Lesson 7: Feasibility Study

Topic: Feasibility Study

Learning Outcomes: At the end of this module, you are expected to:

 Identify What is a Project Feasibility Study?

 Enumerate the Steps to a Project Feasibility Study
 Understand Business Plans and know How to Develop a Feasibility Plan
 Be knowledgeable with Feasibility Plans for Small Businesses

LEARNING CONTENT

Introduction:

In this lesson, we'll be looking at a project feasibility study, which is one tool that many organizations use to
determine if the costs and risks of a project outweigh the benefits, or if a project is even viable.

What is a Project Feasibility Study?

Before planning any project, you must ask the question - Can this project be successful? If the answer is no,
then the project should not commence. If there is only a very slight possibility for project success, then it is also
unlikely the project should go ahead.

Some questions to ask in order to consider whether a project can be successful include:

 Is it technically possible?
 Is it achievable within budget?
 Will it do what it is supposed to do (e.g. make a profit)?

In order to answer these critical questions, a project feasibility study must be conducted. The project
feasibility study is a document containing a detailed description of the project, followed by a set of different
feasibility areas. These are aspects of the project that will drive the success or failure of the project. This study
will provide the necessary information so that you can decide whether or not your project will begin or whether
it has a shot at success.

ENTR 1013 – The Entrepreneurial Mind | 1

Lesson Proper:

Steps to a Project Feasibility Study

1. Description of the Project - What are the important details of the project?
The project feasibility study should start with the basic details of the project and provide a purpose or
goal for the project.

A project description must include a detailed description of the project scope and what the project will
do and how it will do it. Also included is information regarding the stakeholders; those who have a
vested interest in the project or will be impacted by the project. The description of the project should
contain a relatively detailed timeline and task breakdown, including what will be done, when, and by
whom. It is also important to detail the end result of the project. What will the project produce or create
for the company?

2. Market Feasibility - Does anyone need this product or service?

Does anybody want this product or service? Will anybody use it? Is there a similar product/service
currently available that will prevent project success? If your project assumes customers will pay for use
of a product/service, you must ensure that the market exists.

Where necessary, you must identify a pricing model and ensure similar products/services are not
currently available at a lower price.

If you continue with the project, investing time, money and resources, and nobody pays for the service,
the project will be a failure.

3. Technical Feasibility - Is the project even possible?

Is it even possible to create this product/service? Do you have the necessary expertise or technical
resources (hardware/software)? Does the project rely on 3rd party products that do not already exist?
For example, if your project scope requires a fridge that talks and walks, then your project is unfeasible
since a walking, talking fridge does not exist. Assuming, of course, that a walking, talking fridge is
outside the scope of your current project!

Also, to be considered are logistical or geographical requirements of your project. For example, do you
need resources in foreign countries; do you need bigger buildings?

4. Financial/Economic Feasibility - Do we have the money to complete the project?

You have determined that your project is technically feasible, and there is a market for your product or
service. The next question is - will the project be prohibitively expensive? That is, will there be sufficient
budget for your project? You will need to conduct a primary investigation into how expensive the project
may be.

Sample questions include:

 How many resources will I need?

 How long will it take to create this product/service?
 What additional resources does the project need (cars, software licenses, hardware)?
 A high-level budget is essential in order to determine project feasibility.

5. Organizational/Managerial Feasibility - Do we have the right people to complete the project?

Who will manage and who will work on scheduled tasks? Project feasibility requires matching skillsets
to individuals in order to ensure you have the correct expertise in order to actually do the project. This

ENTR 1013 – The Entrepreneurial Mind | 2

 may introduce other project features; for example, outsourcing, which brings with its additional
operational overhead.

Project feasibility should also be forward-looking. For example, if the project requires continuing management
after it has been completed, those resources must be available.

Business Plans: How to Develop a Feasibility Plan

Developing a feasibility plan is essential for a

new business. In this part of the lesson, we will
discuss the purpose of market research,
competitive analysis, organizational
competence, and financial analysis.

What is a Feasibility Plan?

Melissa is an entrepreneur and has a great idea for a business. The product she is introducing will save all
information from a phone to another small device. Although this sounds like a great business, she must first
develop a feasibility plan.

Determines the issues related to a business and helps decide if the

Feasibility Plan
business has the possibility of succeeding.

Feasibility research is essential because you want to make sure your business can be successful before
putting time and money into something that is not even possible. A feasibility plan's main purpose is to
determine if the company will be at least able to meet the operating expenses.

a. Market Research
Every entrepreneur must do extensive market research to make sure their business idea will be
successful. You will also want to research the target market for the product. A target market is the
demographic of consumers that will purchase a product, which can be separated by age, sex, or
income among other categories. An entrepreneur must also take into consideration if there is an actual
demand for the business venture they want to start.

b. Competitive Analysis
It is important as an entrepreneur to analyze who your competitors are and if you can differentiate
yourself from those businesses by developing features or benefits that will set you apart from the
competition. You want to stand out and want consumers to remember your business compared to your
competition.

c. Organizational Competence
A good example of organizational competence would be a company that continues to stay innovative.
Apple is always introducing new products and technology, which makes innovation an organizational
competence.

ENTR 1013 – The Entrepreneurial Mind | 3

 d. Financial Analysis
The next item that needs to be determined is how much it costs to run the business on an on-going
basis. As a business owner, you want to make sure you are making money and not losing it. Making a
revenue projection will help determine how much money the company will make each month. Every
business must also do a profitability analysis to help learn if they will make enough money to cover any
expenses. It is possible that at first companies may lose some money or break even, but the overall
goal for any business owner is to make sure they are making a profit at some future point.

What's the Purpose of a Feasibility Study?

Rather than just launching into a business idea haphazardly, a feasibility study can help take a budding
entrepreneur from a good idea to a successful business. By examining various components in a feasibility
study, such as a market evaluation and commercial feasibility, a small business owner can figure out if his or
her idea has a good chance of success.

