalers or retailers, how
Distribution many, length of channel, geographic coverage, inventory, transportation,
and use of electronic channels.
Promotion Media alternatives, media budget, role of personal selling, sales promotion
(displays, coupons, etc.), use of social networking, web site design, and
media interest in publicity.
STEPS IN PREPARING THE MARKETING PLAN
1. Defining the business situation
2. Defining the target market: opportunities and threats
3. Establishing goals and objectives
4. Defining marketing strategy and action programs
5. Marketing strategy: consumer versus business-to-business markets
6. Budgeting the marketing strategy
7. Implementation of the marketing plan
8. Monitoring the progress of marketing actions
STEPS IN PREPARING THE MARKETING PLAN
Defining the business situation:

§Situation analysis - describes past and present business

achievements of new venture.

§ If this is a new venture, the background will be more personal,

describing how the product or service was developed and why it
was developed (e.g., to satisfy consumer needs).
STEPS IN PREPARING THE MARKETING PLAN
Defining the Target Market:

§The target market is the specific group of potential customers toward which
a venture aims its marketing plan.

§Market segmentation is the process of dividing a market into definable

and measurable groups for purposes of targeting marketing strategy.

§Consider the strengths and weaknesses in the target market.

 STEPS IN PREPARING THE MARKETING PLAN
Defining the Target Market:
The process of segmenting and targeting customers by the entrepreneur should proceed as follows:

§Decide on general market

§Divide the market into smaller groups based on

§ Characteristics of customer – Geographic(country, state, region), Demographic (age,gender) and
psychographic (study of personality, values, opinions, attitudes, interests and lifestyles)
§ Buying situation – desired benefits (product features), usage (rate of use), buying conditions (time
available), awareness of buying intention.

§Select segments to target.

STEPS IN PREPARING THE MARKETING PLAN
Establishing goals and objectives:

These are statements of level of performance desired by a new venture.

These marketing goals and objectives respond to the question: “where do

we want to go?”.

Example: product distribution in 75% of the market with in the first year .
STEPS IN PREPARING THE MARKETING PLAN
Defining Marketing Strategy and Action Programs:

§Once the marketing goals have been established, the entrepreneur can
begin to develop the marketing strategy and action plan to achieve them.

§These action decisions respond to the question: “how do we get there?”

§These decisions reflect on the marketing mix variables(product, price,

distribution and promotion).
 STEPS IN PREPARING THE MARKETING PLAN
Marketing strategy: Consumer versus Business-to-Business Markets:

§Marketing strategy decisions for a consumer product may be different from the
decisions for a business-to-business product.

§ In business-to-business markets, the entrepreneur sells the product or service to

another business.
 STEPS IN PREPARING THE MARKETING PLAN
Marketing strategy: Consumer versus Business-to-Business Markets:

For example: Dell Laptops and computers

Dell Laptops and Computers

Through
Bajaj
online Electronics
, Croma

Consumers Businesses
 STEPS IN PREPARING THE MARKETING PLAN
Budgeting the marketing strategy:

§Business operational and production costs should be reasonably clear.

§Assumptions if necessary should be clearly stated.

§Useful in preparing the financial plan.

 STEPS IN PREPARING THE MARKETING PLAN
Implementation of the marketing plan:

§The plan is meant to be a commitment by the entrepreneur to a specific

strategy.

§Entrepreneur should ensure coordination and implementation of the

plan.
 STEPS IN PREPARING THE MARKETING PLAN
Monitoring the Progress of Marketing Actions:
§Involves tracking results of the marketing effort.

§Entrepreneur should prepare for contingencies.

§Minor adjustments in the plan are normal; significant changes indicate a poorly
prepared plan.

