STRATEGIC PLANNING FOR SMALL BUSINESS
STRATEGIC PLANNING
FOR SMALL BUSINESS
Chapter 6
What is Strategic
Planning?
• The process of determining the primary objectives of the entrepreneurship and then adopting courses of action and allocating resources to achieve those objectives.
• It provides the entrepreneur with a systematic approach to the achievement of the firm’s objectives. Three Distinct Steps of Strategic Planning:
I. Determination of
Primary Objectives
II. Adoption of Course of
Action
III. Allocation of
Resources
I. Determination of
Objectives
The Mission Statement – the basic description of the fundamental nature, rationale, & direction of the firm.
3 Concerns of Mission Statement
1.How the entrepreneur intends to use his resources
2. How the entrepreneur expects to relate to the ever-changing environment 3. The kinds of values the entrepreneur intends to offer to his customers Strategic
Objectives
• This term refers to specific performance targets that the entrepreneurship hopes to accomplish. • The objectives define, in specific terms, “How the firm’s mission will be realized?” II. Adoption of
Courses of Actions
Course of Action - A strategy developed by the entrepreneur after the primary or strategic objectives are established. Strategy – a carefully designed plan for achieving the firm’s objectives.
• Indicates how the entrepreneur will attempt to accomplish the goals with the resources available.
2 Tools in Developing
Realistic Strategies:
1. SWOT Analysis – an organized method of assessing a firm’s strengths and weaknesses and the opportunities and threats in the external environment that confront or will confront the firm. Purpose of SWOT Analysis: To match the firm’s strengths and weaknesses with external opportunities and threats to determine what strategy to adopt.
2 Tools in Developing
Realistic Strategies:
2. Forecasts of future sales performance • Forecasts – supplementary tools for SWOT Analysis.
- An estimate/ prediction of the future sales or income of the
FOR SMALL BUSINESS
Chapter 6
What is Strategic
Planning?
• The process of determining the primary objectives of the entrepreneurship and then adopting courses of action and allocating resources to achieve those objectives.
• It provides the entrepreneur with a systematic approach to the achievement of the firm’s objectives. Three Distinct Steps of Strategic Planning:
I. Determination of
Primary Objectives
II. Adoption of Course of
Action
III. Allocation of
Resources
I. Determination of
Objectives
The Mission Statement – the basic description of the fundamental nature, rationale, & direction of the firm.
3 Concerns of Mission Statement
1.How the entrepreneur intends to use his resources
2. How the entrepreneur expects to relate to the ever-changing environment 3. The kinds of values the entrepreneur intends to offer to his customers Strategic
Objectives
• This term refers to specific performance targets that the entrepreneurship hopes to accomplish. • The objectives define, in specific terms, “How the firm’s mission will be realized?” II. Adoption of
Courses of Actions
Course of Action - A strategy developed by the entrepreneur after the primary or strategic objectives are established. Strategy – a carefully designed plan for achieving the firm’s objectives.
• Indicates how the entrepreneur will attempt to accomplish the goals with the resources available.
2 Tools in Developing
Realistic Strategies:
1. SWOT Analysis – an organized method of assessing a firm’s strengths and weaknesses and the opportunities and threats in the external environment that confront or will confront the firm. Purpose of SWOT Analysis: To match the firm’s strengths and weaknesses with external opportunities and threats to determine what strategy to adopt.
2 Tools in Developing
Realistic Strategies:
2. Forecasts of future sales performance • Forecasts – supplementary tools for SWOT Analysis.
- An estimate/ prediction of the future sales or income of the