Presentation on theme: "Intellectual Capital Human Capital Structural Capital Customer Capital."— Presentation transcript:
1 Designing a Competitive Business Model and Building a Solid Strategic Plan
2 Intellectual CapitalHuman CapitalStructural CapitalCustomer Capital
3 Strategic ManagementDeveloping 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 CapabilitiesSuperior valuefor customersLessons learnedCoreCompetenciesSustainablecompetitive advantageSkills
7 Developing a Strategic Plan Use a short planning horizon-2 yrs or lessBe informal, use shirtsleeve approachEncourage participation of othersDo not begin with setting objectivesMaintain flexibility-conditions change too fastFocus on strategic thinking, not planningPlanning will be an ongoing process
8 The Strategic Management Process Develop a clear vision-translate into missionAssess companies’ strengths and weaknessesScan the environment-opportunities and threatsIdentify key factors for successAnalyze competitionCreate company goals and objectivesFormulate strategic options and selectTranslate strategic plans into action plansEstablish controls
9 Vision StatementThe 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 seeProvides directionDetermines decisionsMotivates 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 objectivesWeaknesses-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 objectivesThreats-negative external forces that inhibit a company’s ability to achieve its mission, goals, and objectives
13 Key Success FactorsThe factors that determine a company’s ability to compete successfully in an industry
14 Analyze the Competition Competitive intelligenceCompetitor analysisCompetitive profile matrixKnowledge 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 abstractObjectives-more specific targets of performance, commonly addressing areas such as profitability, productivity, growth, and other key aspects of business
17 Formulate Strategic Options/ Select Strategies Strategy-a roadmap of the actions an entrepreneur draws up to fulfill acompany’s mission, goals, and objectivesCost leadershipDifferentiationFocus
18 Cost leadership-a strategy in which a company strives to be the lowest-cost producer relative to its competitors in the industryDifferentiation-a strategy in which a company seeks to build customer loyalty by positioning its goods and services in a unique or different fashionFocus-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 projectsAssign priorities to themImplement top priority projects
20 Establish ControlsBalanced 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?