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According to the normal criteria for effective business plans, it have to involve the executive summary, market analysis, organization and management, products and services as well as the financial information. Due to the business plan 1, it consist of the executive summary, company structure, services, competitive comparison, market analysis summary, pricing strategy as well as review of business plan.
For the executive summary which is the most critical part of the business plan. It contains important details about the business and company, for example; the service or product provided the amount of the employee in the company. Moreover, this summary also provides a mission statement that concludes the goal and idea of the company. According to the business plan 1, it contains executive summary as well as the objectives, mission and key to success information of the company.
Moreover, the effective business plan needs to involve the market analysis. In the market analysis, it should discuss about how the company fits into the marketplace which need to identify the information about the target market, the price of the service or product as well as the competitor information. In the business plan 1, it also includes the market analysis summary, competitive comparison as well as the pricing strategy. Its market analysis involves the information about the market trends, market strategy and the material for the marketing. In addition, the competitive comparison in the business plan 1 also includes the analysis of competitors, risk and opportunities and the strategies to overcome perceived threats and weaknesses.
Organization and Management
In addition, the organization and management information needed to be involved in the effective business plan. The information should discuss about the company structure and ownership details which will give the readers to understand about the company function. Refer to the business plan 1, it also include of the part that describe the company structure which including the company ownership and company locations and facilities. Otherwise, the business plan 1 does not involve the information about the management information of the company.
Products and Services
Additional, the product and services information is another part that needs to be involved in the effective business plan. The information needed to provide the detail about the trademarks and copyrights. For the business plan 1, it also includes the service information which describe about the national recognized qualifications and fee for service products.
The last section that needed to be added in the effective business plan is the financial information. In this section, the past financial information of the company including with the company annual income and any collateral that the company own are required to be in the business plan. In case of the new business, a projection of the potential income of the business needed to be involved. For the business plan 1, it does not have the financial information section.
Analyse the strengths and weaknesses of the business plan 1
The strong business plans will provide a road map for a profitable business. The weaknesses in a business plan indicated the bad written and research plan as well as the bad concept of the business plan. These weaknesses can also used to secure the funding of the business. The role of the strengths and weaknesses identification in the business plan is to decide how much money and time needed for the endeavor.
In the business plan 1, it includes the analysis of competitors, risks and opportunities analysis, and strategies to overcome perceived threats and weaknesses in the competition information section. Therefore, the risk and opportunities that are involved in the business plan 1 demonstrates the adequate research on competition market conditions. Otherwise, the business plan 1 document is very easy to understand and easy reading.
The strength of the business plan 1 is listed below:
The quality of the information is good.
The business plan demonstrates adequate research on competition market conditions.
The document well set out, easily to understand and pitched at an appropriate level for the reader.
According to the business plan1, it includes the information about the market analysis, competition information, and marketing information. Otherwise, the business plan 1 does not include the information about the management and financial data which is one of the criteria for the effective business plan. In order to business success determination, the financial information is needed for the business performance measurement. Therefore, the business plan 1 is lack the financial information so it due to the not specific and not realistic performance measurement.
The weaknesses of the business plan 1 are listed below:
The business plan does not include the management and financial information section.
Insufficient information to determine the success of the business by performance measurement
The performance measurement is not specific and realistic.