Learn How to Develop a Business Plan: Insights from McDonald's, War Dogs, and Moneyball
Discover the essential steps to craft a successful business plan with lessons drawn from iconic examples like McDonald's, War Dogs, and Moneyball. Gain practical strategies and insights to navigate your business's path to success.
Business Plan Case Studies and Success Stories:McDonald's, War Dogs and Moneyball
Gain insights into real-world scenarios where strategic planning led to business triumphs. Discover the practical importance of understanding how to develop a business plan through illustrative examples. These case studies offer invaluable lessons, showcasing the impact of thorough planning, market analysis, and innovative strategies on business growth and sustainability. Whether you're a budding entrepreneur or a seasoned business owner, delving into these cases equips you with the knowledge and inspiration to craft a robust business plan tailored to your unique goals and challenges. Learn from the successes of others and pave the way for your own entrepreneurial journey.
How to develop a business plan case studies

Written by: Malose Makgeta
MBA with 20+ years experience in SME development and funding. LinkedIn Profile
CONTEXT
Business plan development is the process of creating a business strategy and plan to help a business implement its vision and achieve its goals over time. The primary goal of business plan development is to create a strategy for moving a business from its current state to its desired state through a series of business actions. The skills programme provides entrepreneurs and business managers with a platform and tools for business strategic planning.
Business plan case study movies: McDonald's, War Dogs and Moneyball
- The Founder (McDonald's): According to Entrepreneur', #10 Business Lessons from Movie 'The Founder', Ray expands the McDonald's restaurants through franchisees, pulls the company from the brothers and creates a multi-billion dollar empire.
- War Dogs (AEY): J Bull Consulting article "What your business can learn from WAR DOGS" state that in the movie we see the men underbid their competitors by millions essentially leaving money on the table. This is due to a lack of research and preparation. In business you have to know what your competitors are doing and the value of what you are offering.
- Moneyball (Oakland A's): According to Entrepreneur', #10 Entrepreneurial Lessons From Movie 'Moneyball, Any unconventional idea, no matter how good it is, could face rejections initially.
- Explore further insights on business plan development lessons derived from our case study movies: McDonald's, War Dogs and Moneyball by clicking here.
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Business Plan Examples from Successful Entrepreneurs
Lessons from The Founder - McDonalds

Movie Description
The Founder is one amazing movie and is a must watch for every entrepreneur. It not only gives you life lessons and but also few path breaking business lessons. The Founder is story of Ray Crock. How a 52-year-old sales man turned two brothers (McDonald Brothers) small eatery into the world’s biggest restaurant business. McDonald brothers had invented the speedy system a process to deliver food in seconds but couldn’t develop business beyond their one restaurant. This is Ray Crock comes re-imagines the whole fast food business and created the McDonald Corporation we see today.
Expected Outcomes
The Founder is jam-packed with practical business advice. It pulls back the curtain to reveal the secrets of Ray Krocs transformation of McDonalds into one of the worlds largest fast food restaurants. Entrepreneurs and business owners will discover: “Nothing in this world can take the place of persistence. Talent wont; nothing is more common than unsuccessful men with talent. Genius wont; unrewarded genius is practically a cliché. Education wont; the world is full of educated fools. The purpose of this case study is to provide a practical case study on how to build a business in the manufacturing sector—that is, a business that takes raw materials and adds value to them to produce a product.
Rational
Ray Kroc, a 52-year-old over-the-hill salesman struggling to sell multimixers, turned two brothers innovative fast food eatery, McDonalds, into the worlds largest restaurant business through a combination of ambition, persistence, and ruthlessness. If you are a small business owner looking to learn about scaling, franchising, and brand building, McDonalds is the one business to look to as a reference, as they have done this incredibly well. They are a true American business success story and icon. The story of how McDonalds came to be is told in a new film, The Founder, and we learn the true story of Ray Kroc, the traveling salesman who is credited with making McDonalds what it is today, and its original founders, Richard and Maurice McDonald.
Key Lesson
None
McDonald's Business Planning Lessons from the Movie "The Founder"
The lesson derived from both the movie "The Founder" and Ray Kroc's book "Grinding it Out:
- Identify and Capitalise on a Unique Opportunity: The movie demonstrates the importance of recognising and seizing unique business opportunities. Ray Kroc saw the potential in franchising the McDonald's brand and revolutionising the fast-food industry. Identifying untapped markets or innovative ideas can give a business a competitive edge.