§Weaknesses in market planning may be due to:

§Poor analysis of the market and competitive strategy.
§Unrealistic goals and objectives.
§Poor implementation of the outlined plan actions.
 THE ORGANIZATIONAL PLAN
§It describes form of ownership, lines of authority and
responsibility of members of new venture.
THE ORGANIZATIONAL PLAN: LEGAL FORMS OF BUSINESS (OR) OWNERSHIP

Three basic legal forms of business formation:

1. Proprietorship
2. Partnership
3. Corporation
 THE ORGANIZATIONAL PLAN: LEGAL FORMS OF BUSINESS (OR) OWNERSHIP

Three basic legal forms of business formation:

Proprietorship: Form of business with single owner who has unlimited liability,
controls all decisions, and receives all profits.
Partnership: Two or more individuals having unlimited liability who have
pooled resources to own a business.
Corporation: Separate legal entity that is run by stockholders having limited
liability.
vLiability means the state of being legally responsible for something.
 CHARACTERISTICS FEATURES OF THE FACTORS IN 3 FORMS OF BUSINESS FORMATION
Factors Proprietorship Partnership Corporation
Ownership Individual No limitation on No limitation on number of
number of partners stockholders
Liability of Individual liable for All individuals Amount of capital
owners business liabilities liable for business contribution
liabilities. is limit of shareholder
liability.
Costs of None, other than Partnership agreement, Created only by statute.
starting filing fees for trade legal costs, Filing fees, taxes, and fees
Business name. and filing fees for for states in which
trade name. corporation registers to
do business.
(Statute means a written law passed
by a legislative body)
 CHARACTERISTICS FEATURES OF THE FACTORS IN 3 FORMS OF BUSINESS FORMATION
Factors Proprietorship Partnership Corporation
Continuity of Death dissolves Death or withdrawal of Greatest form of continuity.
business the business one of limited partners Death or withdrawal of
has no effect owner(s) will not affect legal
on continuity. existence of business.
Transferability Complete General partner can Most flexible. Stockholders
of interest freedom to sell or transfer his/her interest can sell or buy stock at will.
transfer any part only with consent of all Some stock transfers may be
of business. other general partners. restricted by agreement.
Capital Capital raised Loans or new New capital raised by sale
requirements only by contributions by of stock or bonds or by
loan or increased partners require a borrowing (debt) in name of
contribution by change in corporation.
proprietor. partnership agreement.
 CHARACTERISTICS FEATURES OF THE FACTORS IN 3 FORMS OF BUSINESS FORMATION
Factors Proprietorship Partnership Corporation
Management Proprietor makes all All general partners Majority stockholder(s) have
Control decisions and can act have equal most control from legal point
immediately. control, and majority of view.
rules.
Distribution of Proprietor responsible Depends on Shareholders can share in
profits and and receives all partnership agreement profits by receipt of
losses profits and losses. and investment by dividends.
partners.
Attractiveness Depends on Depends on capability With limited liability for
for raising capability of partners owners, more attractive as an
capital of proprietor and and success of business. investment opportunity.
success of business.
DESIGNING THE ORGANIZATION
The design of organization will be depend on following six areas:
1. Organization structure
2. Allocation of resources
3. Planning, measurement and evaluation schemes
4. Rewards
5. Selection criteria
6. Training
DESIGNING THE ORGANIZATION
Organization Structure:

This defines members jobs and the communication and relationship

these jobs have with each other. These relationships are depicted in
an organization chart.
 DESIGNING THE ORGANIZATION
A simple organization Structure: President

Vice President for Vice President for Vice President for

Marketing Dept. Sales Dept. Production Dept.

Manager Manager Manager Manager Manager Manager

 DESIGNING THE ORGANIZATION
Allocation of resources:

The manager must decide who gets what. This involves the delegation of budgets and
responsibilities.

The allocation of resources can be a very complex and difficult process for the
entrepreneur since one decision can significantly affect other decisions.

Negotiations of contracts, salaries, prices of raw materials, and so on are an integral

part of the manager’s job, and since he or she can be the only person with the
appropriate authority, it is a necessary area of decision making.
 DESIGNING THE ORGANIZATION
Planning, measurement and evaluation schemes:

All organization activities should reflect the goals and objectives that underlie
the venture’s existence.

The entrepreneur must spell out how these goals will be achieved (plans), how
they will be measured, and how they will be evaluated.
 DESIGNING THE ORGANIZATION
Rewards:

Members of an organization will require rewards in the form of promotions,

bonuses, praise, and so on.

