Business Plan Development
Project Approach—Business Plan Outline
We will provide you with a concise (but comprehensive), wellwritten, and implementable business plan (continued).

Executive Summary

Concept and Opportunity (rationale for venture)
– Background
– Business Description
– Situation Analysis and Business Rationale (Business drivers? Burning
platform?)
– Future Plans

Strategy
– Mission/Vision Statement
• Mission Statement
• Company Vision
• Strategic Objectives
• Company Values
– Product/Service Description
• Description of Products/Services
• Advantages of Products/Services (Value Proposition)
– Industry Analysis
• Industry Overview
• Industry Trends and Growth Patterns
• Market Structure
- Competitors (internal rivalry and barriers to entry)
- Customers
- Suppliers
- Substitutes
- Regulators
- Technologies
© Accenture 2001 All Rights Reserved
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–
Marketing Plan
• Competitive Positioning
• Target Customers (customer description)
• Target Market Trends and Growth Patterns
• Market Size and Potential
• Market Share Analysis
• Pricing Strategy
• Promotion
• Packaging and Bundling Options
• Branding Strategy
Supporting Strategies
• Regulatory Strategy
• Exit Strategy (including assessment of risks and
major obstacles to success)
2
Project Approach—Business Plan Outline
We will provide you with a concise (but comprehensive), wellwritten, and implementable business plan (continued).


Operating Model
– Business Processes
• Core Processes
• Support Processes
– People
• Required Staffing (Human Resources Plan)
• Hiring Plan
• Training Plan
• Compensation Scheme
– Infrastructure
• Physical Facilities
• Information Technology
• Other Technology
– Organization
• Corporate Governance (i.e., Board of Directors, Board of
Advisors)
• Relationship to holding company and Subsidiary Companies
• Structure (organization chart)
• Roles and Responsibilities
• Other Advisory Relationships*
– Key Business Partners and Alliances
•
Financial, Performance, and Risk Management Plan
– Financial Plan
• Financial Summary
• 3-5 Year Projected Financial Statements
• Financial Assumptions
• Financial Ratios (including ROI)
• Funding Request/Terms of Investment
• Sources and Uses of Funds*
– Performance Management Plan
– Risk Management Plan
•
Appendices
– Detailed Product/Service Descriptions
– Management Resumes
– Business Location Site Information
– Legal Documents
– Other Important Data
Implementation Plan
– Gantt Chart:
• Key Activities and Timing
• Key Milestones
• Assignment of Roles and Responsibilities
• Resource Requirements
• Critical Path
– Change Management Plan
– Regulatory Plan
– Communications Plan
© Accenture 2001 All Rights Reserved
3
Project Approach—Interim Deliverables
The business plan will be developed from the interim
deliverables for each of the project steps.
1. Situation Analysis:
• Market definition
• Market evaluation, consisting of:
– Customer base description
– Supplier overview
– Competitor overview
– Substitute overview
– Regulator overview
– Technology overview
• Summary of internal business context
• High level capabilities assessment
2. Strategy Formulation:
• Mission and strategic objectives
•
Market, technology, and supporting strategies
4. Implementation Plan Development:
•
Activity and operations plan
•
Supporting plans
– Performance management
– Risk management
– Regulatory
– Change management
5. Financial Evaluation:
•
•
•
Market economics
Enterprise cost and revenue models
Pro forma financial statements
•
Business case:
– Cost, revenue, and cash flow projections
– Investment projections
– Financial model explanations
3. Operating Model Development:
• Process model (high level)
• Capabilities assessment
• Infrastructure and technology description
• Organization structure description
© Accenture 2001 All Rights Reserved
4
Project Approach—Project Overview
The project will follow a five-step process.
Situation
Analysis
Operating
Model
Development
Strategy
Formulation
Implementation
Plan
Development
Financial Modeling
•
•
Key
Questions
•
•
•
•
•
•
•
•
Main
Deliverables •
•
•
•
What is the business opportunity
How should the market be
defined? Value chain?
What will be the market
demand?
