Business Plan: Term Definition

Introduction

Business plan is a written statement of what a group proposes to take up. It is a kind of guide frost or course of action what the group hopes to achieve in his business and how the members going to achieve it (Khanka, 2002, p.88). In the other words business plan serves like a kind of big road map to reach the destination determined by the group. Thus, a business plan can best be defined as a well evolved course of action devised to achieve the specified objective within a specified period of time. So, to say it is an operating document. The success or fail of a business plan depends on the group. There are some elements which need a group for a successful business plan. Those are describing in the below:

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  1. Hard Work: The distinguishing of a successful group from unsuccessful one is willingness to work hard. Most of the successful groups hard work endlessly. Especially in the beginning and the same the end and try to success the business plan.
  2. A Good Leader: It is the most vital element of a group to gain a business plan. If the leader of a group is not skill and qualified than it is quit impossible to success. The leader must have some extra ordinary that influence the group members.
  3. Mutual Understanding: A group cannot create a good business plan or the plan which they create must be fail if there is no mutual understanding among the group members. They will face problems step by step. So every member should try avoiding conflict and work with mutually.
  4. A Similar Goal setting Among Group Members: The vision of every member should be the same for create a successful business plan. If the goal or vision is different then the business plan will be fail.

Team Communication, Issues Analysis and Achieving Group Outcomes

A team can easily reach their goal by a good communication and if the team communication is not good then it is almost impossible to reach the goal. Henry Tam and the MGI Team communication were not so good and they faced step by step communication problem. Now in the study discuss about the various barriers of their team communication.

  1. Lack of Information: The MGI Team knew lately about the actual number of the team member. In the 2nd and 3rd stages they introduced with new persons. The members suffered various time about the lack of information in the team.
  2. Various objectives: In the MGI Team the members’ objectives were different and it was another reason of their poor communication. Such as Henry and Dana’s objective were to make a business plan for the HBS Business Plan Contest but Sasha wanted Henry and Dana made a plan only for business. Because of the different objectives the communication gap arisen in the team.
  3. No leader: There was anybody in the team who directs them or communicated towards the goal. Sometimes Henry and sometime Sasha seem the leader in the team and that was the major problem.
  4. Cultural Barriers: In this team the members face varies types of cultural barriers.
  5. No Structure and Guideline: The members came from various position and most of them were not adapt in discipline. For this there were no guide line and structure in the team.
  6. Profession: Most of the members were music related for this they were not serious and always made fun and relaxed. On the other hand Henry and Dana were students; they were not understood musician’s psychology and then arisen contrast between the creative impulse of the musician and the more pragmatic approach of the HBS students. For this reason communication processes hamper.
  7. Others: The other cultural barriers such as language between United State and the Romany, the clash of civilization, Nationality and ethnic origin were arisen in the team.
  8. Lack of trust: The lack of trust was the other communication barrier of Henry team. For an example when Sasha introduced Dav Clark to the team then Henry and Dana were confused about Sasha because they did not understood founders plan.
  9. No Management Process: The other problem in the team was that in the meeting they waste their time without any reason and their no management process. Most of the time they did not do their task.
  10. Conflict and Disorder: The main communication barrier in this group was conflict. The team faced various types of conflict these are:
  • Conflict within the individuals: Sometime a man started a work than he/she would be confused and create a negative impact on motivation. In this time the person fell that he/she was neglected and there was no value of his /her work then arisen conflict within the individuals. The team faced those types of conflict when Henry and Dana avoided Sasha’s presentation. Sasha felt the work he does that was nothing but a waste of time because Henry and Dana did not used any materials which the Sasha gave.
  • Conflict between Individuals: Conflict between individuals arisen in a group because of different personality. In this group different types of people had and they were different personally and everyone think they were right in their point of view.
  • Conflict between groups: Most of the time a group was divided in various sub-point then arisen conflict between groups. In this team, various points of view Dana and Henry seem a sub group and other seem another sub group and every issue created conflict between groups.

