1. Prepared By:
Ahzilah Binti Wahid
B.A Hons Marketing Management USM
MSc Management UUM

2.  60% - assignment
 30% - presentation
 10% - attendance

3. • Business development means different things to
different people. That's why it is appropriate to define
the term beforehand.
• For some it simply means prospection, to others it can
mean developing a new product or technology, while to
others it can mean investing or divesting corporate
assets.
• All have their own right to claim that their activity is
business development, that's why it is necessary to
dissect the term.

4.  Business development is about bringing discontinuity
into the normal operations of an organization. It's
about bringing, doing or developing new things the
organization didn't do before.
 Business development is a phrase that can be used in
ambiguous ways. Strictly speaking, business
development is the act of identifying, planning to
pursue and pursuing business opportunities in the
marketplace. Business development strategies focus
on creating plans for making a profit by following
specific avenues of business activity.

5. Prospecting
BUSINESS DEVELOPMENT
BASIC Marketing
Financing
Customer
Development

6.  The first step in business development is to
monitor the external environment, as well as the
internal workings of the company in question,
looking for business opportunities. Opportunities
can come in a variety of forms. Perhaps a new
technology promises to change the way an
industry operates. Perhaps a new generation of
youth is fueling growth for new product
segments. Perhaps there is a profitable market
segment that is being underserved by the
business community. All of these signs and more
can reveal solid business opportunities
6

7.  After identifying and selecting an opportunity
to pursue, business planners must create a
marketing plan for developing products and
services, stimulating demand in the
marketplace and getting the products into
the hands of customers.
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8.  Developing a new line of business requires
money. Existing businesses expanding their
operations into a new line of business can
find themselves at an advantage over startups
as they likely have cash on hand and solid
credit reputations to finance new
investments. Smaller businesses must plan
more extensively and pursue a number of
different avenues to obtain the financing
needed to enter a new line of business.
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9.  Developing customers is vital to developing
your business over time. Guide your
customers through first-time purchases, to
repeat purchases and eventually to brand
preference and habitual purchasing to
leverage the power of word-of-mouth
advertising. Turning customers into
champions for your brand by providing them
with exceptional quality and service, as well
as unique and unforgettable experiences,
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10. 10

11.  A business development plan provides guidance
and direction for an organization.
 Business development plans provide guidance to
organizations in purpose, including mission,
vision and values, as well as product or service,
target audience and the strategies they will use
to achieve success. Successful business
development plans include a situation analysis, a
SWOT analysis and clearly outlined goals,
objectives, strategies and tactics. The plan
provides guidance for all members of the
organization.

12. COMPONENTS BDP
Situation Analysis
SWOT Analysis
Goals, Objectives,
Strategies, Tactics

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14. 14

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19.  The beliefs and values shared by people
who work in an organisation
◦ How people behave with each other
◦ How people behave with customers/clients
◦ How people view their relationship with
stakeholders
◦ People‟s responses to energy use, community
involvement, absence, work ethic, etc.
◦ How the organisation behaves to its
employees – training, professional
development, etc.

20.  May be driven by:
 Vision – where the organisation wants to go
in the future
 Mission Statement – summary
of the beliefs of the organisation and where it
is now

21.  May be reflected in:
◦ Attitude and behaviour of the leadership
◦ Attitude to the role of individuals in the
workplace – open plan offices, team based
working, etc.
◦ Logo of the organisation
◦ The image it presents to the outside world
◦ Its attitude to change

22. What corporate
culture do you think
the following
businesses have
managed to develop?
Nike
McDonalds
The Body Shop
Virgin Group
Copyright: Joshua2150,
alexbol
alexallied
fadaquiqa,
http://www/sxc.hu
http://www.sxc.hu

