1. Designing a Competitive Business Model and Building a Solid Strategic Plan

2. Intellectual Capital
Human Capital
Structural Capital
Customer Capital

3. Strategic Management
Developing a game plan to guide a company as it strives to accomplish its vision, mission, goals, and objectives and to keep it from straying off its desired course.

4. Building 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.

5. the key is ……………………………….. sustainable competitive advantage

6. Building Sustainable Competitive Advantage
Capabilities
Superior value
for customers
Lessons learned
Core
Competencies
Sustainable
competitive advantage
Skills

7. Developing a Strategic Plan
Use a short planning horizon-2 yrs or less
Be informal, use shirtsleeve approach
Encourage participation of others
Do not begin with setting objectives
Maintain flexibility-conditions change too fast
Focus on strategic thinking, not planning
Planning will be an ongoing process

8. The Strategic Management Process
Develop a clear vision-translate into mission
Assess companies’ strengths and weaknesses
Scan the environment-opportunities and threats
Identify key factors for success
Analyze competition
Create company goals and objectives
Formulate strategic options and select
Translate strategic plans into action plans
Establish controls

9. Vision Statement
The result of an entrepreneur’s dream of something that does not exist yet and the ability to paint a compelling picture of that dream for everyone else to see
Provides direction
Determines decisions
Motivates people

10. Mission Statement What business are we in?
What are we in business to accomplish?
How are we going to accomplish that purpose?
What principles and beliefs form the foundation of the way we do business?

11. Strengths and Weaknesses
Strengths-positive internal factors that a company can use to accomplish its mission, goals and objectives
Weaknesses-negative factors that inhibit the accomplishment of a company’s mission, goals, and objectives

12. Opportunities and Threats
Opportunities-positive external options that a firm can expect to exploit to accomplish its mission, goals, and objectives
Threats-negative external forces that inhibit a company’s ability to achieve its mission, goals, and objectives

13. Key Success Factors
The factors that determine a company’s ability to compete successfully in an industry

14. Analyze the Competition
Competitive intelligence
Competitor analysis
Competitive profile matrix
Knowledge management-the practice of gathering, organizing, and disseminating the collective wisdom and experience of a company’s employees for the purpose of strengthening competitive position

15. Create Company Goals and Objectives
Goals-the broad, long-range attributes a business seeks to accomplish, tend to be general and sometimes abstract
Objectives-more specific targets of performance, commonly addressing areas such as profitability, productivity, growth, and other key aspects of business

16. SMART Goals
Specific
Measurable
Assignable
Realistic
Timely

17. Formulate Strategic Options/ Select Strategies
Strategy-a roadmap of the actions an entrepreneur draws up to fulfill a
company’s mission, goals, and objectives
Cost leadership
Differentiation
Focus

18. Cost leadership-a strategy in which a company strives to be the lowest-cost producer relative to its competitors in the industry
Differentiation-a strategy in which a company seeks to build customer loyalty by positioning its goods and services in a unique or different fashion
Focus-a strategy in which a company selects one or more market segments, identifies customers’ needs, wants, and interests, and approaches them with a good or service designed to excel in meeting those needs, wants and interests

19. Translate Strategic Plans into Action Plans
Divide into projects
Assign priorities to them
Implement top priority projects

20. Establish Controls
Balanced scorecard-a set of multidimensional measurements that are unique to a company and that incorporate both financial and operational measures to give managers a quick yet comprehensive picture of a company’s overall performance

21. Balanced Scorecard Customer perspective-How do customers see us?
Internal perspective-At what must we excel?
Innovation perspective-Can we continue to improve and create value?
Financial perspective-How do we look to shareholders?