ASSIGNMENT

SEPTEMBER 2017 SEMESTER

SUBJECT CODE : MSB726

SUBJECT TITLE : SMALL BUSINESS MANAGMENT

LEVEL : MASTER'S DEGREE

STUDENT’S NAME : Seinab Bashir Mohamud Elmi

MATRIC NO. : M60101170064

PROGRAMME : MBA

ACADEMIC FACILITATOR : ABDIWAHAB A. ELMI

LEARNING CENTRE : MOGADISHU UNIVERSITY

INSTRUCTIONS TO STUDENTS

1) This assignment consists of FOUR (5) Questions. Answer ALL of them.

2) Plagiarism in all forms is forbidden. Students who submit plagiarised assignment will be penalised.

3) References MUST be included and taken from reliables sources. Please use the APA Referencing Style and cite your work appropriately.

4) This assignment carries a 60% weightage toward final grade.

5) The submission date for this assignment is BEFORE or ON _______ 2017. Please submit your assignment answer via _______________.

THERE ARE 2 PAGE OF QUESTIONS, EXCLUDING THIS PAGE.

DECLARATION BY STUDENT
I certify that this assignment is my own work and is in my own words. All sources have been acknowledged and the content has not been previously submitted for assessment to Asia e University or
elsewhere. I also confirm that I have kept a copy of this assignment.

Signed: _____________________________

INSTRUCTION: Answer ALL the question given.

Answer 1
Market research involves gathering of information about particular market followed by analysis of
that information, so.

A. What is a market research is all about? And why it is essential?

Market research is the process of assessing the viability of a new good or service through research
conducted directly with the consumer which allows a company to discover the target market and
record opinions and other input from consumers regarding interest in the product. Market research
may be conducted by the company itself or by a third-party company that specializes in the market
research field. Test subjects are usually compensated with product samples and/or paid a
small stipend for their time.
The purpose of market research is to examine the market associated with a particular good or
service to determine how the audience will receive it. This can include information gathering for
the purpose of market segmentation and product differentiation, which can be used to tailor
advertising efforts or determine which features are seen as a priority to the consumer
(Investopedia).
Types of Market Research
While there are a number of market research tools you can use, there are really only two types of
market research data:
1) Primary. Primary data is first-hand information you gather yourself, or with the help of a
market research firm. You control it.
2) Secondary. Secondary data is pre-existing public information, such as the data shared in
magazines and newspapers, government or industry reports. You can analyze the data in
new ways, but the information is available to a large number of people (encyclopedia).
The Importance Of Market Research
There is no doubt about the importance of market research. To prove this statement, let’s view why
you should research markets. Market research is important for your business because it provides
you with the following opportunities:
1) Increased Sales. Through researching your market you gain valuable information that
helps you identify how successful your product/service is likely to be, what the best price
you can set for the product/service, and which customers are interested in purchasing and
consuming the product/service. Having investigated this information helps you increase
sales.
2) Better Customer Management. The importance of market research is that you can use
tools of marketing campaigns (questionnaires, meetings, discussions, messaging) to reach a
wide audience of customers, reduce the timeframe within which your product/service

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 reaches the customers, investigate current and future needs and expectations of the
customers, and achieve higher customer satisfaction.
3) Business Growth. As due to market researching your sales tends to an increase and your
customer management gets better, your company gains an opportunity for further business
growth and development (mymanagementguide, 2011).

A. What are the systematic processes involved in carrying out a market research?
According to the (Chand) the various stages or steps in the marketing research process are
discussed below:
1. Identification and Defining the Problem:
The market research process begins with the identification “of a problem faced by the company.
The clear-cut statement of problem may not be possible at the very outset of research process
because often only the symptoms of the problems are apparent at that stage. Then, after some
explanatory research, clear definition of the problem is of crucial importance in marketing research
because such research is a costly process involving time, energy and money.
2. Statement of Research Objectives:
After identifying and defining the problem with or without explanatory research, the researcher
must take a formal statement of research objectives. Such objectives may be stated in qualitative or
quantitative terms and expressed as research questions, statement or hypothesis. For example, the
research objective, “To find out the extent to which sales promotion schemes affected the sales
volume” is a research objective expressed as a statement.
On the other hand, a hypothesis is a statement that can be refuted or supported by empirical
finding. The same research objective could be stated as, “To test the proposition that sales are
positively affected by the sales promotion schemes undertaken this winter.”
3. Planning the Research Design or Designing the Research Study:
After defining the research problem and deciding the objectives, the research design must be
developed. A research design is a master plan specifying the procedure for collecting and analysing
the needed information. It represents a framework for the research plan of action.
The objectives of the study are included in the research design to ensure that data collected are
relevant to the objectives. At this stage, the researcher should also determine the type of sources of
information needed, the data collection method (e.g., survey or interview), the sampling,
methodology, and the timing and possible costs of research.
4. Planning the Sample:
Sampling involves procedures that use a small number of items or parts of the ‘population’ (total
items) to make conclusion regarding the ‘population’. Important questions in this regard are— who

