Business Plan Is Critical For Business Plan

Length: 5 pages Sources: 3 Subject: Business Type: Business Plan Paper: #58009204 Related Topics: Business Issues, Behavior Plan, Business, Business Case
Excerpt from Business Plan :

Many people have become critics of the ethical standards of many industries, yet many such industries (pharmaceuticals, agribusiness, casinos, tobacco companies) remain highly successful.

Since the definition of ethics is always in the eye of the beholder, it is essential that the business frame the issue of ethics in a proprietary manner. Each firm will choose a slightly different version of ethics to which it will adhere, but that choice must reflect the ethical standards of potential investors and potential customers so as to continue to attract both groups. A business with a clearly thought-out, well-defined code of ethics is more likely to have those ethics permeate throughout the organization. If nothing else, the ethical principles will be consistent throughout the organization, such that management and other stakeholders know what to expect from their employees. That, at least, will provide insurance against the likelihood of an Enron-type situation where nobody knew what the ethical standards where and therefore ended up acting in an entirely unethical manner.

4. Sustainable competitive advantage comes from firm-specific characteristics that provide a competitive advantage that other firms in the industry cannot replicate, best or match. In the resource-based view of strategy, there are a handful of ways in which a firm can generate sustainable competitive advantage -- patents and trademarks, proprietary know-how, installed customer base, reputation of the firm and brand equity (Quick MBA, 2007). Of these, the latter two can be developed through


The firm's reputation can be trumpeted in order to gain broader acceptance in the marketplace. Alternatively, the firm's reputation can be detailed with a marketing strategy that emphasizes awards and customer satisfaction surveys. In either case, the marketing strategy would need to be consistent in its message, and would need to reach potential customers not reachable through the conventional channels.

Marketing strategy can also be built around building brand equity. Brand equity comes from recognition, reputation and recall. The more people are aware of a brand, can recall slogans, understand the products associated with that brand and recognize the reputation that the brand managers have sought to build.

By building a strong reputation and brand equity, a firm can establish a dominant position in the marketplace. For example, no matter how good superior another adhesive bandage might be, consumers will always consider Band-Aid to be the best, giving that brand a sustainable competitive advantage by virtue of reputation and brand equity.

Organizational structure can also be used to create sustainable competitive advantage. This is done by structuring the organization in such a manner as to leverage the organization's proprietary know-how. No matter which organizational structure is chosen, the linkages it creates give the company a specific hierarchy and flow of information than can be used in order to help the company excel in areas where other firms are weak. For example, the centralized command structure of firms like Wal-Mart and FedEx have allowed them to develop consistent excellence of performance that in turn make them very difficult competitors. This has resulted in both company's meteoric rise from obscurity in the past thirty years.

The organization can also use organizational structure to derive sustainable competitive advantage through its value chain. If the structure allows for the firm to push products and services through the different stages of development more quickly or more efficiently than can competitors, this advantage can be sustained. The aforementioned Wal-Mart and FedEx derive considerable value through their logistics, which by virtue of having a centralized structure can be tightly managed across a range of geographies and business units. This allows both firms to control costs, one of the most important elements in deriving a sustainable competitive cost advantage, which can be used to either compete based on price, or to derive higher than average margins.

Works Cited:

Concord Business Development. (2001). Importance. Concord Business Development. Retrieved December 14, 2009 from

Cox, H. (2007). The importance of a business plan. EZine. Retrieved December 14, 2009 from

No author. (2007). Competitive Advantage. QuickMBA. Retrieved December 14, 2009 from

Sources Used in Documents:

Works Cited:

Concord Business Development. (2001). Importance. Concord Business Development. Retrieved December 14, 2009 from

Cox, H. (2007). The importance of a business plan. EZine. Retrieved December 14, 2009 from

No author. (2007). Competitive Advantage. QuickMBA. Retrieved December 14, 2009 from

Cite this Document:

"Business Plan Is Critical For" (2009, December 14) Retrieved April 17, 2021, from

