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Chapter 13 LECTURE NOTES
Proposals, Business Plans, and Formal Business Reports
CHAPTER SYNOPSIS
If your course includes a proposal or formal business report, you may want to introduce this
chapter early in the course. Assigning a long report usually means introducing the topic six to ten
weeks before the report is due. Because this chapter outlines all the parts of proposals and formal
reports, you can discuss it when you first make the report assignment and return to it when
students are completing their reports. If your students do not actually write long reports, they can
still benefit by analyzing their structure and seeing the application of the 3-x-3 writing process to
longer documents. Once your students are familiar with long reports, they can use this chapter
for reference when they need to prepare them for other courses or at work.
Emphasize the differences and similarities of proposals and formal reports. To overcome the
sense that some students have that preparing proposals and formal reports is overwhelming,
show them how applying Guffey’s 3-x-3 writing process divides a large task into manageable
steps. Assure them that such reports are written over time and often in teams. Generally,
proposals and large reports are not written in isolation. Emphasize that such projects are
completed through sufficient preparation and perseverance.
LEARNING OBJECTIVES
1. Understand the importance and purpose of proposals, and name the basic components of
informal proposals.
2. Discuss the components of formal and grant proposals.
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WHAT’S NEW IN THIS CHAPTER
• Strengthened the chapter-opening scenario by defining proposals and explaining their
importance so that students better understand why they are critical to many organizations.
• Created new figures to illustrate the sequence of components in informal and formal
proposals as well as the sequence in formal business reports.
• Added the Reality Check “But Will They Steal My Ideas?” to caution writers that proposals
will not be successful if their innovative ideas are not revealed.
LECTURE OUTLINE
I. Defining Informal Proposals (p. 465)
• A proposal may be defined as a written offer to solve problems, provide services, or
sell equipment.
• When government organizations or businesses know exactly what they want, they
prepare a request for proposal (RFP), specifying their requirements.
A. Components of Informal Proposals
1. Introduction
• Hint at extraordinary results with details to be revealed shortly.
2. Background, problem, and purpose – Identify the problem and discuss the
goals or purposes of the project.
3. Proposal, plan, and schedule – Discuss your plan for solving the problem.
4. Staffing – Describe the credentials and expertise of the project leaders.
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Figure 13.1 Components of Formal and Informal Proposals
Figure 13.2 Informal Letter Proposal
PowerPoint slides 1-10
II. Preparing Formal Proposals (p. 470)
A. Components of Formal Proposals
1. Copy of the RFP
B. Grant Proposals
• A grant proposal is a formal proposal submitted to a government or civilian
C. Checklist for Writing Proposals
Introduction
• Indicate the purpose.
• Develop a persuasive “hook.”
Background, Problem, Purpose
Proposal, Plan, Schedule
• Explain the proposal.
Staffing
• Promote the qualifications of your staff.
• Mention special resources and equipment.
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Budget
Authorization
• Ask for approval.
III. Creating Effective Business Plans (p. 472)
PowerPoint slides 17-19
A. Components of Typical Business Plans
• Letter of transmittal
Figure 13.3 Creating Winning Mission Statements
B. Sample Business Plans on the Web
IV. Writing Formal Business Reports (p. 475)
Figure 13.4 Components of Informal and Formal Reports
PowerPoint slides 20–28
A. Front Matter Components of Formal Business Reports
PowerPoint slides 29–36
1. Cover
Chapter 13 Lecture Notes 181
7. Introduction
• Background
• Problem or purpose
• Significance
• Scope
B. Body and Back Matter Components of Formal Business Reports
• Body
• Conclusions
• Recommendations
• Appendix
• Work cited or references
V. Final Writing Tips (p. 479)
• Allow sufficient time.
• Finish data collection.
• Work from a good outline.
• Create a proper writing environment.
Figure 13.5 Model Formal Report With APA Citation Style
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VI. Checklist for Preparing Formal Reports
Report Process
• Analyze the report and purpose.
• Anticipate the audience and issues.
• Prepare a work plan.
• Collect data.
Report Components
• Title page
• Letter of transmittal
• Table of contents
• List of illustrations
Answers to Chapter Review Questions
1. Why are formal and informal proposals written? (Objs. 1, 2)
2. Why do government agencies make requests for proposals (RFPs)? (Objs. 1, 2)
Government agencies and many other firms use requests for proposals (RFPs) to solicit
awarded fairly, using consistent criteria.
3. Why might you use a “hook” in a proposal, and what is an example? (Obj. 1)
A hook is used to make your introduction more persuasive. Examples might include an
4. What should be highlighted in the staffing section of a proposal? (Obj. 1)
The staffing section should spotlight the credentials and expertise of the project leaders. It
5. In what two ways do formal and informal proposals differ? (Obj. 2)
6. Name eight components of typical business plans. (Obj. 3)
Typical business plans generally include the following: letter of transmittal or executive
7. What should a business plan mission statement include and how long should it be?
(Obj. 3)
8. Why are formal reports written in business? Give an original example of a business
related formal report. (Obj. 4)
Formal reports represent the end product of thorough investigation and analysis. They
9. What is a letter or memorandum of transmittal, and what should it include? (Obj. 4)
A letter or memorandum of transmittal introduces a formal business report. The transmittal
10. How long should a typical executive summary be? (Obj. 4)
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11. Describe how to write an executive summary for a formal business report. (Obj. 4)
a. Look for strategic words and sentences.