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is to be sampled as a rightly representative lot? Which is the target ‘population’? What should be
the sample size—how large or how small? How to select the various units to make up the sample?
5. Data Collection:
The collection of data relates to the gathering of facts to be used in solving the problem. Hence,
methods of market research are essentially methods of data collection. Data can be secondary, i.e.,
collected from concerned reports, magazines and other periodicals, especially written articles,
government publications, company publications, books, etc.
Data can be primary, i.e., collected from the original base through empirical research by means of
various tools.
6. Data Processing and Analysis:
Once data have been collected, these have to be converted into a format that will suggest answers
to the initially identified and defined problem. Data processing begins with the editing of data and
its coding. Editing involves inspecting the data-collection forms for omission, legibility, and
consistency in classification. Before tabulation, responses need to be classified into meaningful
categories.
The rules for categorizing, recording and transferring the data to ‘data storage media’ are called
codes. This coding process facilitates the manual or computer tabulation. If computer analysis is
being used, the data can be key punched and verified.
Analysis of data represents the application of logic to the understanding of data collected about the
subject. In its simplest form analysis may involve determination of consistent patterns and
summarising of appropriate details.
7. Formulating Conclusion, Preparing and Presenting the Report:
The final stage in the marketing research process is that of interpreting the information and
drawing conclusion for use in managerial decision. The research report should clearly and
effectively communicate the research findings and need not include complicated statement about
the technical aspect of the study and research methods.Often the management is not interested in
details of research design and statistical analysis, but instead, in the concrete findings of the
research.

B. What are the key components of effective?

According to the (K., 2012)Here are five key components to any quality market research feasibility
study:
 Stakeholder In-Depth Interviews (IDIs) – RMS has found through past studies,
beginning the market research by talking with key stakeholders is a perfect starting
point. It helps all groups buy into ownership of the process and support the market
research. It also helps the market research team familiarize itself with the project and its

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 goals in a qualitative and open-discussion format. This is a mutually beneficial first step
for both parties. These stakeholders can range from key personnel in the organization,
outside the organization, those involved in the local economy or any other stakeholders
who may offer credible feedback and play a role in your business’ plans.
 Demographic Assessment and Trend Analysis– We’ve discussed the importance
of demographic assessments in a site selection process before on our blog – click here to read
Vance’s post. This involves secondary research and analyzing the market. This also creates your
pool or population that you will use for your demand modeling and estimates. Information is
collected for the market with regards to population trends, age, consumer expenditures,
education and any other relevant demographic statistics that would impact the feasibility of the
project. RMS also uses secondary research to find existing industry trends and ancillary data
that is worth noting. This can easily be collected through the Internet with our team of
professional Googlers.
 Quantitative Survey – This is the portion of the market research project where primary
data is collected among end-users. The questions are focused on current usage and predicted
usage and understanding the impact the new business idea will have on the market. This is the
most integral part of the market research feasibility study and many of the questions asked in
the survey will serve as the foundation for the demand model and estimates.
 Competitive Assessment – The competitive assessment takes a look at like-competitors in
the market area that will impact your new business. RMS creates an expansive profile of each
competitor and uses mystery shopping calls and visits to collect the non-publically available
information, which isn’t available on the website. By analyzing competitors, it also helps our
clients understand service or product gaps in which they can market themselves in.
 Demand Model/Estimates with Recommendations – The final step to a quality market
research feasibility study is putting together the first four components and using the findings
from each to create a demand model. The demand model will estimate/predict the likelihood
and habits of end-users for the new business you are testing. The demand estimates use
predictive modeling to offer a rough figure based on the combination of known factors and
assumptions. The executive summary also serves as a nice and short snapshot of findings,
which works well for upper management if they do not have the time to read through a 100-plus
page report. Finally, any good market research firm will be objective in their analysis and
provide its client with a “go” or “no go” recommendation.

