GROUP 2

STRATEGIC
MANAGEMENT
AND THE ENTREPRENEUR
GR OUP MEMBE RS :
R AF AEL ENC I L AY
S YMONE GE RAS TA
 TOPICS

Building a The Strategic

Competitive Management
Advantage Process
OBJECTIVES
AT THE END OF THE
LEARNING
EXPERIENCE, THE
LEARNER WILL BE
ABLE TO:

1 . UNDERSTAN D 2 . EXPLAI N WH Y 3. DEVELOP A 4. DISCUSS THE

THE AND H OW A STRATEGIC PLAN CHARACTERISTICS
I MPORTANC E OF S MALL BUSI N E S S FOR A BUSINESS OF THREE BASIC
S TR ATEGI C MUS T CREA TE A USING THE NINE STRATEGIES: LOW-
STEPS IN THE COST,
MAN AGEME N T COMPETI TI V E
STRATEGIC DIFFERENTIATION
TO A S MALL ADVANTAGE I N
PLANNING PROCESS. AND FOCUS.
BUS I N ESS. THE MARKE T.
 WHAT IS COMPETITIVE
ADVANTAGE?
THE PRACTICE OF GAINING AN 'EDGE' OVER
COMPETITIORS BY OFFERING CONSUMERS
GREATER VALUE. EITHER THROUGH LOWER
COSTING PRODUCTS OR SERVICES OR OFFERING
HIGH QUALITY SERVICES OR PRODUCTS WHICH
JUSTIFY HIGHER PRICES - ALSO KNOWN AS
COMPETITIVE ADVANTAGE
 IDENTIFYING AND
CREATING COMPETITIVE
ADVANTAGES
FIRST OF ALL, YOUR BUSINESS MAY HAVE A
BUILT-IN COMPETITIVE ADVANTAGE TO
PROMOTE, SUCH AS THE INCORPORATION
OF CERTAIN SOFTWARE THAT MAKES THE
CUSTOMER'S EXPERIENCE EASIER. THE
LOCATION OF THE PREMISES MIGHT ALSO
LEND ITSELF TO BEING A COMPETITIVE
ADVANTAGE FOR SOME BUSINESSES. FOR
EXAMPLE, FAST FOOD OUTLETS BENEFIT
FROM BEING SITUATED IN A DENSELY
POPULATED PART OF THE CITY
 HOW TO GAIN A COMPETITIVE
ADVANTAGE WHEN A SMALL
BUSINESS MARKETS ITS COMPETITIVE
ADVANTAGE?
THE COMPANY MUST ENSURE THIS
ADVANTAGE IS SPECIFIC AND NOT TOO
VAGUE FOR CUSTOMERS TO APPRECIATE.
FOR EXAMPLE, DON’T PROMISE
CUSTOMERS YOU WILL SHIP OUT THEIR
ORDERS AS FAST AS YOU CAN. MAKE THE
ADVANTAGE CLEAR AND EASY TO GRASP.
PROMISE TO SHIP ALL ORDERS MADE
BEFORE 4:30 PM ON THE SAME DAY THEY
WERE ORDERED AND YOU HAVE AN
ADVANTAGE CUSTOMERS CAN EASILY
UNDERSTAND.
PORTER'S GENERIC
COMPETITIVE
STRATEGIES (WAYS
OF COMPETING)
A f i rm' s rel a ti v e p os i ti on wi t h i n i t s i n d us t ry
det ermi nes wh eth er a f i rm' s prof i t a b i l i t y i s
above or bel ow th e i n dus t ry a v era ge. Th e
f un damental ba s i s of a bo v e a v era ge prof i t a b i l i t y
i n the l ong run i s s us ta i n a b l e compet i t i v e
adv antag e.
 Cost Leadership. In cost Focus. the generic
Differentiation. In a
leadership, a firm sets out to
differentiation strategy a firm strategy of focus rests
become the low cost producer
seeks to be unique in its on the choice of a
in its industry. The sources of
industry along some narrow competitive
cost advantage are varied and
dimensions that are widely
depend on the structure of the
valued by buyers.
scope within an
industry. industry.
 The focus strategy has two
variants:

1
IN COST FOCUS A FIRM
SEEKS A COST ADVANTAGE
IN ITS TARGET SEGMENT

2 DIFFERENTIATION FOCUS A
FIRM SEEKS
DIFFERENTIATION IN ITS
TARGET SEGMENT.
 WHAT IS STRATEGIC
PLANNING PROCESS?
-IT IS A PROCESS WHERE
ORGANIZATIONS DEFINE A BOLD VISION
AND CREATE A PLAN WITH GOALS AND
OBJECTIVES TO REACH THAT FUTURE
 STRATEGIC PLANNING
PROCSS
1.) PLANNING AWARENESS 2.) FORMULATING GOALS 3.) ANALYZING EXTERNAL ENVIRONMENT

4.) ANALYZING INTERNAL 5.) IDENTIFYING STRATEGIC

6.)PERFORMING GAP ANALYSIS
ENVIRONMENT OPPORTUNITIES AND THREATS

7.) DEVELOPING ALTERNATE 8.)IMPLEMENTING STRATEGY 9.) MEASURING AND CONTROLLING

STRATEGIES PROGRESS
 WHAT IS STRATEGIC
MANAGEMENT PROCESS?
STRATEGIC MANAGEMENT PROCSS IS A
CONTINUOUS CULTURE OF APPRAISAL
THAT A BUSINESS ADOPTS TO OUTDO
THE COMPETITORS. IT IS A PROCESS
THAT COVERS FORMULATING THE
ORANIZATIONS OVERALL VISION FOR
PRESENT AND FUTURE OBJECTIVES
 THE 5 STEPS OF STRATEGIC
MANAGEMENT PROCESS
Goal Setting Analysis
-Clarify the organization's vision. It includes -Involves gathering the data and information
short-term and long-term objectives that is relevant to accomplishin the set goals

Strategy formulation Strategy Implementation

-Involves identifying external resourcs the business -An implementation plan must be put in place
needs to success and which goals must be prioritized before the process is considered viable

Evaluation and Control

-Includes performance appraisal and review of both
internal and external issues
 IMPORTANCE OF STRATEGIC
MANAGEMENT AND PLANNING PROCESS
It helps the organization achieve a sustainable strategic competition in
the market. It can act as the reference for any major decisions of the
organization, assist the business to become proactive, preparing the
organization for any potential challenges, and helping the business to
survive and grow
References:
 THANK YOU

BY GROUP 2