24.  First Stage of Strategic
Planning may involve:
 Futures Thinking
◦ Thinking about what the
business might need to do
10–20 years ahead
 Strategic Intents
◦ Thinking about key
strategic themes
that will inform
decision making Taking time to think and reflect
 “The thicker the planning may be more important than many
document, the more useless businesses allow time for!
it will be” Copyright: Intuitives, http://www.sxc.hu
◦ (Brent Davies: 1999)

25.  The Vision
◦ Communicating to all staff where the
organisation is going and where
it intends to be in the future
◦ Allows the firm to set goals
 Aims and Objectives:
◦ Aims – long term target
◦ Objectives – the way in which you are going to
achieve the aim

26.  Example:
 Aim may be for a chocolate manufacturer
to break into
a new overseas market
 Objectives:
◦ Develop relationships with overseas suppliers
◦ Identify network of retail outlets
◦ Conduct market research to identify consumer
needs
◦ Find location for overseas sales team HQ

27.  Once the direction is identified:
 Analyse position
 Develop and introduce strategy
 Evaluate:
◦ Evaluation is constant and the results of the
evaluation feed back
into the vision

29.  Strengths – identifying existing
organisational strengths
 Weaknesses – identifying existing
organisational weaknesses
 Opportunities – what market
opportunities might there be
for the organisation to exploit?
 Threats – where might the threats
to the future success come from?

30.  Political: local, national and international
political developments – how will they affect the
organisation and in what way/s?
 Economic: what are the main economic issues –
both nationally and internationally – that might
affect the organisation?
 Social: what are the developing social trends
that may impact on how the organisation
operates and what will they mean for future
planning?
 Technological: changing technology can impact
on competitive advantage very quickly!

31.  Examples:
 Growth of China and India as manufacturing centres
 Concern over treatment of workers and the environment in
less developed countries who may be suppliers
 The future direction of the interest rate, consumer spending,
etc.
 The changing age structure of the population
 The popularity of „fads‟ like the Atkins Diet
 The move towards greater political regulation of business
 The effect of more bureaucracy in the labour market

32.  Developed by Michael Porter: forces that shape and influence
the industry or market the organisation operates in.
◦ Strength of Barriers to Entry - how easy is it
for new rivals to enter the industry?
◦ Extent of rivalry between firms – how competitive
is the existing market?
◦ Supplier power – the greater the power, the less control the
organisation has on the supply of its inputs.
◦ Buyer power – how much power do customers
in the industry have?
◦ Threat from substitutes – what alternative products
and services are there and what is the extent
of the threat they pose?

33.  Changing strategy will impact on the resources
needed to carry out the strategy:
 Specifically the impact on:
◦ Land – opportunities for acquiring land for
development – green belt, brownfield sites,
planning regulations, etc.
◦ Labour – ease of obtaining the skilled and
unskilled labour required
◦ Capital – the type of capital and the cost of the
capital needed to fulfil the strategy

35.  Data from sales,
profit, etc. used to
evaluate the
progress and
success of the
strategy and to
inform of changes
to the strategy in
the light of that
Information from a wide variety of sources
can help to measure and inform the impact
and direction of the strategy.
data Copyright: Mad7986, http://www.sxc.hu

37.  Competitive Advantage – something which
gives the organisation some advantage over
its rivals
 Cost advantage – A strategy to seek out and
secure a cost advantage
of some kind - lower average costs, lower
labour costs, etc.

38.  Market Dominance:
 Achieved through:
◦ Internal growth
◦ Acquisitions – mergers and takeovers
 New product development: to keep ahead of
rivals and set the pace
 Contraction/Expansion – focus on what you
are good at (core competencies) or seek to
expand into a range of markets?

39.  Price Leadership – through dominating the
industry – others follow your price lead
 Global – seeking to expand
global operations
 Reengineering – thinking outside the box –
looking at news ways of doing things to
leverage the organisation‟s performance

40. ◦ Internal business level strategies –
 Downsizing – selling off unwanted parts of
the business – similar
to contraction
 Delayering – flattening the management
structure, removing bureaucracy, speed up
decision making
 Restructuring – complete re-think
of the way the business is organised

43. Intrapreneur
Is a person who is innovative and
enterprising within a business? This person
develops new ways of doing things and
identifies new opportunities for business
development.

