What's planning?

A plan is a blueprint for the future course of action. In simple words planning is deciding in advance what to do it, how to do it, when to do it, and who to do it Planning is most fundamental function of management. It provides the foundation upon which organizing,staffing,directing and controlling functions can be carried out. Planning involves selecting enterprise objectives, departmental goals and determining the ways of reaching them Need of planning has increased due to frequent changes in technology,tastes,fashions and competitions.

Steps in planning
Being aware of opportunity Making budgets

Setting objectives

Choosing a best alternative

Identifying alternatives

Comparing alternatives with our goals

Example for Planning

Breeze Shoe Company
Consumer wants Goals Product plan Location plan Organizational plan Market plan Risk reduction plan Financial plan

Consumer wants

Basis on Consumer wants

First we need to gather information on consumer wants regarding how they evaluate select the footwear. It developed on three major themes. a. The features or benefits consumers desire when purchasing footwear b. The "negatives" involved with purchasing and/or using footwear c. The respondent's "wish list" for footwear (i.e., those features or benefits they would like their footwear to have).

Features and benefits 1. Quality Arch Support Good Stitching Waterproof Ankle Support Good Soles Durability 2. Comfort Weight Cushioning No Blisters Heel Comfort Traction Shock Absorption Cool Dry Waterproof 3. Performance Rebound Lateral Stability 4. Style Color Brands Looks Fashion

Negatives Stinky Feet Sweaty Feet Bulky Heavy Unattractive Breaking In Not Waterproof Gets Dirty Easy Air Holes crack Materials Rip and Fail Uncomfortable Poor traction Expensive Too Hot Too Warm

Wish list Cool feet Dry Feet Can Regulate Temperature Ventilation Enhanced Circulation No Maintenance Waterproof Get Sole Conforms to foot Comfort Style Quality Low prices

GOALS

Goals of a company

Cool feet

waterproof

comfort

PRODUCT PLAN

About Product

In this shoe company it mainly uses the Breeze technology which is very useful for athletes. About the technology:The technology consists of an active displacement system which induces a positive flow of fresh air into the shoe while forcibly exhausting the warm and moisture-laden air which has collected inside the shoe. The air is replaced entirely once per stride with fresh air from outside the shoe. The resultant cooling and dehumidifying effect on the feet is substantial. Product testing indicates a reduction in the temperature inside the shoe of 7.3F and a reduction in the "heat index" within the shoe by 46F. This has obvious benefits in reducing odor, athlete's foot and other fungal infections. Less obviously, the technology militates against foot fatigue, blistering and discomfort related to the buildup of heat and moisture within the shoe. Benefits of technology:The benefits of Breeze technology include significant cushioning advantages over the existing airbag and gel technologies, allowing the user greater comfort and protection from shock-related injuries. Breeze technology can be used in conjunction with existing cushioning systems to improve the functioning of those systems, and potentially can be custom-adjusted by the user to suit different activities and/or users of different weights. Two additional advantages are offered by the use of nonporous and non-stretching materials. First, if water does enter the shoe from around the ankle, the Breeze technology would actively evacuate the water and ultimately dry the foot. Second, non-stretching fabrics in the shoe's upper will significantly extend the useful life of athletic shoes and other footwear (and the period of peak performance), and thus justify a premium price.

Design of a shoe

The expanded pumping chamber holds 4 1/2 cubic inches of air Similar to the volume of air contained around the foot

EXHAUST The pumping chamber compresses, and the contents is propelled out Through the exhaust. With the exhaust complete the pumping chamber is fully compressed INTAKE The chamber compresses, and fills with heated moist air drawn from around the toes. Fresh air then enters around the top of the shoe.

LOCATION PLAN

Where is the firm should be located at what facilities.