What are key characteristics of
the market? Risks &
opportunities? Trends?
What is the competitive structure
of the market?
What are the customer
segments and their
characteristics?
What are the economics of
various technologies?
What is the internal business
context?
What are XXX’s existing
capabilities? Strengths &
weaknesses?
•
Product/service evaluation
Market evaluation
Summary of internal business
context
High-level capabilities
assessment
Economic analysis
•
© Accenture 2001 All Rights Reserved
•
•
•
•
•
•
•
•
What are the primary strategic
options? What potential XXX
roles?
What should be the geographic,
product, and customer scope?
What are the mission, vision, &
objectives?
What products/services should
be offered (i.e. marketing mix)?
What is the customer value
proposition?
What customers should be
targeted?
How should the
products/services be marketed?
Through what channels?
What should be supporting
strategies (e.g., regulatory)?
What is the strategic migration
path?
•
Detailed strategy:
– Mission & strategic
objectives
– Market, technology &
supporting strategies
•
•
•
•
•
•
•
What processes are critical to
success and how will they be
defined?
How should the gateway
business be organized?
What will be the relationship with
other XXX entities?
What skills are required? What
are the human resource
requirements?
How should capabilities be
sourced? What key business
partnerships/alliances need to be
established?
What are the technology
requirements (core, supporting &
enabling, and business)?
•
Operating model
– Process model
– Capabilities assessment
– Infrastructure description
– Organization structure
Detailed costs/revenues
•
•
•
•
•
•
•
•
What key activities need to be
accomplished? Within what time
frame? What is the critical path?
How will performance be
monitored?
How will uncertainties be
assessed and handled?
How will change be managed?
What messages need to be
conveyed to stakeholders? How?
How will relations with various
regulatory bodies be handled?
What is business case for
proceeding?
Business plan, including financial
pro formas
Supporting plans:
– Performance
– Risk
– Regulatory
– Change
5
Project Approach—Project Gantt Chart
The project will span 6 weeks and will be characterized by
overlapping steps and frequent, substantive communications.
Project Work Schedule
Overview
•
Situation Analysis
•
Strategy Formulation
•
Operating Model Development
•
Implementation Plan Development
•
Financial Modeling
Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Communications Milestones
•
Kick-off meeting
•
Initial meeting with client
•
Mid-point review with mentor
•
Dress rehearsal
•
Formal project report-out
© Accenture 2001 All Rights Reserved
6
Project Approach—Situation Analysis
The Situation Analysis answers the question of Why the client
should enter the a certain market.
Key Questions
Define Market
(Product Analysis)
•
External
Analyze Market
•
•
•
Situation
Analysis
•
•
•
Understand Client
Business Context
Internal
•
•
•
Assess Capabilities
© Accenture 2001 All Rights Reserved
•
•
Outputs
What are the most attractive products/services?
– Market size and growth rate
– Margins and trends
– Competitive barriers
– Success factors
– Market drivers
– Risks and uncertainties
•
What are the attractive customer segments?
What is the “power” of suppliers? What partners
might the client choose and what should be the
nature of the relationships (preliminary)?
What are the entry barriers? What is the
competitive intensity?
What products from other markets or new-to-theworld products will compete for this market?
What is the impact of regulation on both the
market and the client’s entry into that market?
What is the impact of enabling and related
technologies? What technological barriers
exists?
•
What internal issues impact the client’s plans to
enter the market?
Do structural constraints (e.g., funding limits)
exist? Political constraints?
What other boundary conditions affect the
project and the launch of this business?
•
What are the client’s strengths and weaknesses?
What is the magnitude and significance
(weighting relative to other indicators) of each?
•
•
•
•
•
•
•
•
•
Characterization of market for
products/services and product/service
groupings (size, growth rates, estimated
margins and change over time, etc.)
