E-Business Plan
Tutorial
1
Lesson 1:
Introduction to the EBusiness Plan Tutorial
2
Introduction to the E-Business
Plan Tutorial





Assignments in the course is to create a
business plan for an online company
A step-by-step guide to creating an e-business
plan
To setup a business that will have a major or
entire presence on the Internet
Emphasize strategy-setting activities
Should be treated as a realistic business
exercise
3
Strategy-Setting Activities

Writing the firm's mission statement
Determining a value proposition
Defining the business model
Identifying target markets
Conducting a competitor analysis

Finished in 4 weeks through 20 assignments




4
Example case in the tutorial

We illustrate key points or activities in ten
lessons by referring to Purma Top Gifts.

Purma is a fictitious country, and Purma Top Gifts
is a fictitious online gift shop that proposes to sell
fairly expensive, high-quality products that are
made in Purma.
5
Ten Lessons in this tutorial
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Introduction to the E-Business Plan Tutorial
Fundamentals of E-Business Planning
Writing a "Read Right" Plan
Executive Summary
Business Description
Market Analysis
Competitor Analysis
Operations
Financial Statements
Making an Effective Business Plan Presentation
6
Lesson 2:
Fundamentals of
E-Business Planning
7
What Is a Business Plan?





A road map for the development and operation of
your e-business
A blueprint of your company
An outline of your business idea
A document that describes how your business will
be profitable
Formal Definition: a business plan is a written
document that identifies a company's goals and
outlines how the company intends to achieve those
goals
8
Business Case

A business plan that explains a new initiative
or project inside an existing company


to justify a specific investment of funds to the
company's board of directors and senior
management
Contains more operational detail and fits the
project within the organizational context

justifies the initiative on the basis of the firm's
mission and goals
9
Why Write a Business Plan?







To acquire funding
To acquire other resources
To recruit senior management
To make you a better business owner
To make a realistic approach to your business
To decide not to develop the business
To keep you on track
10
When Do You Need to Write a
Business Plan?

When you need to share a new business proposition
with others

When you are in a strategic planning process

When the previous plan has reached its use-by date

If the original business plan set forth a three-year plan and
the business just celebrated its second birthday, it is time to
write a new plan
.

A business plan is never done

A continuing process
11
The "E-Difference" in E-Business
Planning

The Internet is unlike any other sales channel. Need
to think differently, and creatively, about the
opportunities and problems the Internet presents





The Internet is global
Web storefronts never close
E-commerce is conducted at Internet speed
The Web allows greater opportunities for personalization of
content, one-to-one marketing, and customer self-service
The Internet intensifies customer relationship management
12
Lesson 3:
Writing a "Read Right" Plan
13
Outline



The Importance of Business Plan
Presentation
Introductory Sections of the E-Business Plan
Formatting an E-Business Plan






References
Headers and footers
Page numbers
Fonts, line spacing, and margins
Spelling, grammar, and punctuation
Binding
14
The Importance of Business Plan
Presentation


The business plan may be the first, and only,
introduction to you and your business idea that
the potential investor will see
An attractive and professionally presented
business plan shows that you pay attention to
detail and care about the idea you are
presenting
15
Introductory Sections of the
E-Business Plan




Cover Letter
Title
Table of Contents
Appendices
16
Cover Letter

Typically a cover letter includes :











Your name and contact details.
The date at the left margin.
The name and address of the recipient.
A salutation (e.g., "Dear Mr. Smith:").
A submission paragraph.
A paragraph or two about the plan itself.
A closing paragraph.
A sign-off.
Your signature and your typed name.
A cover letter should be no longer than one page.
Usually the cover letter is enclosed separately from
the plan, but for this assignment it should be
attached to, or bound within, the front of the
business plan
17
Title
The content of the title page includes :






The title.
Your name, company, and contact details.
Who the plan is for.
The current date. Spell this out (e.g., November 4, 2005).
Don't abbreviate.
A statement of confidentiality.
A reminder: do not on this page, nor anywhere else
in this plan, display any indication that this is a
class assignment.


For example, do not include your student identification
number or the title of the e-business course
18
Table of Contents

Only required if this is a large plan.


A guideline to follow is that if the plan exceeds 12 pages,
it needs a table of contents.
Other introductory sections, such as a list of
tables and acknowledgments, are best used in
books and other large documents

They should not appear in your e-business plan.
19
Appendices

Be very conservative in deciding whether you need an
appendix.


For example, should a reader rip away and discard an
appendix, would you fear that your plan is now incomplete ?
If so, that material should not be in an appendix.
Some materials appropriate for an appendix are:




Brief one-page résumés of the owner(s) and senior managers
A detailed competitor analysis to support the summary
analysis in the plan itself.
A complete list of products and/or services to supplement the
highlighted list in the plan itself.
If an overview of the plan is being presented concurrent with
the delivery of the business plan, you can include a copy of
the PowerPoint slides as an appendix.
20
Formatting an E-Business Plan






References
Headers and footers
Page numbers
Fonts, line spacing, and margins
Spelling, grammar, and punctuation
Binding
21
References


Fewer references than a university research
assignment.
Almost all the words in the plan will be your
words, not quotes or ideas taken from other
sources.