ORGANIZATIONAL PLAN

About CEO(bob)
Robert Craig Brough Year of Birth 1958 Qualifications Bachelor of Laws (Hons) (Bond) Presently a candidate for an MBA (Bond). Responsibilities dealing with legal issues strategic planning marketing providing the vision and leadership to take the company forward

About Operations manager

Timothy Grant Zwemer Year of Birth 1958 Qualifications Master of Business Administration (Bond). Commercial Pilots License (Command Instrument Rated) Responsibilities: managing the commercialization and application of current technologies managing the R&D department of company.

About Financial manager

Peter Gerard Homan Year of Birth 1963 Qualifications Bachelor of Commerce (University of Queensland) Qualified Chartered Accountant (equivalent to US CPA) Presently a candidate for an MBA (Bond). Responsibilities work in preparing complex budgets preparation of business plans business structuring and forward planning taxation and financial law issues

MARKET PLAN

What Breeze Technology Offers the Market

The MARKET WANTS: 1. COMFORT: Cushioning Dry feet Ventilation temperature reduction humidity reduction - odor reduction The MARKET GETS: Air or gel bags Water penetration Passive ventilation - porous fabrics - holes/vents/sandals - odor cures BREEZE OFFERS: Improved cushioning Restricted water entry Positive evacuation of water and humidity Positive ventilation - space-age fabrics - lower temperature - lower humidity - odor prevention

2. PERFORMANCE: Injury avoidance Rebound/energy return Optimal foot support

3. STYLE/FASHION Design Colors Gimmicks Celebrity endorsements 4. VALUE Price Benefits

Structural design Air/gel bags Deteriorating foot support as the shoe ages
Various

Retains all benefits Potential improvements Optimal foot support for longer period
Retains all benefits and offers additional possibilities

Increasing price Minimal increase in benefits

Insignificant increase in price Significant increase in benefit

RISK REDUCTION PLAN

Risk reduction plan

Breeze is aware of the of risks that may threaten the viability of its operation. The following summarizes the main risk reduction strategies implemented: Intellectual property protection via patents, copyrights and design registration (Appendix VII); Patent insurance and a patent defense fund developed income; Injunction readiness, with patent attorneys ready at a moment's notice; License structured to encourage rapid diffusion of the technology; Dividend policy to discourage exit of major shareholders; Continuing discussions with several inventors to develop a diverse portfolio of technological innovations.

FINANCIAL PLAN

Investor plan
Fund Raising The initial seed capital for this business was raised by of a contribution of $700 by each of the three shareholders of Recreation Innovations Inc. to fund investigation of the Breeze proposal. These inquiries illuminated the potential of the venture and were followed by further shareholder contributions of $14,000 each. These funds were used for the development and testing of prototypes, legal and other fees to define and protect intellectual property, establishing legal structure and travel costs. Once the legal structure was established, these funds were converted to share capital in Breeze. To cover further intellectual property and negotiation expenses and to ensure adequate funding reserves for the remainder of the project, Breeze negotiated with a local investor, Gurumbal Pty Ltd, for $70,000 in funding on the following terms: A three year $70,000 bond with a coupon rate of 18%. Monthly interest payments, or to compound at coupon rate, at our discretion. Secured by directors' guarantees of $70,000 and a lien over Director's shares in Breeze. Agreement with the Inventor The technology assignment documentation requires Breeze to commercialize the invention and pay the inventor $1 million within three years and within 30 days of revenues less operating costs, exceeding $l.5 million. If this payment is not made, the original technology will revert to the inventor. Subsequent technical innovations will be retained by Breeze.

Funding uses and general assumptions

The company is raising $1.5 million for the purpose of growth and operations. This funding will cover operating expenses and product development during this period. expenses
Advertising Legal fees

costs
$50,000 $10,000

Office

$40,000

Working capital

$1,00,000

Miscellaneous

$50,000

Sub-total

$2,50,000

Product Development:

$12,50,000

Total

$15,00,000

SUMMERY

summery

What's planning? Example of planning-shoe company:Consumer needs Goals Product plan Location plan Organizational plan Market plan Risk reduction plan Financial plan

Conclusion
Planning is base for every business organization. without planning its difficult to succeed.

THANK YOU

By
Indira Priya Darshini