- Develop a Solid Business Model: "The Founder" emphasises the significance of creating a well-defined business model. The McDonald brothers implemented a streamlined and efficient system that delivered consistent quality and speed. Designing a robust business model that sets the foundation for operations, customer experience, and scalability is crucial for long-term success.
- Attention to Detail and Quality Control: The movie highlights the importance of meticulous attention to detail and quality control. The McDonald brothers were relentless in maintaining consistency and ensuring that every customer received the same high-quality experience. Focusing on quality control helps build customer trust and loyalty.
- Effective Branding and Marketing: "The Founder" emphasises the power of branding and marketing. Ray Kroc recognised the value of creating a strong brand image and implemented effective marketing strategies to promote McDonald's. Developing a compelling brand identity and implementing targeted marketing campaigns can attract customers and drive business growth.
- Building Strategic Partnerships: The movie showcases the importance of building strategic partnerships. Ray Kroc partnered with experienced and resourceful individuals to fuel the expansion of McDonald's. Collaborating with the right partners can provide access to new markets, expertise, and additional resources, accelerating business growth.
- Adapting to Changing Market Conditions: "The Founder" demonstrates the need for adaptability in a changing business landscape. As the fast-food industry evolved, Ray Kroc adapted the business model and introduced innovations to stay ahead of the competition. Being open to change and adjusting strategies to meet market demands is crucial for long-term sustainability.
- Protecting Intellectual Property: The movie highlights the importance of protecting intellectual property. Ray Kroc faced legal battles to secure the rights to the McDonald's name and brand. Safeguarding trademarks, patents, and other intellectual property assets is essential to prevent unauthorised use and maintain a competitive advantage.
The origins of McDonald's (MCD) are frequently traced back to Ray Kroc, a native Chicago milkshake mixing machine salesperson who saw the potential of one of his clients, Speedee Service System. Speedee Service System was founded in 1948 by two brothers, Richard James (Dick) and Maurice James (Mac) McDonald, who successfully applied the drive-in concept to food delivery and, eventually, franchising opportunities.
Kroc, who was born in 1902, has always had a talent for sales and business. Starting out as a paper cup salesman in his teens, his interest in the restaurant industry was piqued during a business trip to San Bernardino, California in 1952 (he was working as a Multimixer salesman at the time), where he was captivated by the emergence of franchised restaurants in the area. Not long after returning to Illinois, Kroc discovered an emerging burger joint founded by two brothers, Dick and Mac McDonald, and was captivated by the new dining concept they'd established. They were able to keep the quality of their food high while keeping preparation speed low by only offering burgers, fries, and drinks.
Ray Kroc envisioned a restaurant chain that would be known for consistently high-quality food and uniform methods of preparation. He desired to serve burgers, fries, and beverages that tasted identically in Alaska as they did in Alabama. To accomplish this, he took a novel approach: he persuaded both franchisees and suppliers to buy into his vision, working not for McDonald's but for themselves, in collaboration with McDonald's. "In business for yourself, but not by yourself," he advertised. His philosophy was based on the simple principle of a three-legged stool, with one leg representing McDonald's franchisees, the second representing McDonald's suppliers, and the third representing McDonald's employees. The stool was only as strong as the three legs that supported it.
No Master Plan
In Grinding it Out, Ray stated that "There is a certain kind of mind that conceives new ideas as complete systems with all their parts functioning. I don't think in that 'grand design' pattern. I work from the part to the whole, and I don't move on to the large scale ideas until I have perfected the small details. To me this is a much more flexible approach. For example, when I was starting McDonald's, my original purpose was to sell more Multimixers. If I had fixed in my mind as a master plan and worked unswervingly toward that end, my system would have been far different and much smaller scale creation... At the risk of seeming simplistic, I emphasis the importance of details. You must perfect every fundamental of your business if you expect it to perform well."
The McDonald brothers were poor, first-generation Irish immigrants who made their way to California during the Great Depression to seek their fortune. Following the failure of a movie theater, hot dog stand, and drive-in restaurant, they had their "Eureka" moment, the design, implementation, and business plan of the world's first, true fast-food restaurant, featuring 15 cent hamburgers, 10 cent french fries, and 20 cent milkshakes, and served via walk-up window at the revolutionary speed of just a second from order placement to food delivery.
