Professional Documents
Culture Documents
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INTRODUCTION
MBA students are required to take this module. They will gain 6 credits under this
module. Therefore, it affects the CGPA. Hence, it is the critical module in MBA
Programme.
2.
OPPORTUNITIES
This module enables MBA students to develop interest and enhance their expertise in
the area which they have profound implications in their later endeavours.
Therefore, it is not only an academic requirement but also:
An opportunity for authentic, inexpensive assessment of business venture through
feasibility report;
A chance to convert a viable idea into reliable and workable business plan
Simple advice from superior University make the most out of it.
3.
OBJECTIVES
The aim of this module is to provide the opportunity to conduct an extended systematic
enquiry under supervision into a business area where the MBA students are interested
in. More specifically,
To success in the module, MBA students have to demonstrate two broad abilities:
analyses and syntheses, in ways appropriate to choose and provide solid business ideas
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and develop feasibilities to check the viability of particular idea. This requires the
students to extract and dissect the essential elements of the provided ideas and to
integrate information and opinions through the framework of the experts own
judgements and viewpoints. These abilities must be demonstrated at a level of
sophistication at least equivalent to that expected in other graduate papers.
4.
COURSE DESCRIPTION
The key features of the project work under this course are, the MBA students have to
develop a solid and viable business plan. Before developing business document,
students are required to critically assess the viability of business idea with the help of
feasibility analysis.
On the other hand, the research may concern not with the development of solid
business plan but with the feasibility of assessing the viability new or proposed
products, services, approaches or new ventures. It may, in other words, require you to
be involved in research for which there is not present basic or precedents to serve as a
set of guidelines. Whatever is in the project you to undertake, you must make sure it
contributes to knowledge and practice of business world.
Through supervisor directed independent study, students engage in the detailed
development of a, business plan. The intent of the final project is to permit the student
to study and verify the viability of specific idea in great detail.
The method of instruction will be collaboration between the student and supervisor. It
is incumbent upon the student to seek the assistance of a supervisor. The supervisor will
provide direction on the development of the scope of the project.
5.
INVOLVEMENT
Project should be carried out in the group consisting of 4 to 5 students. A project
conducted on presenting viable business opportunities has the advantage of:
6.
DEADLINES
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There are five key deadlines to meet - the initial proposal, the first meeting with
supervisor, the submission of the feasibility report (phase wise), the submission of the
final draft, the submission of the final report.
Here is a table with some suggested critical dates for the students of superior university
business project Module, Session 2016
Sr.
Dates
Timing
24-04-16
10:00am 03:00pm
2
3
4
07-05-16
15-05-16
29-05-16
5
6
7
12-06-16
26-06-16
03-07-16
8
9
10
11
12
07-08-16
28-08-16
04-09-16
11-09-16
25-09-16
10:00 p.m
11:00pm 1:00pm
10:00am 12:30pm
10:00am 12:30pm
10:00am 12:30pm
10:00am 12:30pm
10:00am 12:30pm
10:00am 12:30pm
10:00am 12:30pm
10:00am 12:30pm
10:00am 12:30pm
Do ensure that your selected team (see annexure I) has been registered with the
supervisor
2.
Select some key ideas, which are interested in or you can handle it and competent.
Develop a research proposal (see annexure II) on each idea (at least do initial working on
4 to 5 ideas).
3.
Check with your supervisors that the proposal which you have developed is suitable. Get
your supervisor to comment on this. Negotiate what is required for acceptance of the
finished report. What is the appropriate length for the kind of assignment you have set
yourself? What are the constraints applying to the project (e.g. time, scope of what do
you want to do, costs, etc). Do bear in mind that you must be able to complete the
project with the time available.
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4.
5.
Once your feasibility report is approved by your supervisor, start to work on business
plan itself.
6.
Prepare a draft outline of the sections of the business plan (given in annexure IV). As
you do the research, try to write parts of each these sections as you go. This helps you
to keep an overview of the entire project and avoid getting to wrap up in any one aspect
to the detriment of whole.
7.
As soon as it is clear how the final report is going to look, send a draft copy of it to your
supervisors for comments. Make corrections and changes as required. Complete the
report and send it in, in final typed form.