44. Characteristics of enterprising people
1. Independent - They wish to be in charge and in complete control
2. Confidence – They believe in their ideas & have the confidence to carry them
through
3. Analytical – they collect all relevant information, analyse it, then make
decisions
4. Motivated – they have a high need for achievement & personal satisfaction
5. Ambitious – entrepreneurs do things differently; they come up with new ways
of doing/making things. They use their imagination to do this.
6. Ruthless – concerned with achieving their own aims at any consequence
7. Good communicator – being able to competently relate to suppliers,
customers, employees
8. Leader – get along well with people, able to accept criticism, they can get
people to work together on teams
9. Opportunistic – being on the look out for a gap in the market and seizing the
opportunity.
10. Realistic – they recognise they’re own limitations & seek advice when
needed

45. Skills of an Enterprising Person
1. Inner control – taking control of your own situation, not wanting other to
influence your life.
2. Planning & setting goals – setting both short & long-term goals. Plans must
be drawn up to achieve these goals, i.e. SWOT analysis of a firm
3. Innovation – applying new ideas to situations where they have not been applied
before. E.g. Brainstorming
4. Decision-making – An entrepreneur must be a good decision maker, choices
must be considered, information must be analysed and then a decision made.
5. Human Relation – they must be able to manage people to achieve individual
behaviour that will enhance the effectiveness of the business.
6. Reality perception – seeing things as they really are and being aware of
employee’s and customers needs. There is little point in thinking that customers
are satisfied with the firm’s products if they are dissatisfied.
7. Networking – working with other people and establishing contacts in the
business community with people whose knowledge and expertise might prove
useful

46. 1. It creates new business, with increased employment
2. It brings about an increased standard of living for the
community
3. Local businesses will thrive as workers will have more
disposable money
4. People will then live in the area
5. Other firms will spend more money on raw materials, services
that the area provides
6. It also bring about increased revenue for the govt from the
success of firms, e.g. tax revenue

