Type: Discussion Board – Unit 3: Planning in Small Business – Deliverable Length: 1,200 – 1,300 words
Formulate a strategic plan as follows:
- Conduct a Political, Economic, Social, and Technological (PEST) analysis.
- Conduct an environmental analysis, it is also called a SWOT analysis.
- List and describe the 6-step sequential process of strategic planning.
Please use APA style, minimum of 4 references and citations. (I will provide instructions and company for this strategic plan)
This assignment is a continuation of the “Office of Real Estate Agents and Brokers” you have been assisting me with for the past 2 weeks. I am attaching to this message the last two work assignments you have been working on for this business so you can continue this analysis with this new assignment, UNIT3IP. Thank you and if you have any questions, please message me.
INSTRUCTOR NOTES (please read it) + REFERENCES
Welcome to unit three! Time sure is moving by quickly!
As you remember, last week we investigated the startup process. We examine the traits of successful entrepreneurs, various market factors that affect the entrepreneur, as well as an investigation of the various forms of business organization and ownership.
This week, we turn our attention to “planning in the small business.” We will examine the strategic planning process, conducting a competitive analysis, as well as the importance of an environmental analysis. These are all critical activities that the entrepreneur needs to engage in to ensure the ultimate success of the operation.
To assist in your understanding of the importance of strategy, here’s a quick video that I find to be very useful. Give it a look!
Class, some of the most important resources to beginning your own business are as follows:
1) Capital- Operating capital includes expenses such as salaries, wages, rent, expenses, supplies, utilities, advertising, depreciation, and interest payments. Small business advisors recommend that start-up expenses include at least six months operating capital. (Susan ward)Operating capital I think is the number one resource any entrepreneur must have when starting up a business. It will determine whether you succeed of fail in your new business venture.
2) PEST- Political, Economical, Sociocultural, Technological this is one part of your strategic business plan.
Political -factors in a country should be considered, including the political stability of a country. The legal system and how contracts are enforced are also evaluated. Trade regulations and taxation regulations are also very important. Additional political considerations include wage and work regulations such as industrial safety rules.( M.U.S.E, cec, 2013) You also want to find out if strictly selling online do you want to sell with a company that has already set up both in country and out of country selling laws such as EBay or Amazon? Or try and do it yourself and learn and factor in all legal and laws in the political side of the business.
Economic- factors of a nation are very important as well. For example, whether the economic system of a country is capitalistic or socialistic is very important. Currency exchange rates and the stability of the financial markets are critical factors as well. The general business cycle should also be considered. For example, is the country in a recession or experiencing prosperity? (M.U.S.E, cec, 2013) This would also include price or product to profit vs. economic environment company is trying to sell product/service to. It is very important the economic factors of when, where, and how to know before deciding to launch your idea or product into a sell able market.
Social- What social types are involved and who are the social types you are selling too. Does the social types your selling to also have the same social types around them that you would be employing? If internet to sell can ou reach out to all social cultures through creative marketing?
Technology- What technology will be needed, what are the costs of the technology that will be used, where the company is located, does the technology exist and is it legally allowed to be used? Who will maintain the technology and does it have a ongoing cost?
3) S.W.O.T – Strengths, Weaknesses, Opportunities, Threats The second part of your strategic business plan.
Strengths- What are the strengths of your business? Does it provide something that helps or relieves something for a customer? Would it be a service or product that everyone would want or use, and if not what is your customer base both in country and internationally? Is it a one of a kind product that you have a patent on and that you own the rights too? Is it a product that a larger firm or company might want to buy that would make you an instant million or even billionaire? These would be considered strengths.
Weaknesses- What are the draw backs? What can hurt your business profit and how can you avoid those weaknesses?
Opportunities- what opportunities would your business have and what it has to offer? Does it open doors to new creative ideas after first launch of initial product? Does it help others and possibly nations to give you federal funding? those are some of the kinds of opportunities.
Threats- Who what and why are your companies threats and even your personal threats being owner and CEO of your company. You have to look at your competition, environmental threats (if there are any) your financial threats, and any personal fears our family confrontation there may be with starting up your own business and the tireless hours you put into and use to focus on getting the start up right and competitive.
4) ) Strategic Management- process includes eight steps: (1) identifying the organization’s current mission, goals, and strategies; (2) analyzing the environment; (3) identifying the opportunities and threats in the environment; (4) analyzing the organization’s resources and capabilities; (5) identifying the organization’s strengths and weaknesses; (6) formulating strategies; (7) implementing strategies; and (8) evaluating results. (M.U.S.E, cec, 2013)
5) Support System- You need to have a great support system for you and your company that your starting. This is a valuable resource when you are exhausted from start- up hours, have under lying conditions you never expected when putting your business plan together. Or just need a good “Atta boy” when you need it. There is so many difficulties starting your own business that having support behind you will definitely help get you through.
Can you think of others?
M.U.S.E, cec 2013, class.ctuonline.edu/_layouts/
Costa, C. (2012, May 16).SWOT analysis[Video]. Retrieved from the YouTube Web site: http://www.youtube.com/watch?
Friesner, T. (2012, November 23).PEST[Video]. Retrieved from the YouTube Web site: http://www.youtube.com/watch?
Social factors are also a significant consideration for the new Real Estate agents and brokers’ offices. The population growth, demographics, cultural and shared beliefs of the population influence the real estate sector. The sole proprietor must understand the values and attitudes of the consumers in Naples. This information will help in designing a suitable marketing strategy and message for potential and target customers. According to Florida state economics, the population is increasing with more than 300,000 residential annually. The neighborhoods in Naples with high population density should focus on the new venture since it translates into increased demands for housing. The population growth in this region is forecasted to rise to 22 million by mid-2022 (Toro et al. 2020). An increased housing market trend favors investments in condominiums and single-family households in higher demand in Naples.