A feasibility study can provide the following benefits before moving on to development and implementation of a
plan:
1. Examining the strengths and weaknesses of a proposed idea

2. Uncovering opportunities and threats in the market

3. Discovering the type of resources necessary to proceed

4. Identifying potential pitfalls for a new venture

Feasibility Study Components

A feasibility study touches on a variety of areas in assessing whether a good business idea has great potential.
A feasibility study commonly includes an analysis and evaluation of these categories:

1. Market feasibility: Perhaps the most important question to ask is: Is there a market for my idea? This
may include looking at the demand for your products or services, why people would purchase your item
over the competitors, your target audience, and how you plan to market yourself.

2. Commercial feasibility: It's always about the bottom line - money. A look at the commercial feasibility
of your proposal will help you analyze financing, from start-up costs to projecting sales figures.
Financial concerns to keep in mind include:

 How much money is needed to begin?

 What type of fixed and variable costs will you have?
 What type of price point can you set for your products or services?
 How much do you project to make?
 What is the return on investment?
 How much money do you need to cover living expenses?
 Are there any adverse economic situations to think about?

3. Other considerations: Market and commercial feasibility are far from the only things you need to
consider when evaluating a small business idea.

ENTR 1013 – The Entrepreneurial Mind | 4

 CORRESPONDENCE LEARNING MODULE
ENTR 1013 – The Entrepreneurial Mind

Lesson: Marketing: Mindset, Market, and Message

Topic: Marketing: Mindset, Market, and Message

Learning Outcomes: At the end of this module, you are expected to:

1. Seize opportunities in the market through a proper mindset for business

2. Understand and identify target markets
3. Create a compelling message based on the brand and image of the business
4. Discuss the importance of the marketing mix and its elements

LEARNING CONTENT

Introduction:

The second gate of the 4-Gate model is marketing, which involves mindset, market and message, to
seize the golden opportunity chosen.

How would you explain marketing? The first few words that usually pop into a person's head are 'marketing
equals sales!' Marketing is NOT just personal selling or even just advertising. Most people define marketing in
a very limited way. Marketing includes activities such as public relations, sales promotion, advertising, social
media, pricing, distribution and many other functions.

Lesson Proper:

One of the biggest challenges for businesses today is attracting customers and keeping them. They do
so through effective marketing.

A Pizza Shop
Let's imagine that you want to open a pizza shop. You live in a suburban area with lots of families, so you know
that the potential market is good. You've got some savings with which to start your business, and soon, you are
the proud owner of a little shop in the center of your town. We'll call it Pizza Pizzazz.

ENTR 1013 – The Entrepreneurial Mind | 5

Fast-forward three months. Your shop is still open, but with each month, your savings are dwindling because
you are not yet making enough profit from your small business to cover all the expenses. You knew it usually
takes about six months to get a business off the ground, but now that the shop has hit its stride, you have
some time to devote to the question at hand: How can you best market Pizza Pizzazz to bring in new business
and generate a profit?

Marketing vs. Marketing Concepts

Marketing is the promotion of business products or services to a target audience. It is, in short, an action taken
to bring attention to a business' offerings; they can be physical goods for sale or services offered. Common
examples of marketing at work include television commercials, billboards on the side of the road, and
magazine advertisements.

But not all businesses approach the need to market their goods and services the same way. In fact, there are a
few different approaches to how marketing can be successful for an organization. These approaches are called
marketing concepts, or a philosophy that determines what type of marketing tools are used by a company.
Marketing concepts are driven by a clear objective that takes into account cost efficiency, social
responsibilities, and effectiveness within a particular market.

Opportunity Seizing
- Entrepreneurs need to have an innovation mindset so they can stand out in the marketplace.
- They need to identify their target market and formulate a compelling message, supported by a market-
ing mix that matches the desired customer bonding strategy that will resonate with the target market.

A thriving business is all about seizing opportunities. However, some business owners do not find it that easy
to seize opportunities, much less see them. Unfortunately, most of us people let opportunity slip-by every day
because we are untrained or unaware of the signals that life throws our way. Other times we see opportunities,
but we do not take advantage of them simply because we feel they are nothing more than problems.

Seizing opportunities: what is an opportunity?

An opportunity is anything that provides you with a chance to change your circumstances for the better. Are
opportunities everywhere? Yes and no. According to Adam Sicinski, “many of the opportunities we come
across are actually disguised as problems or hard work. However, to the untrained eye — unable to see past
the present moment — all opportunities are actually insurmountable problems that make life difficult, stressful
and hard.”

That is where the mistake is made: seeing problems as “problems” rather than challenges that test and
strengthen your determination. “The moment you shift your perspective and begin seeing your problems as
challenges is the moment you begin training your brain to spot opportunities. Problems may very well be
insurmountable. However, a challenge is something you can work with to better your current circumstances.”

As you can see, it is all about your attitude whether there are opportunities for you.

Identify the Target Market

- The more focused the target market definition, the better for the marketing communication group to
know who to send messages to and for the sales force to know who to approach.
- But keep in mind that focus is not the same as having too narrow target market that limits demand and
growth.

If you've ever felt persuaded to buy an item by an ad, you've likely been defined as part of a target market.
Though you may not know it, advertisements are created specifically for people similar to you. Now, you'll learn
how marketing firms identify a target market, create basic target market strategies and use a marketing mix for
a product or service.

Target Market

ENTR 1013 – The Entrepreneurial Mind | 6

A marketing strategy is selecting and describing one or more target markets that a company's product or
service will identify for business opportunities. A target market is a defined group most likely to buy a
company's products or services. This group usually has similar product needs, such as college students who
usually have an appetite for affordable cars, technology products, dorm room goods, etc. Once a target market
is identified by a company, a target market strategy needs to be created in order to decide on how to promote,
communicate and reach the group. There are three ways that a firm can identify target markets.

