new business area plan

7/30/2019 New business area plan

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Confidential

Process Guidelines and Formats

Company X Limited


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SBP Contents (I)

TOPICS

I. BUSINESS CASE DESCRIPTION

II. MARKET ASSESSMENT

III. STRATEGY DEVELOPMENT

IV. OPERATIONALIZING PLAN

V. TARGET SETTING

VI. STRATEGY DEPLOYMENT


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Business Case Description

Short description which describes your business opportunity

How and why has the opportunity been identified and is it a strategic fit?

What will the opportunity size be in 5 years time and what are the expected returns?

Which countries will we be tar etin ?


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II. MARKET ASSESSMENT

Market Shape and Size

Players/ Competition

Customers

Vendors

Technology/ Regulations


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Market Shape

Describe the opportunity and how is it segmented e.g. Oil & Gas Upstream, Midstream, Downstream

What are the sub-segments in these and our current capability to tap these?

What is the plan to increase addressability please provide a stepped chart to show what additionalcapabilities we are adding each year to increase the width of our offering in the market. What will be ourmarket addressability in percentage terms as per the plan?

What are the entry barriers in the market?


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Market Size

Market Size Segment wise/ country wise (provide 5 year trend)

How are you calculating these estimates? State your approach/ assumptions/ sources, explicitly.

Addressable market for Company X (provide 5 year trend to show how it is increasing inline with thestepped chart detailing increased width of offering)

Which additional end-use segments/ geographies can this opportunity be expanded to in future. Stateapprox ma e s ze o a ona oppor un y, poss e

What are the critical success factors in the market and how different are these from our existing markets?


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Players/ Competition

Who are the existing players in the markets? Are they the same as our existing competitors?

What is the market share of existing players give a 5 year trend with expected share for next 3 years

What is the profitability of existing players in the target segments?

Do they have any partnerships or tie-ups?

Who are the likely entrants in the market in near future and how will they impact?

ow o you n compe ors w respon o our en ry

Evidences as to why players have been successful or unsuccessful in the market.


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Customers

Who are the main customers in the markets? Are they the same as our existing customers?

What is the share of these customers in the overall market market concentration?

How is the financial health of main customers?

Do they have any partnerships?

Are there any influencers in the buying decision? If yes, name the key influencers and our relationship withthem.

How do you think customers will respond to our entry? Are there any unfulfilled customer expectations? How have we identified them?


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III. STRATEGY DEVELOPMENT

Leveraging existing Core Competencies Segmentation, Target & Positioning (where to compete)

Value Proposition & Go-to-Market (why buy me)

Additional Information

Strategy Map


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Customer Value Proposition (How to win?)

Industry expected

OPERATIONALEFFICIENCY

Industry Hygiene

Proposed Val.Proposition

Hygiene level

PRODUCTSUPERIORITY

CUSTOMERINTIMACY

What is our proposed customer value proposition and how different is this from our existing value proposition?

How have we gathered this input?


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Additional Information

What marketing challenges do you envisage for making the market for this offering?

Any brand strategy requirements?

What will be our pricing policy and how would it compare with the competition? What information dowe have about the pricing policy of competitors?


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Resources Required : Manpower plan for the balance period 11-12 to 14-15 (II)

JuniorManagement

Middle

Management

SeniorManagement

Comments*

AdditionalRequirements

Existing Nos.

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2011-12

2012-13

2013-14

2014-15

This capacity plan should be backed up with a detailed capability plan which can be included in the Back-up


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Resources Required : Areas of Corporate Intervention/ Support (V)

1. Meeting customers under Key Account Management

2. Relationship with Group Companies

3. Mergers & Acquisitions (inorganic growth)

4. Recruitment of Talent at senior positions

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5. Best practice sharing with Groups / Business Units / Clusters/projects


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V. TARGET SETTING

Expected Financials

Return On Investment

Company X vs Major Competitors

Assumptions and Triggers

Balance Scorecard for the new business


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Expected Financials and the Break Up

Year 2010-11 2011-12 2012-13 2013-14 2014-15

Order booking(wherever

applicable)

TO

GM

DC

Investment Fixed

Working Capital

Financials to be reported separately in case coming from different geographies


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Key Assumptions, Triggers

1. Make business and external assumptions* explicit and track them to sense when the market may beveering away from expectations, requiring a re-prioritisation of strategic initiatives

i. Explicitly list down the business and external environment assumptions taken into consideration

while formulating the Strategy Plan

ii. Also mention the risks to these assumptions and the triggers (factors) which would indicate that

the underlying assumption were /have gone wrong. (the triggers would help in having a issue based

Strategic plan review instead of only time based)

iii. Mitigation plan for the same

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* These could pertain to investments, sectoral growth, people resources, competition, macro-economic change etc.


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BSC 2010-11 (Projected till 2014-15)

1. BSC of the new business with Strategic Objectives (both ST and LT), Performance Measures,Targets for these measures (with quarterly/monthly phasing) and Strategic Initiatives

2. Include initiatives/objectives related to matters such as climate change, safety, innovation, customer

culture/engagement under process/learning/customer perspective of the BSC. There should beadequate weightage in the BSC on these matters

3. BSC needs to be projected till 2014-15, so that the visibility of initiatives leading to objectives isthere. Financial projections will be backed up by initiatives for Internal Processes, Customer andLearning & Growth.


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VI. STRATEGY DEPLOYMENT

Action Plan

Review Mechanism


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Action Plan

Action plan for launching & stabilizing the opportunity with milestones.

Map the detailed operationalizing plan.

List down key trackable milestones.

ActionCode

What Why When Whom

Date

Date Responsibility

Members


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Review Mechanism

Mention the divisions review mechanism to track performance on the milestones.


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VII. BACK-UP SLIDES


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THANK YOU

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