The behavior of the negotiators, as well as the result of the negotiation, are closely related to certain strategic models in which information is incomplete and uneven, and in which the rules of the game and incentive structures, often predefined or imposed a priori, they play a role that is usually more important and decisive than the negotiation itself.
The art of negotiation, if it exists, would consist above all in having the ability to discover and select these models and in acquiring the ability to design or avoid them depending on the set of interests that are at stake in each case. And also in knowing that cooperation is rational and necessary, even from a selfish point of view, and that interests that are different can be made compatible and find simultaneous satisfaction in intelligent agreements obtained through creative negotiation.
Business plan in Latin American entities
The strategic approach is a global, mediate and proactive response to the competitive requirements that are presented to the industry of the region, and as a viable alternative to put our organizations in conditions to face the challenges that insertion in commercial, economic mechanisms means. and international technology.
Below is an example of a Business Plan that may vary depending on what the person preparing the business plan understands:
- Executive summary General description of the company The mission The objectives Description of the business Marketing plan Operational and managerial plan Financial plan Annexes
The components of the executive summary: captures and succinctly presents the essence of the document, the content elements, the project statement with the delimitation of responsibilities, the products and the technology, the potential market and the differentiation elements, the forecast sales, profitability and financial projection and financing needs.
2-General description of the company.
Its content should be aimed in the first place to raise the mission, the objectives, the desired future situation that is nothing more than the vision, where it is exposed what type of company it is, if it is a marketer or producer, the customers it satisfies and where it is It is located, if the business is developed in the national or international market.
3. General description of the business.
It would give an answer to what type of business the entity has or develops, its purpose, the reason that made it start this business, indicating the product or service, the benefits they offer, diagrams, designs and illustrations can be shown with the application of the product if it is used as a complement to other products and when it will be available. What are the competitors and how the product differs from that offered by the competition, the advertising and promotion plans, if you have to finance the growth of the entity, how will you do it.
4- The marketing plan.
Marketing planning consists of the compilation of internal and external facts that reflect the situation that the company will have to face in the field of marketing, state the objectives and obtain lines of action that involve a combination of the available means and the established policies for the achievement of those objectives.
The marketing plan provides a clear vision of the end goal and what you want to achieve on the way to it. At the same time, it provides detailed information on the very important stages that must be covered to get from where you are to where you want to go. Without it, you don't even know if your goals have been achieved.
The structure of the marketing plan:
Executive summary.
It is a summary or synopsis of the entire plan, it includes the definition of the product or service with its differential advantages over competitors, the investment required and the expected results, all of which is expressed in figures of return on investment, sales, profit, market share. It is important when you want to obtain resources for the execution of the plan.
Its main mission is to persuade the reader to read the rest of the plan.
Table of Contents.
The information on each of the topics that interest the reader about the plan, experts in technical issues will be interested in all the technical characteristics of the product or service, if the index does not exist, they will have to look for the information that they can find, fortunately, easy or not so do not forget to use this instrument.
Introduction
It explains the characteristics of the project. The objective of the introduction is to describe the product or service in such a way that whether or not the company is known, you understand exactly what it is proposing.
Analysis of the situation
Known as environmental exploration, it is divided into four parts called market conditions: general conditions, neutral conditions, competitive conditions and company conditions.
The general conditions: are the demand and trends of potential customers to whom the product or service is directed, if it grows, declines or is level.
Neutral conditions: include the financial factor, to what extent the availability of funds affects the situation.
Competition conditions: the main competitors, their plans, experience, know-how, human financial resources, suppliers and especially current and future strategies are presented in detail. The strong and weak points of the competitors are defined and analyzed, as well as the marketing channels they use and everything that may be important in terms of the marketing conditions that will be found when carrying out the project.
Company conditions: describe the company's own position and the resources available to current products, experience, know-how, financial resources, etc.
Measurement and forecast of demand: It is necessary to make precise demand forecasts, these can be used by those responsible for financial management to estimate the cash needs in order to finance investments and the exploitation cycle by the production cycle to estimate capacity and production levels; for the purchase in order to acquire adequate quantities of stocks; for human resources in order to estimate the appropriate staff of workers.
The demand of the company is the share it has over the market demand.
Qi = SiQ
Where: Qi the firm's demand
Si market share
Q total market demand
Overview of a business plan for a company that will offer e-commerce services
Business Description
We plan to provide a full service design, installation and maintenance of e-commerce functions for our retail customers. Our intention is to evaluate the success of each installation and follow up to make the necessary modifications that improve the efficiency of each of the sites.
Target market and customers
Customers will be small businesses that can improve current sales through e-commerce. In general, customers will need sites for the dual purpose of supplying information to customers around the clock and providing them with a sales channel. Potential customers are companies for which e-commerce can represent upsells. The companies will be varied.
Growth trends in the business
The market for this service is growing at an unprecedented rate. According to Morgan Stanley's Mary Meeker, there are 250 million Internet users worldwide today.
Can you document from commercial information sources what the industry growth rate will be? If no industry sources are available, you will need to provide a logical explanation regarding the trend and potential of the market you are targeting. This segment will provide you and your supporters with the information you need to determine whether the market for this product is expanding or contracting.
