BUSINESS PLANNING AND PROJECT

MANAGEMENT

Faculty Name : Ms. Supriya Kamale

Contents
Unit 1 – Planning and Forecasting
planning -Introduction, Meaning, Definition, Characteristics, Objectives, Nature of planning, Advantages and
limitations of planning, Levels of planning, Types of Plan, Steps in planning process, Who needs a business plan ,
Types of Business plan, Elements of Business plan, Purpose of business plan, Errors to be avoided in formulating
Business plan. Forecasting- Introduction, Meaning, Definition, Difference between Forecasting and Planning, Steps
in Forecasting.

Unit 2 – Introduction to project management and project organisation, Project Initiation Introduction to Project
Management-Definition of a “Project”, Classification of Projects, Why project Management, Characteristics of
project management, Need of project management, Hierarchy of Project Components, Steps of Project Management,
Project planning, Strategic levels of planning, Management by objective, Project Decision model, Project
Implementation model, Introduction to PERT and CPM, Difference of PERT and CPM Project organisation-
Definition of organization structure, Organization work flow Process, Types of Organization Structure, Forms of
Organization. Project initiation -Project Selection Meaning, Criteria of project selection (Models), Types of project
selection, Meaning of project manager, Role of Project Manager, Importance of Project manager, Role of Consultant
in Project Manager, Selection Criteria for project manager/ Qualities of Project Manager, Importance of project
planning, Functions of Project Planning, System Integration, Project Management Life cycle.

2
Contents

Unit 3– Project Feasibility Analysis, Project Monitoring and Controlling, Project Termination Project
Feasibility Analysis-Meaning / Definition of Project Feasibility, Importance of Project Feasibility, Scope of
Project Feasibility, Types of Project Feasibility, SWOT Analysis, Project Feasibility Study Project
Monitoring and Controlling -Introduction to Project Monitoring and Controlling, The Planning –
Monitoring – Controlling Cycle , Project Auditing – Life Cycle, Computerized Project Management
System (PMIS)Project Termination -Project Termination meaning, Reasons of Termination of projects,
Process of terminating projects, Execution tools for closing of projects.

Unit 4 – Risk Management in Project, Modern Development in Project Management Risk Management in
Project-What is risk?, Types of Risk in projects, Risk management process, Risk Analysis and
Identification, Impact of risk handling measures, work breakdown Structure Modern Development in
project management -Introduction to in project management modern Development, Project management
maturity model, Continuous improvement, Developing effective procedural documentation, Capacity
Planning.

3
Prescribed Text books:

• Business Planning and Entrepreneurial Management - Veena Prasad, Deepali Kamle

• Project Management – Pawan Jhabak
• Project Management – Mona Abid

4
Unit No:1

Lecture No: 3
Types of Plans, Business
Planning Process, who needs a
business plan, Benefits of
Business Plan
Primary parts of Business Plan

 The Business Concept – the type of industry, business structure, particular product
or service, how you plan to make your business success.

 The Marketplace section – describe and analyze potential customers, who and
where they are, what makes them buy and so on. Competition, position yourself.

 The Financial Section – Income and cash flow statement, balance sheet, breakeven
analysis.

6 Introduction – Business Planning

How Long Should Your Business Plan Be?

 Any length – complex enterprise more than 100 pages, A typical business plan runs
15 to 20 pages.

 Depends on Nature of Business .

 Depends on Purpose of Plan .

7 Introduction – Business Planning

Who Needs a Business Plan?

 Start-ups – The classic business plan writer is an entrepreneur seeking funds to

help start a new venture. Most books on business planning seems to be aimed at
these start-up business owners.

 Business owners find plans useful at all stages of their companies existence,
whether seeking financing or how to invest a surplus.

 Established firms seeking help. Many are written by and for companies that are
long past the start up stage. The middle stage enterprises may draft plans to help
them find funding for growth just s the start ups do.

 They feel the need of a business plan to help manage an already rapidly growing
business.