This is your plan for a unique business idea
If necessary, integrate the reference into the
report itself
Or cite the source, in full, in a footnote
22
Headers and Footers



Each page should have a header that identifies
that page as part of your e-business plan.
The best way to do this is to put an abbreviated
title (e.g., Purma Top Gifts Business Plan) in the
upper left corner.
Use section breaks in your word processor to
put section titles (e.g., Executive Summary,
Business Description) in the upper right corner
of each page.
23
Page Numbers




Should not begin until the plan begins.
A title page never includes a page number.
If page numbers are required for a Table of Contents,
the Executive Summary, or other introductory
material, they should be non-Arabic numbers (e.g., i,
ii, iii).
Page numbers (e.g., 1, 2, 3) begin at the Business
Description page and continue to the end, including
any appendices.
24
Fonts, Line spacing, and Margins
• An easy-to-read font is essential
• Traditional fonts such as Times Roman and Palatino have
serifs (the little extensions of the line that are especially
prominent on letters such as s and I).
• Serifs help guide the reader's eye across the page, and a
serif font gives a traditional look and feel to your plan.
• A sans serif (without serif) font, such as Arial and
Helvetica, tends to look more modern and contemporary.
• Use a 12-point font size.
•
Because you should not assume the person reading the plan has
eyes as good as yours
25
Spelling, Grammar, and
Punctuation

Misspelled words are one of the biggest turnoffs an
investor can see in a business plan.



Indicate a plan that has been hurriedly finished or a lack of
care, attention, and education by the plan's author.
Avoid misspelled words by using a spell checker, reading
your plan carefully, and asking one or more friends to read
the plan for you.
Proper grammar and punctuation are also critical for
making a positive impression.
26
Binding

At the top end, a professional business plan might
be spiral bound with a clear plastic front cover and a
hard back cover
27
Resources for Writing a
Professional Business Plan




The Business Writer's Handbook, Sixth Edition, (St
Martin's Press, 2000)
The Elements of Business Writing: A Guide to
Writing Clear, Concise Letters, Memos, Reports,
Proposals, and Other Business Documents
(Longman, 1992)
The Wall Street Journal Guide to Business Style and
Usage (Free Press, 2002)
The Publication Manual of the American
Psychological Association, Fifth Edition, (American
Psychological Association, 2001)
28
Lesson 4:
Executive Summary
29
What Is the Executive Summary?

A synopsis of the key points of the entire ebusiness plan.


To explain the fundamentals of the business in a
way that both informs and excites the reader
A miniature version of the e-business plan,
the summary usually contains a key point or
two from most sections of the plan
30
What is not an Executive
Summary




The executive summary is not just a brief
description of the business and its products.
The executive summary is not an outline of
the plan.
The executive summary is not hype.
The executive summary is not a cut-andpaste exercise.
31
Content of the Executive Summary

Write the content of the executive summary with
the intended reader in mind

One effective way to begin the executive
summary is with an interesting and compelling
statement that grabs the reader's attention.

This could be an interesting, very short story, a question,
or a startling statistic. (check the Purma case in the
tutorial)
32
Length of the Executive
Summary

Only one answer to the question "how long
should an executive summary be?


The answer is “short”
The executive summary should be at least one
page and not more than two pages in length.
33
When to Write the Executive
Summary

Start the executive summary in the middle of
the plan-writing process and finish it last

If the executive summary is put off until the last
minute, you are likely to write it in a hurry and not
write a coherent statement of the business plan's
contents.
34
Assignment 1


After you have written the competitor analysis,
draft a one- to two-page executive summary
(you will be reminded of this at the end of that
lesson). Then review and finalize the
executive summary at the end of the tutorial (a
reminder will be included at the end of the last
lesson)
Postponed until you finish assignment for
competitor analysis
35
Lesson 5:
Business Description
36
Outline



What Is the Business Description?
Business Concept
Business Model: Products and Services
37
What Is the Business
Description?