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Annexure I
MBA PROJECT
TEAM REGISTRATION FORM
TEAM MEMBERS
Roll #
Name
Superior University
Signatures
Annexure II
One page proposal
You are supposed to submit one page proposal of your selected idea on the basis of following
format. You are advised to submit this one page proposal to your supervisor.
Project Team:
Proposed idea:
Idea Overview: Describe your business concept giving a clear functional definition. Ideally,
you should be able to describe your Idea in a few clear sentences:
What is it called?
What does it do?
How will it benefit my customers? (i.e. What problem does it solve?)
Target Market: Describe your target market.
To whom are you trying to sell?
Why those customers?
What do you know about your potential customers?
Explain how the customer benefits from your product or service?
What exists in the market space now?
Why/how is your product different? (i.e. What makes your product unique?)
What compelling reasons exist for why customers need your product or service?
The fit
Who are you?
What characteristics make you entrepreneurial?
Why do you fit with this idea?
What inspired you to come up with this idea?
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Annexure III
Feasibility Assessments Tools
Concept Statement Test
(Assessment Tool)
Write a concept statement for your product/service idea. Show the concept statement to 5 to 10 people.
Select people who will give you informed and candid feedback.
Attached a blank sheet to the concept statement, and ask the people who read the statement to:
Tell you three things they like about your product/service idea
Provide three suggestions for making it better
Tell you whether they think the product or service idea is feasible (or will be successful)
Share any additional comments or suggestions
Summarize the information you obtain from the concept statement into the following three categories:
Strengths of the product or service ideathings people who evaluated your product or
service concept said they liked about the idea
Suggestions for strengthening the ideasuggestions made by people for strengthening
or improving the idea
Overall feasibility of the product or service conceptreport the number of people who
thing the idea is feasible, the number of people who think it isnt feasible, and any
additional comments that were made
Along with the raw data recorded here, report the percentage of the total number of
people you surveyed that said they would probably buy or definitely would buy your
product or service if offered. This percentage is the most important figure in gauging
potential customer interest.
One caveat is that people who say that they intend to purchase a product do not always
follow through, so the numbers resulting from this activity are almost always
optimistic. Still, the numbers provide you with a preliminary indication of how your most
likely customers will respond to your potential product or service offering.
How likely would you be to buy the product or service described above?
______ Definitely would buy
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Product/service desirability
Product/service demand
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Organizational Feasibility
(Assessment Tool)
Description:
We will discuss the following themes:
1.
2.
Management Prowess
Resource Sufficiency
1. Management Prowess
Use the following table to candidly and objectively rate the prowess of the founder or group of founders
who will be starting the proposed venture.
Management Prowess Assessment Tool
Sr. #
Description
1.
2.
3.
4.
5.
6.
7.
Low Potential
Moderate Potential
High Potential
Low
None
None
Moderate
Moderate
Moderate
High
Extensive
Extensive
Weak
Moderate
Strong
Low
Moderate
High
None
Moderate
High
No college
education
Graduated or are
currently in
college
2. Resource Sufficiency
The focus in this section is on nonfinancial resources. Use the following table to rate your resource
sufficiency in each category.
The list of resources is not meant to be exhaustive. A list of the 6 to 12 most critical nonfinancial resources for
your proposed business is sufficient.
An explanation of the rating system used in the first portion of the table is as follows:
1 Available
2 Likely to be available: will probably be available and will be within my budget
3 Unlikely to be available: will probably be hard to find or gain access to, and may exceed my
budget
4 Unavailable
5 NA: not applicable for my business
1
1
1
1
1
2
2
2
2
2
3
3
3
3
3
Ratings
4 5
4 5
4 5
4 5
4 5
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1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
Ratings: Strong, Neutral, or
Weak
Management prowess
Resource sufficiency
Organizational feasibility (circle the correct response)
o Not Feasible
o Unsure
o Feasible
Suggestions for improving organizational feasibility
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Industry/Market Feasibility
(Assessment Tool)
Description:
Student needs to address the following points in this part:
1.
2.
3.
Industry attractiveness
Target market attractiveness
Market Timeliness
1. Industry Attractiveness
To the extent possible, assess the industry at the PSIC code level your potential business will be entering.
Assess the attractiveness of the industry the potential business plans to enter on each of the following
dimensions.
