M & E UNIT 5
Unit -5 Business Plan and Start Up
Question - 5. Answers the following
(long questions)
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1.
States
the steps of marketing plan. Explain any two.
A.
Steps
of marketing plan
Market research
Segmentation
Market positioning
Market mix strategies
Packing and labeling
Pricing mix
Promotional mix
Distribution mix
Channels levels
Strategies for distribution intensity
Budgeting the market strategies
Segmentation:
“Market segmentation is the process of dividing the
market into different or distinct groups of buyers who have different needs,
wants, characteristics and who might require separate products or services.”
Segmentation
is the process of dividing of market into district subsets of customers.
1)Demographic segmentation:-
·
Age:
consumer wants and need change with age
·
Gender:
in this products are divided according to gender
·
Income
·
Generation
·
Social
class
2) Geographic segmentation:-
Based on region like northern, southern, western,
eastern, urban or rural.
Example, Lifebuoy is more common in rural areas than
the urban areas.
3) Psychological
segmentation:-
Personality
traits
Life style
Value
4) Behavioral segmentation:-
Occasion
Benefits
User status
Usage rate
2) Market positioning:-
It can be
defined as the act of projecting the company’s product in such a way that it
appears attractive to them.
It is
based on
Price
Packing
Types of product
Product lifestyle
2.
Discuss
types of plant layout with suitable examples.
A.
Types
of plant layout
·
Process
layout
·
Production
layout
·
Fixed-position
layout
Process layout:-
It is also called functional layout. In this process
layout all similar operational machines are grouped together.
Or
Grouping equipment / machineries which performing
similar operation.
Example, all lathes grouped together in turning
section.
Process layout are primarily found in job shops.
Example, auto shop (you might see that screwdrivers are
located in one location while car parts are located in different location)
Example, Departmental store you see that women’s
clothes in one area, men’s clothes in another area, toys are yet in another
area.
Production layout:-
In this type of layout equipment, tools and machines
are located according to how production is made. In this, products are passed
down the line from station to station as they are being made.
Example, McDonald’s burger production layout
1. Order
2. Bun toasting
3. Assembly with condiments
4. Wrapping of patty with bun
5. Order picked up
6. Customer services ( order delivered and payment)
Fixed-position layout:-
Here the product remains at a
fixed position but machinery, tools, manpower moved.
Example, Hospital room where
doctors, nurses and medical equipment are brought to
the patient.
Example, Construction ( for
making building)
3.
Discuss
the steps of business planning.
A.
The steps of business planning
Preliminary
investigation
Idea
generation
Environmental scanning
Feasibility
analysis
Project
report preparation
Evaluation,
controlling and review
Preliminary
investigation:-
Before preparing a plan
1.
Review
available business plan
2.
Keep
in mind key business assumptions
Ex, inflection, market growth, competition
3.
Scan
internal and external environment.
4.
Seek
professional advice from a friend
Idea generation:-
Entrepreneurship is not just limited
to innovation but also mean value addition to the
existing concept / product
/ services.
Entrepreneurship needs to
keep in mind value addition while degenerating new ideas. It is the first stage of
business planning process it involves generation of new concepts, ideas,
products and services to satisfy the customer demand.
Sources of
new idea generation:
Customers,
existing companies, research, employees, dealers, retailer.
Environmental
scanning:-
This step
carried out to analyze the prospective SWOT analysis of the business
enterprise.
Feasibility
analysis:-
This study is
done to find whether the proposed project would be feasible or not.
Ex, market
analysis, technical analysis, financial
Project
report preparation:-
It guides the
entrepreneur in actually starting up and running the business.
It helps to
monitor business growth, documenting cost estimates of the business used as a
handy tool to persude investors and financial institution to fund, proper
utilization of resources. It can finally lead to a sustainable development of
the organization.
4.
Explain
the marketing mix strategies with suitable examples.
A.
Marketing
mix strategies
Product can be offered to a market to satisfy the
needs or wants of customers.
A company’s product mix has certain
Width- It means numbers of product lines company
carries. (total numbers of product)
Length- It means numbers of items in each product
line.
Depth- It means numbers of variants of each product
line.
Consistency- How closely related the various product
lines are in end use.
Ex, TATA Group.
A product line of TATA (width)
1.
Agricultural
inputs
2.
Automotive
3.
Chemical
4.
Communications
5.
Consultancy
6.
Energy
7.
Engineering
8.
IT
9.
Food products
10. Hospitality
11. Electronics
12. Publishing
Length of TATA:-
EX, In automotive there are
different brands like Tata Johnson Automotive, Tata motors
Depth of TATA:-
It means total no. of variations
for each product. (variations can include size, color)
Ex, TATA land rover has various
similar products like Freelander, defender, discover.
5.
Write
notes on ‘Market segmentation’.
A.
Refer
question no. 1
6.
Give
meaning of organizational plan. Discuss form of ownership.
A.
Organizational
plan:
Organizational plan is the biggest and the most
important challenge faced by business enterprise. This plan at the very first
instance would involve deciding the form of ownership.
Form of ownership:
1.
Single
individual or sole owner:-
A single individual who starts his business is the
sole owner of the company.
2.
Partnership:-
When two or more individuals associate to pool in
their resources to own a business enterprise, such association is called
partnership. The Indian partnership Act 1932, section declares that
partnership created by contract.
3.
Company:-
A company maybe formed by coming together of certain
number of members, getting the same registered and incorporated under the
company law.
7.
Demonstrate
the ‘Organizational Plan’.
A.
8.
Demonstrate
the ‘Production Plan’.
