Business Plan Evaluation Pasta Trees

Question: Discuss about the Business Plan Evaluation for Pasta Trees. Answer: Introduction As defined by Chen (2009, p. 202), a business plan is a document that is developed to help entrepreneurs in managing the business from formation to the final accomplishment of its objectives. A business plan should therefore clearly reflect all the relevant elements of the business and all the procedures to be followed in executing the project. It should integrate all the elements of finance, marketing human resource, and manufacturing. Pasta Manufacturers Business Plan In evaluating the business plan of this company, the five core elements of a proper business plan are to be used. The plan should conform to these vital elements to be considered as reliable (Demid, 2015, p4). A good business plan should give a clear description of the type of products or services that the business intends to offer, provide an appropriate technology strategy that the company is willing to adopt, give a proper marketing strategy and how the company is intending to approach competition. It should also show the unique selling strategies the company is willing to adopt and how the company intends to draw feedback from its business and marketing processes. Elements included in the Business Plan The marketing plan submitted by the company is fairly reliable. This is because it has incorporated most of these elements. However, there are some elements that have not been taken into consideration and thus need to be adjusted for the plan to be more reliable. Some of the elements stipulated by this plan are as follows. It has a Clear Executive Summary. According to Brinckmann (2010), an executive summary is vital since it gives a summary of the value of the business idea. The plan has a clearly described summary that shows that it plans to expand its level of operation to include distribution and supply of products to major supermarkets within the city. This is reliable since it can be used by creditors and other financing agencies in an attempt to advance finance to the company. Clear Product and Service Description. A business plan should show clearly the types of products and services a company is willing to offer. This helps in clearly evaluating the properties of these products, (Gollenia, 2016, p5). The business plan has described clearly the types of products it is willing to distribute. Some of these products include Linguini, spaghetini, spinach linguini and fettuccine. This is vital as it gives more knowledge about the companys products. Competition and market information. As stipulated by Jeannon (2008, p. 150), a business plan should indicate the market information and existence of competitors in the market. The plan has provided a clear market information and how the company intends to approach the market. The plan has also identified two key competitors in the field. These include two products lines whose packaging are not attractive. The plan gives a clear way forward in coping up with this problem Strategies and Technology Required. A business plan should have an in-depth analysis and description of the type of market the business is willing to serve. It should also come up with clear techniques that it intends to use to approach the market, (Karlsson, 2009, p 32). The plan of pasta has come up with clear marketing strategies. Pasta intends to capitalize on three sellers, linguini, fettuccine, and spaghettini, and to introduce other product lines in future as the sales increase. It intends to carry out advertisement of its products and to provide 25% off coupons as a means of product promotion Clear Management and Personnel Plan. It is recommended by Kyndt (2015, p23) that a clear management plan should be formulated in a business plan for the stakeholders to understand how their funds will be managed. In the business plan of Pasta Manufacturers, a clear management plan has been brought out. This is a vital element of a business plan as it makes the business plan more dependable. It has stipulated a unique and distinct selling proposition. According to Mason (2007), for a business plan to be reliable, it should present the marketing strategy the company intends to adopt in ensuring that it conveniently sells its products. In the case of Pasta, it has come up with a fairly clear marketing strategy. It intends to sell its products that are tastier and easier to make. This sets a clear path in marketing. It will also help the company to determine its key competitors and future competitors as well. Elements that should be included in the Business Plan The business plan is fairly appropriate. This is because it has not taken into account some aspects of business planning which are vital in formulating a proper business plan. Some elements that have not been clearly presented in the plan are as follows. Evaluation of the Competitors in the market. In an attempt to be profitable in the market, a clear evaluation of competitors should be examined. This enables a company to formulate better competitive strategies. (Mckenzie, 2015). In the plan, future and potential competitors have not been recognized. Competitors consist of other companies producing a similar or related product to that of the company. The company should, therefore, conduct an in-depth evaluation of its competitors and incorporate it into the plan. It has not clearly given the kind of technology it has at hand. The explanation was given by Isaacs (2007, p621) recommends that in modern business, technology is a major determinant of success. The company has not stipulated in the plan a clear set of technologically sensitive methods of conducting business. These may include internet marketing, online booking of customers and international business conferencing. The company should formulate these technologically sensitive methods of doing business in its plan. Clear and Unique Financing Strategy. A company should indicate where it intends to obtain its finances specifically. This may include banks, credit facilities and other reliable sources of financing. (Plumly, 2008, p15). Although the projected the profit forecasts, and the credit facilities it can access, it has not given other financing strategies that would make it more stable financially. T has also not evaluated its credit rating and eligibility. For a business plan to be dependable, it must show the financial status of the company, its ease of obtaining credit and the institutions from which it intends to obtain financial support. It has not anticipated the ways it expects the plan to grow. According to Seymour (2008, p3), this includes how the company expects the competitors to react to its entry into the market. The company should take this into account and plan on how it would adjust to such reactions. It has not shown how it intends to guard its intellectual property. Intellectual property may include the company logo, the taste, smell and even packaging of its products. A company should state in its plan how it intends to protect these aspects. In this case, it has not been stated clearly in the plan. This makes the plan less reliable. External Environmental Factors that Influence Business Performance For a company to formulate a proper business plan, it should consider the external environmental factors that may influence its tendency of achieving its objectives. Some of these external environmental factors are explained as follows. Competition results when some other companies are producing similar products to those of the company in question. It can also occur when there is a company that produces products that are substitutes to those of the company being evaluated (Phliwayo, 2008, p340). A company must take into account this aspect when formulating its business plan. This enables the company to identify its competitors and adjust effectively. In modern business, technology is a major determinant of success in business. A company should evaluate the technology at hand when constructing its business plan (phliwayo, 2008, p339). This helps the company to create technologically sensitive methods of operation and marketing. This refers vital information that is available for the entrepreneur in the market. When formulating a business plan, the company should evaluate whether there is enough information about the market that would enable it to execute the plan (Jeannon, 2008, p40). If there is inadequate information, then the company will not be able to compete fairly in the market. Political and Legal System. These refer to the political conditions, rules, and regulations that apply in the field of business. These rules are always formulated by the government and other relevant bodies, (Jeanon, 2008, p40). A company must be sensitive to the rules and regulation of doing business in a specific area or country. This enables the company to do legal business and avoid clashing with the state. Social system. The social system refers to beliefs and ways of life of the community in which the business is situated. A company must be aware of the social system to produce socially accepted products, (Seymour, 2008, p 4). When drafting the business plan, the company should consider the social beliefs and ways of life of the community. For example, if the company is situated in a community composed of Muslims, it cannot produce pork products since Muslims do not consume pork. Conclusion: In conclusion, the business plan adopted by Pasta Trees is appropriate. It presents the whole ideas about the business and the strategies the company intends to implement to ensure that its plan to expand its operations is executed. It also gives the financial aspect of the plan, marketing strategies and competition. These are vital elements that would make the company succeed in its major plan. However, the company should improve on the elements discussed in this report so as to make its plan more reliable. It should evaluate its credit ratings and the specific sources from which it intends to obtain credit. It should also examine the technology at hand and adopt appropriate technology to compete fairly in the market. Besides, it should take note of the external environmental factors and adjust to them appropriately. 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