Strategic Planning On BIZ Consultants

8/9/2019 Strategic Planning On BIZ Consultants

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Submittted By : ________________

STRATEGIC PLANNNGFor

BIZ CONSULTANTS

Student Name: Tehseen AhmedProject Name : Implementation Of Strategic Management

ProceduresRegistration No. : 1532308004Class : MBA, Evening (5 th Semester)Assigned By: Sir Farrukh MianSubmission Date : 10 th May, 2010.

Preston University, Main Campus. 15, Banglore Town, Shahra-e-Faisal, Karachi.UAN : 021-111-707-808. www.preston.edu.pk


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Acknowledgement

I am thankful to my teacher, Mr. Farrukh Mian, whose encouragement, guidance and support from theinitial to the final level enabled me to develop an understanding of the planning as well as I am thankful tothe Preston University which provide me platform to pursue the studies and exhibit my skills.

Further more, I offer my regards and blessings to all who supported me during completion of the project.

Abstract

Industries of Pakistan suffering substantially losses due to rapidly change in countrys economy. Largeorganizations have capacity in shape of financial strength, skilled manpower and supportive associationsto fight or survive with such hurdles. On the contrary, small and medium size enterprises (SME) areunable to face the problem because of lackness in skills of financial management, strategic planning and

other limited resources.

Considering the above mentioned situation with SMEs, I intend to initiate a business consultancy firm onsmall bases which would be specialized in all aspects of business consultancy, focusing on Small andMedium Enterprises (SMEs).

For planning the BIZ Consultants, I carried out research on feasibility, survival, IFE & EFEs of theconsultancy firms and the future growth of the BIZ Consultant.

Executive Summary

I conducted research on different business consultancy firms already dealing with SMEs for knowing allaspects of this industry as well as the current position of advisory market to initiate plan. I also collectedand analysed the Internal Strengths and Weaknesses and External Opportunities and Threads of theindustry.

Considering detail research and analysis in perspective of Strategic Management I decided to initiate a

Business Consultancy firm till July, 2010. I currently have a team in shape of supportive friends, teachersand partners of the business. Some of them are highly qualified and their expertise in same field madethem haul of success. .

Introduction

To enhance my professional skills/ability on account of Strategic Planning, Financial Advisory, EquityMarket Analysis, Market Research, Accounting and Tax Consultancy, I intend to take step for establishing a

business consultancy firm under name and style of BIZ Consultants for initiating which I already havequalified and experienced team. Initially well focus on Small and Medium Enterprises and our mission isto cover the complete bundle of problems persisting in business circle.

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BIZ Consultants currently consist of 7 members. All the members are all rounder in business consultancy,however, each member is expert in a specific service, providing by the organization.

Vision StatementOur vision is to be the world's best quick solution provider. However, having best means at disposal to

provide outstanding quality, services, comprehensiveness, and profitability to clients, every investor willhave a smiling face."

Mission Statement

We will continue to improve and develop to become the premiere, professional management and consultingorganization, providing our clients with world-class quality business consultancy services customized tomeet their unique needs. Achieving our mission will demand a sense of trust, support, and interdependenceamong these two vital elements of our business:

Our Customers

Our customers are the main source for our existence and we intend to keep them thoroughly satisfied byoperating in a manner that furthers their business interests. By constantly listening and providing continuousfeedback to our customers, we identify their needs and effectively translate these into customer-specificadvisory services. As our highest priority, our work will fully support our clients' business objectives.

Our Organization

The cornerstone of our organization is the dedication and integrity demonstrated by the people we work with. We value our human resources as the major driving force of the business, and provide them with the

best available resources to encourage professional and personal growth.

Objectives

Our primary objectives over the next year are to:

1. Obtain a bank loan of 300,000 to cover the start up costs and initial operating costs for BIZ Consultants.

2. Generate one new client contract a month by networking with key industry leaders and locallending institutions, conducting seminars and workshops for small and medium sized businesses,and joining key business and industry associations.

