Creating a Winning E-Business Second Edition, Chapter 3

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专业课项目作业（本质特点和电子商务运营模式 +1-2 个典型案例介绍）——时间确定 1. 网上百货零售的本质特点和电子商务运营模式研究 + The Future of Shopping ， Harvard

Business Review 2011 Dec. ( 若能说清楚一个品类（比如：服装）的供应链问题则更佳 ) ； 2. 社会化电子商务本质特点和运营模式研究 + Harvard 2012 Case"Grameen Danone

Foods Ltd., a Social Business" + "iStockphoto.com-Turning Community into Commerce"

3.O2O 电子商务的本质特点和运营模式研究 + (Christoph Zott, Raphael Amit, and Lorenzo Massa ， The Business Model: Recent Developments and Future Research ， Journal of Management, July 2011; vol. 37, 4: pp. 1019-1042)

4.business model 最新书籍解读（共三章） Mark W. Johnson, Seizing the White Space: Business Model Innovation for Growth and Renewal, Harvard

Business Press; 1 edition (February 22, 2010) Chapter 2: The Four-Box Business Model Framework-Radical Change as a Manageable Process Chapter 3: Designing a New Business Model-Finding an Ordered Structure to Unlock Creativity Chapter 4: Implementing the Model-Taking a New Business Model into Action

Creating a Winning E-BusinessSecond Edition

Creating an E-Business PlanChapter 3

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Learning Objectives

Organize a business plan Prepare an executive summary Write a mission statement Prepare a marketplace analysis Create operational, financial, and management

plans

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Learning Objectives(continued)

Understand legal forms of businesses Describe e-business partnerships

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From Bridesmaid to E-Business

Read the opening case

We should keep in mind Jenny Lefcourt and Jessica DiLullo and their efforts to create an effective business plan.

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E-Business Plan Organization A e-business plan is used to seek funding for an

new or existing e-business. It serves as a “Blueprint” for operations after the

business is founded. Developing a plan takes time effort and thought. Many sources of help for the e-entrepreneur.

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Business Plan Organization(continued)

Business plan components– Cover sheet and title page– Table of contents– Executive summary– Business description– Vision/mission statement

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Business Plan Organization(continued)

Business plan components (continued)– Information on products/services– Industry, customer, competitor analyses– Operational, financial, and managerial plans– Identification of critical risks– Exit strategy

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Business Plan Organization(continued)

Cover sheet– Title of document and preparer’s name– Plan copy number– “Confidential” notation

Title page– Cover sheet information and

• Contact numbers• Key team members’ names• Name of person receiving the plan

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Business Plan Organization(continued)

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Business Plan Organization(continued)

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Business Plan Organization(continued)

Table of contents– Lists all the major sections and subsections of the

plan– Prepared after rest of plan is complete– Carefully checked for omissions and page

number errors

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Business Plan Organization(continued)

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Read the “An Evolving E-business Plan” case. Discuss the following questions:

– What was the original e-business idea that became the Round Table Group?

– Why did the Round Table Group modify their original business plan?

– What business model or models does the Round Table Group follow?

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Business Plan Organization(continued)

Executive summary– A condensed version of the complete plan– Used by interested parties to quickly assess the

business idea and weed out plans– Keep it short (one to three pages)– Use clear and concise language and action

words– Create last after plan details are developed

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Executive Summary An overall view of the entire plan Should highlight key points including the idea, the

competitive situation, the financials and the “players”.

May be used to screen plans by bankers and investors.

Should allow investors to quickly understand and get excited about the unique e-business opportunities being offered

Use clear, concise, and convincing language Two pages long for five minutes of reading

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Business Plan Organization(continued)

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Business Plan Organization(continued)

Vision statement– A formal statement of a business’s hopes and

desires– Written to guide and inspire employees

Mission statement– A formal statement that explains a business’s

reason for existing

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Vision and Mission Statements

An overall statement of the business's goals and philosophy.

Define your purpose Know your intended audience

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how to draft an effective mission statement

Select the targeted audience or audiences. Think carefully about the few meaningful words

that clearly express your message. Brainstorm with family members, friends,

mentors, and others.

visit the Dilbert.com Web site

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eBay.comWe help people trade practically anything on earth. eBay was founded with the belief that people are basically good. We believe that each of our customers whether a buyer or a seller, is an individual who deserves to be treated with respect.