The entrepreneur or other key managers will need to be responsible for these
rewards.
 DESIGNING THE ORGANIZATION
Selection Criteria:

The entrepreneur will need to determine a set of guidelines for selecting

individuals for each position.
 DESIGNING THE ORGANIZATION
Training:

Training schemes on or off the job, must be specified. This training may be in the
form of formal education or learning skills.
 FINANCIAL PLAN
It provides the entrepreneur with a complete picture of:
­How much and when funds are coming into the organization
­Where funds are going

­How much cash is available and

­The projected financial position of the firm
­How financial obligations will be met and the venture’s liquidity and
solvency will be maintained over time.
FINANCIAL PLAN: OPERATING AND CAPITAL BUDGETS

Before developing the pro forma income statement, the entrepreneur

should prepare operating and capital budgets.

Examples of operating budgets are sales, manufacturing, labour,

overhead and administration.

Capital budget is allocating money for the maintenance of fixed assets

such as land, buildings, and equipment.
FINANCIAL PLAN: OPERATING AND CAPITAL BUDGETS

For example, a sales budget may be prepared by a sales manager, a

manufacturing budget by the production manager, capital budget by the
financial manager and so on. Final approval of these budgets will
ultimately rest with the owners or entrepreneurs.
 FINANCIAL PLAN: OPERATING AND CAPITAL BUDGETS
A sample manufacturing budget for first three months (in units):
January February March
Projected Sales 5,000 8,000 12,000
Desired ending inventory 100 200 300
Available for sale 5,100 8,200 12,300
Less: beginning inventory 0 100 200
Total production required 5,100 8,100 12,100
 FINANCIAL PLAN: OPERATING AND CAPITAL BUDGETS
A sample operating budget for first three months (Rs.)
Expenses January (Rs.) February (Rs.) March (Rs.)
Salaries 90,000 90,000 90,000
Rent 2,500 2,500 2,500
Office expenses 2,000 2,000 2,000
Advertising 5,000 5,000 5,000
Depreciation 1,000 1,000 1,000
Taxes 2,000 2,000 3,000
Total expenses 1,25,000 1,25,000 1,26,000
FINANCIAL PLAN: PRO FORMA FINANCIAL STATEMENTS

qPro Forma Income Statements

qPro Forma Cash Flow Statements

qPro Forma Balance Sheet

qBreak Even Analysis

FINANCIAL PLAN: PRO FORMA FINANCIAL STATEMENTS
Pro forma income statements:

Pro forma income - Projected net profit calculated from projected

revenue minus projected costs and expenses.

Compares the firm’s expenses against its revenue over a period of time
to show its net income (profit or loss).

Net Income = Sales Revenue - Expenses

FINANCIAL PLAN: PRO FORMA FINANCIAL STATEMENTS
MPP Plastics Inc., Pro Forma Income Statement, First Year by Month ($000s):
FINANCIAL PLAN: PRO FORMA FINANCIAL STATEMENTS
Pro forma cash flow statements:

oPro forma cash flow- Projected cash available calculated from

projected cash accumulations minus projected cash disbursements.

oCash flow is not the same as profit. (Profit = Sales – Expenses)

oCash flow results from the difference between actual cash receipts and
cash payments.
FINANCIAL PLAN: PRO FORMA FINANCIAL STATEMENTS
Pro forma cash flow statements:
KEY DIFFERENCES BETWEEN INCOME STATEMENT AND CASH FLOW
STATEMENT
Income Statement
The income statement is the most common
financial statement, and shows a
company's revenue and total expenses,
including noncash accounting such as
depreciation, amortization, over a one-
month period.
The income statement is helpful in knowing
the profitability of the company.
Depreciation is considered in the income
statement
Cash Flow Statement
A cash flow statement shows the exact
amount of a company's cash inflows and
outflows over a one-month period.
The cash flow statement is useful in
knowing the liquidity and solvency of
business which determines the present and
future cash flows.
The same is excluded from cash flow
statement because it is a non-cash item.
FINANCIAL PLAN: PRO FORMA FINANCIAL STATEMENTS
Pro forma balance sheet:
Summarizes the projected assets, liabilities, and net worth of the new
venture.
It reflects the position of the business at the end of the first year.