Recommendations

The team can easily create a strong communication if they follow the bellow recommendation:

  • At first The MGI Team should decide the numbers of the member in the team and all the member should participate in all meeting.
  • The objective should be fixed and the members will go forward the objective.
  • The team member should select a leader who has leadership quality to influence, control, and give the right direction to the member.
  • The team should create structure of management.
  • The members should have knowledge about the culture and should understand one’s psychology and mental condition.
  • Conflict is a simple picture of a group and it hampers group progress. For this the group members especially the leader should try to avoid it and create a good environment so that a strong communication will build up among the members.

The most appropriate leadership approach for Henry Tam

The Path Goal Theory

The path goal theory suggests that the main function of a leader is to clarify and set goals with subordinates, help them find the best path for achieving the (Feyzbakhsh, 12 December 2006) goals and remove obstacle. Proponents of this approach have studies leadership in a variety of situation (Pearce and Robinson, 1986, 189-192). The path goal leadership states that the leaders’ job is to use structure, support, and rewards to create a work environment that helps members to reach the organization’s goals. As state by Robert House, “the theory builds on various motivational and leadership theories of others” (House, 1972). In Path Goal Theory leader behavior is categorized into four groups:

  1. Supportive leadership behavior gives consideration to the needs of subordinates, shows a concern for their well-beings, and creates a pleasant organizational climate.
  2. Participative leadership allows subordinates to influence the decisions of their superior and can result in increased motivation.
  3. Instrumental leadership gives subordinate rather specific guidance and clarifies what is expected of them, this includes aspects of planning, organizing, coordinating, and controlling by the leader.
  4. Achievement-oriented leadership involves settings challenging goals, seeking improvement of performance, and having confidence that subordinates will achieve high goals.

The key to the theory is that the leader influences the paths between behavior and goals. The leader can do this by defining position and task roles, by removing obstacles to performance, by enlisting the assistance of group members in settings goals, by promoting group cohesiveness and team effort, by increasing opportunities for personal satisfaction in work performance, but reducing stresses and external controls, by making exactions clear, and by doing things that meet people’s expectations.

Recommendations

In the study all the MGI Team’s members were creative and talent but lack of actual direction and guideline they were not express their charisma here. No one motivated or influence them. So the group needed a participative leadership. Secondly the environment of the team was very bad and needed a leader who brought a good environment. So the team needed a supportive leadership. Thirdly the team needed such a leader who might plan, organized, coordinated, and controlled the team properly. For this reason the team needed an instrumental leadership. And finally the team required such a leader who sated goal and did all the work to achieve it and whom had a confidence to their member that that would do better. So they necessitated an achievement-oriented leadership. For this reason Path-Goal Theory is the appropriate leadership approach for Henry Tam.

Leadership Style

According to path-goal theory, the leaders’ roles are to held group members understands about the needs to be done (the goal) and how to do it (the path) (Newstrom, and Davis, 2002, 175). Leaders, however, have to decide which style to use with each member; the path-goal model identifies four alternatives:

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  1. Directive leadership: The leader focuses on clear task assignments, standards of successful performance, and work schedules.
  2. Supportive leadership: The leader demonstrates concern for members’ well beings and needs, while trying to create a pleasant work environment.
  3. Achievement- oriented leadership: The sets high expectations for members, communicates confidence in their ability to achieve challenging goals, and enthusiastically models the desired behavior.
  4. Participative leadership: The leader invites members to provide input to decisions, and seriously seeks to use their suggestions as final decisions are made.

As there were many obstacles were in the MGI Team, so it is difficult for Henry to choose one personal style because the situation changed dramatically in step by step. So if Henry chooses the above leadership style than it will be better.