Identifying Target Markets

The first step is to conduct a MOA (Marketing Opportunity Analysis). This analysis allows companies to
investigate the potential size of the market, profitability potential, and the amount of competition. The next step
is to choose the basic target market strategy. The three strategies for selecting target markets are pursuing
entire markets with one marketing mix, concentrating on one segment, or pursuing multiple market segments
with multiple marketing mixes.

Creating a Compelling Message

Positioning is communicating to overall positive impression of a brand, relative to completion.
There are three points to remember in product and service positioning:
1. It must be relevant
2. It must be unique
3. It must be communicated

Being relevant is about identifying and solving pain points.

Being unique is about creating distinctive value compelling enough to attract customers to buy continuously.
Being unique can come in many ways depending on what is needed by the customers.

Marketing Mix

- It is more popularly known as the 4 Ps of marketing.

- A set of controllable and inter-related variables composed of product, place, price and promotions that
the company assembles to satisfy a target group.
- For service industry, there are three additional Ps namely: physical environment, people and process.

A marketing mix is the perfect selection of product, place, price and promotion strategies used to have mutually
beneficial exchanges with a target market. In the marketing world, a marketing mix is also referred to as the
Four P's. The P's being: product, place, price, and promotion. Sometimes a product will fail because just one
part of the marketing mix is incorrect.

A marketing mix must carefully be created to reach the specific target market that a company is trying to reach.
For example, there is a big difference between McDonald's and Wendy's fast food restaurants. The mixes are
carefully created to cater to cheap packaged food with family fun play areas (McDonald's) and healthier fast
food, fresh burgers made to order and no playgrounds (Wendy's).

a. Product Strategies
The heart of the marketing mix is of course the product or service. It is the beginning point of the entire
mix and strategy. When referring to a product, you also must consider the packaging, warranty, after-
sales follow-up, brand name and company name. After all, eating at TGI Friday's is a big difference
than eating at Morton's Steakhouse. All of these factors come into play when creating a product
strategy. Products can be tangible goods, such as televisions, or services, such as spa treatments.

b. Place Strategies
Where can you get the product or service? Do you need to get in your car and drive to a store? Can
you order it online? Place strategies are all about making the product or service available to the
consumers when they want and need them. Another part of the definition is that place takes into

ENTR 1013 – The Entrepreneurial Mind | 7

 account how the product gets to the consumer through storing, transporting, and delivering. The recent
popularity is for products to be available quickly online. Many brick and mortar stores have been driven
out of business due to the recession and the plethora of online businesses that can reach national
consumers.

c. Promotion Strategies
The third P is promotion strategies. Promotion strategies include personal selling, advertising, public
relations, and sales promotion. Promotion's central purpose is to inform, educate, persuade and remind
consumers about products or services. An effective promotional campaign, such as the recent Old
Spice Guy ads, created a demand for deodorant very effectively.

d. Pricing Strategies
Price is the cost a consumer must pay for the product or service. It is also the most flexible of the P's.
Companies can change the price quickly to react to competitors. When one airline decides to have a
ticket sale, the other airlines immediately react to match or surpass their competitors' offerings.
Sometimes this drives the prices extremely low which ultimately benefits the consumer. Price multiplied
by the number of units equals the firm's total revenue.

e. Implementation and Control

The final part of a marketing mix is the implementation and encompasses how the plan can be
translated into actionable activities. The activities must be achievable and very detailed. The parts
included must be assignment of tasks, activities, timelines, budgets and communication between all of
the corporate departments. Control is a method of evaluating the plan to see if it was successful. Many
companies fail to conduct research on whether the plan worked or not. There are four main reasons
why a marketing plan can fail: unrealistic marketing objectives, inappropriate marketing strategies, poor
implementation, and major environmental changes that a company did not plan to happen.

Role of each Marketing Mix Element

1. Product/Service – To satisfy consumer needs and wants.

2. Price – To make product affordable to target consumers.
a. Mass market – economy premium pricing, meaning slightly higher than economy brands justi-
fied by quality dimensions and additional features but half the price of the very expensive
brands with the same or similar features.
b. Flexible – being the first to market affordable goods.
3. Place – To make product available consistent with consumers; purchasing pattern.
4. Promotions – To build and improve consumer demand. Promotions have four components called the
promotions mix.
a. Advertising – To effectively inform, persuade and remind the target consumers.
b. Sales Promotions – To convince customers to buy immediately.
c. Public relations – To offer a positive image of the company and the brand, as well as an advo-
cacy.
d. Selling – To get the customers to buy.
SERVICE
5. Physical Environment – To create the tangible expression of the brand engaging the senses through
the layout and images of the services cape.
6. People – To show a living representation of the brand promise.
7. Process – To experience how the brand delivers value.

4 Key Questions to ask in Type of Decision Marketing Mix to be used

assembling the marketing mix
1. What do I tell my target The communication channel Advertising
market? decision Public Relations
Selling

ENTR 1013 – The Entrepreneurial Mind | 8

 2. Where can I find my tar- The distribution channel decision Place (distribution)
get market?
3. How will I make my target The sampling decision Promotions
market try me? Price
4. Will my product and ser- The value proposition decision Product
vice be compelling Service
enough to encourage re-
peat and referrals?

VALUE PROPOSITION

1. SUPERIOR – Better than what’s available: HIGH QUALITY – HIGH PRICE

2. PARITY – Same as what’s available: SAME QUALITY – SAME PRICE
3. INFERIOR – Not as good as what’s available: LOWER QUALITY – LOWER PRICE
4. DIFFERENT – Different from what’s available: Can be higher or Lower Price

DEVELOP A BRAND NAME

- Good branding are easy to pronounce, easy to remember and helps in the brand positioning
process.

