Designing a Competitive Business Model and Building a Solid Strategic Plan In to day’s global competitive environment, any business, large or small, that is not thinking and acting strategically in extremely vulnerable. Every business is exposed to the forces of a rapidly changing competitive environment, & in future small business executives can expect even greater change and uncertainty. A key Source: – Intellectual Capital – Human capital – Structural capital – Customer capital
Intellectual Capital Human Capital – The talents, creativity, skills, and abilities of a company’s work force, shows up in the innovative strategies, plans & processes that the people in an organization develop and then passionately pursue. Structural Capital – The accumulated knowledge and experience that a company possesses, can take many forms including processes, software, patents, copyrights, and perhaps most important, the knowledge and experience of the people in a company
Intellectual Capital Customer Capital – Is the established customer base, positive reputation, ongoing relationship, and good will that a company builds up over time with its customers Increasingly, entrepreneurs are recognizing that the capital stored in these three areas forms the foundation of their ability to compete effectively and that they must manage this intangible capital base care fully Every business uses all three components in its strategy, but the emphasis they place on each one varies
Strategic Management The process of developing a game plan to guide a company as is strives to accomplish its vision, mission, goals, and objectives and to keep it from straying off course. Competitive Advantage – The aggregation of factors that sets a small business apart from its competitors and give it a unique position in the market superior to its competition
Building a Competitive Advantage The goal of developing a strategic plan is to create for the small company a competitive advantage The aggregation of factors that sets a small business apart from its competitors and gives it a unique position in the market that is superior to its competition. From a Strategic perspective – the key to business success is to develop a unique competitive advantage, one that creates value for customers and is difficult for competitors to duplicate Building a CA alone is not enough: the key to success is building a Sustainable CA. In the long run, a company gains a sustainable CA through its ability to develop a set of core competencies that enable it to serve its selected target customers better than its rivals
Building a Competitive Advantage Core Competencies: – Are a unique set of capabilities that a company develops in key areas, such as superior quality, customer service, innovation, team building, flexibility, responsiveness, and others, that allow it to vault past competitors. – They are central to a company’s ability to compete successfully and are usually the result of important skills and lessons business has learned over time – Two of the Disney Company’s core competencies are animation and the ability to create magical experiences for guests at its theme parks through superior customer service. – Find in your business plan????????????
Sustainable CA Lesson Learned Skills Core Competencies Superior Value for Customers Capabilities Sustainable CA
The Strategic Management Process Step 1. develop a clear vision and translate it into a meaningful mission statement Step 2. assess the company’s strengths and weaknesses Step 3. scan the environment for significant opportunities and threats facing the business Step 4. identify the key factors for success in the business Step 5. analyze the competition Step 6. create company goals and objectives Step 7. formulate strategic options and select the appropriate strategies Step 8. translate strategic plans into action plans Step 9. establish accurate controls