Industry Attractiveness Assessment Tool
(Used to assess the broad industry, rather than the specific target market, you plan to enter)
Sr. #
Description
1
2
Number of competitors
Age of industry
9
10
Low Potential
Moderate Potential
High Potential
Many
Old
Little or no
growth
Few
Middle aged
None
Young
Moderate growth
Strong growth
Low
Medium
High
Concentrated
Neither concentrated
nor fragmented
Fragmented
Maturity phase
or decline phase
Growth phase
Emergence phase
Ambivalent
Must have
Low
Medium
High
Low
Medium
High
Weak
Neutral
Strong
(Used to assess the specific target market, rather than the broader industry, you plan to enter)
Low
Sr. #
Description
Moderate Potential High Potential
Potential
1.
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Many
Few
None
2.
3.
4.
5.
6.
7.
8.
Little to
no growth
Slow growth
Rapid growth
Low
Medium
High
Unclear
Somewhat clear
Clear
Can create
Unable to
create
Satisfied
Neither satisfied or
dissatisfied
Unsatisfied
Low
Moderate
High
Low
Medium
High
3. Market Timeliness
Determine the extent to which the window of opportunity for the proposed business is open or closed
based on the following criteria.
Determine the timeliness of entering a specific target market based on other criteria.
Market Timeliness Assessment Tool
Sr. #
Description
Buying mood of customers
1.
2.
3.
4.
5.
Low Potential
Moderate Potential
Customers are in a
moderate buying mood
Stable to losing
momentum
Slowly gaining
momentum
Customers are in
an aggressive
buying mood
Rapidly gaining
momentum
Low
Moderate
High
Low
Medium
High
Large firms
entering the
market
Conclusion:
(Expand fields and report findings, in discussion form, for each area)
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High Potential
No larger firms
entered the
market or are
rumored to be
entering the
market
Industry attractiveness
Market timeliness
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Financial Feasibility
(Assessment Tool)
Description:
Following contents will be discussed
The startup costs (which include capital investments and operating expenses) should
include all the costs necessary for the business to make its first sale. New firms typically
need money for a host of purposes, including the hiring of personnel, office or
manufacturing space, equipment, training, research and development, marketing, and the
initial product rollout.
At the feasibility analysis stage, it is not necessary for the number to be exact. However, the
number should be fairly accurate to give an entrepreneur an idea of the dollar amount that
will be needed to launch the firm. After the approximate dollar amount is known, the
entrepreneur should determine specifically where the money will come from to cover the
startup costs.
The total startup cash needed can be estimate using the following table.
Total Startup Cash Needed (to Make First Sale)
Capital Investments
Amount
Property
Furniture and fixtures
Computer equipment
Other equipment
Vehicles
Operating Expenses
Legal, accounting, and professional services
Advertising and promotions
Deposits for utilities
Licenses and permits
Prepaid insurance
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Amount
Lease payments
Salary and wages
Payroll taxes
Travel
Signs
Tools and supplies
Starting inventory
Cash (working capital)
Other expense 1
Other expense 2
Average
Above Average
Average
Above Average
Net Income
Estimate of Proposed Ventures
Explanation of How the Estimate
Net IncomeYear 1
was Computed
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Average
Above Average
Average
Above Average
The following factors are important in regard to the overall financial attractiveness of the
proposed business.
Sr. #
1.
2.
3.
4.
5.
Description
Steady and rapid growth in sales during
the first one to three years in a clearly
defined target market
High percentage of recurring income
meaning that once you win a client, the
client will provide recurring sources of
revenue
Ability to forecast income and expenses
with a reasonable degree of certainty
Likelihood that internally generated funds
will be available within two years to
finance growth
Availability of exit opportunity for investor
if applicable
Low
Potential
Moderate Potential
High
Potential
Unlikely
Moderately likely
Highly
likely
Low
Moderate
Strong
Weak
Moderate
Strong
Unlikely
Moderately likely
Highly
likely
May be available
Likely to
be
available
Unlikely to
be
unavailable
Conclusion:
(Report finding for each area)
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Description
Product/Market Feasibility
Industry/Market Feasibility
Organizational Feasibility
Financial Feasibility
Overall Assessment
Not feasible
Unsure
Feasible
Not feasible
Unsure
Feasible
Not feasible
Unsure
Feasible
Not feasible
Unsure
Feasible
Not feasible
Unsure
Feasible
Conclusion:
Briefly summarizes your justification for your overall assessment.