MARKETING MIX AND PRODUCT LIFE CYCLE

Product Life Product Brand Stage of Amount of Speed in

Cycle Category Awareness Decision Information Decision
Awareness Needed Making
Introductory Low Low Extensive Large Slow
Growth High Low Limited Medium Medium
Maturity High High Routine Small Fast

CORRESPONDENCE LEARNING MODULE

ENTR 1013 – The Entrepreneurial Mind | 9
 ENTR 1013 – The Entrepreneurial Mind

Lesson: Innovation

Topic: Innovation
 4 competencies of an innovator
 How to improve creativity and be an innovator
 6 tips to create an innovation mindset
 Innovating a business model
 5 tips on innovating the business model

Learning Outcomes: At the end of this module, you are expected to:

1. Identify competencies of an innovator.

2. Identify ways on how to improve creativity and be an innovator

LEARNING CONTENT

Lesson Proper:

WHAT IS INNOVATION?

Innovation
- It is about a new way of doing things with commercial success.
- It targets to solve, in a novel way, pain points of customers or non-customers who are willing to pay for
the solution, either through a product or service.
- Instead of asking the typical who, what and how questions, innovators ask who else, what else, and
how else questions to challenge assumptions, change world views and expand possibilities in order to
create new value for both the firm and the consumers.

Copy-pasters beware!!! You can’t

ENTR 1013 – The Entrepreneurial Mind | 10

call yourself an innovator if you

Waters Philippines was launched in 1995. It did not invent installment plans. It also did not invent multi-level
marketing (MLM). But Waters Philippines combined installment selling with MLM for their 3-in-1 Waters Bio
Mineral Pot home water system, a first in the industry, an innovation in its business model

Innovation in product, service or business model can be:

1. Sustaining (small incremental change)

2. Differentiated (not similar with what competitors are offering}

3. Disruptive (creating a new category preferred over existing usage)

*The higher the level of disruption in innovation, the more the innovator should be indifferent to
current rules and best practices, as a successful innovation creates new rules and next practices for
the industry.

Thinking of new ways on how to be innovative is hard. But we

don’t always have to be disruptive. Just like metal straws. There
weren’t any metal straws before, but because they wanted to be
more sustainable, they thought of a way to change how we drink.
Simple but innovative.

ENTR 1013 – The Entrepreneurial Mind | 11

When charcoal-cooked chicken with sauce was the norm, Chooks-to-Go courageously launched a no-sauce
rotisserie chicken in 2009. Bounty Fresh's basic principle when creating new products is "We will do it better,
better than what the market is offering.

No innovation can happen unless there is a new truth or an insight discovered, so entrepreneurs must hunt for
the new truths – what people like or dislike, why they feel the way (motivation), what barriers do they encounter
(tension) and why these are important.

Next we have the competencies that we need

to become a great innovator. Improve on these
and you’ll be on your way.

4 Competencies of an Innovator
1. Creativity – forming a mental image or new idea about the future.

I am a visionary? Am I able to see the big

picture where innovation can reside? Do I
challenge the status quo?

Google keeps improving their algorithm so their search engine will be superior however, Facebook saw
a different truth, that consumers will simply crowd source for recommendations instead of using the
search engine. Both of them have their own truths that cannot be ignored.

Do I understand different processes and approaches to solving

problems? Am I able to generate novel but relevant ideas to solve
problems? • Am I able to get inspiration from various industries or
situations?

2. Critical Thinking – offering unique ways to solve defined problems

ENTR 1013 – The Entrepreneurial Mind | 12

 The sharing economy like Uber and Grab has succeeded as a viable transportation alternative not only
because they understand consumer pain points but also understand car usage, which is only about 5%
of the time the rest of the time, cars are either parked or in traffic.

3. Collaboration – developing relationships with the right partners to attain objectives

Do I understand the jobs-to-be-done? Am I able to define synergy

benefits and share credit with each collaborator? Am l able to have
good interdependent relationships with my collaborators?

Mansmith Young Market Masters Awards (YMMA), the only award in the Philippines recognizing out-
standing young marketers and entrepreneurs 35 years old and below, is officially endorsed by the
Philippine Retail Association and the Philippine Franchise Association. The author's marketing book,
"Principles and Practices in Marketing in the Philippine Setting" has the official endorsement of the
Philippine Marketing Association as well as the Association of Marketing Educators, while this book
"Entrepreneurship" has the official endorsement of Department of Trade and Industry (DTI) of the
Philippines and the Go Negosyo Movement.

4. Communication – engaging constituents to make them understand and accept your message

A m I able to have conversations and listen to the opinions of my

constituents? Am I able to make others see what I can see? Am I
able to get others excited about my idea on solving their problems?

Veteran media industry leader Venus Navalta established IPG Mediabrands in 2015. By 2018, their
billings put them among the Top 5, making them the fastest growing agency in the country. They have
continuously transformed from being a digital agency initially to a full-service marketing communication
agency, and marketing agency. This entails effective communication with different stakeholders, such
as owners, clients, managers and employees

ENTR 1013 – The Entrepreneurial Mind | 13

 Here are some ways on how to improve our
creativity. As you can see, most of these tips are
common day to day activities.

How To Improve Creativity And Be An Innovator

Whether as entrepreneur or intrapreneur, creative thinking can help generate more innovation, a kind of input-
and-output relationship, although being creative does not automatically make one innovative. Creativity is
offering a new idea, while innovation is making the new idea come to life profitably.

A. Knowledge Update – new ideas gained from experience and/or education.

1. Read – to study diverse topics
2. Watch – to observe other categories and industries
3. Online browsing – to do social listening
B. Process – a sequence of steps to attain new ideas
4. Conversations – to have interactions with experts and those with divergent views
5. Think like a child – to be curious and keep asking questions
6. Probe – to do data gathering and look for people’s motivations and deeper meanings
7. Rest and recreation – to have a well-rested mind and welcome ideas with clarity
C. Reflections 0 serious thinking about a particular problem or idea to increase and retain creative profi -
ciency
8. Openness – to listen to the opinions and ideas of others
9. Mind mapping – to have a process of organizing information
10. ME time – to practice tasks and habits regularly
D. Experiences – actual encounters with subjects
11. Inspiration – to be mentally stimulated with different sources like visuals, plays, etc.
12. Travel – to take trips especially in trend hubs, to observe new ideas in other places.