The vision
Based on the professional experience and the good preparation of the staff who have unique skills that allow them to provide specialized electronic commerce services, a complete insertion in this market is desired, becoming one of the leading companies in this technology. We work with many hardware and software vendors and web designers. Through the resources offered by these professionals, we become familiar with all the aspects necessary for the successful implementation of electronic commerce. We feel a serious commitment to our new company and consider ourselves realistic people who can make difficult but unavoidable decisions.
Business organization
We will operate as a joint venture. Due to the responsibility associated with this type of organization, we are aware of the importance of being insured and we have the intention of procuring the appropriate coverage, as well as the representation of a specialized insurance agent.
Cash flow planning
Attached is an appendix to the one-year flow analysis, which includes estimated sales, all costs, and capital investments. A checklist of all expenses has been included for inclusion in the cash flow projections. (Spreadsheet attached).
Market analysis
There are potential competitors of which we have studied their structure, ability to offer services, functionality, current economic situation, target audience for this service and the characteristics of this audience, all this supported by the preparation of a SWOT matrix to relate weaknesses, threats, strengths and opportunities to objectively target both potential and actual customers and even thinking in the future to become a market leader.
Possible buyers or clients
It is clear that a service product is a complex phenomenon. It consists of a series of elements, each of which must be taken into account by the service manager when managing his organization. Managing a service organization requires a clear understanding of these elements and the relationships and interactions between them. The successful management of a service organization can only be achieved through the sensible integration of the factors that comprise the service from the provider's point of view with the consumer's expectations and perceptions. This is a difficult task, compounded by the fact that few service organizations have only one service. Most of them offer a line of services.
In the analysis of the possible buyers of the service that is offered we have divided the study according to the real needs of each client, tastes and preferences as to how, where, when, at what time, with what quality, they will receive said service, from From here an integrated marketing plan is proposed with the aim of attracting the public.
Competitive position
The competitive position of the entity is not very favorable because it is recently created, however, an integrated work of all the processes that intervenes in the company is carried out, analyzing the flow of each process and combining marketing strategies and plans with the quality standards in order to enter strongly into the competition and to capture a large part of the market.
Negotiation points, Influence on the price
Initially, the ability to influence price will be limited by what the competition perceives for your time. However, it is expected that customer recommendations will consolidate the business and that the services offered will be priced at a slightly higher than average rate. Therefore, it is expected to be able to have some influence on the price thanks to the reputation. Another factor is that if this type of service is not delivered efficiently, it can be very costly for the customer, in which case it will be worthless. On the other hand, if done well, the services are affordable and immensely valuable. By creating this reputation, you must earn good earnings for your work.
Price decisions are of paramount importance in marketing strategy for both consumer and service. In an exploratory study that we carried out in 1989 on some 40 medium-sized companies, manufacturers of consumer goods, it was detected that price, in the opinion of executives, was the most important marketing variable and the one with the highest frequency in decision-making. As with the other elements of the marketing mix, the price of a service must be related to the achievement of organizational and marketing goals.
The price variation will depend on the amount of service that the customer buys, here we classify customers in the same way by the amount of service purchased, establishing an average, maximum and minimum price, this amount will be valued in hours / machine, for example, it is considered by market studies that the average will be 100 hours of service which will have a price of 80 usd, that is 0.80 cents per hour, for service consumers below the average (50 hours) service It will cost 50 usd, that is 1.00 usd per hour, while for those who choose the service of 150 hours or more it will be 100 usd 150 hours, that is 0.66 cents per hour, if the client exceeds this maximum amount they will only be charged.030 cents per additional hour.
Prices should be market-oriented:
Competitive: Accepting the current rate or maintaining or increasing market share through an aggressive pricing policy.
Customer-oriented: Prices set in relation to customer attitudes and behavior. Quality and costs can be varied to stay in harmony with prices.
In addition to the price, different negotiation points will be defined that will be reflected in an official document called a contract, including import or export costs as the case may be, trade margins, date of delivery of the product or service, quality of the same, etc.
Negotiating team
The negotiating team is fully trained to carry out the necessary exchanges with clients and suppliers, it is made up of a project engineer, a salesperson (Bachelor of Accounting and Finance, with high knowledge of marketing) and a Principal Specialist (Bachelor of Law), which will actuate all the legal part.
The entire team is integrated into a continuous preparation system where they are constantly updated on changes in the market, customers and suppliers.
Negotiation Agenda
All the planning and negotiation agenda is dealt with with the senior management of the entity and with the negotiating team, due to the company's own strategy we prefer not to function as hosts, because to carry out all the negotiations we will try to reach the client's place although As a rule, we know that the host will feel more comfortable in their patio and we will be at a disadvantage for not being in ours, but we will use all the techniques already implemented and some of them mentioned in this plan to persuade the client to accept our service.
This agenda will have as a characteristic the detailed description of each client, taking into account the studies carried out on them, with negotiation dates, and a list of all the official documentation to be dealt with in the negotiating exchanges.
Bibliography
Business plan components, Sample plans illustrate required content
Mc Graw-Hill, Desarrollo Empresarial de Monterrey, AC Desarrollo de Emprendedores. A plan for the creation of companies. Interamericana de México, SA de CV
Small Business Administration, The business plan- SBA (in Spanish)
Weinberger Villarán, Karen, How to design a competitive business plan? University of the Pacific, Peru.
Look at attachment in Excel.