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Annexure IV
SAMPLE BUSINESS PLAN TEMPLATE
<<COMPANY LOGO>>
<<COMPANY NAME>>
BUSINESS PLAN
<<Prepared by:__________________>>
<<Date>>
Superior University
<<Logo>>
Table of Contents
Page
I)
II)
1)
2)
3)
4)
Confidentiality Agreement
Cover Page
Executive Summary
Company Description
Company History
Mission Statement
Product & Services
Promoters, shareholders and Board
Objectives of the Business
Long Term Aim of Business
S.W.O.T. Analysis
ii
1
2
2
2
2
2
Industry Analysis
Industry Size, Growth Rate, and Sales Projections
Industry Structure
Nature of Participants
Key Success Factors
Industry Trends
Long-Term Prospects
3
3
3
3
3
3
4
Market Analysis
Market Segmentation
Target Market Selection
Market Trends
Buyer Behaviour
Competitor Analysis
Benefits to Clients
5)
5
5
5
5
6)
7
7
7
7
8
8
8
8
8
8
8
7)
8)
i
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.
9)
10)
<<Logo>>
Financial Projections
Sources and uses of Funds Statement
Assumptions Sheet
Pro forma Income Statement
Pro forma Balance Sheets
Pro forma Cash Flows
Ratio Analysis
Appendices
9
10
11
12
13
16
ii
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.
<<Logo>>
Confidentiality Agreement
The undersigned reader acknowledges that the information provided in this business plan is
confidential; therefore, the reader agrees not to disclose it without the express written permission of
<<Company/Promoter>>.
It is acknowledged by the reader that information to be furnished in this business plan is in all
respects confidential in nature, other than information that is in the public domain through other
means, and that any disclosure or use of this confidential information by the reader may cause serious
harm or damage to <<Company>>.
Upon request, this document is to be immediately returned to <<Company/Promoter>>.
____________________________
Signature
____________________________
Name (printed)
____________________________
Date
iii
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.
1.
<<Logo>>
Executive Summary
<< Introduce promoters here, and the reason you are now preparing this Business
Plan.
This section should not be completed until the business plan is written. It will
highlight all milestones in the companys development over the next five years. It
should sum up the following areas:
Financial projections should be summarised and highlighted. The following format is suggested as a
guide:
Year 1
Year 2
Year 3
Sales
Exports
Net Profit before Tax
Investment
Employment
Remember that potential investors often make a provisional judgement based on the executive
summary, and that their decision to read the main body of the business plan will depend on the
information presented here. The appendices at the back of the plan contain more detailed
information to support the main text of the business plan. >>
1
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.
2.
<<Logo>>
Company Description
Promoters
Management structure and areas of responsibility
Shareholders names, no. of shares, % shareholding and cash investment to date
Advisors
<< Financial, legal, and other advisors should be listed, with names, addresses and contact details. >>
Products and services
<< Explain clearly what your product or service is and what it does.
Opportunities
>>
Weaknesses
Threats
2
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.
<<Logo>>
3. Market Analysis
<< This section covers market research and competitor analysis. You must show that you have done
the market research to justify the projections made in your business plan. It must demonstrate that
there is a viable market and that you can beat the competition in the market for sales. >>
Target Market
<< The market to which you are planning to sell the product or service. Analyse the segments of this
market as follows:
Recent changes
Future predictions
Drivers such as demographic changes, economic and legislative factors
Implications for your product or service
Your plans to meet future demands and changes in the market >>
Profile of Competitors
<<Analysis of your competitors in the market:
3
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.
<<Logo>>
Competitive Advantage
<< This is your assessment of why potential customers will choose to buy your product in place of
those profiled above. Advantages may include:
Unique features
Price
New technologies or systems
Better value to customers in terms of efficiency or ROI or cost/benefit ratios
Greater compatibility with existing systems
Include any independent validation or case studies >>
Benefits to Clients
<< This is what your product or service provides to potential customers in terms of their own business
goals. Does your product or service enable them to:
Increase sales
Increase efficiencies
Save money?
Save time?
Maximise resources?
Reduce errors?
Reduce downtime?