C. In market research context, what ten tips to be more effective?

According to (Gregory, 2010) There are twenty one tips to be more effective in market research
context and, I take ten tips of them

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1. Be clear about your objectives before beginning your market research.
2. Identify your target audience, how many respondents you require and what data you are
hoping to collect before beginning.
3. Make sure your target group is relevant to your needs and represents the market you are
targeting.
4. Watch for and incorporate unsolicited feedback you receive on social networks or review
sites.
5. Say thank you to every single person who contributes to your research.
6. Provide a place for open-ended comments on any survey that you use.
7. Make it common practice to ask clients for suggestions at every interaction.
8. Understand the difference between qualitative and quantitative research and format your
questions accordingly.
9. Review your surveys and questionnaires to ensure you’re not phrasing anything
offensively.
10. Develop a chart or graph from the data collected to make it easier to visually analyze the
results.
Answer2
Entrepreneurship is the attempt to create value through recognition of business opportunity,
management the risk associated to the opportunity and the skills to mobilize human, financial and
material resources necessary to bring a project to completion.

A. Who is the entrepreneur?

An entrepreneur is one who creates a new business in the face of risk and uncertainty for the
purpose of achieving profit and growth by identifying opportunities and assembling the necessary
resources to capitalize on those opportunities.
Entrepreneurs usually start with nothing more than an idea—often a simple one—and then
organize the resources necessary to transform that idea into a sustainable business. In essence,
entrepreneurs are disrupters, upsetting the traditional way of doing things by creating new ways to
do them. One business writer says that an entrepreneur is “someone who takes nothing for granted,
assumes change is possible, and follows through; someone incapable of confronting reality without
thinking about ways to improve it; and for whom action is a natural consequence of thought”
(Norman M., 2012).
An entrepreneur is a person who sees an opportunity or has an idea and assumes the
risk of starting a business to take advantage of that opportunity or idea. The risks that
go with creating an organization can be financial, material, and psychological. The term
entrepreneur, a French word that dates from the seventeenth century, translates literally
as “between-taker” or “go-between.”1 It originally referred to men who organized and
managed exploration expeditions and military maneuvers. The term has evolved over
the years to have a multitude of definitions, but most include the following behaviors:
 Creation. A new business is started.

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  Innovation. The business involves a new product, process, market, material, or
organization.
 Risk assumption. The owner of the business bears the risk of potential loss or failure of the
business.
 General management. The owner of the business guides the business and allocates the
business’s resources.
 Performance intention. High levels of growth and/or profit are expected.2
All new businesses require a certain amount of entrepreneurial skill. The degree of
entrepreneurship involved depends on the amount of each of these behaviours that is needed.
Current academic research in the field of entrepreneurship emphasizes opportunity recognition,
social capital, and trust. For an interesting article reviewing the scholarly development of
entrepreneurship topics, see “Is There Conceptual Convergence in Entrepreneurship Research?”
(Timothy S., 2012).

B. What are the essential qualities of the successful entrepreneurs?

According to (www.preservearticles.com) there are 15 most essential qualities of a successful

entrepreneur

1. Initiative: Initiation of any business activity should come from the entrepreneur. It is the
entrepreneur who takes action that goes beyond job requirements or the demand of the
situation. He does things before being asked or forced by the events.

2. Looking for opportunities: A successful entrepreneur is one who always is on the look for
and takes action on opportunities. He must be always in readiness to exploit it in
maximising the interest of the organization.
3. Persistence: An entrepreneur should take repeated actions to overcome the obstacles that
get in the way of reaching goals. He should never be disheartened by failures. He should
believe in the Japanese proverb, "Fall seven times, stand up eight".
4. Information seeking: An entrepreneur is always in search of new ideas and information’s
from various sources to help reach objectives or clarify problems. He can consult experts
for business or technical advice. He personally undertakes research, analysis or
investigation on his own to get information in realising his goals.
5. Concern for quality products: Successful entrepreneurs always believe in high quality
standards of their products with reasonable prices. They believe in excellence. They act to
do things that meet Or beat existing standards of excellence.

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 6. Commitment to work: Successful entrepreneurs do every sacrifice to get the task
completed. They put highest priority for accomplishing their objective. They are committed
to their work. They also express a concern for satisfying their customers.
7. Efficiency orientation: Successful entrepreneurs find ways to do things faster with fewer
resources at lower costs. They are always interested in devising new methods aimed at
promoting efficiency.
8. Systematic Planning: Entrepreneurs develop and use logical, step-by-step, realistic and
proper plans to accomplish their goals. They believe in systematic planning and its proper
execution to reach goals.
9. Problem solving: Successful entrepreneurs are challenging by nature. They always try to
find out ways and means to overcome the problems that come in their way. They also
identify new and potentially unique ideas to achieve their targets.
10. Self-Confidence: Successful entrepreneurs must have a strong belief in themselves and in
their own abilities. They have full faith and confidence on their own knowledge, skill, and
competency to complete a task or meet a challenge. They are not at all cowed down by
difficult situations.
11. Assertiveness: A successful entrepreneur must be assertive in nature so that he can assert
his issues with others for promotion of interest of his enterprise. He tells others what they
have to do and rebuke or disciplines those failing to perform as expected.
12. Persuasion: A successful entrepreneur must be able to persuade others to do the work the
way he wants them to do. He is able to convince others through his knowledge and
competence. He asserts strong confidence in his own company's product or services. He
must possess the ability to convince everybody - sellers, consumers, employees, creditors
etc.
13. Monitoring: Successful entrepreneurs ensure regular monitoring of the working to achieve
the organization's goal in the best possible manner. They personally supervise all aspects of
their project to ensure completion of the work within the schedule time and cost.
14. Concern for employee's welfare: Concern for employees welfare should be at the top of
the agenda of successful entrepreneurs. They give priority to improve the welfare of the
employees because it is the employees whose dedication and commitment services lead to
super performance of the organization.
15. Effective strategist: Successful entrepreneur develops and uses varieties of effective
strategies to accomplish own objectives. They also evolve relevant strategies which will
safeguard and promote the interest of the organization.

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 C. What are the most notable dark side traits of entrepreneurs?

According to (DeMers, 2015) there are7 Dark Truths About Entrepreneurship.

1. You won’t make money right away.

Raising capital for your business is tough, and usually serves as a financial eye-opener to hopeful
young entrepreneurs who think business ownership leads to quick profits. The truth is, for most
businesses, the first few years of operations are spent getting your infrastructure up and running.
You’ll spend more than you’ll generate in revenue, and as a result, you probably won’t receive a
paycheck for several months. You’ll have to rely on your personal savings or reserves for basic
living expenses and hope things pan out in the future.
2. Your personal life will suffer.
No matter how optimistically you charge into the role or how committed you are to prioritizing
your personal relationships, they are going to suffer as you continue building your business. You’ll
be working long hours, sometimes at home, and you’ll be on call for resolving business problems
on nights, weekends and holidays. You’ll be distracted almost constantly, thinking about the
problems your business is facing, and the financial stress you’ll bear will take its toll on your
relationships.
3. Trying to juggle everything will take its toll on you.
As CEO of your own business, you’ll wear many hats. You’ll do some of the work you love to do,
but you’ll also be an administrator, a supervisor, a technician, an HR manager and a marketer all at
the same time.
4. Your emotions will get the better of you.
There will be times where your emotions well up and get the better of you, even if you try to
suppress them or find a healthy outlet for them. You’re too invested in your own enterprise for this
not to happen. You may feel depressed and discouraged about your progress, or fearful that you
won’t make a profit in a reasonable amount of time. When your emotions get the better of you,
you’ll feel miserable and you’ll make worse decisions.
5. Nothing will happen the way you think it will.
Your business plan might carefully detail out every step you envision for the first few years of your
company, but no matter how much research you’ve done, you won’t be able to predict everything.
Even the things you can predict won’t happen exactly how you envisioned. As an entrepreneur,
you’ll be forced to adapt, sometimes in ways you don’t want to adapt.
6. You’ll make decisions that will haunt you.
As an entrepreneur, you’ll serve as the primary decision-maker for your company and you’ll have
to make hard, stress-inducing decisions throughout your tenure. Some of those decisions will stick

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with you, even if you make the logically correct one. You’ll have to change company direction.
You’ll have to part ways with partners. You’ll have to sacrifice part of your vision for the
company. You’ll have to fire people.These decisions are never easy, but must be made, and they
will haunt you.
7. You are going to fail.
Your entire company might go under. If it doesn’t, there will be some other failure, massive or
minor, that will interfere with your plans and compromise your vision. Failure is an inevitable, and
essential, part of entrepreneurship, though realizing this rarely makes it easier to accept. The
obstacle of failure is ever present and always daunting when you’re leading a business, and
working through that failure is too much for some.
Answer 3

Entrepreneurs generate ideas in variety of ways and fall into different traps on their way to
financial independence. Elaborate the following:
A. The major approaches in generating business ideas?
According to (sol.du.ac.in) Approaches to Generating Business Ideas are:
(i) Brainstorming. It helps in generating a large number of product ideas. It should be
conducted by an expert and none of the ideas mentioned should be evaluated or judged. At
this stage one should not worry if the ideas are suitable or not.
(ii) New ways of doing old things. A large number of products are being made and
provided in the market using traditional methods and practices. One approaches can be to
examine if these could be made by a different and newer method that would give the
entrepreneur an advantage over the older methods.
(iii) Converting hobby into business. Some people are adept at doing something or the
other as a hobby or for use in the house only. It is possible to use such skills to set up an
enterprise. Hobbies like photography, interior decoration, fashion designing etc. are often
developed as business ventures.
(iv) Improving an existing product. An existing product can be improved by using old
techniques with more care or using newly developed technology.
(v) Utilising waste material. Conservation and environment protections are presently
getting a lot of attention. Recycling waste or turning them into useful products are good
product ideas. Presently, energy conservation products also have good potential.
b. Highlight the common errors in business opportunity identification.
1. Not spending enough money or spending too much money.As a new entrepreneur, money is
likely to be one of your biggest concerns. Pre-launch cash flow is likely to be close to nil, so
making and saving money will usually take priority over everything else.

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There are two mind-sets I tend to see among new entrepreneurs: Either “You have to spend money
to make money” or “I’ll spend the bare minimum until I have some decent cash flow.”
2. thinking you have no direct competitors. The excitement about a new product or business can
often lead new entrepreneurs to think they really have no direct competition, or that their product is
so head-and-shoulders above those of their rivals that they’re in a category of their own.
3. Making hiring decisions based on cost. This is closely tied to number one, but is so important it
deserves to be mentioned separately. When funds are tight, it’s tempting to skimp on the cost of
new hires. The problem with this strategy, however, is that you’ll end up paying in the long run.
4. Not setting attainable goals. New entrepreneurs can be so enraptured by their “big idea,” they
work without a solid plan. But the reality is you must set realistic and attainable goals in order to
succeed.Make a point of setting both short- and long-term goals, and make sure they’re specific. 5.
Not thinking about marketing. “If you build it, they will come.” This is a common
belief(sometimes conscious, sometimes not) among new entrepreneurs. They think that their
products are so revolutionary that they can just rely on free PR and word of mouth.
6. Having too small margins. Having a healthy profit margin will be critical to your success.
Setting it too low now will make life infinitely more difficult for you in the future -- your
customers likely won’t be thrilled when you need to raise your prices later on.
7. Thinking you can do it all yourself. In the beginning, it’s common to think that no one can do
the job as well as you can. You know your products inside out, and are the only one who truly has
the passion to make the business succeed.
8. Being incapacitated by fear of “what if’s.” Robert F. Kennedy said, “Only those who dare to fail
greatly can ever achieve greatly.” Starting a new business is scary and isn’t for the faint-hearted.
Being scared of failure and rejection is understandable, but letting yourself become incapacitated
by this fear can significantly hinder your progress.
9. Putting your product first and people last. When creating your product and determining your
business model, it’s critical that you have a customer-first mentality. Yet many new entrepreneurs
are so concerned about making money (understandably) that they forget the key to having a
sustainable business -- having satisfied, loyal customers who will buy over the long term (DeMers,
2015).
Answer 4
Business plan is a helpful document to the entrepreneurs, so,

A. What is business planning is meant?

According to the (Lois Schneider fares, 2006) A business plan is a proposal that outlines a strategy
to turn a business idea into a reality. It describes a business opportunity, such as new business or
plans to expand an existing one, to potential investors and lenders. They will review the business

