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UNIT 2
               MODULE 2:  NEW VENTURE PLANNING AND CREATION (cont’d)


                              (iii)   Operations (what is your internal source of advantage?):


                                     -      Internal  capabilities  of  a  business,  including  unique  skills,
                                            technologies, resources.

                              (iv)   Product differentiation (how do you differentiate your product?):


                                     -      operational excellence;

                                     -      product quality;

                                     -      innovative leadership;

                                     -      cost; and,

                                     -      networks.

                              (v)    Income generation (how do you intend to make money?):


                                     -      operating leverage (fixed and variable costs);

                                     -      volumes (high, medium, low), margins (high, low);

                                     -      pricing (fixed, flexible); and,

                                     -      revenue sources.

                              (vi)   Growth (what are the time scope and ambitions of the venture?):


                                     -      subsistence model;

                                     -      income model;

                                     -      growth model; and,


                                     -      speculative model.


               5.      Introduction to the Business Plan (students are not required to produce a business plan)

                       (a)     Purpose of a business plan.

                       (b)     Benefits of a business plan.






                                  CXC A31/U2/13           26                                 www.cxc.org
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