Designing a Competitive Business Model

and Building a Solid Strategic Plan

Intellectual Capital

 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

Core Sustainable Superior value

Lessons learned for customers
Competencies competitive advantage

Skills
 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
 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
 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
 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?

 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
 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
 Key Success Factors

The factors that determine a company’s ability

to compete successfully in an industry
 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
 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
 SMART Goals
 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
 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

 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
 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?