Project Part 1 Description Spring 2013

Project Part #1 (Presentation 70 points – critique 5 points)
The goal of Part #1 of the project is first and foremost to spark the interest of the
prospective investors reviewing your business proposal. In doing so you will introduce
your product, outline the corporate and business strategies of your company, and show
how these strategies support your product and market niche. Additional requirements of
Part #1 are to forecast your production requirements for the future and to determine your
production capacity needs. You will need to include the following in the Paper and in
1. Mission Statement (8 points)–
 What type of business or class of products will you be involved in?
 What are the demographics of your market niche or customer base?
 What are your organizational values (green orientation, made in America,
 What does the future hold for your organization (specific products)?
2. Customer Benefit Package (8 points)–
 Where did the idea come from for your product?
 Detailed description of your product (diagrams, pictures, etc.)
 Describe your Customer Benefit Package as you exhibit the CBP diagram
 Discuss break even timeline (details later in the presentation)
3. Strategy Development (8 points)–
 Discuss how your environmental scanning (surveys, etc.) led to the
understanding of your market niche
 Discuss customer and market requirements for your product
 What will make your product viable in the market (what catches
the interest of your customer)?
 Order winners- What convinces the customer to buy?
 Competitors and other threats – who/what are they and how will
you overcome them as a threat?
4. Business Strategies/ Core Organizational Competencies (9 points)–
 What competitive priority/priorities will you compete on (2 at most)?
 Cost
 Quality
 Time (speed to customer)
 Flexibility
 Innovation
 What core organizational competency or competencies enable your
organization to compete on your competitive priority/priorities (one for
each competitive priority)?
 How will you support/maintain your core organizational competencies?
5. Product Design (4 points)–
 What preliminary design and testing stages did you go through?
 Describe raw materials and major equipment required to make your
6. Forecasting (16 points)–
 Select an organization from your industry to use as a growth
model….discuss why you selected the company.
 Attach table of last 5 years sales figures
 Attach linear regression formula development and graph
 Attach table of next 5 years forecast for company selected
 Pick and defend a % of their forecasted sales for your 1st five years
forecast Attach table of your forecast
 Demonstrate how you will check your forecasts
 Make up 5 years of actual sales (hasn’t happened, just an
example) to compare to your 5 year forecast
 Attach calculation of MAD and Tracking Signal Explain
meaning of results and potential effect on the way you forecast
 Discuss relevancy of seasonality Attach 1st year as a seasonal forecast if
7. Break Even Analysis (8 points)–
 Describe each below:
 Fixed cost list (annualized for 5 years) discuss highlights
 Variable cost list and selling price
 Break even calculated in units
 Attach break even timeline based on your forecast
8. Production Capacity (4 points)–
 Discuss your plans for production capacity for the next 5 years in
comparison to demand forecast
 Defend the amount of safety capacity you will maintain
 Describe expansion plans if appropriate
9. Presentation Skills (5 points)