Improve Customer Service, reduce churn, increase loyalty
What will buying your product or service actually do for the customer? >>
4
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.
4.
<<Logo>>
Marketing/Sales Strategy
<< This section sets out your strategies for reaching your target market, arousing their interest in your
product or service, and actually delivering the product or service to them in sales. >>
Marketing Strategy
<< How you will position your product or service in the market and differentiate it from its
competitors:
Revenue Sources
<< What contributions to revenue and profit will your business have?
Irl
Products
Services
Licences
After sales
Upgrades
EU
US
Rest of World
Sales Strategy
<< How you will sell your product or service to the target market.
Directly
Retail
Distributor
Agent
Sales rep
Website
Revenue Sharing Partners
Analyse for each method the costs involved, whether it will reach the intended market efficiently, the
control you would retain over the pricing and positioning, the logistics, and the overall integration
with your marketing strategy. State the advantages of the methods you have chosen to sell your
product or service. >>
5
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.
<<Logo>>
Pricing
<< How you will set the price charged for your product or service. Considerations include:
Competitors prices
Level of competition in the market
Perception of quality-price relationship by customers
Production costs and overheads
Chain of distribution and the added-value at each stage
The extent to which the buyer can control the price
State how each product or service will be priced, referring to the income sources above. >>
Marketing and Communications Strategy
<< How you will promote your product or service in the marketplace.
6
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.
5.
<<Logo>>
Technology Roadmap
<< Show the intended future development of your product or service, i.e., changes to meet future
market demands, adaptations to international markets, or upgrades. Also detail plans for new
products or services to add to the range.
Include
Team/Department structure
Methodology
Platforms used
Milestones to be achieved
System Overview Diagram>>
7
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.
6.
<<Logo>>
<< This is where you will outline the intended structure of the company in terms of management,
number of employees, and the physical operational requirements to produce or supply the product or
service. >>
Management (including Board) Organisation Chart
<< Include a diagram of the way in which the management of the new venture will be organised. This
should show the areas of responsibility of each manager and the employees to be taken on over the
next three years. >>
Staffing
<< State what employees will be taken on over the next three years, with which skills, in which areas
of the business. >>
Training Plans
<< Outline the planned employee and management development to be undertaken in order to
maintain a skilled workforce. This should also tie in with the future market developments and any
new product or service developments. >>
Operations
<< State the physical requirements of the business:
Premises
Equipment
Production facilities
Infrastructure
Communications facilities
Costs involved
Suppliers >>
8
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.
Financial Projections
I
II
III
IV
Key Assumptions
Profit and Loss Accounts
Balance Sheets
Cashflow
p
p
p
p
Key Assumptions
<< This section reviews the key assumptions used in the financial projections. It is a guide to explain
how key figures in the financial projections were arrived at. Included here should be items such as:
Income sources
Number of employees projected for each year and their intended salaries
Projected investment in equipment and materials
Projected R&D costs
Depreciation allowed for
Expected rent and rates charges
Creditor days expected and debtor days allowed
Expense calculations
This section should be brief and to the point. Further detail regarding these items can be placed in
the Appendices. >>
II
<< Attach here projected profit and loss accounts for the first three years of the companys
operations. >>
III
Balance Sheets
<< Attach here projected balance sheets for the first three years of the companys operations. >>
9
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.
Cashflow
<< Attach here a monthly cashflow prediction for the first two years of the companys operations. >>
8.
Sales Pipeline
Table as follows:
Name of Customer
9.
Size of Deal
Date PO expected
Probability
Getting Sale
of
Funding Requirements
<< State here the total funding requirements of the business, and how those are intended to be
provided. You will also need to state the approximate breakdown of how these funds are to be spent.
Sources:
Promoters funds
Bank lending
Grants or loans from agencies
Investment already received
Investment sought
Required for:
Equipment
R&D
Marketing
Staffing >>
9.
Appendices
<< This section is used to provide the detailed data on which the main text of the business plan is
based, and to provide extra information of interest to the readers of the business plan. Items for
inclusion in appendices vary from business to business, but normally include some of the following:
Promoters CVs
Detailed financial assumptions
Most recent Company Audited Accounts
Share Cap table and Investment history
Term Sheet from Potential Investors
10
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.
11
This document is the proprietary property of <<Company Name>>.
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement.