8. Consider Computex, the high-technology company mentioned above. Note down some of its strengths, weaknesses, opportunities and threats.

STRENGTHS	WEAKNESSES	OPPORTUNITIES	THREATS
1	1	1	1
2	2	2	2
3	3	3	3
4	4	4	4

Discussion

The Business Plan

9. New businesses usually have a business plan. This is a document that describes what the new business is and how it will start up and develop, that is, how it will sell its goods and services. It also contains financial information.

It is usually the work of entrepreneurs who are, in fact, top managers of their companies to make up business plans.

Read the text below on preparing a business plan. Then, look at the Contents page from the Business Plan of Gorliz and Zimmerman, office furniture manufacture, and complete the missing words.

The business plan is an important document with two essential functions. It aims to convince possible investors and other stakeholders of the potential of a new business. It also works as a guide for the company in its first year or two of operation.

The business plan normally starts with a title page and outline of the new business. It includes the name, logo and mission statement of the activity. There are normally three main parts to the business plan.

First, the Marketing Plan. This includes a description of the products and services, an analysis of the market, a survey of the competition and a basic outline of promotion and selling strategies.

The next part is the Financial Plan, which includes details of start­up costs, a profit and loss forecast for the first year or two (or maybe three) and then a calculation of the break-even point. This is to show when the business expects to begin making a profit.

Then there is usually a People and Action Plan. This explains who is involved, and states their roles and responsibilities, their experience and abilities. The Action Plan explains what will happen in the important first year of the business, i.e. during the start-up phase.

Finally, the business plan has some information on the location, perhaps with photographs and architect's drawings. At the end there are the Appendices, containing any additional and detailed information or support material.

There are different ways to structure a business plan. Some are shorter and simpler than the above model. Others are more complicated.

10. Choose some companies or service organizations that you know well. Then, in each case, discuss:

1. what the objectives of each business are;

2. what strategies the management are using to achieve their objectives.

Are all the businesses using the right strategies?

If not, what changes should they make?

11. Work individually or in groups of two or three. Give a short oral presentation of any organization you are familiar with. Try to point out its strengths, weaknesses, opportunities and threats (SWOT). Talk about its objectives and strategies, and say what you think its future prospects are.

Pair work