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Strategic Management & the   EntrepreneurEssentials of Entrepreneurship &  Small Business Management    (section 2: Buildi...
Key words:•   Strategic management•   Mission•   Goals & objectives•   Competitive advantage•   SWOT
Overview:•   Why competitive advantage•   Create a strategic plan•   Meaningful mission statement•   Company’s SWOT•   Mea...
Technological Change          85=15 !?
Why Strategic Management?Entrepreneur        Strategic ManagementStrategic Management involves developing a game  plan to ...
Competitive Advantages:             Aggregation of            factors that sets a            company apart from           ...
Plan            Unique Image       Create                Potential Customers
Small business ‘s Strategic management Procedure  • Use a short planning  • Be informal  • Encourage the participation of ...
Strategic Management            Process1. Develop a clear vision and translate it  into a meaningful mission statement2. D...
Strategic Management            Process5. Identify the key factors for success in  the business6. Analyze the competition7...
1. Develop a clear vision … •   Vision •   Mission •   Elements of a mission statement •   To write a powerful mission
Vision•   Is based on value•   Values are like organizational DNA•   Tell people how to act•   The picture that leaps into...
VisionRespect for the individual andinnovation tocreating satisfied                          Marketing the world customers...
mission• What business am I in?• Why we are here?  Where we are going?• Why an organization is, why it exists?
Elements of a Mission     Statement• Basic beliefs and values• Target customers• Basic products and  services• Better sati...
To write a powerful mission        statement  •   Keep it short  •   Keep it simple  •   Get everyone involved  •   Keep i...
2. Define the firm’s core     competencies … • Core competencies • Creating your companies’ Core   competencies • Market s...
Core competenciesA unique set of capabilities thata company develops in keyoperational areas that allow it tovault past co...
Creating your companies’   Core competencies  • Customers  • Customers’    characteristics  • Buying our goods  • Increase...
Market segmentationCarving up the massmarket into smaller,more homogeneousunits and thenattacking eachsegment with aspecif...
PositioningInfluencing customers’perceptions to create thedesired image for the businessand its goods and services.
3. Assess the company’sstrengths and weaknesses  • Strengths  • Weaknesses
4. Investigate environmentopportunities and threats    • Opportunities    • Threats
5. Identify the key factors for    success in the business   Key success factors:   •   Market share   •   Price competiti...
6. Analyze the competition   • Competitor analysis   • Competitive profile matrix
Competitor analysisUpdate your knowledge of competitors:•   Major competitors•   Cost structure•   New competitors•   Comp...
Competitor analysisUpdate your knowledge of competitors (using-low cost methods):•   Read trade publications•   Ask custom...
Competitive profile matrix  A tools that allows a  business owner to  evaluate his company  against major           your c...
7. Create company goals and         objectives   • Targets importance   • Goals   • Objectives
Targets importancethat dependsdepends ….       that ….           Which way …                         which way …
Goals• The broad, long range attributes that a  business seeks to accomplish; they tend  to be general and sometimes even ...
Objectives•   Specific•   Measurable•   Attainable•   Realistic & Challenging•   Timely•   Written down
8. Formulate strategic options    • Strategy    • Competitive strategy:             » Cost leadership             » Differ...
Strategy• A road map of the tactics and  actions an entrepreneur draws up to  fulfill the firm’s mission, goals, and  obje...
Cost leadership• A strategy in which a company strives  to be the lowest-cost producer relative  to its competitors in the...
DifferentiationA strategy in which a companyseeks to build customer loyalty bypositioning its goods or services ina unique...
FocusA strategy in which a company selectsone (or more) segments of a market,identifies their special needs, wants,and int...
9. Translate strategic plan into          action plans   •   Purpose   •   Scope   •   Contribution   •   Resource require...
10. Establish accurate controls      Planning without control has little      operational value           a planning      ...
Conclusion•   Why competitive advantage•   Create a strategic plan•   Meaningful mission statement•   Company’s SWOT•   Me...
Thanks for your   attention
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Strategic management & entrepreneurship[ppt]

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Strategic management & entrepreneurship[ppt]