8 Tips To Create An Innovation Mindset

Many companies like to have more innovation, but are dissatisfied with their efforts. Firms wanting
improvement might want to look into their innovation culture. Culture is what people say or do when bosses
are away. This is the real norm in a company

1. Hiring – recruit some people who are non-conformists with uncommon sense instead of acquiring the
usual people with familiar skill sets and common sense.
2. Training – create innovation competency by providing tools, frameworks and methods that are duplica-
ble, ending with an annual innovation tournament.
3. Idea channel and champion – provide employees a “safe place” to have the option to submit to a high-
level innovation executive, if their immediate superior would turn down a major proposal which they be-
lieve has high potential.
4. Behavioral requirement – establish innovation as a pre-requisite for promotion and merit raise on top of
revenue and profit growth.
5. Focus – mull over business model innovation, instead of just product and process innovation.
6. Bottom line – look on long-term effect of market penetration, and not just short-term market shares as a
key performance indicator.
7. Reward and recognition – create a climate where innovation is rewarded or recognized.
ENTR 1013 – The Entrepreneurial Mind | 14
 8. Time – allow specific time for people to work on focused innovation projects during regular work hours.

*** END of LESSON***

CORRESPONDENCE LEARNING MODULE

ENTR 1013 – The Entrepreneurial Mind

Lesson: Business Implementation

Topic: Business Implementation

Learning Outcomes: At the end of this module, you are expected to:

“Organizations are successful because of good implementation, not just good

 business plans.” Identify
what is
-Guy Kawasaki an

Implementation Plan
 List the Benefits of an Implementation Plan
 Understand the key Components of an Implementation Plan
 Understand the Importance of Business Implementation
 Know how to implement Business Plan Objectives

LEARNING CONTENT

Introduction:

ENTR 1013 – The Entrepreneurial Mind | 15

Planning is necessary to map out what you need to do in order to achieve your goals. But without the
execution of those plans, you won’t get anywhere. The implementation of an idea is how you start your journey
towards achieving your goals and eventually reach your destination.

For businesses, an implementation plan plays a crucial role in the development and execution of an idea,
project, or methodology. In fact, the Harvard Business Review reported that companies with an implementation
and execution plan saw 70 percent greater returns than those who don’t have one. But let’s not get ahead of
ourselves. Let’s first quickly understand what is an implementation plan, how do you make one, and how to
execute it successfully? Read on…
Lesson Proper:

What is an Implementation Plan? (Definition)

According to Wikipedia, implementation is the realization of an application, or execution of a plan, idea, model,
design, specification, standard, algorithm, or policy. To put it simply, implementation is the act of executing a
plan, decision, or method. Thus, an implementation plan is the documented steps you need to take to
successfully achieve your implementation pursuits.

Implementation plans are usually made to support the strategic plan created by an organization. Now, what is a
strategic plan you ask? Well, a strategic plan is a document defining the strategy by which your team will
accomplish certain goals or make decisions. Strategic plans are made to guide a business decision, a new
business venture, or an upcoming project or initiative.

ENTR 1013 – The Entrepreneurial Mind | 16

Once an organization has mapped out the strategic plan, an implementation plan is made to map out how to
bring the strategic plan to life. The implementation plan then breaks down tasks into identifiable steps, assigns
tasks and responsibilities to the people involved, and creates a definitive timeline for the entire project.

Therefore, the goal of the implementation plan is to effectively implement company strategy and lay down the
step by step process of bringing the project to success.

What are the Benefits of an Implementation Plan?

The implementation plan puts organizational resources to use and develops a tactical plan to execute the
strategic initiative. It thus plays a huge role in the success of your overall strategic plan. Even if you have the
greatest and an iron-clad plan or strategy, it’s totally pointless if you don’t put the plan into action. Here are
some of the many benefits of an implementation plan:

1. Provides Clarity
Writing an implementation plan gives you better clarity of thought and improves your own
understanding of the project. When you are forced to think things through, you are better able to
document as well as communicate the plan to team members, upper management, and get everyone
on board.

2. Keeps Everyone on Track

Your implementation plan lays down exactly what tasks need to be done, how to do them, who needs to
do them, keeping everyone on board, and removing any sort of confusion or doubtfulness. When
everyone knows what their roles and responsibilities are, it’s easier to stay on track and keep everyone
accountable.

3. Improved Cooperation
Working on projects requires the cooperation and collaboration of many employees. The better the
cooperation amongst team members, the better the synergy and the overall execution.

By creating and communicating your implementation plan, you can not only assign responsibilities to
team members but can also educate them about how their work affects the work of their peers and how
it all fits in the broader organizational vision.

4. Increased Buy-In
When you have a solid implementation plan that is well researched, documented, and presented, you
ensure buy-in from all key stakeholders of your organization. When upper management is on board, it’s
easier to get resources allocated to your project and ensure smooth project execution.