Ray understood from their business plan that the main objective was to sell hamburger franchises, but he never lost sight of the specific locations of each franchise. He was aware that each franchise's success depended primarily on the real estate and its location. In essence, the person who purchased the franchise also paid for or purchased the land beneath the franchise for Ray Kroc's business.
McDonalds developed a business strategy/plan called "Plan to Win
The “Plan to Win” strategy focused around five basic concepts for exceptional customer experience: People, Products, Place, Price, and Promotion and not just merely working upon quick service and cheapest food and it became more customer-centric and the outcomes were exceptional. The employees were more focused on quality and overall customer experience.
McDonald's uses a three-tiered franchise model. 90% of the business's restaurants are owned and operated by franchisees. Franchisees run their restaurants under the supervision of the business, which also serves as their employer. They have considerable control over the pricing, sales, and operations of their restaurants. McDonald's business model is based on a master plan called "Plan To Win," which is implemented globally. McDonald's mission statement, "Quality, Service, Cleanliness, and Value," states that the business adheres to all of these qualities.
Think Big: Thinking big necessitates pushing the boundaries of what is possible. It enables the acceptance of new challenges as well as the development of capabilities to meet those challenges. The McDonald brothers innovated and mastered the efficient restaurant business model, deciding to have one best-in-class restaurant rather than several mediocre ones. Ray Kroc had big ideas, and through his perseverance, he innovated and mastered the art of business expansion through the franchisee model.
Sell Your Vision: Visionaries persuade others to join them by appealing to their emotions and aspirations. Ray Kroc was passionate about business potential, whereas the McDonald brothers were passionate about the product - hamburgers. He persuaded them to expand through franchisees by showing them a visual of it "McDonald's could become the new American church... And it's not just on Sundays."
Business Plan Lessons: Exploring New Opportunities
The lesson derived from both the movie "The Founder" and Ray Kroc's book "Grinding it Out:
Ray meets Maurice "Mac" and Richard "Dick" McDonald, the two McDonald brothers. They show Ray around the kitchen, and he remarks on the employees' strong work ethic. Ray is blown away by the restaurant and invites the brothers to dinner. They tell him about McDonald's history and how they came up with their "fast food" system. The next day, Ray suggests that the brothers franchise the restaurant, but they decline, citing previous attempts in which they encountered absentee franchisees who were lax in upholding their system. Ray perseveres and eventually persuades the brothers to let him lead their franchising efforts on the condition that he sign a strict contract requiring all changes to be subject to the brothers' approval.
Kroc paid US$2.7 million for the small chain, and the rest is history. Kroc preached QSCV - quality, service, cleanliness, and value - from the beginning. These objectives became cornerstones of McDonald's customer-focused mission statement. Using these values, the business perfected the fast-food concept, delivering convenient, high-quality food at reasonable prices. McDonald's grew quickly to become the world's largest 'fast-food' corporation. The fast-food corporation's more than 32 000 restaurants worldwide now serve 64 million customers per day, generating system-wide sales of more than US$77 billion per year.
Many entrepreneurs and businesses fail simply because they are stuck on one vision of what their business should be and refuse to change. Unfortunately, in business, things are rarely ideal, and you are constantly looking for new market opportunities, talking to customers to learn about their needs, and coming up with solutions for them.
Kroc has always emphasised that he was able to achieve such great success because he tried to be in the right place at the right time and had the courage to address the problems that customers were experiencing.Are there any potential business opportunities that would require you to offer different services or products, or can you improve your quality and deliver more value?
All of these issues were constantly on Kroc's mind. Consider McDonald's and how many times the business has changed, adjusted, improved, and offered something new that they did not previously have. Even when things were going well, Kroc never stopped being an entrepreneur.
Writing a business plan for a McDonald's franchise
When writing a business plan for a McDonald's franchise, it is critical to demonstrate an in-depth understanding of the franchise agreement because all McDonald's restaurants must operate in accordance with the "McDonald's System," which includes, among other things, rights in trademarks, manuals, and other confidential business information, as well as operational, real estate, and marketing information. According to IBISWorld, McDonald's has 37,000 restaurants in over 100 countries, with more than 90% of them operated by franchisees and the rest by the business.