A.
9.
Explain
the terms ‘long term liability’, owner’s equity, and break even analysis.
A.
Long
term liability: (accounts payable)
All the operations owed is outsiders that are not
due within one year or normal operation cycle whichever is longer are called
long term liabilities. It includes secured loans (public deposit, long term
loan) unsecured loans (debentures, bonds).
Owner’s equity:
The owner’s equity section of balanced sheet is the
claim of the owner on the resources of business. The form of ownership will
decide the entry of variable under this heading. If it is a proprietorship
firm the owner’s equity will show a single capital account. For partnership
firm it would show accounts of all the proprietors as partner’s capital
account. For a corporation it would mean Stockholder’s equity.
Owner’s equity represents the owner’s investment in
the business minus the owner’s draws on withdrawals from the business + the
net income.
The amount of owner’s equity is the amount of assets
– the amount of liabilities
Owner’s equity=Assets- Liabilities
Break even analysis:-
Break even
analysis shows the relationship between costs and profit with sales volume.
It determine the activity where total cost is equal
to total seals.
Ex, point of zero profit and zero loss. If it can be
used to determine probable profits at any level of activity.
Break even points (rs)= fixed cost / p/v cost
Break even point (units) = fixed cost / contribution
per unit
p/v ratio= contribution/net seals *100
contribution = seals-marginal cost
10. Explain various levels of marketing
channel with examples.
A.
Channel
levels
All the market intermediaries that participate in
the final delivery of the product to the customer called channels levels.
Channel 0 :- No intermediaries
 Manufacturer
customer
Channel 1 :- One intermediaries
  Manufacturer Retailer Customer
Channel 2 :- Two intermediaries
  Manufacturer Distributor (wholesaler)
Retailer customer
Ex,
Channel 0 / direct marketing
Dell online sales is zero level channel
Bakery may sell cakes directly to customer
Channel 1
Ex,
Insurance in which there is an insurance agent
between the insurance company and the customer.
LIC->Agent->Customer
Channel 2
Ex,
This channel widely used in FMCG and consumer
durable industry.
AMUL->wholesaler->retailer->customer
11. Demonstrate the ‘Financial Plan’.
A.
12. Write notes on training and development
and performance assessment.
A.
Training
and development
The training and development process
1.
Identify
training need
2.
Choose
training method
3.
Design
training program
4.
Conduct
the training program
5.
Evaluate
the training program
6.
Constantly
upgrade and improvise the training program
Performance assessment;
Performance assessment is the
process of appraising the performance of the employees in their present job. It helps in
identifying the training needs for the present job, recording employees for
good performance and assessing the potential for future jobs.
The various
methods of performance appraisal.
Ranking
method
Grading
method
Check list
method
Paired
comparison method
Forced choice
method
Easy
evaluation method
180 degree
appraisal
360 degree
appraisal
MBO and
assessment centre
13. Give meaning of business plan. Explain
business planning process.
A.
Meaning
of business plan
A business plan is the blueprint of the step by step
procedure that would be followed to convert a business ideas into a
successful business venture.
For business plan first of all identifies an
innovative ideas, research the external environment, list the opportunities,
threats, identifies internal strengths and weakness, assesses the feasibility
of the idea, allocation of resources, in the best possible manner to make the
plan successful.
Business
planning process
Preliminary
investigation
Idea
generation
Environmental scanning
Feasibility
analysis
Project
report preparation
Evaluation,
controlling and review
Preliminary
investigation:-
Before preparing a plan
5.
Review
available business plan
6.
Keep
in mind key business assumptions
Ex, inflection, market growth, competition
7.
Scan
internal and external environment.
8.
Seek
professional advice from a friend
Idea generation:-
Entrepreneurship is not
just limited to innovation but also mean value addition to the
existing concept / product
/ services.
Entrepreneurship needs to
keep in mind value addition while degenerating new ideas. It is the first stage of
business planning process it involves generation of new concepts, ideas,
products and services to satisfy the customer demand.
Sources of
new idea generation:
Customers,
existing companies, research, employees, dealers, retailer.
Environmental
scanning:-
This step
carried out to analyze the prospective SWOT analysis of the business
enterprise.
Feasibility
analysis:-
This study is
done to find whether the proposed project would be feasible or not.
Ex, market
analysis, technical analysis, financial
Project
report preparation:-
It guides the
entrepreneur in actually starting up and running the business.
It helps to monitor
business growth, documenting cost estimates of the business used as a handy
tool to persude investors and financial institution to fund, proper
utilization of resources. It can finally lead to a sustainable development of
the organization.
14. Write note on –ISO 9000 and Total quality
management.
A.
ISO
9000:-
ISO is the acronym of internation organization for
standardization. ISO 9000
lays down uniform quality standards for design,
installation and operation of quality
management systems.
ISO 9000 standard consist of six part like
ISO 8402 – Standardization of quality definitions
ISO 9001 – For quality assurance
ISO 9002 – For quality inspection and test
ISO 9003 – Measurement and quality system guidelines
Total quality management (TQM)
According to Wake and Moti, 1999 “Total quality
management is a management philosophy the focuses on perpetual enhancement
through the prevention of problems and errors.
Thus, TQM involves concern for continuous
improvement in quality, customer orientation and empowerment of employees.
TQM roots include
1.
Scientific
management
2.
Group
dynamics
3.
Training
and development
4.
Motivation
5.
Employee
involvement
6.
Socio-technical
system
7.
Organizational
development
8.
Corporate
culture
9.
New
leadership theory
10. The linking pin concept of organizations.
11. Strategic planning
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