Key Components of an Implementation Plan

Every implementation plan comprises of some key components that need to be analyzed and thought-through
before communicating the plan with your team:

ENTR 1013 – The Entrepreneurial Mind | 17

 1. Outline Goals/Objectives:
Start with defining the goals and objectives of the implementation plan. What do you want to
accomplish? What is the project scope? Why are these goals important? How do these goals fit into the
overall organizational vision and mission?
2. Assign Responsibilities:
Assigning roles and responsibilities provides a clear picture of what needs to be done and by whom.
The clearer you define these responsibilities, the easier it will be to keep people accountable.
3. Implementation Schedule:
Schedules help track, communicate, and keep an eye on progress for your project, keeping all
stakeholders in the loop with what’s going on.
4. Resource Allocation:
One of the main purposes of an implementation plan is to make sure that your team has access to
enough resources in order to execute the plan effectively and without any hiccups. Make sure you know
exactly what you need, how much you already have, and how you will procure what’s needed.
5. Define Metrics:
How will you determine project success? Every implementation plan must identify KPIs (Key
Performance Indicators) to establish how it will measure success and failure. This also allows you to
measure progress and celebrate milestones to keep the team excited.
6. Contingency Plan:
Planning for challenges is as important as planning for success. Make a plan for how your team will
navigate rough waters in case you get over-budget, don’t have enough resources, or are approaching
deadlines. This way you won’t get off-track when challenges arise and you will be able to steer clear of
them easily.

The Importance of Business Implementation

Whether a business is a start-up or already well established, business implementation becomes the
responsibility of all the employees. Implementation is the process of executing a plan or policy so that a
concept becomes a reality. To implement a plan properly, managers should communicate clear goals and
expectations, and supply employees with the resources needed to help the company achieve its goals.

A. Improvement Through Change

The implementation of a plan brings about change meant to help improve the company or solve a
problem. The changes can occur to policies, management structures, organizational development,
budgets, processes, products or services. Since the status quo can be detrimental to a company,
change can help improve the work environment and/or the customer experience.

B. Good Organizational Development

Part of good organizational development involves including all employees in implemented changes.
When a company shares its ideas and goals with workers, the workers will feel a sense of ownership
and loyalty to the company, as well as feel included in something important that is larger than their
respective job descriptions. Making workers feel valued also helps maintain or improve employee
retention. Communicating goals to employees helps encourage participation and can give a plan a
strong start.

C. Increased Interdepartmental Cooperation

When executed properly, business implementation can increase interdepartmental cooperation. It can
be easy for a department within a business to work independently and only rely on another department
when a need arises, particularly in large company. Business implementation helps unite departments,
open the lines of communication, create a diverse culture within the organization and increase
efficiency and productivity. Successful business implementation links performance factors with projects
designed to develop and optimize individual and departmental activities.

D. Setting Clear Priorities

ENTR 1013 – The Entrepreneurial Mind | 18

 As well as communicating goals, business strategy implementation sets clear priorities. Priorities are
generally based on due dates, client needs, financial concerns, worker needs or logistics. Deadlines
help guarantee the implementation of a plan with realistic due dates, but a company must provide its
workers with clear action steps and resources to ensure the success of the plan. Failure to
communicate priorities can cause inefficiencies, miscommunications, worker frustration and low morale.
When priorities or deadlines are realistic, employees feel as if a company is setting them up for
success.

E. Moving a Company Forward

Business implementation is important for moving a company forward, as is not underestimating the
importance of implementation planning. When a business fails to implement and execute its strategies
properly, it fails to move forward and grow. According to website Business Balls, to implement and
execute a plan successfully, there must be "motivational leadership," a plan of action and "performance
management."

Implementing Your Business Plan Objectives

BY DANIEL RICHARDS

Even the most well-thought-out business plan is just a stack of paper if it isn’t coupled with clear guidelines on
your path toward implementing the business plan. Your implementation plan is the section of your greater
business plan, where you’ll:
1. Clarify objectives
2. Assign tasks with deadlines
3. Chart your progress toward reaching goals and milestones

All of these
efforts are
the tools you will use to grow your business.

Defining Clear Objectives

Your objectives should be crystal clear and specifically spelled out since you’ll use them as a building
block for the rest of the implementation plan. For example, let’s assume your startup is a small
consulting firm.

Your objective should be tough but reachable, and could read something like this:

Secure office space and be open for business in three months.

Sign three clients within the first three months of operations.

Sign 10 clients within the first year.

Setting the right goals and objectives for the implementation of your business plan will push you to
show up and perform every day. If you don't set goals that challenge you on a daily basis, it's easy to
stagnate in your business and simply drift along doing ok. Your objectives are where hoping and ideas
are translated into action.

Breaking Them Down into Tasks

This part of your business implementation plan details what must be accomplished, to achieve your
greater objectives. Include a task manager for each step, so that roles are clearly defined, and there is
accountability.

ENTR 1013 – The Entrepreneurial Mind | 19

 As you create well-defined tasks and assignments for yourself, these descriptions should be plainly and
generally stated; don’t get into a step-by-step, micromanaged explanation of how the tasks will be
carried out. Instead, emphasize the expected results associated with these tasks.

Continuing with the above example, the tasks section of your implementation plan
might look like this:

Secure office space – real estate agent

Obtain licenses and permits – you
Set up office phones and computers – office manager
Begin recruiting clients – sales manager
Create marketing collateral – marketing manager
Solicit referrals from clients – relationship manager

This list is very specific to this particular firm and is a brief illustration. You may wish to go into more
details, assigning tasks to yourself such as obtaining financing, networking with prospective clients, and
so on.

Allocating Time
To determine how realistic your implementation plan is, each task must be paired with an appropriate
time frame for completion. Some tasks will naturally take more time than others, so do your best to set
realistic estimates. If you're treading into unknown territory with any part of your plan, it's your
responsibility to do the research, track down instructional resources that'll help you through
implementation, or find a partner, mentor or contractor with more direct experience to help execute.

You should be aggressive but reasonable with your time allocation to ensure not just completion, but
also competent work. For assistance in framing this timescale, use a program such as Microsoft
Project, or create your own Gantt chart – a helpful tool that shows how long it will take to complete
different tasks and in which order the tasks should be finished.

Making Progress
You or a member of your management team needs to be in charge of monitoring each task’s progress
and the completion percentage of each objective if you hope to implement your business plan without
delay successfully.