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plan before granting you credit or start-up capital. In addition to helping you obtain financing a
business plan will guide you as you open the business and plan its management.
Your business plan should convince investors and lenders that your business idea is profitable,
identity procedures necessary to legally establish the business and work as a management tool to
identify the month-to-month steps necessary to operate a profitable business.
A business plan must be well organized and easy to read. It should contain three main components:
1- Description and analysis of the proposed business
2- Organizational and marketing plan
3- Financial plan.
B. What are the purpose and benefits of business planning?
According to the (Timothy S., 2012) three primary reasons for writing business plans are
1) to help you determine the feasibility of your business idea,
2) to attract capital for starting up the business, and
3) to provide direction for your business after it is in operation.
Proving Feasibility: Writing a business plan is one of the best ways to prevent costly oversights.
Committing your ideas to paper forces you to look critically at your means, goals, and
expectations. Many people thinking of starting a small business get caught up in the excitement
and emotions of the process. It is truly an exciting time! Unfortunately, business decisions based
purely on emotion are often not the best long-term choices.Wanting to have a business does not
automatically mean that a market exists to support your desire. You may love boats and want to
build a business around them, but if you live 100 miles from the nearest body of water and are
unwilling to move, it is unlikely that you can create a viable boat business.
Attracting Capital: Almost all start-ups must secure capital from bankers or investors. One of the
first questions a banker or investor will ask when approached about participating in a business is
“Where is your plan?” You need to appreciate the bankers’ position. They have to be accountable
to depositors for the money entrusted to their care. Bankers in general are financially conservative,
so before they risk their capital, they will want assurances that you are knowledgeable and realistic
in your projections. Therefore, a complete business plan is needed before you can raise any
significant capital. Your business plan will show that you know what you are doing and have
thought through the problems and opportunities.
Providing Direction: Business plans should provide a road map for future operation. “Can’t see
the forest for the trees” and “It’s difficult to remember that your initial objective was to drain the
swamp when you’re up to your hips in alligators” are clichés that well apply to starting a small
business in that so much of your time can be consumed by handling immediate problems
(“management by spot fire” or paying attention to the latest dilemma to flare up) that you have

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trouble concentrating on the overall needs of the business. By having a road map to guide you over
the long term, you are more likely to stay on course.
According to the (Berry) Here are those top ten benefits.

1. See the whole business. Business planning done right connects the dots in your business so
you get a better picture of the whole. Strategy is supposed to relate to tactics with strategic
alignment. Does that show up in your plan? Do your sales connect to your sales and
marketing expenses? Are your products right for your target market? Are you covering
costs including long-term fixed costs, product development, and working capital needs as
well? Take a step back and look at the larger picture.
2. Strategic Focus. Startups and small business need to focus on their special identities, their
target markets, and their products or services tailored to match.
3. Set priorities. You can’t do everything. Business planning helps you keep track of the right
things, and the most important things. Allocate your time, effort, and resources
strategically.
4. Manage change. With good planning process you regularly review assumptions, track
progress, and catch new developments so you can adjust. Plan vs. actual analysis is a
dashboard, and adjusting the plan is steering.
5. Develop accountability. Good planning process sets expectations and tracks results. It’s a
tool for regular review of what’s expected and what happened. Good work shows up.
Disappointments show up too. A well-run monthly plan review with plan vs. actual
included becomes an impromptu review of tasks and accomplishments.
6. Manage cash. Good business planning connects the dots in cash flow. Sometimes just
watching profits is enough. But when sales on account, physical products, purchasing
assets, or repaying debts are involved, cash flow takes planning and management.
Profitable businesses suffer when slow-paying clients or too much inventory constipate
cash flow. A plan helps you see the problem and adjust to it.
7. Strategic alignment. Does your day-to-day work fit with your main business tactics? Do
those tactics match your strategy? If so, you have strategic alignment. If not, the business
planning will bring up the hidden mismatches. For example, if you run a gourmet restaurant
that has a drive-through window, you’re out of alignment.
8. Milestones. Good business planning sets milestones you can work towards. These are key
goals you want to achieve, like reaching a defined sales level, hiring that sales manager, or
opening the new location. We’re human. We work better when we have visible goals we
can work towards.

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 9. Metrics. Put your performance indicators and numbers to track into a business plan where
you can see them monthly in the plan review meeting. Figure out the numbers that matter.
Sales and expenses usually do, but there are also calls, trips, seminars, web traffic,
conversion rates, returns, and so forth. Use your business planning to define and track the
key metrics.
10. Realistic regular reminders to keep on track. We all want to do everything for our
customers, but sometimes we need to push back to maintain quality and strategic focus. It’s
hard, during the heat of the everyday routine, to remember the priorities and focus. The
business planning process becomes a regular reminder.

C. What are pitfalls to avoid them in business planning?

According to (KOONER, 2011) There are many elements that make a good business plan. It often
takes time, patience and many revisions before you get it right. Unfortunately when rushing to get
your funding in place and launch your business, your plan can get neglected. Below we have
highlighted a few of the very common mistakes (pitfalls) made when writing a business plan:
1. Unrealistic Financial Projections.
Most Canadians are familiar with the businesses on CBC’s Dragons’ Den who grossly
overestimate the value of their company and are chastised and shot down by the dragons. Lenders
and investors expect to be shown a realistic picture of where your business is now and where it
hopes to be, therefore if the plan is overly optimistic with no explanation of the projections, it will
ring warning bells and cause the plan to be rejected.

