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Similar to Ch 2 The strategic management and entrepreneur
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Ch 2 The strategic management and entrepreneur
- 2. Strategic Management And The Entrepreneur Group Members MC13-058 MC13-085 MC13-096 MC13-090 MC13-100 Muhammad Rehan Mudassar Yasin Muhammad Saleem Muhammad Arshad Muhammad Nauman Hailey College of Commerce University of the Punjab Lahore
- 3. Intellectual Capital! A Source of Competitve Advatage It is a key source of a company’s competitive advantage that is comprised of • Human Capital (Talents, Skills And Abilities) • Structural Capital (Knowledge, Experience) • Customer Capital (Reputation and Positive Relations ) • Strategic Management-It is the process of developing game plan to guide a company as it strives to accomplish its vision, missions and goals to keep it from straying off course.
- 4. Building A Competitive Advantage • Competitive Advantage-the aggregation of factors that sets a small business apart from its competitors and gives a unique position in the market superior to its competition • Core Competencies-a unique set of lasting capabilities that a company develops in key operational areas that allow it to vault past competitors
- 5. In business The core competencies become the nucleus of company’s competitive advantage and are difficult to be duplicated. Devolving core competencies does not require a great deal money but it requires creativity imagination and vision
- 6. STEP 1
- 7. Vision The dream of something that does not exist at present • To determine decisions • To motivate people • To determine direction •The idea where to go and how to go. • Addresses the first question of any . business venture i.e what business are we in? •It should be concise and meaningful
- 8. STEP 2
- 10. STEP 3
- 12. STEP 4
- 13. Factors of Success in Business • • • • • • • • • company’s ability to compete successfully in an industry. Based on cost factors Manufacturing cost per unit Distribution cost per unit Development cost per unit Other factors Product quality, relationship with supplier Prime store location Available customer credit.
- 14. STEP 5
- 15. Competitor Analysis Business is like a battlefield. If you want to win the war, you have to know who you’re up against.
- 16. Competitor Analysis A small business owner collect a great deal of information by through compettitve intelligence(CI) • Can read trade publications • Attend trade shows • Through watching on emloyment ads • Environmental Protection Agency reports • Use vast resources of World Wide Web • Port import export reporting service(PIERS) • Obtain credit reports of major competitors • Conduct patent searches
- 17. Knowledge Management Competitive Profile Matrix- evaluate their company against major competitors Knowledge Management Taking inventory of information Organizing and disseminating that information
- 18. STEP 6
- 20. STEP 7
- 21. What is Strategy? • Strategy-a road map of the actions on entrepreneur draws up to fulfill a company’s mission goals and objectives. • A flawed strategy no matter how brilliant the leadership, no matter how effective the implementation is doomed to fail. • A sound Strategy implemented without error wins every time.
- 22. Kinds of Strategies Cost leadership Strategy (in which company tries to lower its cost) Strategy works well when: • Customer is sensitive to price change • Competing firms sell same product • Economies of scale are produced
- 23. Kinds of Strategies Differentiation Strategy (in which company seeks to build customer loyalty) Strategy works well when: • Unique different fashion • Difference in the form of a true benefit of customer
- 24. Kinds of Strategies Focus Strategy (special needs and interests and meets those needs.) Strategy works well when: • Select one or more market segments • Identify customers special needs • Mold needs into best goods services
- 25. STEP 8
- 26. Development of The Strategy
- 27. STEP 9
- 28. Controlling The Strategy • Balanced Scorecards-a set of measurements unique to a company that includes both financial and operational measures and gives a quick yet comprehensive picture of the company’s overall performance.