"Business Plan Is Critical For" 14 December 2009. Web.17 April. 2021. <>

"Business Plan Is Critical For", 14 December 2009, Accessed.17 April. 2021,

Related Documents
Business Plan: Bridal Salon Business Products and
Words: 3400 Length: 10 Pages Topic: Business Paper #: 99069137

Business Plan: Bridal Salon Business Products and services Keys to Success Company description Vision Statement Mission Statement Company background Products and Industry Product Description Industry Description The Market Market and Target Customer Market Segmentation Target Market Strategy Competition and Competitive Advantage Curbing Local Competition Curbing Regional Competition Marketing Strategy Overall Strategy Sales Plan Competitive Plan Research and Development (Growth Plan) The Organization Legal and Organization Structure Key Personnel Related Service Providers Location The Financials Critical Risks Income Statement Cash Flow Projection Balance Sheet Assumptions References Executive Summary Introduction Pace-setter is a bridal salon that rides on the theme of 'experience'. It creates an environment in which

Business Plan Product Description Market
Words: 4066 Length: 15 Pages Topic: Business Paper #: 52314183

As part of the research triangle, Raleigh has a significant portion of its population that fits the target market. For the Farmery to succeed, it only needs to capture a small portion of the market share. This is especially true because the store has a small footprint, and has the flexibility to set up on vacant lots without the costs of either renting or developing fixed real estate. The

Business Plans Investment Decisions an Analysis of
Words: 760 Length: 3 Pages Topic: Business Paper #: 25275937

Business Plans Investment Decisions An Analysis of Three Business Plans in Regards to their Riskiness This paper will examine three separate business plans and rate these plans based on the level of risk and the cost of capital that should be awarded to these plans. Of the three plans considered, a plan for an expansion of a coffee production facility in South America carries the least risk. An investment opportunity for a truck

Business Plan Gbsgreen Building Solutions Company Description
Words: 1926 Length: 6 Pages Topic: Business Paper #: 54971039

Business Plan GBSGreen Building Solutions Company Description Product & Service Description Marketing Strategy & Plan Environmental Analysis (SWOT/PEST) Competitive Analysis Products and Services Pricing Promotion People Financial Analysis & Projections Profit and Loss Risks and Assumptions GBSGreen Building Solutions Business Plan According to the Environmental Protection Agency (EPA) the impact of commercial buildings on the physical and social environment are such that there is "not questioning the vast impact…" (Environmental Protection Agency, 2006) Commercial Buildings are reported by the U.S. Department of Energy's Energy Information Administration

Business Plans Marketing Plan and Evaluation the
Words: 2749 Length: 9 Pages Topic: Business Paper #: 97727138

Business Plans Marketing Plan and Evaluation The marketing plan should revolve around the marketing mix. The mix encompasses the four Ps of marketing, each of which will be addressed in turn in this business plan. The four Ps are product, price, place and promotion (NetMBA, 2010). With respect to product, the coffee shop will be a premium example of a coffee shop. Australia has an exceptional coffee culture, so good that it

Business Plan Relating to the Sale of a New Financial Divorce Software...
Words: 6850 Length: 25 Pages Topic: Business Paper #: 96636947

Business Plan for a Financial Divorce Software Business Plan Divorce Software Business Plan relating to the Sales of a new Financial Divorce Software. Business Plan relating to the Sales of a new Financial Divorce Software F F1 F2 F3 G1 G1(a) G1(b) G1(c) Business Identification Keys to Success Company Summary Industry History Legal Form of Ownership Location and Facilities Management Structure Products and Service Market Analysis Target Market Industry Analysis Competitive Analysis Market Strategy Ps of Marketing Price List Selling Strategy Sales Forecast Implementation Strategy Overall Strategy Implementation Control Plan Financial Statements and Projections Revenue and Cost Estimate Forecasted Profit and Loss Statement Forecasted Balance Sheet Financial