Product/services focus areas for client
Recommended target segments
Preliminary supplier strategy and
business partner candidates
Potential positioning strategies
Possible market redefinition and product
mix adjustments
Potential regulatory strategies
Product line extension recommendations
List of internal issues/constraints/
boundaries
Description and rating of impact of
internal issues/constraints/boundaries
Modifications to project plan
High-level capability gap analysis
(prioritized and quantified list of gaps)
7
Project Approach—Strategy Formulation
Strategy Formulation answers the question of What the client
should do.
Model Strategic
Options and
Select Strategy
Develop Strategic
Options
Key
Questions
•
•
•
•
•
•
Methods
•
Where are the greatest
threats and opportunities for
the client?
What are the client’s
strengths and weaknesses?
What are the key strategic
dimensions?
– Technology
– Geography
– Customer
– Product
– Marketing/delivery
fulfillment
What strategic dimensions or
strategic options can be
immediately rejected? Which
dimensions are synergistic?
What are the key strategic
assumptions?
What are the least and most
risky (but realistic) options?
Moderate risk options?
SWOT analysis
What option provides the
greatest financial return?
What variables most drive
success?
– Market penetration
– Customer targets
– Roll-out pace
– Targeted competitive
segments
– Partner/vendor selection
What additional, nonquantified risk factors need
to be considered? What is
their impact? Does their
consideration change the
modeling outcomes?
What roles will the client
play? What segments of
value chain will it focus
upon?
•
•
•
•
•
•
Outputs
•
•
Definition of key strategic
dimensions
Characterized strategic
options for modeling (number:
3 – 5)
© Accenture 2001 All Rights Reserved
•
•
Develop Detailed
Strategy
Define Mission
and Objectives
Why is our strategy unique?
What is our value
proposition?
What are the advantages
and benefits of our offering?
What differences or
characteristics will lead to
success?
What will the new company
stand for, believe in and
intend to achieve?
What quantified targets
should be set?
What is our long-term
vision?
•
•
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Develop Supporting
Strategies
•
•
•
•
•
•
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What products will be
offered?
What customer segments
will be targeted? What are
the associated value
propositions?
What will be the sales and
marketing approach?
Branding strategy?
What is the entry strategy
and pace of
implementation? What
channels will be used?
What is our product
positioning (e.g. pricing,
bundling, etc.)?
What business
partnerships will be
needed?
What supporting strategies
are needed (e.g.
regulatory)?
NPV, IRR calculations
Risk analysis
•
Team analysis
•
Team analysis
Tabular comparison of
strategic options
High level strategy
•
Mission, vision, and
objectives
Business concept definition
Market strategy options
•
Detailed strategic plan
(includes technology plan)
•
•
8
Project Approach—Operating Model Development
Operating Model development answers the
question of How the client should execute its
strategy.
Key Questions
Process
•
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•
•
•
People
Operating Model
•
•
•
•
•
Infrastructure
•
•
•
•
•
Organization
•
•
•
•
•
© Accenture 2001 All Rights Reserved
Outputs
What are the primary processes? Secondary processes?
How should the processes be defined? Inputs/outputs?
Steps? Cycle times? Key decision points? Costs?
Interdependencies? Communications links?
Should the process be outsourced?
What performance standards need to be set? How will
they be monitored and adjusted?
What organization model is implied? What
tools/technology are needed?
•
Process implications analysis
and recommendations
What skills/capabilities are needed? How sourced?
What is required headcount and how does it change?
How will staff be hired, trained, motivated?
How will contractors be managed?
What are the associated technology needs?
•
People implications analysis
and recommendations
What business infrastructure is required? Sourcing?
How will infrastructure be maintained/improved?
How are staffing requirements changed by infrastructure
investments? Organization structure?
How will employees be trained and supported to use
software, equipment, etc?
What refinements need to be made to core and enabling
technologies? What vendors should be targeted?
•
Infrastructure implications
analysis and recommendations
What is the optimal organization structure? How will this
structure need to be adjusted to accommodate growth in
the next five years?
What are the roles and responsibilities of key managers?
What linkages to the client’s other entities need to be
established? To other stakeholders
What are the associated HR and technology
requirements?
What is the optimal governance scheme?
