1. EntrepreneurshipA strategic viewpoint

2. Entrepreneurship Defined

Economically

Socially

Characteristically

Systematically

Behaviorally

Strategically

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

Four Strategic Plans

• Personal

• Opportunity Recognition

• Business Strategy

• Functional 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

• Feedback from others

• • 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

• Education

• Experience

To make appropriate choices-to find fit with the ideas that present themselves.

8. Crafting the Strategy

Profile the past

• What have you done

• 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

• • Promotor or Trustee

• Compare with the external environmental demands

• • Stress, time constraints,commitment required, ethics

10. Crafting the Strategy

Get Constructive Feedback

• Solicit the feedback

• Understand the context

• 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.

• Get feedback in writing.

• No hidden agendas and no games- be honest with yourself

• Dont become defensive

• Be an active listener and listen to answers carefully.

• Dont reach conclusions prematurely

11. Structure of a Personal Entrepreneurial Strategy

Vision

Strengths

Weaknesses

Personal Wants

Specific Goals

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

• SWOT analysis

• Sustainable competitive advantage

• Match attractiveness to entrepreneurial needs

14. Strategy depends on enterprise, entrepreneur, environment (three es)

Strengths, Weaknesses, Competencies

• Entrepreneur

• Enterprise

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

Mission and Vision

Goals

Strategy

Implementation

Evaluation of Results

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

Goals must be

• Specific

• Time constrained

• Measurable

• Realistic and attainable

21. Strategy

Grand

• Growth, Pause and Reorganize, Retrenchment

Generic

• Low Cost

• Differentiation

• Best Cost

22. Strategy (contd)

International

• Domestic

• Export

• Multi-country

• Global

23. Opportunity Recognition Strategy

Strategy to create flow of ideas

Strategy to quickly and efficiently evaluate ideas

Determine fit with PES

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)

c. High gross margins

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

Marketing

Financial

Organizational

Lots of others depending on the venture