We will continue to enhance the online trading experiences of all -- collectors, hobbyists, dealers, small business, unique item seekers, bargain hunters, opportunistic sellers, and browsers. The growth of the eBay community comes from meeting and exceeding the expectations these special people.

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A Vision Statement of Cisco

Cisco’s vision is that the Internet will transform the way people work, live, play, and learn. Today changes is happening faster than ever before, and Cisco helps companies turn that change into a competitive advantage, by helping them become agile. How? With expertise, a strong network of partners, and superior technology including intelligent network services and scalable architectures. Cisco is the world wide leader in networking for the Internet.

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Business Description

Provides the reader with an outline of the e-business’ background and business concept

Legal form of the business When and where it was formed Its history and its current status Its future goals

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Business Plan Organization(continued)

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Foodlocker.com

Foodlocker.com is intended to be the Internet source for food people want most – the “ food you never forget” but which they cannot find in their local market

The ultimate goal of the company is to be a superlative specialty/regional food retailer on the Internet

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Business Plan Organization(continued)

Products or services section– Description of products or services offered– Anticipated sales for each product or service– Describes benefits of product or service to

customers

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Products and Services A description of each product or service you plan

on offering. Highlight each product’s customer benefits and

address special needs Level of detail is important. Enough for the

reader to understand and not to be confused. Put supporting details in appendix

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Business Plan Organization(continued)

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Foodlocker.com

The company provides foods in three categories Legendary favorites: nationally or internationally

well known Regional favorites: exceedingly popular in their

locals New classics: deserve to be widely recognized

in the future

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Business Plan Organization(continued)

Marketplace analysis– Information about the specific industry of which

business is a part– Description of targeted customers– Description of major competitors– Overview of marketing and sales strategies

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Industry Analysis An industry consists businesses that make or sell

similar, complementary, or supplementary products or services

An analysis of the business environment: size, characteristics, trends, issues, competitors, government regulations,…

Must based on verifiable data and market research.

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Marketing Plan

Helps establish, direct, and coordinate marketing efforts for an e-business

Target market description Demographic, geographic, psychographic, and

consumer characteristics of the market Size of the market Competitive analysis Marketing objectives, tactics, and strategies Marketing budget, action plan, and timeframe

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Marketing Plan Marketing Objectives should be clearly stated,

measurable, and lead to sales. Marketing Strategies describe the features of the

products, and services offered, and pricing strategies.

Marketing Budget is an estimate of the costs for all the activities described in the marketing strategies portion of the plan

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Business Plan Organization(continued)

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http://www.bizminer.com/about.asp#

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Business Plan Organization(continued)

Operational plan– Describes a business’s physical location and

equipment– Notes the manufacturing or service actions

needed to get products/services to market– Summarizes Web site operations

• An e-business plan must incorporate these elements as necessary, but should also focus on Web site operations.

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– For example, an e-business plan should include• a technology section

– technology standards, – hardware – Software– ISP or Web hosting issues– other technology factors

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Business Plan Organization(continued)

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Business Plan Organization(continued)

Financial plan– Explains how your e-business idea, goals, and

strategies translate into profits– Provides standard financial statements for

income, expense, and cash flow data• Pro forma balance sheet• Projected income statement• Planned cash flow statement

– May include “deal plan,” break-even analysis, ratio analysis

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Business Plan Organization(continued)

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Business Plan Organization(continued)

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Business Plan Organization(continued)

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Business Plan Organization(continued)

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Business Plan Organization(continued)

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Management Plan

A strong management team is critical as many investors base their decision on this factor.

The plan should list and describe the experience base and background of the key individuals who will be involved in the day-to-day operation of the firm

The plan should detail those areas that will be outsourced.

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Business Plan Organization(continued)

Management plan– Organizational structure of business– Information on

• Key members of management team• Outside advisors• Mentors• Consultants

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Business Plan Organization(continued)

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Business Plan Organization(continued)

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Issues analysis and Critical Risks

Identifies threats or opportunities faced from outside influences.

These include economic outlook, innovations, environmental and governmental factors.

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Identification of critical risks An issues analysis or risk assessment (or sometimes

SWOT analysis) -contingency plans – Economic changes– Impending product innovations and/or technological

advancements– Environmental changes and government regulations– Barriers to market entry– Legal factors and staffing concerns– Level of managerial expertise among the business’s

principals

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Exit Strategies

How will investors get their money back? Describe long term plans….