Assets: these represent everything value that is owned by business.

Liabilities: these accounts represent everything owed to creditors.

FINANCIAL PLAN:
PRO FORMA FINANCIAL
STATEMENTS

Pro forma balance

sheet:
FINANCIAL PLAN: PRO FORMA FINANCIAL STATEMENTS

Break-Even Analysis:

Breakeven -Volume of sales where the venture neither makes a

profit nor incurs a loss.

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FINANCIAL PLAN:
PRO FORMA
FINANCIAL
STATEMENTS
SOURCES OF FINANCE: WHY NEW VENTURES NEED FINANCE?
The cost of buying land, building facilities, raw material and purchasing
equipment.

Employees must be trained and paid.

Advertising must be paid for before cash is generated from sales.

SOURCES OF FINANCE (OR) CAPITAL
Debt Financing

Equity Financing

Internal Funds

External Funds
 SOURCES OF FINANCE: DEBT FINANCING
Debt financing is obtaining borrowed funds for the company.

It involves getting a loan.

It requires that some asset(such as car, house, machine, land) be used as

collateral.

•Collateral means something undertaken as security for repayment of a loan.

 SOURCES OF FINANCE: DEBT FINANCING
Debt financing requires the entrepreneur to pay back the amount of funds borrowed
as well as a fee usually expressed in terms of the interest rate.
If the financing is short term debt(less than one year), the money is usually used to
provide working capital to finance inventory, accounts receivable, or the operation of
the business. The funds are typically repaid from the resulting sales and profits of the
business during the year.
Long-term debt (lasting more than one year) is frequently used to purchase some asset
such as a piece of machinery, land, or a building, with part of the value of the asset
(usually from 50 to 80 percent of the total value) being used as collateral for the long-
term loan.
 SOURCES OF FINANCE: EQUITY FINANCING
Equity financing is obtaining funds for the company in exchange for
ownership.

It does not require collateral and offers the investor some form of
ownership position in the venture.
 SOURCES OF FINANCE
Internal Funds:
The funds most frequently employed are internally generated funds.
Internally generated funds can come from several sources within the company:
1. Profits
2. Sale of assets
3. Reduction in working capital (it is the excess of current assets over current liabilities)
4. Extended payment terms with a supplier
5. Accounts receivable (Accounts Receivable is the payment which the company will receive
from its customers, who have purchased its goods)
6. Reduction of inventory
 SOURCES OF FINANCE
External Funds:

Alternative sources of external financing need to be evaluated on three

bases:

1. The length of time the funds are available

2. The costs involved and

3. The amount of company control lost (for example, underestimate of

operating budget).
SOURCES OF FINANCE
External Funds:
The more frequently used sources of funds:
Self
Family and Friends
Commercial Banks
Government Programs
R&D Limited Partnerships
Crowd Funding
Private Investors (or) Business Angels
INSTITUTIONAL SUPPORT TO ENTREPRENEURS
Need for institutional support:

•Know the sources of help and support available for starting a small scale
industry.

•Finance has been an important resource to start and run an enterprise.

•Know the pros and cons in becoming an entrepreneur.

•Technical training is required for becoming an entrepreneur.

INSTITUTIONAL SUPPORT TO ENTREPRENEURS

Institutions headed by:

Central Government

State Government

Non Government Organizations

INSTITUTIONAL SUPPORT TO ENTREPRENEURS

Classification according to services:

•Technical Guidance

•Training Institutes

•Commercial Banks
INSTITUTIONAL SUPPORT TO
ENTREPRENEURS
Central Government Institutions:
1. SMALL SCALE INDUSTRIES BOARD
(SSID)
2. NATIONAL BANK FOR AGRICULTURE
AND RURAL DEVELOPMENT (NABARD)
INSTITUTIONAL SUPPORT TO
ENTREPRENEURS
Central Government Institutions:
3. SMALL INDUSTRIES DEVELOPMENT
ORGANISATION (SIDO)
4. NATIONAL SMALL INDUSTRIES
CORPORATION (NSIC)
INSTITUTIONAL SUPPORT TO ENTREPRENEURS
Central Government Institutions:
5. SMALL INDUSTRIES
DEVELOPMENT BANK OF
INDIA (SIDBI)
INSTITUTIONAL SUPPORT TO ENTREPRENEURS
State Government Institutions:
1. State Directorate of Industries
2. State Small Scale Industries development Corporation (SSIDC)
3. District Industries Centres (DICs)
4. State Finance Corporations(SFCs)
5. Technical Consultancy Organization(TCOs)
6. State Industrial Area Development Board (SIADB)
 MANAGEMENT OF BUSINESS
Business management is the act of organizing people to accomplish the desired
goals and objectives of a business.

Business management requires the utilization of the entity’s resources in the most
efficient manner possible.

Business management comprises organizing, planning, leading, staffing or

controlling and directing a business effort for the purpose of accomplishing the
entity’s listed goals.
MANAGEMENT OF BUSINESS

Human Resource Management

Production And Operations Management

Marketing Management

Financial Management
 MANAGEMENT OF BUSINESS
Human Resource Management:

Getting quality employees is one of the biggest challenges facing

entrepreneurs today.

Human Resource Management is concerned with hiring, motivating

and maintaining people in an organisation.

It focuses on people in the organisation.

 MANAGEMENT OF BUSINESS
Human Resource Management:

Human Resource Management is the planning, organising, directing and

controlling of the procurement, development, compensation, integration,
maintenance and separation of human resources to the end that
individual, organisational, and social objectives are accomplished.
HUMAN RESOURCE MANAGEMENT:
 MANAGEMENT OF BUSINESS
Production and Operations Management:

It is the management of an organization’s production system.

A production system takes inputs and converts them into outputs.

The conversion process is the predominant activity of a production system.

The primary concern of an operations manager is the activities of the

conversion process.
Schematic Production System

Inputs: Transformation:
Men Product Design Outputs:
Material Product Planning Products
Machine Production Control Services
Capital Maintenance

Continuous:
Inventory
Quality
Cost
 Location
of
Facilities
Plant layout
Maintenance and
management Material
Handling
Scope of
Production and
Production
Operations Quality and Product
Management Control operations Design
management

Production
and Process
Planning Design
Control
Materials
Management
MANAGEMENT OF BUSINESS
Marketing Management:

Marketing Management is the process of planning and executing

the pricing, promotion and distribution of goods and services to
create exchanges with target groups that satisfy customer and
organizational objectives.
MANAGEMENT OF BUSINESS
Objectives of Marketing Management:

Creating New Customers.

Satisfying the Needs of Customers.

Enhancing the Profitability of Business.

Raising the standards of living People.

Determining the Marketing Mix

MARKETING MANAGEMENT:
MANAGEMENT OF BUSINESS
Financial Management:

Finance is the art and science of managing money.

Financial management is concerned with the efficient use of economic

resources.

Financial management deals with how the corporation obtain the funds
and how it uses them.
MANAGEMENT OF BUSINESS
Objectives Financial Management:
Profit Maximization
Ensuring a profit to shareholders
Ensuring financial discipline in the organization
Maintenance of liquid asset.

By reducing the cost of production through effective use of

resources.
 Cash Flow
Analysis
GST Annual Tax
Filing Paying

Financial
Management
Source Accounts
Deductions Payable

Salaries Accounts
Receivable
REFERENCES
1. Rodert D. Hisrich, M.J. Manimala, M.P. Peters, D.A. Shepherd, Entrepreneurship,
McGraw Hill, 2014.
2. Rajeev Roy, Entrepreneurship, 3/e, Oxford University Press, 2012.
3. Donald F. Kuratko, Entrepreneurship: Theory, Process, Practice, 9/e, Cengage
Learning, 2012.
4. Poornima M. Charantimath, Entrepreneurship Development - Small Business
Enterprises, Pearson Education, 2012.
5. Arya Kumar, Entrepreneurship: Creating and Leading an Entrepreneurial
Organization, Pearson Education, 2012.