When delays do occur, however, try to get to the root of the problem. Did the person responsible drop
the ball? Did he or she have too many responsibilities to handle? Did a third party, such as a supplier or
the bank, fail to hold up its end of a deal? Adjust your Gantt chart appropriately to account for the delay,
make a note of the previous deadline and the reason it was missed.

While the above steps may seem like overkill, the early days of implementation in a startup are critically
important; it’s a time when good management patterns are set and also probably a lean era when
revenue has yet to start rolling in. The more efficiently you start implementing your business plan, the
more likely it is that you will survive this early period.

ENTR 1013 – The Entrepreneurial Mind | 20

 *** END of LESSON***

CORRESPONDENCE LEARNING MODULE

ENTR 1013 – The Entrepreneurial Mind

Lesson: Strategy Implementation: Plan, Process & Examples

Topic: Strategy Implementation: Plan, Process & Examples

Learning Outcomes: At the end of this module, you are expected to:

1. Define Strategy
2. Define Implementation
3. Analyze the Real-World Strategy
4. Understand Strategy Implementation
5. Define Innovation Strategy and provide examples

LEARNING CONTENT

Introduction:

This lesson presents the steps necessary for successful implementation of organizational strategies. It will
explain how companies formulate their strategic plan, how the plan is implemented, and appropriate examples
for clarification.

ENTR 1013 – The Entrepreneurial Mind | 21

Strategy Implementation Definition

Let's say that a local hardware store recently experienced a slump in sales and had to lay off two of its
employees. The owner/manager is attempting to come up with a new business strategy to improve his situation
and once again become a market leader. Strategy implementation consists of putting plans in place by
formulating a strategy to achieve the organization's goals and objectives. It can also be described as the way a
business might develop, use, and integrate the organizational hierarchy, systems, and culture to pursue
strategies that will result in competitive advantage and improved performance. In the example, the
organization's goal is increased sales and regaining its market position. The strategy will be specific actions
that will realize the goals.

Lesson Proper:

Definition of Strategy

In the hardware store, the overall objective is known: attract and keep customers, increase sales and improve
performance. The strategy describes how these objectives can be achieved. For the hardware store it could be
increasing promotional events or becoming involved in the local community through public relations.

Why Do We Need a Strategy?

As with our hardware store, organizations need strategies, which assist them with answering specific questions
regarding the goals of a business.

ENTR 1013 – The Entrepreneurial Mind | 22

 There are three 1. Who are the people that make up our target market? This could be local
main questions: building contractors, handymen and homeowners, for the hardware store.

2. What is the value proposition that we will use to differentiate our products and
services from our competitors? This could be the high end brands that we carry
and the quality perception associated with them. Or it could be our on-time
delivery systems and after-sales service.

3. What are the capabilities we have that will assist us with being the best in the
market at delivering that value proposition? This could be our well-trained
employees who are also experts in the construction industry.

Implementation
Even excellent strategies will fail if they are not implemented properly. The following are the steps that must be
followed for successful strategy implementation:

Step 1:
Organizational development (OD) with the potential of carrying out a strategy successfully; for example,
training of employees who will have the capability of carrying out the required activities that will
contribute to fulfilling the strategy. OD refers to the professional development of employees.

Step 2:
Utilizing financial resources to engage in activities that are essential to the strategy. Each planned
event and the associated expenses must be traced directly to the strategy that the organization wants
to realize. So, any activity that does not contribute to the strategy cannot be done.

Step 3:
Formulating company policies that support the strategy. For example, if your strategy includes
improving your human resources, then the company would need policies that help to identify the type of
training needed by each employee, and how the training will be received.

Step 4:
Ensure continuous improvement through superior programs and policies. Superior programs and
policies are those that achieve their objective more completely, and/or, in less time than previous ones.
This improvement therefore, is based on previous information from policies of the past for the particular
organization. To improve a program, the organization must first identify what worked and what did not
work for previous plans, then make changes to come up with a superior plan.

Step 5:
Linking employee rewards directly to their departmental, as well as the company's strategic goals.
Employee goals should be set at both the department and corporate level, ensuring that all
departments are aligned to the overall strategy of the organization.

Step 6:
Utilizing strategic leadership skills: This is a style of leadership that offers employees vision and
direction towards achieving growth and continued success for the organization. All company executives
must receive skills training on effecting change, strategy formulation, and strategy implementation.

Real World Strategy

ENTR 1013 – The Entrepreneurial Mind | 23

There are many organizations that have great strategic plans, but no plan for the implementation process.
Strategy implementation is crucial in order for the strategy to take hold, and bring organizational benefits.
However, some organizations fail to plan the actual implementation:

 60% of companies do not link their strategy to budget decisions.

 75%of companies do not connect employee performance incentives to the strategy.
 86% of business owners are spending less than 60 minutes per month talking about strategy
implementation.
 95% of the workforce do not have a full understanding of their organization's strategy.

Strategy Implementation

refers to the execution of the plans and strategies, so as to accomplish

Strategy the long-term goals of the organization.
Implementation It converts the opted strategy into the moves and actions of the
organization to achieve the objectives.

Simply put, strategy implementation is the technique through which the firm develops, utilizes and integrates its
structure, culture, resources, people and control system to follow the strategies to have the edge over other
competitors in the market.

Strategy Implementation is the fourth stage of the Strategic Management process, the other three being a
determination of strategic mission, vision and objectives, environmental and organizational analysis, and
formulating the strategy. It is followed by Strategic Evaluation and Control.
Process of Strategy Implementation

ENTR 1013 – The Entrepreneurial Mind | 24

 1. Building an
organization, that 2. Supplying resources,
3. Developing policies
possess the capability in sufficient quantity, to
which encourage
to put the strategies strategy-essential
strategy.
into action activities.
successfully.

4. Such policies and

programs are employed 5. Combining the
6. Using strategic
which helps in reward structure, for
leadership.
continuous achieving the results.
improvement.