  1. 1. Strategic Management & the EntrepreneurEssentials of Entrepreneurship & Small Business Management (section 2: Building the Business Plan: Beginning Considerations)Tomas W. Zimmerer & Norman M. ScarboroughPresented By Samin Saghafi 83/6/28
  2. 2. Key words:• Strategic management• Mission• Goals & objectives• Competitive advantage• SWOT
  3. 3. Overview:• Why competitive advantage• Create a strategic plan• Meaningful mission statement• Company’s SWOT• Meaningful goals and objectives• Strategic alternatives
  4. 4. Technological Change 85=15 !?
  5. 5. Why Strategic Management?Entrepreneur Strategic ManagementStrategic Management involves developing a game plan to guide a company as it strives to accomplish its mission, goals, and objectives, and to keep it on its desired course.
  6. 6. Competitive Advantages: Aggregation of factors that sets a company apart from its competitors and gives it a unique position in the market.
  7. 7. Plan Unique Image Create Potential Customers
  8. 8. Small business ‘s Strategic management Procedure • Use a short planning • Be informal • Encourage the participation of employees • Do not begin with setting objectives • Focus on strategic thinking
  9. 9. Strategic Management Process1. Develop a clear vision and translate it into a meaningful mission statement2. Define the firm’s core competencies and the market segment3. Assess the company’s strengths and weaknesses4. Investigate environment opportunities and threats
  10. 10. Strategic Management Process5. Identify the key factors for success in the business6. Analyze the competition7. Create company goals and objectives8. Formulate strategic options9. Translate strategic plan into action plans10. Establish accurate controls
  11. 11. 1. Develop a clear vision … • Vision • Mission • Elements of a mission statement • To write a powerful mission
  12. 12. Vision• Is based on value• Values are like organizational DNA• Tell people how to act• The picture that leaps into your mind when you close your eyes and dreams about what you want your organization to become.
  13. 13. VisionRespect for the individual andinnovation tocreating satisfied Marketing the world customers a better placeEntrepreneurs:
  14. 14. mission• What business am I in?• Why we are here? Where we are going?• Why an organization is, why it exists?
  15. 15. Elements of a Mission Statement• Basic beliefs and values• Target customers• Basic products and services• Better satisfy• Constitutes value• Competitive advantages• Market segments• Key stakeholders
  16. 16. To write a powerful mission statement • Keep it short • Keep it simple • Get everyone involved • Keep it current • Reflects the values • Best effort • Reflects a concern for the future • Positive and upbeat • Other company’s mission statement • Use it
  17. 17. 2. Define the firm’s core competencies … • Core competencies • Creating your companies’ Core competencies • Market segmentation • Positioning
  18. 18. Core competenciesA unique set of capabilities thata company develops in keyoperational areas that allow it tovault past competitors. small company large company
  19. 19. Creating your companies’ Core competencies • Customers • Customers’ characteristics • Buying our goods • Increase or decrease purchases • Competitors
  20. 20. Market segmentationCarving up the massmarket into smaller,more homogeneousunits and thenattacking eachsegment with aspecific markingstrategy.
  21. 21. PositioningInfluencing customers’perceptions to create thedesired image for the businessand its goods and services.
  22. 22. 3. Assess the company’sstrengths and weaknesses • Strengths • Weaknesses
  23. 23. 4. Investigate environmentopportunities and threats • Opportunities • Threats
  24. 24. 5. Identify the key factors for success in the business Key success factors: • Market share • Price competitiveness • Financial strength • Product quality • Customer loyalty
  25. 25. 6. Analyze the competition • Competitor analysis • Competitive profile matrix
  26. 26. Competitor analysisUpdate your knowledge of competitors:• Major competitors• Cost structure• New competitors• Competitors’ key strategies• Strengths and weaknesses• Customers view
  27. 27. Competitor analysisUpdate your knowledge of competitors (using-low cost methods):• Read trade publications• Ask customers & suppliers• Talk to employees• Attend trade shows• Buy their products• WWW
  28. 28. Competitive profile matrix A tools that allows a business owner to evaluate his company against major your competitors you competitors on the key success factor for that market.
  29. 29. 7. Create company goals and objectives • Targets importance • Goals • Objectives
  30. 30. Targets importancethat dependsdepends …. that …. Which way … which way …
  31. 31. Goals• The broad, long range attributes that a business seeks to accomplish; they tend to be general and sometimes even abstract.
  32. 32. Objectives• Specific• Measurable• Attainable• Realistic & Challenging• Timely• Written down
  33. 33. 8. Formulate strategic options • Strategy • Competitive strategy: » Cost leadership » Differentiation » Focus
  34. 34. Strategy• A road map of the tactics and actions an entrepreneur draws up to fulfill the firm’s mission, goals, and objectives.
  35. 35. Cost leadership• A strategy in which a company strives to be the lowest-cost producer relative to its competitors in the industry.
  36. 36. DifferentiationA strategy in which a companyseeks to build customer loyalty bypositioning its goods or services ina unique or different fashion.
  37. 37. FocusA strategy in which a company selectsone (or more) segments of a market,identifies their special needs, wants,and interest, and offers them a goodor service designed to excel inmeeting those needs, wants, andinterest.
  38. 38. 9. Translate strategic plan into action plans • Purpose • Scope • Contribution • Resource requirement • Timing
  39. 39. 10. Establish accurate controls Planning without control has little operational value a planning program requires a practical control process
  40. 40. Conclusion• Why competitive advantage• Create a strategic plan• Meaningful mission statement• Company’s SWOT• Meaningful goals and objectives• Strategic alternatives
  41. 41. Thanks for your attention

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