DAVAO CENTRAL COLLEGE,

INC.
Juan dela Cruz Street, Toril, Davao City
Accredited by ACSCU-ACI
Landline No. (082) 291 1882

TLE M9
ENTREPRENEURSHIP

(WEEK 8)
LEARNING MODULE
SY 2020-2021

Prepared by:

Michelle Ann M. Espinosa, LPT

TLE M9 – Entrepreneurship | Page 1

Instructor: Michelle Ann M. Espinosa,LPT
 DAVAO CENTRAL COLLEGE,
INC.
Juan dela Cruz Street, Toril, Davao City
Accredited by ACSCU-ACI
Landline No. (082) 291 1882

Week 8

Unit 3: The Search for a Sound Business Idea

Topic: Strategic Planning for Small Business

Learning Outcomes:
1. Determine the different strategies for planning a
small business.
2. Evaluate the case study based on what you have learned
from the lesson.

Concept Digest (Discussion)

What is Strategic Planning?

Strategic Planning refers to the process of determining the

primary objectives of the entrepreneurship and then adopting
courses of action and allocating resources to achieve those
objectives. The definition involves three distinct steps;
(1) determination of objectives (2) adoption of course of
action (3) allocation of resources. Strategic planning
provides the entrepreneur with a systematic approach to the
achievement of the firm’s objectives. The figure below shows
that the determination of objectives is a prerequisite step
before a strategy is adopted. In turn, strategy is a
requirement before resources are allocated.

Strategic
Planning

Determination of
Primary Objectives

Adoption of
Courses of Action

Allocation of
Resources

Strategic Planning

The Determination of Objectives

The objectives of the firm are important components of the
firm’s strategic planning activities but before these are

TLE M9 – Entrepreneurship
Instructor: Michelle Ann M. Espinosa,LPT
 DAVAO CENTRAL COLLEGE,
INC.
Juan dela Cruz Street, Toril, Davao City
Accredited by ACSCU-ACI
Landline No. (082) 291 1882

determined. The firm’s mission statement must first be

developed.

The Mission Statement. This term refers to the basic

description of the fundamental nature, rationale and
direction of the firm. It consists of three concerns:
1. How the entrepreneur intends to use his resources?
2. How the entrepreneur expects to relate to the ever-
changing environment; and
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.
Examples of strategic objectives are the following:
1. Expand production capacity by 50% within two years.
2. Increase sales by 50% by the year 2012;
3. Increase market share by 10% every two years;
4. Increase the number of outlets by three within three
years.

Adoption of Course Action

After the primary (or strategic) objectives are established,
the entrepreneur must develop a strategy which is
alternately called course of action. A strategy is a
carefully designed plan for achieving the firm’s objectives.
A strategy indicates how the entrepreneur will attempt to
accomplish the goals with the resources available.

In developing realistic strategies, the entrepreneur can

make use of the most popular tools. These are the following:
1. SWOT Analysis
2. Forecasts of future sales performance

Implementing Strategic Plans

Strategies are useless unless they are implemented. To put

strategies into action, the following strategies are
required:
1. Identifying the specific methods to be used; and
2. Deploying the resources needed to implement the
intended plans.

Identifying Specific Methods

Strategies determine the best way to use resources. There is
a need, however, to develop tactics which will be used to
implement the strategies. Tactics are more detailed and they
are used to determine how the specific task can be best
accomplished on time with available resources.

TLE M9 – Entrepreneurship
Instructor: Michelle Ann M. Espinosa,LPT
 DAVAO CENTRAL COLLEGE,
INC.
Juan dela Cruz Street, Toril, Davao City
Accredited by ACSCU-ACI
Landline No. (082) 291 1882

If “establish branches in strategic locations” is a stated

strategy, the tactical plan to implement may appear as
follows:

1. Identify strategic locations;

2. Determine the potentials of the identified strategic
location; and
3. Set a timetable for installing branches.

Deploying the Resources

The specific aim of planning is to be able to deploy the
right quality and quantity of resources in the various
activities required to achieve the objectives. The resources
would be indicated in terms of human and nonhuman elements.

Fundamental Strategies for Small Business

There are certain strategies that are necessary for the
survival of small business. These are the following:
1. Flexibility Strategy

2. Strategy of effectiveness as a higher priority

3. Strategy of starting simple

Strategy Concerns of Small Business

In determining what strategy to adapt, the entrepreneur is

confronted with two general situations:
1. Is he organizing a new business; or
2. Is he currently running a small business.

New Business. This term refers to one that will be operated

for the first time by the small business operator. If so,
his option consists of the following:
1. Acquiring an existing business;
2. Organizing a new business; and
3. Buying a franchise

Strategies for a Going Concern

The strategic problems of small business are not as intense
as those of large business. Even if small business cannot
compete head-on with big business, its size has a built in
maneuverability which is very important competitive weapon.

Any or all of the following strategies are applicable to

small business:
1. Segment Markets – The small business operator will have
to identify the market segment with which it has an
expertise, then compete.
2. Efficient use of research and development.
3. Think small – The emphasis must be on profits rather
than sales growth, and specialization rather than
diversification.

Why Small Business Operators Ignore Strategic Planning?

TLE M9 – Entrepreneurship
Instructor: Michelle Ann M. Espinosa,LPT
 DAVAO CENTRAL COLLEGE,
INC.
Juan dela Cruz Street, Toril, Davao City
Accredited by ACSCU-ACI
Landline No. (082) 291 1882

1. Lack of expertise – few small business operators are

trained in business planning,
2. Inability to get started – even if small business
operators are convinced about the importance of
planning, they fail to get started for lack of
sufficient exposure to planning activities.
3. Uncontrollable, often intangible variables – The
uncontrollable and often intangible variables
complicate planning which later on discourages the
small business operator from repeating the exercise.
4. Resource Poverty – planning requires time, but the
small business operators oftentimes do not have it.
This is so because he must attend to the problems
related to lack of adequate capital, managerial
experience, outside advice, management specialist and
other key assets.
5. Focus on daily operations – The daily requirements of
small business usually keep the business operator so
busy that he is left with no time for planning.
Failure to realize the importance of strategic planning.

TLE M9 – Entrepreneurship
Instructor: Michelle Ann M. Espinosa,LPT