Virtual Enterprise: Management Function, Marketing, SWOT Analysis, and Discussion of Business Risks Matt Schaffnit & Teri Jones July 2015 Agenda Management Function Marketing Plan Marketing Mix SWOT Analysis Discussion of Business Risks -1- Management Function Budgets, Ordering Sales Goals Invoicing Marketing Financial Direction R&D Hiring Organizing Warehouse & Delivery Supervision Mgt Assistance Executive Assistance -2- Product Packaging Ad Art Website Design & upkeep Tech Support -3- The Iterative Business Process Learn Build Measure -4- Consistency is Key! Mission Brand -5- Image Components of the Marketing Plan Industry Analysis (Real & Virtual) Target Market Market Segmentation Competitive Analysis -6- The Marketing Mix The Five P’s Positioning Product Placement Price Promotion -7- What’s Your Value Proposition? The Why of Your Business -8- Marketing Plan: Advertising Real Word Virtual World -9- Marketing Plan: Branding/Brand Image - 10 - Target Market Driven - 11 - Market Segmentation • Laid-Back • Flirt-Seeker – 15-18 years old, – middle to low income – Urban or rural – Seeks opportunity to take a break – 15-18 years old, – middle to high income – City or urban – Looks for flirtatious opportunities • Retail/Spas: • Judges/Coordinators – High stress, income – VE, Real - 12 - Marketing Plan: Promotions & Sales Support How can you measure this? - 13 - Marketing Plan Remember the budget… Cost Impact Sales Impact (Indirect) (Direct) - 14 - Elements of SWOT Analysis SWOT Analysis helps answer a simple question: How well can a company compete? POSITIVE NEGATIVE INTERNAL Strengths Weaknesses EXTERNAL Opportunities Threats - 15 - Strengths and Opportunities Strengths Opportunities (Internal) (External) What is a strength? An opportunity? - 16 - Weaknesses and Threats Threats Weaknesses (External) (Internal) What is a threat? A weakness? - 17 - Walkthrough SWOT Analysis Initial Approach: Where to start? What do you know about Starbucks? - 18 - What factors affect Starbucks: Competitors? Product Costs? Economy? Walkthrough SWOT Analysis Weaknesses (Internal) Strengths (Internal) - 19 - Walkthrough SWOT Analysis Opportunities (External) Threats (External) - 20 - SWOT Analysis & Business Risks - 21 - SWOT Analysis: Company’s Response So, what do you do with SWOT Analysis? INTERNAL EXTERNAL POSITIVE EXPLOIT NEGATIVE REMEDY Strengths Weaknesses Opportunities Threats - 22 - SWOT Analysis: Using the Results - 23 - Addressing Business Risks How did you handle reality? How did you address deviations from the plan? What did you learn? - 24 - Addressing Market Realities Companies must listen to their market, but remember when to follow instinct. “Point” Counterpoint This is especially relevant for new VE firms. - 25 - Discussion of Business Risks “No plan survives contact with the enemy.” - Helmuth von Moltke The Elder (1800-1891), Chief of Staff, Prussian Army - 26 - Discussion of Business Risks Students must connect between…. Past Present (Business Plan) (Annual Report) "In the business world, the rearview mirror is always clearer than the windshield.“ -Warren Buffett - 27 - The Iterative Business Process (Reprise) Learn Build Measure - 28 - In Conclusion “It’s better to be roughly right than precisely wrong” - John Maynard Keynes Matt Schaffnit – mschaffnit@gmail.com Teri Jones – tjones@veinternational.org - 29 -