3. Generate a net profit of 20,000 in the first year by developing a strong client base and keepingoverhead costs to a minimum.

4. Develop and conduct eight business seminars and four business workshops that meet the needs

of the local business community.

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S.No Description Weight Score WeightedScore

External Factors Evaluation

Opportunities

1 Revival in businesses.0.3

0 4 1.20

2 Exempted from Indirect Taxes0.1

0 2 0.20

3 Increasing in SMEs.0.0

5 2 0.10

4 Awarenes of diversificatin to businessmen.0.0

5 1 0.05

5 Low competitive market.0.1

0 2 0.20

Threads

1 Competitors are well known and experienced.0.1

0 4 0.40

2 Untrust of clients on new consultant.0.0

5 3 0.15

3 Tighten economcs policies for investor.0.0

5 2 0.10

4 Least awareness of consultancy for small investor.0.1

0 1 0.10

5 Small businessmen are usually conservative.0.1

0 2 0.20

Total.. 1.00 2.70

Internal Factors Evaluation Strength

1 We have experienced and talented team.0.2

0 3 0.60

2 Smart Marketing Staff to pursue businessmen.0.1

0 2 0.20

3 Office Location0.1

0 2 0.20

4 24 hours on fone advisory service.0.2

0 4 0.80

5 Affiliated with BIZ Consultants, US.0.1

0 3 0.30

Weaknesses

1New business needs to survive by bearing fixedcosts.

0.10 3 0.30

2 Lack of employees for dealing with more clients.0.0

5 4 0.20

3 Power of Image.0.0

5 2 0.10

4 Don't have any renowned customer.

0.0

5 2 0.10

5 Capacity to deal with limited customer at a time.0.0

5 1 0.05Total.. 1.0 2.85

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0

Competitve Profile Marix (CPM)

BIZ ConsultantsCaliber Bus.

Conslt. KPMG

S.No Description Weight Score WeightedScore ScoreWeighted

Score ScoreWeighted

Score

1 Expert Advisors 0.30 4 1.20 4 1.20 4 1.20

2 Market Share 0.10 1 0.10 2 0.20 3 0.30

3 Office Location 0.05 2 0.10 2 0.10 4 0.20

4 24hours telephonice advisory. 0.10 1 0.10 - - - -

5 Quality Services 0.10 2 0.20 2 0.20 3 0.30

6 Goodwilll 0.10 4 0.40 2 0.20 3 0.30

7 Customers Loyality 0.05 3 0.15 2 0.10 3 0.15

8 International Affiliation 0.05 2 0.10 - - 2 0.10

9 Dealing with foreign clients. 0.05 1 0.05 3 0.15 - -

10Chartered AccountancyServices 0.10 - - 1 0.10 2 0.20

Total.. 1.00 2.401

8 2.252

4 2.75

Space Matrix

Financial Strength (FS) Ratings

Profitibiliaty Ratios0.2

0

Return On Equity1.0

0

Financial Leverage0.8

0

Solvency Ratios0.1

5

Break Even0.2

02.3

5Industry Strength (IS)

Increasing in number of investor in pakistan.0.4

0

Exempted from indirect taxes.0.2

0

Demand in international market for advisory.0.5

0

Revival of financial turmoil.0.2

5Business Consultant's industry have good scope within 5 0.1

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years. 01.4

5Environmental Stability (ES)

Higher Inflation causing which increase in interest rates.(0.2

0)Political Turmoil prevailing over thecountry.

(0.40)

Tightened Fiscal Policy.(0.1

5)

Higher Tax Rates for industrialists.(0.0

5)

(0.8

0)Competitive Advantages (CA)

Competitors have big market share due to long position.(1.0

0)

Competitors providing different related services.(0.4

0)

International clients concentrate on well known advisors.(0.2

0)We need great efforts to survive in competitvemarket.

