- 1. EntrepreneurshipA strategic viewpoint
2. Entrepreneurship Defined
3. What is Strategy?
- The essence of strategy is to match strengths and distinctive
competencies with the environment in such a way that one enjhoys a
competitive advantage over ones rivals in the same
environment.
4. Entrepreneurship as a business strategy
5. What is a PES?
- The equivalent of a personal business plan
- Puts you in charge of evaluating and shaping choices
- Puts you in charge of initiating action
- Choice rather than random happenstance
6. Why plans fail
- Frustration with lack of immediate success
- Inability to make the switch to results, or goal
orientation.
- Poor planning and implementation skills.
7. Basis for a Personal Entrepreneurial Strategy
- Self assessment based on evaluation of
-
- Your thoughts and actions
-
-
- Become aware of blind spots
-
-
- Reinforces your concepts of your strengths and weaknesses
- Evaluation of data that you gather
- Develop insights about yourself
- Establish goals to fill in the blank spots
- To make appropriate choices-to find fit with the ideas that
present themselves.
8. Crafting the Strategy
-
- What are your lifelong preferences
-
- What would you most like to be doing
-
- How has your history influenced your value system, motivations,
attitudes and behaviors
9. Crafting the Strategy
- Profile the present(contd)
-
- Take stock of your entrepreneurial attitudes, needs, wants
-
- Compare with key attributes of an entrepreneur
-
-
- Determination, commitment, perseverance, goal orientation,
internal locus of control
-
- Compare with the Behavioral Orientation
-
- Compare with the external environmental demands
-
-
- Stress, time constraints,commitment required, ethics
10. Crafting the Strategy
- Get Constructive Feedback
-
- Set up the interchange-ask questions first
-
- Be sure you understand what you are being told. Ask clarifying
questions.
-
- Encourage straight forward answers-build a supportive
climate.
-
- Feedback needs to be both positive and negative.
-
- No hidden agendas and no games- be honest with yourself
-
- Be an active listener and listen to answers carefully.
-
- Dont reach conclusions prematurely
11. Structure of a Personal Entrepreneurial Strategy
- Plan to fill in the missing pieces
- Personal strategy-How will you accomplish each of the
goals
- Get feedback from trusted sources
12. Business Strategy 13. Crafting the Strategy
- Examine the fit between you, the entrepreneur, and the
potential opportunity
-
- Sustainable competitive advantage
-
- Match attractiveness to entrepreneurial needs
14. Strategy depends on enterprise, entrepreneur, environment
(three es)
- Strengths, Weaknesses, Competencies
15. Competenciesvs.CoreCompetencies
vs.DistinctiveCompetencies
- A companycompetence,orstrength,is theproduct of organizational
learning and experienceand represents realproficiencyin performing
aninternal activity
- Acore competenceis a well-performed internal activity that
iscentral (not peripheral or incidental) to a
companyscompetitiveness and profitability
- Adistinctive competenceis acompetitively valuable activitythat
a companyperforms better than its rivals
16. Industry KeySuccessFactors 3 - 5 reallymajor determinants of
financial and competitive success in an industry 17. Distinctive
Competencies Key Success Factors and Sustainable Competitive
Advantage Distinctive CompetenciesKey Success Factors Competitive
Advantage Sustainable Competitive Advantage 18. Characteristics of
Business Strategy
19. Process Begins with a Personal and Company Vision
- Charts your personal andthe companys future strategic
course
- Defines the business makeup for 5 years (or more)
- Specifies future technology-product-customer focus
- Indicates capabilities to be developed
20. Goal setting
- Goals are the targets that you need to accomplish in order to
make your vision a reality
21. Strategy
-
- Growth, Pause and Reorganize, Retrenchment
22. Strategy (contd)
23. Opportunity Recognition Strategy
- Strategy to create flow of ideas
- Strategy to quickly and efficiently evaluate ideas
24. Four Anchors that Define the Opportunity as a Superior
business
- Create or add significant value to a customer or end user
- Solve a significant problem or meet a significant want or need
for which someone is willing to pay a premium
25. Four Anchors that Define the Opportunity as a Superior
business
- 3. Possess robust market, margins, moneymaking
characteristics
- a. Large enough market (at least $50 million)
- b. High enough growth rate ( 20% per year)
- d. Strong and early free cash flow
- e. High Profit Potential (10-15 % after tax)
- f. Attractive, realizable returns for investors (25-30 percent
IRR)
26. Four Anchors that Define the Opportunity as a Superior
business
- 4. A good fit with the entrepreneurs personal criteria and
needs, and with the management teams needs, at this time and in
this marketplace with a risk/reward balance
27. Functional Strategies
- Lots of others depending on the venture