Strategic Business Planning: Models, Metrics, and Sustainability

Sustainable Development Goals (SDGs)

Purpose of Sustainable Development

1. Reduce inequalities.
2. Caring for the environment.
3. Promote collaboration between social agents (productive agents).

Five Dimensions of the SDGs

The SDGs are "unique and special" in at least five dimensions:

1. All countries participate.
2. Target three dimensions: environmental, economic, and social.
3. All kinds of partners are involved.
4. Institutionally integrated.
5. More visible in public discourse.

Key Sustainability Metrics for Profitability

• Energy Efficiency and Cost Reduction
• Waste Reduction
• Water Efficiency
• Supply Chain Sustainability
• Brand Reputation
• Regulatory Compliance
• Productivity and Employee Engagement
• Innovation and New Product Development
• Carbon Footprint Reduction
• Return on Investment (ROI)

Current Consumer Trends

1. Digitalization in Consumption: The shift towards online purchasing and digital interaction.
2. Sustainable and Conscious Consumption: Prioritizing ethical and environmentally friendly products.
3. Customization and Individualized Experiences: Demand for tailored products and services.
4. Health and Wellness: Rising priorities for consumers.
5. Increasing Influence of Technology: Technology shaping purchasing decisions and habits.
6. Influence of Generation Z: Gen Z driving new market trends.
7. Local Consumption: Support for small businesses and locally sourced goods.

Product Development Models

• Waterfall Model
• Agile Model
• Lean Startup Model
• Design Thinking Model

The Lean Startup Development Model

1. MVP – Minimum Viable Product (Producto mínimo viable)
2. Customer Development (Desarrollo del cliente)
3. Continuous Deployment and Delivery (Entregas continuas)
4. Split Testing (Pruebas divididas)

The Design Thinking Development Model

1. Stage 1: Empathize
2. Stage 2: Define
3. Stage 3: Ideate
4. Stage 4: Prototype
5. Stage 5: Test

Components of the Lean Canvas Model

1. Problem
2. Customer Segment
3. Unique Value Proposition
4. Solution
5. Channels
6. Revenue Streams
7. Cost Structure
8. Key Metrics
9. Unfair Advantage

Structuring a Comprehensive Business Plan

A robust business plan typically includes the following sections:

1. Executive Summary
2. Business Concept
3. Market Analysis
4. Marketing Plan
5. Sales Plan
6. Production Plan
7. Organizational Plan
8. Financial Plan

1. Executive Summary Components

• Introduce the purpose of the plan.
• Provide the company description.
• State the customers' problem and how you will solve it.
• Outline market analysis findings.
• Define your business model.
• Provide an overview of your marketing and sales strategies.
• Mention the team hired or to be hired.
• Include a financial summary and funding requirements.

2. Business Concept Details

1. Business structure: Sole or shared ownership.
2. Business size: Micro, small, or macro business.
3. Economic sector: Primary, secondary, or tertiary.
4. Economic activity: Manufacturing, commercial, or service.
5. Scope of activity: Where and how far you will operate.
6. Business model: Description of the chosen model (e.g., one of 13 common types).
7. Product or service brief description.
8. Business key information: Branding, background, etc.
9. Business team: Main business manager and key personnel.

3. Market Analysis Requirements

1. Market landscape assessment.
2. Identify your competitors.
3. Test market products or services.
4. Analyze competitors' marketing mix.
5. Determine differentiators.
6. Perform a SWOT analysis.
7. Conduct customer segmentation research.

4. Key Elements of the Marketing Plan (The 8 Ps)

• Product
• Packaging
• Price
• Place
• Promotion
• People
• Placement
• Physical Evidence

5. Sales Plan Components

• Vision and sales objectives
• Customer segments
• Allocation of sales objectives
• Sales staff requirements
• Sales process definition
• Stakeholder involvement
• Sales metrics tracking

6. Production Plan Essentials

• Forecast and match product demand with required capacity.
• Map out production steps.
• Build a production planning and scheduling system.
• Monitor and control performance against metrics.
• Define production staff needs.

7. Organizational Plan Structure

• Corporate structure
• Ownership details
• Executive team
• Board of directors

8. Financial Plan Documents

• Income Statement
• Balance Sheet
• Cash Flow Statement

Common Business Planning Mistakes

• Bad business idea
• No exit strategy
• Unbalanced teams
• Missing financial projections

Detailed Business Concept Definition

1. Business Structure

   • Sole Proprietorship
   • Partnership
   • Corporation

2. Business Size

   • Microbusiness
   • Small or Medium-sized Enterprise (SME)
   • Macro Business

3. Economic Sector

   • Extraction (Primary)
   • Manufacturing (Secondary)
   • Services (Tertiary)

4. Economic Activity

   • Industrial
   • Commercial
   • Service

5. Activity Scope

   • Local
   • Regional
   • Domestic

6. Business Model Examples

   • Retailer
   • Manufacturer
   • Franchise
   • Brokerage
   • Etc.

7. Product/Service Analysis

   • Description
   • Selling Volume
   • Selling Price
   • Net Sales
   • Profit/Sales Ratio
   • Break-Even Point

8. Key Business Information

   • Branding
   • Background
   • Vision
   • Competitive Advantage
   • Legal Structure

9. Team Structure

   • Main Manager
   • Team Composition
10. Lean Canvas Integration