Principles of Business Unit Plan
Business units are in many ways separate companies within a larger company. They are sometimes called departments or divisions, and their autonomy within the parent company varies from company to company.
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Function
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Because a business unit is like a complete company that partners with the parent company, a business unit plan should include everything a business plan would normally cover.
Features
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A business unit plan describes the function of the unit, the product or service it presents, how it is managed, and includes an operational budget.
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Types
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In the case of a manufacturing unit, the plan should fully detail the manufacturing process, efficiencies, materials procurement and cost containment. A sales unit would emphasize the function of marketing in increasing revenues. A plan for an administrative unit would focus on human resources, cost control and administrative efficiencies.
Considerations
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When planning a new business unit, your projections should be backed by industry research. If the plan is an annual exercise for an existing business unit, it will require analysis of historical performance trends in relation to economic conditions.
Time Frame
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You should show a detailed budget, accompanied with a detailed explanation of the activities, goals, benchmarks and changes for the first 12 months. It should also list considerations for the following two years including a simplified budget projection.
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References
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- Photo Credit Image by Flickr.com, courtesy of Alexander Osterwalder