0.30

(1.30)

FS = 2.35 / 5 = 0.47IS = 1.48 / 5 = 0.296ES = (0.80) / 4 = (0.2)CA = (1.30) / 4 = (0.325)

X Axis = ES + IS = (-0.20) + 0.296 = 0.096Y Axiz = CA + FS = (-0.325) + 0.47 = 0.145

0.145

0.096

6

Aggressive

Defensive Competitve

Conservative

CA IS

FS


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SWOT Analysis

Opportunities : Threads :

1.Revival in businesses. 1.Competitors are well known and experienced.2.Exempted from Indirect Taxes 2.Untrust of clients on new consultant.3.Increasing in SMEs. 3.Tighten economcs policies for investor.4.Awarenes of diversificatin to businessmen. 4.Least awareness of consultancy for small investor.5.Low competitive market. 5.Small businessmen are usually conservative.Strength : Weaknesses :

1.We have experienced and talented team.1.New business needs to survive by bearing fixedcosts.

2.Smart Marketing Staff to pursue businessmen. 2.Lack of employees for dealing with more clients.3.Office Location 3.Power of Image.4. 24 hours on fone advisory service. 4.Don't have any renowned customer.5.Affiliated with BIZ Consultants, US. 5.Capacity to deal with limited customer at a time.

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ES


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Q uantitative Strategic Planning Matrix (QSPM)

Strategy # 3 Strategy # 1

S.No Description Weight Score WeightedScore ScoreWeighted

ScoreOpportunities

1 Revival in businesses.0.3

0 4 1.20 41.2

0

2 Exempted from Indirect Taxes0.1

0 2 0.20 10.1

0

3 Increasing in SMEs.0.0

5 2 0.10 - -

4 Awarenes of diversificatin to businessmen.0.0

5 1 0.05 40.2

0

5 Low competitive market.0.1

0 2 0.20 10.1

0

Threads

1 Competitors are well known and experienced.0.1

0 4 0.40 30.3

0

2 Untrust of clients on new consultant.0.0

5 3 0.15 20.1

0

3 Tighten economcs policies for investor.0.0

5 2 0.10 20.1

0

4 Least awareness of consultancy for small investor.0.1

0 1 0.10 - -

5 Small businessmen are usually conservative.0.1

0 2 0.20 - -

Total..1.0

0 2.702.1

0

Strength

1 We have experienced and talented team.0.2

0 3 0.60 40.8

0

2 Smart Marketing Staff to pursue businessmen.0.1

0 2 0.20 40.4

0

3 Office Location0.1

0 2 0.20 30.3

0

4 24 hours on fone advisory service.0.2

0 4 0.80 20.4

0

5 Affiliated with BIZ Consultants, US.0.1

0 3 0.30 - -

Weaknesses

1New business needs to survive by bearing fixedcosts.

0.10 3 0.30 2

0.20

2 Lack of employees for dealing with more clients.0.0

5 4 0.20 10.0

5

3 Power of Image.0.0

5 2 0.10 30.1

5

4 Don't have any renowned customer.0.0

5 2 0.10 10.0

5

5 Capacity to deal with limited customer at a time.0.0

5 1 0.05 - -

Total..

1.0

0 2.85

2.3

5

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Conclusion

Considering the above mentioned data and analysis, we should initiate the plan. Vector of the space matrixlie in aggressive part, mean while, other comparisons are also showing positive forecasted consequences.

QSPM showing our strengthened position in internal assessment while, external factors are a little week which may effect negatively after some time. In CPM, Biz consultants is showing in very much good position than other already existed competitors.

Recommendation

Considering the political turmoil and tough competition in industry, losses may be prevail in future period.

At the same time, recovery of recession is the best chance for financial advisory, where all the investors arewilling to earn higher return to cover the previous losses endured during recession.

My recommendation after reading the brief analysis, is to take a positive step to commence BIZ Consultants by following Strategy # 3, which offer clients a complete bunch of services they need.. Return oninvestment is anticipated higher, if any loss incurred in future, it will not depreciate the amount of investment.

______________________________ Submitted By :

Tehseen Ahmed

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Strategic Planning On BIZ Consultants