Strategic Management And the

Entrepreneur
 Strategic Management And the
Entrepreneur

 Too often entrepreneurs brimming with optimism and

enthusiasm launch business destined for failure
 The reason is these people tend to be people of action,
entrepreneurs often find the process of developing a strategy
dull and unnecessary.
 Companies lacking clear strategies may achieve some success
in the short run, but as soon as competitive conditions stiffen or
unanticipated threat arises, they usually hit the wall and fold
 Strategic Management And the
Entrepreneur

 Intellectual Capital
 It is comprised of three components.
 Human Capital
– The talents, skill, and ability of a company workforce.
 Structural capital
– The accumulated knowledge and experience that a company
possesses, it can include processes such as patents, copy rights
also knowledge and experience of people
 Customer Capital
– The established customer base.
– Positive reputation
– Goodwill of the company
– This intangible base needs to be managed very carefully.
 Strategic Management And the
Entrepreneur

 Saying of Jack Walch guru of management

 “Intellectual capital is what its all about, Releasing the ideas of
the people is what we have got to do if we are going to win.”
 Strategic Management
 it involves
 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.
 Strategic Management And the
Entrepreneur

 Competitive Advantage
 The aggregation of factors that sets a small business apart from its
competitors and gives it a unique position in the market superior to its
competition.
 One that creates value for customers and is difficult for competitors to
duplicate.
 Building a competitive advantage alone is not enough, the key to
success is building a sustainable competitive advantage. through its
ability to develop a set of core competencies that enables it to serve its
selected target customers better than its rivals.
 Strategic Management And the
Entrepreneur

 Core Competency
 Unique set of capabilities that a company develops in key area such as
superior quality, customer , service , innovation, team building,
flexibility, responsiveness, and other that allow it to vault past
competitors
 It becomes the nucleus of the company.
 Core competency are more durable, forming the building blocks for
every thing that company does.
 The key to success is to identify the core competency and then
concentrating them on providing superior service and value for it s
target customers.
 Strategic Management And the
Entrepreneur

 One of the biggest pitfalls is that the entrepreneurs fail to

differentiate their companies from t he crowd of people.
 It can be bring through creativity, imagination and vision to
identify those things that are important to target customers.