12. What should be included in the introduction to a formal report? (Obj. 4)
The introduction should discuss the background, purpose, significance, and scope of the
13. What should the writer strive to do in the body of a formal report? (Obj. 5)
The writer should discuss, analyze, interpret, and evaluate the research findings or the
14. Why must writers list their sources and identify them in the text? (Obj. 5)
The purpose of references or works cited is to help readers locate the sources of ideas
15. In your view, what are six of the most important tips for the writer of a formal
report? Explain each of your choices. (Obj. 6)
Answers will vary, but students should discuss some of the following:
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Answers to Critical Thinking Questions
1. Which category of proposal, solicited or unsolicited, is more likely to succeed, and
why? (Obj. 1)
Sending unsolicited proposals carries a certain degree of risk because the author has to
2. If you were about to launch a new business, would you write your business plan from
scratch or use a software program to do it? What are the pros and cons of each
method? (Obj. 3)
Business plan software could certainly be helpful in learning the parts of a business plan
3. What is the purpose of a business plan, and what should it communicate to investors?
(Obj. 3)
A business plan is a persuasive document, the purpose of which is to obtain funding. The
4. Compare these two very different mission statements: (a) An organization with five
people said that its mission was “to eliminate hunger in the world.” (b) Actor and
social entrepreneur Brad Pitt, appalled by the sorry progress of rebuilding in New
Orleans after Hurricane Katrina, started a nonprofit organization with a mission “to
build 150 affordable, green, storm-resistant homes for families living in the Lower 9th
Ward.” What are the strengths and weaknesses of each mission statement? (Obj. 3)
The first mission statement is impressive but uninspiring. Although concise, it fails to offer
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5. Ethical Issue: How can a team of writers ensure that each member shoulders an equal
or fair amount of the work on an extensive writing project, such as a formal proposal
or report?
This is a nagging question in college writing teams and, no doubt, in the workplace as well.
ZOOMING IN:
Writing Winning Proposals at Raytheon
Critical Thinking
• Why are proposals vitally important to a company like Raytheon?
As is typical in the aerospace industry, Raytheon’s business is largely program-based. Both
large and small programs are based on customer evaluations of proposals submitted by
• How are proposals at Raytheon similar to and different from proposals or long reports
written by students?
Both student proposals and corporate proposals are:
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Student proposals are generally shorter and simpler than most corporate proposals. They also
are more likely to be written as an exercise by a single person, while corporate proposals,
especially the most important, largest corporate proposals are always for real and are likely to
be:
• Critical to the success of the business
• How can team members maintain consistency and meet deadlines when writing
important, time-constrained, multivolume documents such as this proposal?
In developing large, multivolume, team-written documents on tight schedules, many things
can go wrong either in the planning and management of the document development process
or in developing the content required to make the document a success. The first challenge is
to create a document development plan that:
• Includes everything that must be accomplished to complete the document
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ZOOMING IN
Your Turn: Applying Your Skills at Raytheon
Task 1 requires a short (3 to 5 pages) business report recommending a structured writing process to
be used for team-written company documents. The following is a suggested outline for this report:
1. Executive Summary summarizing the key points that follow (optional)
2. Introduction identifying the occasion for this report and outlining the need for an improved
A storyboard could be prepared providing detailed outlines for each outline entry or could be done
for multiple parts of the outline such as Sections 1, 2 and 8; Sections 3 and 4; and Sections 5
through 7. This would work well for a three-person team. Another possibility might be two
storyboards, one for the first four sections and another for the last four sections. This would work
well for a two-person team.
Task 2 requires a memo evaluating several (two to four) proposal consulting companies that
might be able to help Raytheon teams write good, new business proposals when the company’s
proposal specialists are unavailable.
This memo should be in standard memo (or e-mail) form and should recommend a short list of
proposal consultant firms that could be used by Raytheon to help proposal teams build high-
quality, new business proposals. It should also provide information about how each of the
selected firms could be contacted.
Ethics Check Solutions
Ethics Check, Page 475
Honesty Is Key
A business plan’s purpose is to help manage a company and raise capital; hence, it is a
persuasive document that must be accurate and honest. Whether the goal is to persuade a
Chapter 13 Lecture Notes 189
lender or investors or whether it is the blueprint for running operations, the business plan
must be realistic. What are the risks of “fudging” numbers or sugarcoating potential
challenges?
To create buy-in from potential investors and to ensure the smooth management of the start-up,
Ethics Check, Page 479
Cheater on the Team
If one of your teammates cowriting a formal report with you has been found to have
plagiarized a portion of your writing project, typically the instructor will punish the entire
group, assuming ownership of the entire team. After all, researchers are expected to deliver
a product that they have jointly prepared. Is this approach fair?
Answers will probably vary. Most instructors consider the team as a whole guilty of academic
dishonesty, whereas many students view their research tasks as work that they divide among
Photo Essay Solutions
Photo Essay, page 473
A business plan is critical for securing financial support of any kind, whether a bank loan, seed
money from an individual angel investor, or funds supplied by venture capitalists. A well-written
business plan also ensures that aspiring entrepreneurs have done their homework and know what
they are doing in launching a business. It also provides a detailed road map to chart a course to