47.  What is entrepreneurship?
 What is special about small businesses?
 How does one start a new venture?
 What resources support entrepreneurship and
business development?
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48.  Entrepreneurship
◦ Strategic thinking and risk-taking behavior that
results in the creation of new opportunities for
individuals and/or organizations.
 Entrepreneurs
◦ Risk-taking individuals who take actions to pursue
opportunities and situations others may fail to
recognize or may view as problems or threats.
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49.  Entrepreneurs are …
◦ Founders of businesses that become large-scale
enterprises.
◦ People who:
 Buy a local franchise outlet
 Open a small retail shop
 Operate a self-employed service business
◦ People who introduce a new product or operational
change in an existing organization.
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50.  Typical characteristics of entrepreneurs:
◦ Internal locus of control
◦ High energy level
◦ High need for achievement
◦ Tolerance for ambiguity
◦ Self-confidence
◦ Passion and action-orientation
◦ Self-reliance and desire for independence
◦ Flexibility
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52.  Typical
entrepreneurial backgrounds and
experiences:
◦ Parents were entrepreneurs or self-employed.
◦ Families encouraged responsibility, initiative, and
independence.
◦ Have tried more than one business venture.
◦ Have relevant personal or career experience.
◦ Become entrepreneurs between 22 and 45 years
of age.
◦ Have strong interests in creative production and
enterprise control.
◦ Seek independence and sense of mastery.
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53.  Reasons for women becoming entrepreneurs:
◦ Being motivated by a new idea.
◦ Doing for themselves what they were already doing
for other employers.
◦ Seeking a pathway to opportunity.
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54.  Common myths about entrepreneurs:
◦ Entrepreneurs are born, not made.
◦ Entrepreneurs are gamblers.
◦ Money is the key to entrepreneurial success.
◦ You have to be young to be an entrepreneur.
◦ You must have a degree in business to be an
entrepreneur.
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55.  Small businesses …
◦ Ones with 100 or fewer employees.
◦ Independently owned and operated.
◦ 50 percent of the private labour force works
in small businesses.
◦ Are established by:
 Starting a new business.
 Buying an existing business.
 Buying and running a franchise.
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56.  Entrepreneurship and the Internet …
◦ The Internet offers numerous entrepreneurial
opportunities.
 Online buying and selling
 Dot-com businesses
◦ Businesses are limited only by personal creativity.
◦ Business-to-Business (B2B) ventures are possible.
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57.  International business entrepreneurship …
◦ Provides strategic opportunities for small
businesses.
◦ Creates exporting and importing opportunities.
◦ Supported through appropriate governmental and
non-governmental organizations.
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58.  Family businesses …
◦ Owned and financially controlled by family
members.
◦ Largest percentage of businesses worldwide.
◦ Can provide an ideal business situation.
◦ Problems unique to family businesses:
 Family business feud
 Succession problem
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59.  Reasons for small business failures:
◦ Lack of experience
◦ Lack of expertise
◦ Lack of strategy and strategic leadership
◦ Poor financial control
◦ Growing too fast
◦ Insufficient commitment
◦ Ethical failure
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61.  Important issues in new venture creation:
◦ Does the entrepreneur have good ideas and the courage to
give them a chance?
◦ Is the entrepreneur prepared to meet and master the test of
strategy and competitive advantage?
◦ Can the entrepreneur identify a market niche that is being
missed by other established firms?
◦ Can the entrepreneur identify a new market that has not yet
been discovered by existing firms?
◦ Can the entrepreneur generate first-mover advantage by
exploiting a niche or entering a market before competitors?
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62.  Questions that keep a new venture focused on its
customers …
◦ Who is your customer?
◦ How will you reach key customer market segments?
◦ What determines customer choices to buy or not buy your
product/service?
◦ Why is your product/service a compelling choice for the
customer?
◦ How will you price your product/service for the customer?
◦ How much does it cost to make and deliver your
product/service?
◦ How much does it cost to attract a customer?
◦ How much does it cost to support and retain a customer?
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63.  Life cycle of entrepreneurial firms
◦ Birth stage
◦ Breakthrough stage
◦ Maturity stage
 Each stage poses different managerial
challenges and requires different managerial
competencies.
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66.  Basic items that should be included in a business
plan:
◦ Executive summary
◦ Industry analysis
◦ Company description
◦ Product and services description
◦ Market description
◦ Marketing strategy
◦ Operations description
◦ Staffing description
◦ Financial projection
◦ Capital needs
◦ Milestones
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67.  Forms of legal ownership
◦ Sole proprietorship
◦ Partnership
 General partnership
 Limited partnership
 Limited liability partnership
◦ Corporation
◦ Limited liability corporation (LLC)
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68.  Financing the new venture
◦ Sources of outside financing
 Debt financing
 Equity financing
◦ Equity financing alternatives
 Venture capitalists
 Initial public offerings
 Angel investors
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69.  Promoting entrepreneurship in large
enterprises
◦ Intrapreneurship
◦ Skunkworks
 Business incubators
 Small Business Development Centers
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70.  Prepare a business development plan either take a company where you work or you create a
new company.
 Assignments shall be made in the class and all are required to make a presentation of the
respective business development
 Basic items that should be included in a business plan:
◦ Industry analysis
◦ Company description
◦ Mission
◦ Vision
◦ Product and services description
◦ Marketing Plan
 Customer Profile
 Competitor
 Promotion
 Pricing
 SWOT Analysis
◦ Operations Plan
 Production
 Staff operation and training
 Product Design and development
◦ Financial projection
 Profit and loss projection
 Cash flow forecast
 Capital Needs
◦ Milestones
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