2. Not Defining the Target Audience

No business will appeal to everyone. You must define your specific target market, present how
you have made these assumptions and outline how you will specifically target this market.
Need help defining your target market and learning about primary and secondary market research?
Small Business BC offers seminars on market research (hyperlink) and one-on-one consultations
with an in-house market research expert.
3. Over-Hype
You may believe your business idea is the next big thing but you need to be able to back-up your
claim. Over-hyping your business idea and littering your plan with superlatives like hottest and
greatest does not substantiate your product or service. Wow them with you business idea, research
and financial plan, not with the words you think they want to hear.
4. Bad Research
All research must be double checked and substantiated. By using incorrect or out of date
information you will discredit your business idea and the remainder of the plan.

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5. No Focus on your Competition
Even if you think you have a ‘unique’ business idea and are sure that no other business like yours
exists, check and double check. There is no such thing as no competition. Even if your business is
one of kind, it comes down to the dollar; if your business didn’t exist, but the customers’ need still
existed, where would they spend their money?
Equally if you highlight your competition too much the investor will worry that the business will
not survive. Focus on your niche, what differentiates you from the competition, how you plan to
compete in the marketplace and paint accurate picture of what the industry is like now and where
you see it going in the future.
6. Hiding Your Weaknesses
Do not hide your weaknesses but do not highlight them too much. Every business has its
weaknesses but by hiding them or highlighting them too much you will put off the investor. The
only way to address these weaknesses is to include a detailed strategy of how you plan address
these problems.
7. Not Knowing your Distribution Channels
Have a secure plan how to provide your service or distribute your product. Including all possible
channels in your plan without substantiating why these are the correct channels and how they will
reach your target market will make the investor assume that you have just thought of the list off the
top of your head. The ability to articulate your strategy about how your product or service will
reach your client is vital.
8. Including Too Much Information
If you were an investor, would you want to read a 200 page business plan? Most investors have a
mental checklist of 10 to 12 points that they are looking for in the plan, everything else just gets in
the way. The purpose of your plan is not to demonstrate the depth of your knowledge but to focus
on the key elements of your business. Clear and concise writing is always appreciated and if you
have additional information which you would like to include in the document, create an appendix.
9. Being Inconsistent
Highlighting different target markets, quoting conflicting statistics or having competing strategies
within a plan will make an investor challenge whether you know your business and its market well
enough. Sections of plans are often written on different days or by different people and then
pasted together into one document resulting in inconsistency. Take time to review each section of
your business plan.
10. One Writer, One Reader
Make sure you ask several people to review your plan before submitting it. It is easy for you to
glaze over spelling mistakes and grammatical errors because you know the information inside and

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 out. Another set of eyes will help your plan to look more professional and ensure that it reads
correctly.
Answer 5
Case study: Find the attached CAS STUDY and answer questions at the end of the case.

1) Conduct an internal and an external diagnosis of the company. Use the SWOT tool to
synthesize this information.
INTERNAL FACTORS
STRENGTHS (+) WEAKNESSES (-)

1. We have experienced in PVC 1. Marketing strategies are week.

2. We have a long history of business 2. Market area coverage less

3. People know our brand 3. Staff for manage the marketing and
cusotmer are not enough 3000C per
4. Customized services
sales man.
5. Age of the company
4. Need to manage the sales staff sale
6. Invest in new office and building timing rahter then using their time in
administration activities
7. Have wide range and a high quality products
5. Double glazing technology not well
8. Specialize in public and collective markets
known
9. Sale to individual customers
6. Basic products
10. Offer customers products at forefront
7. Low turnover only 10%
innovation
8. Volatile market
11. Perfection
9. Consumer preferences
12. Creativeness
10. Improved technical attributes of
13. Honesty
products
14. Employment opportunities
11. No room for consumer market

12. Limited geographical network

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 EXTERNAL FACTORS
OPPORTUNITIES (+) THREATS (-)

1. Customer evolved about sustainability and 1. Customer Price Consciousness

ecofriendly
2. Tax
2. Improve technology according to
3. Energy Prices
environmental changes
4. Industrial relocations
3. Provide greater customization could be
oppurtunity.. 5. Consumer preferences

4. Aluminum share is increasing as compared 6. Global marketing

to PVC but PVC is still dominant and we
7. Custom made products
are already more professional in PVC so by
increasing technological we can remain 8. Importation of raw materials
dominant.
9. Do it yourself market is restricted
5. New legal regime
10. Strict regulations and legislations
6. Technical and technological innovations

7. Better insulating materials

8. Sharp rise in new buildings

9. Focus on customization

10. Specialize in production/manufacturing

2) The Key Factors for Success from the diagnosis.