– Public Offering (IPO)– Acquisition/merger– Sale to others….

Discussion of these issues adds credibility.

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Legal Forms of Organization There are three basic forms of legal organization for a

firm– Sole Proprietorship– Partnership– Corporation

Complex legal and tax issues are involved; form chosen is highly contingent on individual circumstances. Seek counsel from attorney and accountant.

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Legal Forms of Organization

Sole proprietorship– Business started by an individual– Owner and business are one in the same for tax

and legal liability issues

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Legal Forms of Organization (continued)

Partnership– Legal business entity with two or more co-owners– Follows a partnership agreement– General partnership: Tax and legal liabilities flow

through to individual partners– Limited partnership

• General partner manages and assumes unlimited liability

• Limited partners have liability for amount of their capital contribution and their accepted debt

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Legal Forms of Organization (continued)

Corporation– Separate legal and taxable entity from its owners– “C” corporation owners are it shareholders– Liability is limited to investment in business– Profits are taxed twice: once for the corporation

and again when distributed to owners as stock dividends

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Legal Forms of Organization (continued)

Corporation (continued)– “S” corporation gives owners partnership status

and corporate liability protection Limited liability company (LLC)

– Tax status of sole proprietorship or partnership– Liability status of a corporation

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Business Plan Organization(continued)

Appendices– Resumes– Pictures of products– Explanation of services– Legal documents– Other supporting documentation

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Web site schematics Web page descriptions Pictures of products or a product catalog Resumes for key management team members Complete marketing plan Copies of relevant legal documents (contracts,

letters of intent, incorporation agreements or partnership agreements, patents, and so forth)

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E-Business Partnerships

Strong positive relationships with strategic partners are critical– Partnerships that help build market awareness

• Public relations firms• Marketing consultants

– Partnerships that assist in operations• Suppliers• Distributors• Web hosting companies

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E-Business Partnerships

Many e-businesses establish partnerships with firms in their value chain.

Potential partnerships should be detailed in the business plan.

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From Bridesmaid to E-Business

We should keep in mind Jenny Lefcourt and Jessica DiLullo and their efforts to create an effective business plan.

whether or not Lefcourt and DiLullo made a good decision to pull their business plan out of the competition. Would students make the same choice? Why or why not?

How important was the formal planning process in converting Lefcourt and DiLullo’s e-business idea into a real-world e-business?

How important were strategic business partnerships in the early success of Della.com?

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5 Signs Your Business Plan Will Come Up Short with Investors http://

www.bizplanit.com/free/articles/impress_investors.html

You're Selling What?Too many business plan writers make the incorrect assumption that the reader is as familiar with their business as they are. Unfortunately, this assumption leads to a quick and final "no" from lenders and investors.

"I Sell To Everyone!"Do you? More than likely, you sell to a very specific group with the need and desire to purchase your product or service. Understanding your target market can be the difference between success and failure.

Your Competitors Know You ExistA business plan lacking a comprehensive competitive analysis is destined for the trash can of most investors.

Even Batman Had RobinNo one ever said running a company was easy, and with the lack of hours in a day, a well rounded TEAM of people is often critical to the success of a company.

An Exit Strategy - Without An Exit, Or A StrategyThe lack of a solid and realistic exit strategy demonstrating how investors will accomplish this goal can immediately turn off many sources of capital.

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好的商业计划书需回答“ 3W”

创业者见 VC ，须准备一份 BP ，好 BP 要回答三个 W ：

一、 WHAT ？公司商业模式、产品 / 服务？如何销售、盈利模式？ 二、 WHO ？创始人啥背景、团队情况 / 行业经历？ 三、 WHY ？为何你做比其他竞争对手要好？最后，想融资多少？路演前十分钟结果基本定调。

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Chapter Summary A business plan is used to

– Check feasibility of business– Seek funding– Guide operations

A business plan includes– Cover sheet and title page– Table of contents and executive summary– Marketplace analyses– Operational, financial, and marketing plans

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Chapter Summary(continued)

Business plan appendices can include– Resumes– Pictures of products and information on services– Legal documents– Other supporting details for the overall plan

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Chapter Summary(continued)

Business description should include legal form of business

Business plan should note key strategic partnerships