Designing a Competitive Business Model
and Building a Solid Strategic Plan
Intellectual Capital
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Human Capital
Structural Capital
Customer Capital
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.
Building a Competitive Advantage
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.
the key is ………………………………..
sustainable competitive advantage
Building Sustainable Competitive
Advantage
Capabilities
Lessons learned
Core
Competencies
Skills
Sustainable
competitive advantage
Superior value
for customers
Developing a Strategic Plan
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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
The Strategic Management Process
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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
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
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Provides direction
Determines decisions
Motivates people
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?
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Strengths and Weaknesses
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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
Opportunities and Threats
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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
Key Success Factors
The factors that determine a company’s ability
to compete successfully in an industry
Analyze the Competition
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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
Create Company
Goals and Objectives
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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
SMART Goals
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Specific
Measurable
Assignable
Realistic
Timely
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
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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
Translate Strategic Plans
into Action Plans
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Divide into projects
Assign priorities to them
Implement top priority projects
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
Balanced Scorecard
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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?