•
Organization implications
analysis and recommendations
9
Project Approach—Implementation Plan Development
Implementation Plan Development answers questions of
When and Who will implement the elements of the
strategic plan and operating model.
Identify/Prioritize
Activities and
Define Constraints
Key
Questions
•
•
•
What actions should the client take
to implement its strategy and
associated operating model?
Which activities have the highest
priority?
What issues or constraints are
associated with each activity?
•
•
•
•
•
•
Sequence Activities
Assign Resources
and Responsibilities
Identify Transitional
Issues
Develop
Supporting Plans
What activities are on the critical path?
What are the interdependencies?
What lead times must be considered?
What is the level of effort required to
accomplish specific activities (time and
FTEs)?
What milestones must be reached?
What performance goals have been
established?
What are the risk factors and
transitional issues that must be
considered?
What are inputs and deliverables for
various activities?
•
•
Who is responsible/ accountable for
each activity?
What are the resources (human,
technology, financial) required?
What change barriers exist? How will
they be managed?
How will results be tracked and
communicated?
How will risks be managed?
•
•
•
Methods
•
Team analysis
•
Team analysis
•
Team analysis
Outputs
•
Prioritized list of implementation
activities
Implementation issues discussion
•
Gantt chart
Issues discussion
•
Implementation plan (i.e. Gantt charts
with activities, dates, critical path,
resource requirements, and assigned
responsibility)
Supporting plans (as appropriate):
– Performance
– Risk
– Regulatory
– Communications
– Change
•
•
•
© Accenture 2001 All Rights Reserved
10
Project Approach—Financial Modeling
Financial Modeling answers the question of How Much benefit
the client should expect from its new venture.
Model Strategic
Options
Evaluate Economics
Key
Questions
•
•
•
•
•
•
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Methods
•
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Outputs
•
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•
How do the economics compare
across different technologies?
How do costs break down
across the value chain?
How do our costs compare to
substitutes?
Do experience curve effects
matter? Economics of scale?
Economies of scope?
Will our technology follow typical
technology cost curves?
How do the costs break down?
Fixed costs? Variable costs?
What are the lifecycle costs?
Are all costs considered?
What penetration rates are
implied by the cost curves?
Where and among whom will
penetration be greatest?
•
Cost analysis
Cost mapping (across value
chain)
Application of technology curves
Break-even analysis
•
Economic model
Value chain cost breakdown
Economic comparison across
gateway products
Cost curve analysis across time
Estimated market penetration
rates
•
© Accenture 2001 All Rights Reserved
•
•
•
•
•
•
Detail Costs and
Revenues
What is the optimal strategy for
the client from a financial
standpoint?
What are the key financial
variables? Key assumptions and
underlying model logic?
How do the strategic dimensions
affect the financial variables?
How sensitive are financial
results to changes in
assumptions or financial
variables?
What non-financial risks and
benefits need to be considered?
Does consideration change the
option chosen?
What are start-up costs? Capital
investments?
•
Top-down financial analysis::
– Revenues
– Earnings
– Cash Flow
– ROI: NPV, IRR
•
Strategic options financial
summaries
Financial model, including
explanation of logic and
assumptions
•
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•
•
•
•
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Calculate Financial
Pro formas
What are the specific costs
associated with the chosen
strategic option?
What are the margins associated
with particular products?
What do “typical” customer sales
look like?
What are sales projections by
product/bundle?
What costs are other gateway
players incurring?
How will financial assumptions
change over five years?
What loading assumptions need
to be made?
•
Bottom-up cost analysis
Bottom-up revenue analysis
•
Financial analysis:
– Revenues
– Earnings
– Cash Flow
– ROI: NPV, IRR
Enterprise cost model
Enterprise revenue model
•
Financial Pro formas
Business case
•
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What is ROI?
What investment levels are
required? When?
What is the COC? What are the
sources of funding?
What are the business’s
assets/liabilities?
What early financial assumptions
can be tightened?
How does the final
implementation plan affect the
early project financial estimates?
Are the assumptions accurate?
Should they be adjusted?
How do the financials compare to
other gateway players?
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