Overview of Both Business Case and Business Plan

Introduction

An in-depth understanding of both concepts can be achieved by first focusing on the definition of the two terms. In such a case, a separate overview of the two terms is necessary. The comparison and contrast can be done from the standpoint of three templates. Notably, the reason that the three templates are used is grounded on their in-depth coverage of the relevant concepts.

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Business Case

A business case is a proposal for a project or a strategy. It is the analysis of the market opportunity available for exploitation to make a profit or the study of the areas that have not fully been ventured regarding business (Allan, & Emma, 2015). An excellent example of a business case can be a unique software product that is required in the market and does not exist currently.

A business case contains the business-related concept that is both profitable and practical. It comprises of the same information, but in the shorter method which can be used for prioritization strategy and approval of the internal budget (Gov. UK., 2016). It is significant in the existing business context because it is not necessarily a revisiting business basic model.

An excellent example of the Business Case Template is available at the Canadian website of the Ministry of Public Works where a Business Case defined as "a presentation" or a "suggestion to authority by an organization to seek funding or approval, for an initiative, or a project."

Business Plan

A business plan is a suggestion for a new business or proposal of changes to a company which is in place. It is a detailed layout of the business idea or the objectives of the business you intend to achieve in the business case (Allan & Emma, 2015). In the short term, it is a form of the detailed document contains various steps by steps of the plan you intend to follow before launching the real business. Such program may include how much needed for start-up and run a business, how and where will you get labor, where is a company located.

A business plan is significant in business decision-making on whether to venture into competitive business in the specific field. It assists in analyzing the business competitor in the sector in which an entrepreneur wants to venture. The primary focus of the business plan is to facilitate the evaluations of the viability of the business idea, as a platform for raising start-up capital. The following are business plan templates (Gov. UK., 2016).

I. Who are the consumers of your products or services?

II. What do the consumers require?

III. How do you plan to engage and satisfy the consumers?

IV. How do you plan to produce a unique product or services that can compete in the market?

Comparison

Both business plan and business case look into business strategy such as the concept of the business, vision, financial calculations company concept. In short, both business plan and a business case contain business concepts. Both business plan and business case describe the logic of a business (Gov. UK. 2016). They both involve monetizing the value of creating a business and implementation procedures, milestone, and financial projections.

Both business case and business plan involve opportunities and scope. The business case contains the original breadth of market opportunities and range of the products while the business plan covers the primary dimension of business opportunity and the company scope.

Business case just as the business plan can be made for a single business entity such as a production line (Allan & Emma, 2015). Business plan focuses on what the business will look like years to come; business case, on the other hand, focuses on the specific products or services. For instance, in January 2016, Land Rover, Jaguar Motor Vehicle Company performed a business case on pros and cons of impacts of running the production line before deciding to quit their manufacturing.

Both Business Case and Business Plan measure and identify the potential risks that the company may face. These are done from the company's perspective. Both business case and business plan describe the most appropriate strategy to curb the threats and mitigate the risks.

Contrast

Concerning the organizational structure, a business case is a single decision or a single action and its alternatives. A business plan covers a single line of product, individual product or the entire enterprise or an organization. On business projection or prediction, the business case focuses on the cash flow results and main non-financial influences that follow as a result of an action (Steinhardt, 2014). Business Case also predicts the financial metrics such as payback time Return on Investment, Internal Rate of Return and Net Present Value (Allan & Emma, 2015). Business Plan comprises the performance of business performance. The Business plan in this context predicts significant categories of the income statement, including, profit and revenue; it may also contain business Pro-forma financial statements for coming years.

A business case focuses on the objectives of the action, also known as significant components of proposed action. On the other hand, a business plan goals for the entity focuses on business strategy for attainment purposes (Allan, & Emma, 2015). The business case centers on the cost model and rationale of the benefits of the situation and for one or more action scenarios. The business plan model for the enterprises shows how the business makes money. Ideally, this model is similar to the income statement, with trends and competitor activity.

In non-governmental organizations or non-profitable organizations, the business case scope includes the benefits to the service population as opposed to patent organizations. The business plan focuses on funding requirements, budgetary needs and the capability of operating between the budgets.

A business case involves putting the product or services into the limelight and performing analysis of the advantages and disadvantages of the implementations. On the other hand, a business plan is significant on the new business by performing two fundamental roles (Gov. UK. 2016). The first function is that business plan is a prototype of the company. Second, business plan shows the business owner, key players, and stakeholders, including the investors, idealistic approach, and the profitability.

A business plan primarily targets the investors (Gov. UK. 2016). It covers the focus area, business model, market analysis, risk analysis and identification along with the financial plan. The business case may also contain similar information but on a shorter format or template based on the business strategy prioritizing on approval of the budget.

A business case is the analysis of the possible market opportunity at the level of the product while the business plan is that analysis of the potential business opportunity at the level of the company (Allan, & Emma, 2015). In simplest terms, the business case is the assessment of the possible market opportunity to venture while the business plan is how suitable opportunity can be thoroughly executed and pursued.

Conclusion

Finally, the business case is different from the business plan for the product, through the primary dimensions such as the type of the opportunity, whether business opportunities or market and the scope such as product or company.

References

Allan,B & Emma, B. (2015). Business Research Methods. Oxford University Press. 4th Ed.

Gov. UK. (2016). Business Plans. Prince Trust. Retrieved on February 11, 2016, from https://www.princes-trust.org.uk/help-for-young-people/tools-resources/business-tools/business-plans

Steinhardt, G. (2014). The difference between a Business Case and A Business Plan. Available at: https://www.linkedin.com/pulse/20141128061550-4523281-the-difference-between-a-business-case-and-a business-plan