Recommendation Accomplish for Henry and the MGI Team

The team was dynamic and combination of talent people. They could easily do any impossible thing in any time if they follow the bellow point:

  • Here all the person is expert in there own sector and very little knowledge about the other sector. For this as a leader Henry can combine this work and determined which work is suitable for one.
  • The team faces discipline troubles because there are no rules and regulation in the team and there is no specific leader. For this every time anarchy arises in the group and waste time.
  • Everyone in the team knows about the interpersonal conflict but no one take a step to solve it. For this many times dispute arise in the team and often it obstructs the team progress for example when Sasha said something Dana neglected it and Dana’s opinion neglected by the Sasha. If the team overlook it than it will better for them.
  • The group members do not have the equal enthusiasm and speed to the work. For this the leader should mind it and motivated that person.
  • Trust and mutual understanding is very essential for a team. In the team they face many time trust problem because they have little mutual understanding. So if the team can create trust and mutual understanding among them than that will be better for them.

Memorandum Addressed to the MGI Team

The Memorandum is the important document of a group. It is the charter which contains the fundamental conditions of the group. It defines the limitation of the powers of the group; the area beyond which the actions of the group can not go. In the MGI team needed such kind of memorandum that will help them to go forward. The memorandum is discuss in bellow:

  • Firstly fixed the total member of the team and mention the condition of the member include or eliminate.
  • And than give a name such as “7 Star Team”.
  • Members full name and address.
  • Status of the members.
  • The person who will lead the team.
  • Management system.
  • The meeting place of the members.
  • Location of the organization in where it would be conducted.
  • The schedule of organization general meeting i.e. date and time.
  • Then the objective will be mentioned and described in the memorandum. Here mainly mentionable terms are types of the product team want to make and serving what purpose.
  • Target customers are mentionable.
  • The process of marketing.
  • The solution of the financial problem.
  • The area which would be covered by the organization that means the area of the organization.
  • The steps of the work and the list of work of every person.
  • The amount of share of every person.
  • The liability of every person in the group.
  • The solution if any disputes arise among the group members.
  • As the team has not enough time to waste, so here it would be mention the deadline of the work.

Pyramid

  • Idea Generating- business pattern, product, target, etc.
  • Forming/Expert gathering- essential express, angel of expert, etc.
  • Perpetual Understanding- Mutual understanding combination. etc.
  • Financing- source of finance, system of collecting capital, liability, etc.
  • Formalities maintain/Legal system- name of the member, location, etc.
  • assign authority, conductor of bank account, board of director, etc.

I have used Directive Leadership Style in my memorandum. Here, the memo firstly indicates on the idea generation that means the business plan and pattern of business. Product type of product, will also be included in idea generation and then search for expert to perform the plan work have to think and then delegation of authority would be assigned, here the individual will be liable about his assign work. Here the deadline of work will be mentioned. Simultaneously, the source of capital and the name of the business may be mentioned. Now back to the theme of Directive Leadership Style. So, by the above step I may apply Directive Leadership Style in the memo.

Conclusion

Finally in the study see that there are many problems or challenges arise in the team but the members are hopeful. A team faces many challenges to complete the final work. Now describe the relationships between the ideas that mention in the study memorandum.

  • Firstly determine the leader whom has the quality and can control, direct the team.
  • Then the leader will determines the group management structure and give the team members task.
  • It should be considered that right person may get the right work.
  • The team targets the market and the potential customer.
  • They should try to avoid the conflict and work with together.
  • The team members give their idea and suggestion.
  • Finally they submitted their task to the group.
  • The leader see the task and correction it and give another task.

References

Feyzbakhsh, S. Alireza. (2006). Leadership. Web.

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House, J Robert. (1972). A Path-Goal Theory of Leadership Effectiveness” Administrative Science Quarterly, 1972, pp. 321-338.

Khanka, S. S. (2002). Entrepreneurial Development. S. Chando & Company Ltd.; Ramnagar, New Delhi.

Newstrom, W. John. and Davis, Keith. (2002). Organizational Behavior. 11 ed., Tata McGraw Publishing Company Limited.

Pearce, A. John. and Robinson B. Richard. (1986). (Eds), Path Goal Theory of Leadership: A Meta Analysis. Academy of Management Best Paper-Proceeding. Forty Sixth Annual Meeting of the Academy of Management, Chicago. 13-16, 1986.

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