 It is a valuable tool used to convey the mission and prospects of the business to
customers, suppliers or others.

8 Introduction – Business Planning

Plan an Updating Checklist

Seven reasons to update business plan:

1.A new financial period : update plan annually, quarterly or monthly if industry is fast
changing.

2.Lenders and financiers need updated plan.

3.Market change : shifting client tastes, altered regulatory climates trigger a need for
updated plan.

4.Firm develops a new product, technology, service or skill.

5.Change in Management .

6.Firm has crossed a threshold in terms of crossing sales mark, employing 100 th
employee or moving out of home office.

7.An old plan doesn’t reflect reality any more, seems irrelevant .

9 Introduction – Business Planning

Types of Plans

The Miniplan

It consists of one to 10 pages.

It includes business concept, financing needs, marketing plan, cash flow, income
projection, balance sheet.

It also serve as a valuable prelude to a full length plan later on.

Miniplan can not be send to an investor who’s looking for a comprehensive one.

10 Introduction – Meaning and Relevance of Managerial Economics

Types of Plans

The Working plan

It is a tool to be used to operate a business.

It is a detailed one but short on presentation.

This plan is intended strictly for internal use. May also omit some elements that
would be important for someone outside the firm.

Fit and finish is different in a working plan. No need to include product photos or
resumes of executives.

Its not essential that a working plan be printed on high quality paper and enclosed in a
fancy binder.

Internal consistency of facts and figures is crucial with a working plan.

11 Introduction – Meaning and Relevance of Managerial Economics

Types of Plans

The Presentation plan

This plan is suitable for showing to bankers and investors.

The standard business vocabulary is used, informal jargons are omitted.
Unlike the working plan, this plan is not being used as a reminder but as an
introduction.
Information on all competitive threats and risks.
The big difference between presentation and working plan is in the details of
appearance and polish.
It should include graphics such as chars, graphs, tables and illustrations.
It is essential to be accurate and internally consistent.

12 Introduction – Meaning and Relevance of Managerial Economics

Types of Plans

The Electronic plan

The majority of business plans are composed on a computer, then printed out and
presented in hardcopy.

Business information is transferred between parties electronically.

Its an appropriate to have an electronic version of plan.

It is handy to satisfy demands of a discriminating investor.

13 Introduction – Meaning and Relevance of Managerial Economics

 Business Planning Process

An Overview of traditional
business planning process
Gather
Information

Evaluate Mission &

Plan Goals

Monitor Devise
Performance Strategies

Implement
plan

14 Introduction – Meaning and Relevance of Managerial Economics

Business Planning Process

 Identify goals : SMART : The goal which is establishing a new venture should be
specific (i.e. exact in the attainment of the new venture), measurable (i.e. goals be
able to be verified), attainable (i.e. goals to be reached in any sphere), rewarding
(i.e. goals helping the venture to proceed on its right course) and timely (i.e. goals
having time limit for the venture to be fulfilled)

 Identify inventory resources : It explains the fact on the accessible resources for the
new venture and that needs to be determined. Examples of these resources are
physical resources (building, equipments, etc), human resources, financial
resources, etc.

 Assess the business and environment in which the business exists : This is basically
evaluating the internal and external aspects of the venture by making use of its
strengths, weaknesses, opportunities and threats. With this, it is vital to know what
kind of environment the venture will be offering and in that case, a thorough
assessment of the venture and environment should be made to help reach a
successful venture.

15 Introduction – Meaning and Relevance of Managerial Economics

Business Planning Process

 Analyze business performance : It explains the fact on how the new venture will
succeed in the market as a result of depicting the influence of the venture, be it
financially or productively from series of evaluations.

 Decide on actions : certain actions that are required to proceed with the ongoing
course of the plan. Analyze the internal environment

 Implement strategies : It is all about communicating the course of action to other

members of the venture in order to act in response to those actions.

 Evaluate the plan : This is about assessing the plan whether it has met the goal it
intends accomplishing. In this case, it serves as a direction to help making
adjustment to the plan.

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Thank You