A. Study the Business plan checklist.

Details of the business	Name of business Type of business (limited company, partnership etc.)
Personal details	Relevant work experience
Personnel	Number of people /job function
Product / service	Description
Market	Describe your market. Who are your customers? Is your market growing, static or in decline? Who are the main competitors? What are the advantages of your product or service over the competition?
Marketing	What sort of marketing or advertising do you intend to do?
Premises / machinery / vehicles	Where do you intend to locate the business and why? What sort and size of premises will you need? What machinery / vehicles do you require?
Objectives	What objectives do you have for the business

B. Read these extracts and decide which sections of the checklist above they come from.

a) At first I will be concentrating on getting the business into profit. But if I am successful I would then consider looking for other sites in the city area and expanding the management team. Eventually it might be possible to set up shops in different locations around the country.

b) Retail outlet selling a wide range of specialist teas and tea-related giftware. Sales will be made direct to customers and also by mail order.

c) Two full-time sales staff for the shop. One personal assistant to do secretarial work and general office administration.

d) I plan to advertise on local radio and in the local press and free press. This will be complemented by flyers distributed directly through letterboxes to residents in the area.

e) I have already worked as an employee in two different companies, where I was involved in both marketing and customer service at junior management level.

f) The Tea Set. Initially the business will be registered as a limited company with ten shareholders.

g) In a street with pedestrian access only, which leads into the main shopping area and market square in a town of 70,000 inhabitants. The shop is also close to the station, which is used by several thousand commuters daily. The surface area is 45 square meters at a rent of 1000 Euros per month.

h) It is not easy to give a precise estimate but it would seem to be essentially passing trade within the shopping area. The target consumer is middle-aged and with a comfortable income. There is no competition in the area as the concept for this type of shop is new and comparable products are not currently available in other outlets.

C. You have decided to set up your own business together and have approached the bank for advice. They have asked you to prepare a business plan.

 

 

 

Module 2 Alliances

Strategic alliances enable companies to share resources. This creates synergies or advantages and leads to increased market share and greater competitiveness. Public companies hope to increase shareholder value when they form alliances. There are many kinds of corporate alliances. Corporate partnerships or joint ventures are formed when two or more companies decide to cooperate on one particular projector mission. When companies join together it is called a merger. When one company makes a successful takeover bid to buy another one, it is referred to as an acquisition.

Reading 1: Mergers and Acquisitions

 

One plus one makes three: this equation is the main idea of a merger or an acquisition. The key principle behind buying a company is to create shareholder value over and above that of the sum of the two companies. Strong companies will act to buy other companies to create a more competitive, cost-efficient company. The companies will come together hoping to gain a greater market share or to achieve greater efficiency. Because of these potential benefits, target companies will often agree to be purchased when they know they cannot survive alone.