The business description describes the nature and
purpose of the business



To objectively explain and justify your business idea in a
positive and enthusiastic manner
It delivers its content in a straightforward and informative
manner, but with an upbeat and inspirational tone
Includes two sections


Business Concept Section
 Gives the reader the big picture about what the business will
do and how it will succeed
Products and Services Section
 A concise description of what the business will sell or deliver
to the customer
38
Business Concept





Industry Analysis
Mission Statement
Business Goals
Project Objectives
Value Proposition
39
Industry Analysis (1)


An industry analysis defines the industry in
which the business will operate, and uses
reliable and objective data to show the future
prospects of the industry and, by implication, the
business
Sources of information for the industry analysis

Research companies



Dun & Bradstreet, Standard & Poor's Investor
Services, and the Risk Management Association
Trade and industry journals
Government publications
40
Industry Analysis (2)

Don't expect to find perfect information in the time you
have to complete this analysis

Be honest and don't exaggerate
In most e-business plans, the industry analysis
does not have to be very extensive




One page should be enough, perhaps two pages if you
include graphs or tables
An extensive industry analysis may be required for the
following cases

If the industry is new and unfamiliar to the reader, if the
business intends to be a major player in the industry
Also an opportunity to write a "company analysis"
for a business case
41
Mission Statement (1)

Mission statement state the mission of your
business and provide a brief justification and
explanation about the importance of this mission



Perhaps in light of the industry analysis just presented
It may change slightly as you continue to develop your
business idea, but it should also be complete and accurate
enough to guide the formation of goals and the value
proposition that follows
In the business case, mission statement explains
how the e-business initiative will contribute to the
fulfillment of the company's mission
42
Mission Statement (2)


Mission statement is a declaration of what a
business aspires to be
It is also an important exercise because the
mission statement appears early in the plan
and is a starting part for defining the business
and writing the plan
43
Mission Statement Lesson

Outline

What Is a Mission Statement?



Mission Statement Characteristics
Mission Statement Examples
How to Write a Mission Statement
44
What Is a Mission Statement?

Mission statement is a declaration of what a
business aspires to be




The business's reason for being,
A proclamation of why it exists,
A clarification of who it serves, and
An expression of what it hopes to achieve in the
future
45
Writing a Mission Statement

Helps clarify the following questions




What business are we really in?
What type of business do we want to be?
What is our target market?
What inspires us?
46
Characteristics of Mission
Statement (1)

Visionary


Broad


Contain wording such as “to be the best” “the highest quality”
Should not limit a company’s area of service. Especially in
the fast-paced world (Classmates.com)
Realistic


Does it overpromise? Does it give any indication of what the
e-business is about?
Microsoft changed its mission statement from "To empower
people through great software—any time, any place, and on
any device" to "To help people and businesses throughout
the world realize their full potential."
47
Characteristics of Mission
Statement (2)

Motivational


Short and concise



Inspires commitment among employees,
customers, partners, and funding agencies about
what this company will do or produce
No longer than 25 words
Fit on a T-shirt (Peter Drucker)
Easily understood

Use plain language that is convincing and easy to
understand

Grandmother test
48
Mission Statement Examples (1)

McDonalds: “ To be our customers’ favorite place
and way to eat.”

J. Sainsbury: “At Sainsbury’s we will deliver an ever
improving quality shopping experience for our
customers with great product at fair prices. We aim
to exceed customer expectations for healthy, safe,
fresh and tasty food making their lives easier every
day.”
49
Mission Statement Examples (2)

Levi-Strauss: "We will market the most appealing
and widely worn casual clothing in the world. We will
clothe the world."

OHCHR(聯合國人權事務高級專員公署): "The mission of
the Office of the United Nations High Commissioner
for Human Rights (OHCHR) is to protect and
promote all human rights for all.“

Success Networks: "Our mission is to inform,
inspire, and empower people and organizations
to be their best—both personally and
professionally."
50
How to Write a Mission
Statement (1)

Resource



The Mission Statement Book: 301 Corporate Mission
Statements from America's Top Companies
Obtaining a Mission Statement is an inclusive task
In the beginning, brainstorming



List 5 to 10 words or phrases that describe your business
List 3 to 5 words or phrases that describe the company's
ideal image from a customer's point-of-view.
List 3 to 5 words or phrases that describe the company's
ideal image from a management and employee point-ofview
51
How to Write a Mission
Statement (2)

Temper (鍛鍊) the vision from brainstorming with a
focus on the purpose of the business:




List the market opportunities and/or customer needs
that your company intends to address (value
proposition)
Who are your customers? List the company's primary
and secondary target markets (target market)
With your customers in mind, list each service or
product your business will provide
List 3 to 5 measures of your business' success
52
How to Write a Mission
Statement (3)

Writing the statement in a group exercise can be
difficult


Each member of the group should write a draft
statement to share with others
If no perfect one, settle on an imperfect
statement and come back later
53
Handling of Mission Statement

May produce more than one mission
statement



Some could be used in business goals, and
subsequent lessons
Some could be a good motto, slogan,…..
May have two mission statements


One for external, and
One internal mission statement for employees

Example: McDonald’s orientation for employee "quality,
service, cleanliness, and value"
54
Assignments (4/21 報告)


Assignment 2: Identify the industry within
which your e-business will operate and write
an industry analysis
Assignment 3: Draft a mission statement for
your e-business. Include a paragraph or two
that explains or justifies the mission statement
55