McDonald's does not generally provide financing options. Franchisees can either open a new restaurant or buy an existing one. A $45,000 fee, a down payment of 40% of the total costs of a new restaurant, and an average equipment and pre-opening cost of $1,611,040 are typically included in the cost of opening a new restaurant. The cost of purchasing an existing restaurant includes the purchase price of an existing restaurant, which varies depending on a variety of factors such as sales volume and profitability, as well as a minimum cash down payment of 25%. Super Deal Maker Plans has created long-term financial projections for McDonald's restaurants and is familiar with the specifics of the initial investment requirements.
A McDonald's restaurant must follow a variety of local, state, and federal laws, including health and sanitation regulations and menu labeling requirements. You can use Super Deal Maker business plan development App, assisting developing a timeline of activities, including obtaining licenses, with a particular emphasis on the first year, in accordance with the requirements of investors and immigration services.
Before signing the franchise agreement, all McDonald's franchisees must successfully complete a training programme. McDonald's pays for the upkeep of Hamburger University and other training facilities, as well as training for franchise restaurant operators. A franchisee, on the other hand, must cover all travel, living, and compensation costs associated with employee training.
The business chooses the location for a restaurant and negotiates the purchase or lease of the property. A variety of factors influence location selection, including population density, traffic patterns, and competition. However, because McDonald's cannot guarantee that the economic and demographic factors at a specific restaurant location will remain constant, Super Deal Maker Plans creates in-depth local market analyses that include anticipated local economic and demographic trends.
Lessons from War Dogs - AEY

Movie Description
War Dogs is based on one of those true stories that no one would actually believe if it were written as fiction. In the mid-’00s, two kids named Efraim Diveroli and David Packouz managed to secure a $300 million contract with the United States government to supply allied forces in Afghanistan with arms and ammunition. They then embarked on a globetrotting misadventure that saw them dealing with shady crooks and corrupt politicians and dangerous soldiers in the name of making a fortune. Most astonishingly, both men were twenty something stoners with no experience handling anything of this size or scope. As much as the film may diverge from the truth for the sake of cinematic drama, the core story remains jaw-droopingly true.
Expected Outcomes
There are several important lessons that any aspiring new entrepreneur can learn from Hollywoods portrayal of business in these business movies. Two friends embark on that journey, and they do what any excited real entrepreneur or business manager would do: they hustle, work like dogs, read and study all night, and have a do-whatever-it-takes attitude. If a deal is about to fall apart, they hustle even harder and manage to keep it together. The purpose of the case study is to provide a practical case study on how to build a business in the facilitated network sector, which makes money by allowing people to exchange information, products, and services.
Rational
Entrepreneurs are constantly learning on the job, from their peers to their idols, and, most importantly, from their own mistakes—the road to owning your own business is littered with lessons learned. However, learning some of these lessons before embarking on your own journey only makes the process easier. i.e. Cutting corners can be an expensive proposition - Finding the best deals can be wise but make sure that you consider long-term costs and the time that you might have to invest to fix problems.
Key Lesson
None
Business Planning Lessons from the movie "War Dogs"
- Thorough Market Research: In the movie "War Dogs," the characters realise the importance of conducting thorough market research before entering any industry, such as the lucrative government contracts.
- Building Relationships and Networking: The protagonists of the movie understand the significance of building relationships and networking. They establish connections with key individuals in the defense industry, which helps them secure contracts and grow their business.
- Due Diligence on Partners and Suppliers: "War Dogs" highlights the consequences of not conducting due diligence on partners and suppliers. It emphasises the need to thoroughly vet potential partners and suppliers to mitigate risks and ensure reliability.
- Effective Financial Planning: The movie showcases the importance of effective financial planning. Developing accurate financial projections, managing cash flow, and controlling expenses are essential elements of business success.
- Risk Management and Compliance: The characters' experiences in the movie emphasize the need for proper risk management and compliance. It underscores the importance of implementing internal controls, adhering to regulations, and conducting regular risk assessments.
- Adaptability and Flexibility: "War Dogs" highlights the need for adaptability in a rapidly changing business environment. Being able to adjust strategies and embrace new opportunities or market conditions is crucial for business survival and success.
