Entrepreneurial Ventures Final

8/6/2019 Entrepreneurial Ventures Final

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STRATEGYSTRATEGY

FORFOR

ENTREPRENEURIAL VENTURESENTREPRENEURIAL VENTURES

Presented by

Smitha Mary Philip

Sooraj Sukumaran

Sreela Chandran


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OverviewOverview

Entrepreneurial Venture - Any

business whose primary goals are

profitability and growth that are

characterized by innovative strategic

practices.

Entrepreneur- person who organizes

and manages a business undertakingand who assumes risk for profit and acts

as the ultimate strategist


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Entrepreneurial CharacteristicsEntrepreneurial Characteristics

for Success of a new Venturefor Success of a new VentureAbility to identify potential venture

opportunities

Sense of Urgency

Detailed knowledge of keys to success

Access to outside help to supplement theirskills


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Lifecycle of a Venture andLifecycle of a Venture and

Strategies AdoptedStrategies Adopted Start-up stage : Survival

Expansion stage : Intense market

development

Consolidation stage : Competitive

strategies

Revival stage : Distinct competencies Decline Stage


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MintzbergsMintzbergs Modes of StrategicModes of Strategic

Plann

in

g In

Ent

repren

eurial Vent

uresPlann

in

g In

Ent

repren

eurial Vent

ures Early life of the venture Entrepreneurial

Mode

Established venture wanting to continue

strong growth Planning Mode

Established venture wanting stability

Adaptive Mode


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MintzbergsMintzbergs Modes of StrategicModes of Strategic

Plann

in

g In

Ent

repren

eurial Vent

uresPlann

in

g In

Ent

repren

eurial Vent

ures Planning Mode

Gathering information for situation analysis

Generation of alternative strategies

Selection of most appropriate strategy

Adaptive Mode Characterized by reactive solutions to existing problems

Strategy is developed to move the corporation forwardincrementally

Entrepreneurial Mode Strategy made by one powerful individual

Dominant goal is growth


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Strategic Management ProcessStrategic Management Process

In

Ent

repren

eurial Vent

uresIn

Ent

repren

eurial Vent

ures


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Strategic Decision Making Process For

Entrepreneurial Ventures

1. Develop a basic business idea

-Products or services

- Customers or market


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2. Scan and Assess external

environment


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3. Scan and assess internal factors

considerpersonalgrowth

relevant to thenew business

abilitiesexperience

strengths

weaknesses

assets expertise


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4. Analyze strategic factors

SWOT

SFAS

Currentsituation


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5. Decide go or no go

Determine whether it is feasiblebusiness opportunity

Further development of idea cancelled

unless strategic factors changed


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6. Generate business plan

How idea will be transformed into reality

Key internal factors specified

Financial support from potential investors

and creditors


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6. Generate business plan

Development of ventures

Mission

Objectives

Strategies

P

olicies BOD(corporation) and key managers


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Preparation of Business Plan

Develop

ManagementProfile

board

key managers

Develop

InternalEnvironment

structure

Culture

key recourses

Develop

PerformanceProjections

Breakeven

Pro formas

payback


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7. Implementthe business plan

through

Actions

Plans

Procedures


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8.Evaluate the implementedbusiness plan

Through comparisons of actual

performance against projected

performance results

Actual results shouldn't be < or much>

anticipated results


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Corporate Governance in

Entrepre

neurial Ve

ntures

Owners and managers are the same

Incorporated or not incorporated(soleproprietorship or simple partnership)

Incorporated venture will have

shareholders(venture capitalists)

BOD if shareholders present


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Corporate Governance in

Entrepre

neurial Ve

ntures

BOD either very active or very passive

Advisory board for passive BOD


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Sources of Innovation for

Entrepre

neurs

Peter Drucker proposes Seven sources

for innovative opportunity that should be

monitored by those interested in starting

an entrepreneurial venture, either with

an established company or as an

independent small business.


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The unexpected

An unexpected success, an unexpected

failure, or an unexpected outside event

can be a symptom of a unique

opportunity.


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The incongruity

A discrepancy between reality and what

everyone assumes it to be, or between

what is and what ought to be, can create

an opportunity for innovation.


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Innovationbased on process need

When a weak link is evident in a

particular process, but people work

around it instead of doing something

about it, an opportunity is present for theperson or company willing to forge a

stronger one.


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Changes in industry or market structure

A business is ready for an innovative

product, service, or approach to the

business when the underlying

foundation of the industry or market

shifts


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Demographics

Changes in the populations size, age

structure, composition, employment,

level of education, and income can

create opportunities for innovation.


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Changes in perception, mood, and

meaning

Opportunities for innovation can developwhen a societys general assumptions,

attitudes, and beliefs change.


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New knowledge

Advances in scientific and nonscientific

knowledge can create new products and

new markets. Advances in two different

areas can sometimes be integrated toform the basis of a new product.


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Benefits of Strategic Planning in

a Entrepreneurial Venture

Improve your business decisions

Enhance your understanding of

customers

Improve customer relations

Increase the probability of beating

competitorsAids in effective use of resources


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THANKYOUTHANKYOU

Documents

Entrepreneurial Ventures Final