The process of strategy implementation has an important role to play in the company’s success. The process
takes places after environmental scanning, SWOT analyses and ascertaining the strategic issues.

Prerequisites of Strategy Implementation

 Institutionalization of Strategy:
First of all, the strategy is to be institutionalized, in the sense that the one who framed it should promote
or defend it in front of the members, because it may be undermined.

 Developing proper organizational climate:

Organizational climate implies the components of the internal environment, that includes the
cooperation, development of personnel, the degree of commitment and determination, efficiency, etc.,
which converts the purpose into results.

 Formulation of operating plans:

Operating plans refers to the action plans, decisions and the programs, that take place regularly, in
different parts of the company. If they are framed to indicate the proposed strategic results, they assist
in attaining the objectives of the organization by concentrating on the factors which are significant.

 Developing proper organizational structure:

Organization structure implies the way in which different parts of the organization are linked together. It
highlights the relationships between various designations, positions and roles. To implement a strategy,
the structure is to be designed as per the requirements of the strategy.

 Periodic Review of Strategy: Review of the strategy is to be taken at regular intervals so as to identify
whether the strategy so implemented is relevant to the purpose of the organization. As the organization
operates in a dynamic environment, which may change anytime, so it is essential to take a review, to
know if it can fulfil the needs of the organization.

Even the best-formulated strategies fail if they are not implemented in an appropriate manner. Further, it should
be kept in mind that, if there is an alignment between strategy and other elements like resource allocation,
organizational structure, work climate, culture, process and reward structure, then only the effective
implementation is possible.

Aspects of Strategy Implementation

 Creating budgets which provide sufficient resources to those activities which are relevant to the
strategic success of the business.
 Supplying the organization with skilled and experienced staff.

ENTR 1013 – The Entrepreneurial Mind | 25

  Conforming that the policies and procedures of the organization assist in the successful execution of
the strategies.
 Leading practices are to be employed for carrying out key business functions.
 Setting up an information and communication system, that facilitate the workforce of the organization,
to perform their roles effectively.
 Developing a favorable work climate and culture, for proper implementation of the strategy.
 Strategy implementation is the time-taking part of the overall process, as it puts the formulated plans
into actions and desired results.

What is Innovation Strategy? - Definition & Examples

Innovation strategy is a plan to help enhance technology. Now, we will discuss the use of a successful
innovation strategy, how to be an innovative leader, and how to focus on innovation.

Innovation Strategy
Have you ever wondered exactly what goes into creating an amazing and fun technological device?
Innovation plays a huge role in how products are created. An innovation strategy is a plan used by a
company to encourage advancements in technology or services, usually by investing money in
research and development activities.

An innovation strategy is essential for companies that want to gain competitive advantage. An effective
innovation strategy should be inspiring and add something unique to the product or service being
developed. As a company, you want to increase the value of a current product or create something
brand new that will draw the consumer in.

Innovation should push boundaries and be out of the ordinary. When thinking about innovation, it's
impossible not to think about Apple. Apple has created and continues to create unique products with
tremendous success. The iPhone, iPad, and iWatch have all been innovative products. Although
smaller companies may not have Apple's global success, the beauty of innovation is that you never
know what might happen with a product and the success it can bring your company.

Innovation Leadership
Leadership plays an important part in how innovation occurs in an organization. Innovation leadership
will trickle down from those in charge to other employees. The manner in which messages are
communicated to employees can significantly affect the success of a project. Motivation is also
important because of its impact on how some employees work. For instance, if Josh is a manager who

ENTR 1013 – The Entrepreneurial Mind | 26

 constantly yells at employees, work might be more stressful, employees may be less motivated, and
productivity will most likely go down.

Leadership doesn't only come from upper-level management; it also comes from lower-level managers
and all team members. An effective leader is able to work with different people and mentor them so that
they can achieve their goals. A leader should foster a team environment where individuals have the
ability to network and create ideas together.

Negative Effect on Motivation

The Spitfire Technology Company encourages its employees to work together to help create innovative
ideas. Jason has the leadership role this week but is having difficulty with the responsibility. Jason isn't
encouraging his team and isn't able to work with the different personalities. His team members are
trying to do their jobs. However, Jason's negative attitude has caused them to lose their motivation to
create a new innovative product. If Jason's attitude was more uplifting, he would be able to build a
better relationship with his coworkers and inspire them to create a new product.

Focusing on Innovation
Creating the next innovative product is essential, but it's also important for a company to not lose its
focus. Introducing multiple products at the same time can cause a loss of focus. It can also lessen the
amount of time available to perfect each product. Even technological giants like Apple focus on and
launch a limited number of products at the same time. It's also essential for the company to create
something that's different and unique. No idea is too big when it comes to innovation.

So, let's say that the sales of Spitfire Technology Company have started soaring. The Spitfire
Technology Company developed a new product to launch. They decided to focus solely on a new type
of touchscreen laptop that also has a touchscreen keyboard. Instead of launching multiple products
simultaneously, they decided to make this single launch worth its research and development costs.
Consumers are now focused on this one product and sales are soaring!

Lesson Summary
Let's take a couple of moments to review what we've learned. Strategy implementation consists of putting the
chosen strategy into action to achieve the organization's goals, strategies, and objectives. It can also be
described as the way that a business ought to develop, use, integrate the organizational hierarchy, systems,
and culture to pursue strategies that will result in competitive advantage and improved performance. Even
excellent strategies will fail if they are not implemented properly.

An innovation strategy is a plan made by a company to encourage advancements in technology or services,

usually by investing money in research and development activities. Leadership plays an important role in how
innovation occurs in an organization. Innovation leadership begins with upper-level management and trickles
down to other employees. When creating an innovative product, it's important for a company to remain
focused. Introducing too many products at once can result in loss of focus and the time needed to perfect
them.

*** END of LESSON***

ENTR 1013 – The Entrepreneurial Mind | 27