- Ethical Decision-Making: The movie showcases ethical dilemmas faced by the characters. It underscores the importance of making ethical decisions, acting with integrity, and maintaining transparency in business operations.
It's important to note that while the movie "War Dogs" provides some business planning lessons, it is a fictionalised account. When applying these lessons in real-world scenarios, it's crucial to consider legal and ethical obligations and consult with professionals for accurate guidance.
Also refer to: War Dogs. Directed by Todd Phillips, Warner Bros. Pictures, 2016.
AEY had chosen the ideal time to enter the arms trade. The Bush administration had made the decision to outsource practically every aspect of American military operations in order to fight concurrent wars in both Afghanistan and Iraq, from constructing and staffing Army bases to hiring mercenaries to guard diplomats abroad. Private military contracts increased dramatically under Bush's presidency, from $145 billion in 2001 to $390 billion in 2008. As war profiteering evolved from a war crime to a business strategy, federal contracting regulations were routinely disregarded or skirted, and military-industrial behemoths like Raytheon and Lockheed Martin profited.
Efraim Diveroli was resolute about becoming an arms dealer. It was a family-run enterprise. Diveroli was sent to Los Angeles to work for his uncle after being expelled from school in the ninth grade. He demonstrated quick learning while working as an apprentice arms dealer. When he was 16 years old, he was selling weapons across the nation. He had an intense passion for firearms and enjoyed buying, selling, and discussing them as well as the intrigue and callous amorality of the arms trade. Diveroli returned to Miami at the age of 18 to start his own business, taking over the AEY Inc. front business his father had incorporated following a financial disagreement with his uncle.
His business plan was straightforward but brilliant. Most businesses expand by attracting more customers. Diveroli realised he could be successful by selling to a single customer: the United States military. The Defense Department buys and sells more goods than any other government agency. Every Pentagon purchase order must be open to public bidding by law. And, during the Bush administration, small businesses like AEY were guaranteed a piece of the pie when it came to arms deals. Diveroli did not have to manufacture any of the products in order to bid on the contracts. He could simply broker the transactions, locating the best deals and outbidding the competition. He only needed to win a minuscule fraction of the billions of dollars spent on arms by the Pentagon each year to become a millionaire. Diveroli, on the other hand, desired more: His ambition was to become the world's largest arms dealer.
Diveroli knew he'd have to deal with some of the world's shadiest operators to get into the game — war criminals, soldiers of fortune, shady diplomats, and small-time thugs who keep militaries and mercenaries armed. After the Cold War ended, the vast aftermarket in arms grew exponentially. Weapons had been stockpiled in warehouses throughout the Balkans and Eastern Europe for decades in anticipation of a war with the West, but now arms dealers were selling them to the highest bidder. The Pentagon required access to this new aftermarket in order to arm the militias that it was establishing in Iraq and Afghanistan.
The problem was that it couldn't enter such a dark underworld on its own. It needed proxies to do its dirty work, such as AEY. As a result, a new era of lawlessness emerged. According to Amnesty International, "tens of millions of rounds of ammunition from the Balkans were reportedly shipped — clandestinely and without public oversight — to Iraq by a chain of private brokers and transport contractors operating under the auspices of the United States Department of Defense."
Starting small, they quickly become wealthy and live the high life. However, the pair finds themselves in over their heads when they land a $300 million dollar deal to arm the Afghan military—a deal that puts them in contact with some very shady people, not the least of which is the US government.
Tips for Writing a Successful Business Plan: Lessons from "Moneyball"
The movie "Moneyball" provides valuable insights into business planning, particularly in the realm of professional sports management. Here are a few key lessons:
- Data-Driven Decision Making: "Moneyball" emphasises the importance of using data and analytics to drive decision making. Billy Beane, the protagonist, relies on statistical analysis to identify undervalued players and create a competitive team on a limited budget. This highlights the significance of leveraging data and insights in business planning to make informed choices.
- Identifying Key Performance Indicators (KPIs): In the movie, Beane focuses on metrics such as on-base percentage (OBP) and slugging percentage (SLG) to evaluate player performance. This demonstrates the significance of identifying relevant KPIs for measuring progress and success in business planning. By tracking and analysing key metrics, businesses can assess their performance and make necessary adjustments.