1. Customization,
2. Marketing,
3. Brand name,
4. Eco friendly products.
5. Experience gained through many years in the window business.
6. Wide range and high quality products.
7. Specialize in public and collective markets.
8. Sale to individual customers
9. Perfection, Creativeness and Honesty

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 10. Proper waste management

3) Write a sales pitch for the company. Prepare sales claims to be presented to sellers.
Remember to take into account the potential objections of customers: provide the employees
with arguments to counter customers’ misconceptions.
Most reliable key source of our Sales pitch is our sales staff and other sources are social media.
Sales claims for sellers are product replacement after some time or upon seller request, services
claim, their benefits claim as per deal. Objections regarding quality and services must be taken in
account. (It can be answered by direct visit to client and then could be reply to their
misconceptions)
As consumer preferences vary greatly from one country to another, it is very difficult to market a
standard product globally, which partly explains the customization this phenomenon. In addition,
over 90% of windows are custom made, which further limits the importation of materials.
Arguments to counter customers’ misconceptions
The company’s focuses on the potential savings in energy costs for homeowners over the long
term.
The Company is focusing on developing products within the frame-work of sustainable
development, from design to installation.
The company controls of the entire supply chain, right through from the order to delivery to the
customer and sometimes installation.
Triple-glazed products are better in terms of insulation and sophistication.

4) Suggest incentives to stimulate the sales force (bonuses, collective or individual incentives,
etc.) to encourage their continued training and to support sales of this product.
Many consumers are willing to spend large sums on products which produce immediate benefits.
Expenditure on housing (including joinery) often involves substantial outlay, from which the
expected savings are less obvious to individuals. Yet such investment is an effective way to reduce
energy costs significantly. Thus, the company’s marketing should focus on the potential savings in
energy costs for homeowners over the long term.
Financial incentives: Bonuses, Commissions, Salary increment.

Individual Incentive: It consists on monthly basis according to their sale (Product/target

incentive) and services according to their assign targets and area of services.
Collective Incentive: It consists on yearly basis at company sales target and it goes to everyone in
sales staff.
Training and Sales support.
Spontaneous/Emergency Trainings: (About any issue, or any rapid change)

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 This kind of training could be call any time before one day notice.
General Trainings: (About products, Services and other related issues)
This kind of training is conduct after periodic time and everyone knows it. Like (Bi training,
quarterly training, Semi training, yearly training)
Sales Support: Trainings, incentives are also the sales support but we also focus a little bit more
buy providing them recreational activities, Broachers, as well equipment’s related to field.

5) Determine the optimum size of a business team for an agency, using the information
provided in the case study. Consider the effectiveness of an agency’s sales team and the
commercial influence that the agency can exercise in its area of operation.
The current team of agency is very less about 3000C/Sales man it should be at least 1000C/Sales
man. Or sales team should divide with different tasks like some have generates leads, meetings and
follow up, some have complaint handling and after sales services.
The company distributes its products through two distribution channels: a central department in
charge of “key accounts” and “communities”, and a network of eight agencies deployed in
northeastern France, all owned by the company. These agen-cies are the cornerstone of the
distribution network. Each agency employs fifteen salespersons, as the control of about 15% of its
market area, and operates in a sales territory of approximately 45,000 customers. The company’s
salespeople actively seek potential clients, especially at trade fairs and exhibitions. These events
are of paramount importance: they afford opportunities to expand the client base and win new
contracts. Up to 25% of the annual turnover of an agency can be attributed to contacts made during
these events.
6) Assess the feasibility of a commercial promotion offering “triple-glazed windows for the
price of double glazing” for the product launch.
MPO Fenêtres has obtained certification, allowing the company to showcase its commitment to
sustainable development, from product design through to its installation. MPO Fenêtres highlights
its long-term commitment by ensuring that the joinery products it sells are environmentally-
friendly. MPO Fenêtres maintains its commitment to the continuous improvement of its products,
including products with triple glazing, which allow an increase in performance of over 40%
compared to the best double-glazing on the market. This commitment is reflected in all companies’
activities, as stated above, but MPO Fenêtres has also improved its installation and waste treatment
along ecological lines, including waste recycling.
Total: 70 Marks
End of Question paper

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