Economics Unit Goods and Services Business Plan
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Figure 3-4 Plan Business Unit Template
Although top management can use its evaluation of the required ROI and margin on sales for each business unit to discriminate between those that create value and those that destroy it, the analysis will not provide dollar estimates of the unit’s contribution to the company’s composite value or to its price per share. Management will need such estimates to decide whether to maintain or revise its strategic plan. Fortunately, the elements needed for this kind of evaluation at the business unit level are readily available. Managers can use the projections of ROI and debt ratios to estimate the unit’s return on equity. While you can estimate ROE by drawing up pro forma income statements for each unit, you can also use the following formula:
Figure 3-5 Job Master Revisions (Plan Business Unit) screen
What I will do is tell you that I was excited to find such a great real-world supplement to the Marketing Product Planning unit. I’d love to know if you find this case study useful in your High School Business lesson plans.
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This lesson introduces a 6 day unit on Entrepreneurship in theHospitality Industry. It works well in our classroom, because weactually operate an on-campus catering business, but it would stillbe effective as a "virtual entrepreneurship" unit, instructingstudents on the importanance of a business plan for any operation. Student teams will work on a rough draft of their business plandaily, and have a full class period to create a finished project,which they will present to the class at the end of the unit.The projected unit schedule:Day 1 - (This lesson) Introduction and importance of a businessplan, rough draft of goals, objectives, and mission statementDay 2 - Create a SWOT analysis and gatherdata.Day 3 - Description of our products and services, conductingmarketing research, developing a marketing strategy andidentification of potential customers.Day 4 - Determine start-up cost and operating expensesDay 5 - Create final draft of business plan.Day 6 - Present plans (assessment)Note to instructor : I usually invite a representative from ourlocal SBA office to spend a day speaking to my students (they'reusually eager to do so) about what their agency has to offer tobusinesses, which adds one more day to the unit. . Also, I ask ifthe SBA advisor can be there when they present their plans, andenlist his/her help in grading the project - it increases themotivation of the students, knowing they well be graded by a"real-world " professional.In this first lesson of the unit Creating a Business Plan, students are introduced to the concepts of entrepreneurship and what it takes to create a business plan. In this lesson students will work in groups and construct ideas for which they will eventually create business plans. This is the first of a series of lessons designed to build students’ understanding and ability to create their own business plans.