- Embracing Innovation and Challenging Traditions: "Moneyball" challenges the traditional methods of player scouting and selection, introducing a data-driven approach. The movie illustrates the importance of questioning conventional wisdom and being open to innovative ideas in business planning. Embracing new technologies, strategies, and approaches can provide a competitive edge.
- Optimising Limited Resources: Beane's focus on undervalued players showcases the importance of optimising resources. In business planning, understanding resource limitations and finding creative ways to maximise output is crucial. This may involve efficient allocation of financial resources, leveraging technology, or streamlining processes to achieve better results.
- Building and Motivating a Team: "Moneyball" underscores the significance of teamwork and motivation. Beane assembles a diverse team of individuals with complementary skills and aligns them toward a common goal. This highlights the importance of building a cohesive team, fostering a positive work culture, and motivating employees in business planning.
- Adapting to Change: The movie showcases the resistance Beane faces while implementing his data-driven approach. However, he remains steadfast and adapts to the changing landscape. This underscores the importance of adaptability in business planning, especially in dynamic environments. Being open to change and embracing new strategies can lead to long-term success.
By incorporating these lessons from "Moneyball" into business planning, organisations can enhance decision making, optimise resources, foster innovation, and build effective teams.
Moneyball has become a metaphor for everything in business today, touching on budgeting, data analytics, and productivity. The film tells the story of Oakland A's General Manager Billy Beane, who revolutionised the process of scouting new baseball players on a budget by using computer-generated analysis to determine when to sign new players and when to put them in the lineup.
Budgets and constraints are commonly viewed as the enemy of creativity. There is a sense that you need to think big and not be constrained by an accountant watching your back. Moneyball demonstrates that the A's hard budget constraints were the catalyst for creativity, forcing Billy Beane and his managers to come up with new ways to stretch their dollar.
Importance of a Business Plan for Startups
Before you write a business plan. Ask yourself one question: Are you solving a problem that people actually have? At the start of the film, Billy leads a scouting session to focus on the upcoming season and what the team requires moving forward. Billy asks them to define the problem. What exactly is our issue? He keeps asking one question after another. Every one of them fails to define the real problem, because no one sees beyond the hard facts, and because they all fail to recognize that unless they re-evaluate their current situation, they will continue in the same pattern.
When business owners are unsure about which business strategy is best suited to their business's growth, they must stick to a plan for a set period of time rather than changing it frequently. Because time and opportunity are limited, seizing the opportunity at the right time is critical to achieving success in life. However, acting too quickly can harm the cause because it may not be the right time to act, so patience and waiting for the right moment and opportunity are essential. In business, the right time gives you the opportunity to be successful in life and achieve your dreams, or even go beyond them; one just needs to wait for that moment to come.
Importance of Data Analysis in Business Planning
The power of data analysis, which is a major theme in business today, is all too often the only thing that viewers of Moneyball take away from the movie. Data analytics are used frequently. Today, so many industries, including healthcare, crime prevention, education, social media, and others, use sophisticated data analytics and data mining made possible by new technology.
Moneyball (the book by Michael Lewis) has the subtitle "The Art of Winning an Unfair Game," which illustrates an important point for business leaders. The "unfair game" is that major league baseball teams compete with varying budgets and constraints. Take note, however, that Lewis used the word "art" rather than "science," which would be more expected given the heavy use of statistics and data analytics. Management is an art that goes hand in hand with science and making data useful.
Predictive analytics is quickly becoming a competitive differentiator as data becomes the new oil. Predictive analytics is powered by data-driven decision making. It forecasts individual behavior very precisely using existing data.
Business Plan Best Practices: The Auckland A's Blue Ocean Strategy
The Auckland A's pursued what is called the blue ocean strategy represents the simultaneous pursuit of high product differentiation and low cost, making the competition irrelevant. To differentiate itself from competitors, The Auckland A's reconstructed the market boundary, which is the first and most important principle in developing a blue ocean strategy.
Beane was a genius and a revolutionary, building baseball teams that outperformed the competition while spending a fraction of the money. The strategy is the concept—recognising the most valuable but least expensive commodities in player evaluation—was immediately transformed in public perception into an obsession with on-base percentage.
