What are projects in business
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Kazakh-Russian International University
By discipline: Business planning
On the topic: "The essence and tasks of business planning at the enterprise"
1. The essence, goals and objectives of business planning in the enterprise
2. Business plan methodology
3. The main sections of the business plan
List of used literature
In a market environment, it is unrealistic to achieve stable business success if you do not plan for its effective development, do not constantly accumulate information about your own state and prospects, the state of target markets, the position of competitors in them, and so on. It is necessary not only to accurately represent your needs for the future in material, labor, intellectual, financial resources, but also to provide for the sources of their receipt, to be able to identify the efficiency of resource use in the process of the enterprise.
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1. BUSINESS PLAN, ESSENCE, OBJECTIVES
A business plan is drawn up in order to effectively manage and plan a business and is one of the main tools for managing an enterprise that determines the effectiveness of its activities.
In market conditions and fierce competition, an enterprise must be able to quickly and adequately respond to changes in the external environment and within the enterprise itself.
This becomes possible when several conditions are met:
1. the administration and the investor correctly assess the real financial position of the enterprise and its place in the market;
2. there are specific goals that the company should strive to achieve;
3. planned and implemented every step to achieve these goals;
4. the administration of the enterprise and the investor understand the essence of the processes taking place in the market, in the external environment and within the organization itself.
The most obvious beginning of project activity for contemporaries is the creation of pyramids and other magnificent structures. Most likely, this is not the case, and projects as a phenomenon appeared much earlier. And their history is the same age as the earthly civilization. Today there are many types of project activities. Building and renovating your own home, scientific research, space flights, government modernization, educational programs, the 2021 FIFA World Cup. In a word, do not count. A business project is a special category of projects; they are used only by commercial companies with the aim of generating profit in the future.
The essence of projects in business
Projects as a means of solving business problems are closely related to the company's strategy. The result of any developed strategy, brought to the tactical level, is a plan of strategic actions. On the basis of this plan, a portfolio of enterprise projects is being developed. And only then does it become possible and necessary to organize individual business projects. This is the typical logic of transferring a strategy to the level of practical implementation.
What is the essence of the task set by the company's management? The essence of understanding the project is determined by three points included in its definition.
- The company has localized goals that it intends to achieve.
- The enterprise management sets time limits for achieving this goal.
- Achieving a goal involves a non-repetitive activity (not the usual production of products or services). The prescribed activity is unique.
Business projects are understood as the activities of a commercial organization with the aim of creating unique products or services in conditions of budgetary and time constraints. Projects in the entrepreneurial sector are similar to business tasks. That is, in pursuit of specific goals, they serve to achieve the desired results, directly or indirectly aimed at making a profit in the future.
Almost all business tasks are unique and are divided into two large groups: cyclically reproducible tasks that are classified as business processes, and unique tasks - those same projects. The more the company has gained experience in the implementation of certain projects, the lower the level of their uniqueness, the more they gravitate towards processes. The development of business processes is exactly what gives the result when a once unique task enters the cycle.
This happens quite often. Let's give an example. It is more profitable to create and replicate a branch network based on the described business processes “Opening a branch of a company”. However, it is safe to say that the company, which adopted the strategy for the development of the branch network, opened the first three branches in the form of business projects. And only when the creation of all three divisions was completed, the management arose a desire to reduce project budgets, describe the experience gained, and put the procedure on stream. On this basis, a new business model is developed and the corresponding process is described.
Types and place of projects in the company
We have already noted that the essence of business projects is well revealed through the strategic model of the implementation of the company's development. The strategy “goes down” thanks to BSC tools to the downstream processes of the main production, passing through the middle zone called “Development Programs and Projects”. Inside the main production, there is a variant of the so-called "Design Production" deployment, which is the specificity of certain types of business. An understanding of the architecture of such a broadcast of a strategic plan will help you create the Strategy Implementation Pyramid, which is offered to your attention below.
Thus, there are two main forms of projects in business: development projects and contract projects (also called design production). The first category presents more unique development challenges. To solve them, completely different resources are used, the tasks for which are not worth at the portfolio level. On the contrary, it is important to provide each project with sufficient resources and to integrate it into business structures (organizational, financial and informational). Here are some examples of such projects:
- entering new markets;
- launching new products or services;
- scaling up production;
- marketing campaigns ;
- internal projects related to the reorganization or implementation of IT systems;
- mergers and acquisitions.
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Planning in general, as the greatest achievement of the human mind, is practically a natural and necessary element of human behavior both in everyday life and at work. Human labor always presupposes a conscious purposeful activity to achieve the desired result, the image (plan, project) of which he ideally has at the very beginning of work, including in business.
The planning of production and commercial activities is not only possible, but also vital for all organizational and legal forms of enterprises: large social and scientific and technical programs, the distribution of the country's budget, defense, etc. only strategic self-planning, but also a detailed development of operational plans for each department and even a workplace.
Anyone who seriously wants to engage in entrepreneurial activity and make a profit in a market environment must have a well-thought-out and comprehensively substantiated detailed plan - a document that defines the strategy and tactics of doing business, the choice of goals, technology, technology, organization of production and product sales. Having a well-developed plan allows you to actively develop entrepreneurship, attract investors, partners and credit resources. It also enables:
- define ways and means to achieve the set goals;
- to maximize the competitive advantages of the enterprise;
- prevent erroneous actions;
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Essence and functions of the business plan
business competition plan viability
The emergence of any entrepreneurial idea raises many different questions:
- what funds are needed to implement the project?
- the project justifies itself economically.
To get answers to these questions, a Business Plan is drawn up.
So what is a Business Plan?
A business plan is a written document that sets out the essence of an entrepreneurial idea, ways and means of its implementation and describes the market, production, organizational and financial aspects of the future business, as well as the features of its management.
The business plan summarizes the business opportunities and prospects, and explains how these opportunities can be realized by the existing management team.
The business plan formulates the prospects and current goals for the implementation of the idea, evaluates the strengths and weaknesses of the business, provides the results of an analysis of the market and its features, sets out the details of the operation of the enterprise in these conditions, determines the amount of financial and material resources for implementation project.