Question

open a new small business like frozen pizza, describe 4 types of plans and develop each one for your products

Answer 1

Question) open a new small business like frozen pizza, describe 4 types of plans and develop each one for your products

Answer)

Four types of planning to open a new small business like frozen pizza are:

1. Strategic Planning: Strategic Planning in simple words is to think about where your business is, where you want to take it to and how you want to take it to that level. These are done through the five things mentioned below:

a) Mission: It tells where your business is and what are your value offerings for the target customers. For Example, "We will offer delicious frozen pizzas of top quality, without harmful chemical preservatives, at affordable prices".

b) Vision: It tells about where you want to reach in the long-term of 2 years to 10 years. For example, "We will become the top-three frozen pizza brands in terms of market share in the next five years period".

c) Objective and Goals: It tells about those concrete goals or objectives which if met then will help the business to achieve the above stated "Vision". For Example, "We will garner 20% of the frozen pizza market share in 3 years and 45% market share in the next 5 years period".

d) Values: Those things that the business considers important to ensure the vision is achieved. For example, Respecting Employees, Delighting Customer, Following Processes, Innovating, etc, can be values of the business.

e) Plan: It tells about how this strategic plan is created, reviewed, updated and shared with all those who are concerned. For example, "Every six months, the market share will be reviewed to check the pace towards achieving the Vision".

2. Tactical Planning: This comes after Strategic Planning and is for shorter periods than vision. For example, To achieve 20% of the frozen pizza market share in 3 years, the following will be reviewed on a quarterly basis:

a) Marketing Plan Review: What percentage of outlets have our frozen pizza brand vis-a-vis competition? How many retailers are recommending our pizza brand over the competition? Is our branding effective enough to create a brand-pull? How effective is our mass advertising like TV and Radio in building positive brand imagery?

b) Financial Plan Review: What is the working capital requirement? From where the money will come for meeting operating expenses? When we will break even? What margins we will make after breakeven?

3.  Operational Planning: This answers the questions on day to day, weekly, or monthly aspects that are related to manufacturing, storage, marketing and sales of frozen pizza. For example, How many pizzas we will make daily? How many employees will be required to make these pizzas? How many outlets we will distribute our frozen pizzas? What is going to be a credit period for retailers?

4. Contingency Plan: This is a plan which is created and is used if the above plan is missed. For example, if we are not able to sell the planned number of pizzas daily, then we will reduce the price of pizzas for a short duration to increase trials or issues discount coupons for the next purchase to repeated buyers.