In short, what the A's were doing was not a method of producing the best baseball team; rather, it was the most efficient and only way a franchise like the A's, which could not enter the market for the league's top players, could realistically become and remain competitive.
The A's challenged not only the traditional way of building a team, but also the traditional way of playing the game.
“It’s all about evaluating skills and putting a price tag on them,” Beane told ESPN. “Thirty years ago, stockbrokers used to buy stock strictly by feel. Anyone in the game with a 401(k) has a choice. They can choose a fund manager who manages their retirement by gut instinct, or one who chooses by research and analysis. I know which I’d choose.”
How SMEs can build their own Blue Ocean Strategy
Like the Auckland A's, SMEs must find a way to avoid competing with traditional circus acts by redefining what it means to have a circus experience. Blue Ocean Strategy allows small business owners to have ideas that have never been presented to the market. Find a unique way to serve the market.
SMEs should look deeper into the path customers take to purchase, they might find their blue ocean.
Understanding the intricacies of the customer experience can lead to mutually beneficial changes for both your business and its customers. Consider how your current customers progress through your purchase funnel:
- How do they learn about products, services, and suppliers?
- How do they get a price estimate or quote, then compare prices and payment options?
- How do they make the transition from initial interest to purchase? Is it necessary for them to call, meet with a representative, order online, or wait for an item to ship?
- What disruptions or inconveniences do they face?
- When they receive their item, does the interaction end? Do they want it to be that way? Once you've investigated the specifics of the customer's reality, you can use it to conduct additional research.
- What similarities and differences do your detailed process have with competitors? Based on your research, which factors appear to be the most "ripe" for elimination, creation, or change?
Put those concepts in front of customers and noncustomers for feedback. Create two process maps based on their insights: your current customer experience and the proposed one. Compare them to see where there are gaps and opportunities for identifying your own blue ocean. For example, changing your pricing may not be feasible, but implementing a process improvement that reduces your costs while improving customer satisfaction may be feasible.
Understand the Gap Between Perception & Reality
Oakland scouts each had their own opinions on various players. However, Peter shared with Billy a new perspective: people are overlooked for a variety of biased reasons and perceived flaws such as age, appearance, and personality. He demonstrated a practical method for identifying good players using mathematics rather than perceptions.
Billy was a Major Leaguer before becoming General Manager. Scouts saw Billy as a potential baseball superstar with the ability to hit, run, field, throw, and hit with power, and made him a lucrative financial offer. Billy chose baseball over a full scholarship to Stanford University, but his Major League career was disappointing. When asked by Billy, Peter admitted that he would have drafted Billy in the ninth round rather than the first, and that Billy should have chosen college over baseball. Peter's assessment of Billy differed from that of experienced scouts who saw Billy as a promising player.
Embrace Innovation: Thinking Differently for Business Success
Many start-ups are afraid of giants because they have more resources. However, with radical innovations, start-ups can create winning business models capable of displacing giants. Billy Bean was unable to attract and retain good players due to a lack of funds. Rather than accepting things as they were, he pursued Peter's innovative approach and accomplished the impossible.
The majority isn't always correct, but we tend to accept that if everyone else is doing it, it must be correct. That can be a recipe for disaster. Billy Beane was forced to reconsider his perspective on baseball. He didn't have a big budget to entice top players like big market teams. He did not have lucrative TV deals or sponsors to generate the resources that other clubs did. If he went toe-to-toe with the competition, doing things the way they did, the A's were doomed to fail.
Billy's unconventional approach shifted the team's priorities, altered data analysis, and focused on areas where the competition was not, such as spending more time looking for great high school players. Billy did not blindly follow the rest of baseball, or even his own scouts; instead, he sought a new way to do things in order to achieve better results.
Crafting a Business Plan and Staying Committed
You must have faith in the system's ability to function once it has been implemented. Billy Beane's confidence in the strategy he developed helped the Oakland A's win 20 straight games. When the owners began to question him or the media questioned his decisions, he resisted giving in. He persisted, and significant results eventually materialised as a result!
You need a little bit of patience, some faith, and both when it comes to marketing. When the next new rookie enters the scene, the temptation is to join right away. Why engage in Facebook, Twitter, Pinterest, and other social media platforms just to abandon them all for the "next big thing"? Moneyball teaches us to follow through with our plans until they are completed.
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