Transcript farmbusinessmgmt3

Business Planning & Market Research on the
Internet
On Business Plans
• Strategic planning is the most important
task for a manager!
• Plan need not be written
• May be required by lenders or other
funding agencies
• The process can benefit from internet
use!
The Planning Process
Think About Taking a Journey
1. Why are you going? – Mission
2. Where do you start? – Situation
Analysis
3. Where are you going? – Objectives &
Goals
4. How will you get there? - Strategies
The Planning Process
Defining Your Mission
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Think about why you are in business
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This reflects your values
•
Reflected in a mission statement
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Use the internet to find example
mission statements
The Planning Process
Situation Analysis
Includes systematic analyses of:
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5.
Industry
Competition
Target markets
Economy
“SWOT”
The Planning Process
Situation Analysis
SWOT Analysis:
1. Strengths
2. Weaknesses
3. Opportunities
4. Threats
Internal Factors
External Factors
The Planning Process
Objectives & Goals
Goals – general statements about longterm targets
Objectives – specific statements about
short-term targets with timeframe
The Planning Process
Objectives & Goals
Example Goal – To increase profits
Supporting Objectives
1. To sell 20% more in 2007 versus 2006
2. To cut cost of production by 15% by
December 31
3. To develop website by April 30
The Planning Process
Strategies
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Strategies indicate how to achieve the
goals and objectives
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As shown earlier, the internet presents
one of many strategies to reach goals
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Monitor strategies along the way
using milestones
The Planning Process
Strategies
Possible milestones for internet
strategies:
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2.
3.
4.
Hits
Contacts generated
New clients generated
Sales generated (Encourage people to
tell you they found you on the web)
Market Research
Industry Analysis
Need to know:
1.
2.
3.
4.
5.
Industry size
How it has changed
How it may change
The primary suppliers and buyers
Its future viability
Market Research
Industry Analysis
Before searching:
– Assess what you already know
– Assess what you need to know
– Think about where to find information
Market Research
Industry Analysis
Possible Internet Sources:
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Professional associations’ websites
Government websites
University websites
Agricultural Marketing Resource
Center (www.agmrc.org)
– Others
Market Research
Market Analysis
Need to know:
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Who and where customers are
What products customers want
What they value
Customers’ purchasing behavior
How customers receive marketing
messages
Market Research
Market Analysis
What to do with this information:
– Develop market segments
– Develop strategies to reach segments
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Website information
On-line catalog
On-line shopping cart
Email notes & newsletter
Market Research
Competitive Analysis
Need to know:
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Who competitors are
How big they are
How they have grown
What resources they have
What segments they target
Market Research
Competitive Analysis
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May be able to find information on
competitors online
•
May want to buy from them online
or in person
Market Research
Economic Environment Analysis
Need to know general economic
conditions:
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Inflation
Unemployment
Growth of economy
Local newspapers and websites provide
this
Market Research
SWOT Analysis
Complete this based upon what you
now know about your company
(strengths and weaknesses) and the
outside environment (opportunities
and threats).
Market Research
SWOT Analysis
•
Build on your strengths
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Address your weaknesses
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Pursue opportunities
•
Avoid threats
Section Wrap-Up
• Business planning is most important
function of management
• The internet can help to assess the
situation – industry, competition,
economic environment
• This is where your internet research
skills can come in handy
• Some research is possible by talking to
people