STRATEGIC PLANNING FOR SMALL BUSINESS - Cont.pptx

Strategic Planning Activity

1. STRATEGIC PLANNING FOR SMALL BUSINESS

2. Implementing Strategic Plans Strategies are useless unless they are implemented. To put strategies into action, the following activities are required: Identify the specific methods to be used; and Deploying the resources needed to implement the intended plans. 2

3. Identifying the Specific Methods Strategies Determine the best way to use resources. There us a need however, to develop tactics which will be used to implement the strategies. Tactics are more detailed and they are used to determine how the specific task can best be accomplished on time with available resources. 3

4. Identifying the Specific Methods If established branches in strategic locations is a strategy, the tactical plan to implement may appear as follows: Identify strategic locations Determine the potential of the identified strategic locations, and Set a timetable for installing the branches. 4

5. Deploying the Resources The specific aim of planning is to be able to deploy the right quality and quantity of resources in the various activities required to achieve the objectives. The resources would be indicated in terms of human and non-human elements. 5

6. Fundamental Strategies for Small Business There are certain basic strategies that are necessary for the survival of small business. These are the following: Flexibility Strategy Strategy of effectiveness as a higher priority Strategy of starting simple 6

7. Flexibility Strategy Strategic flexibility is the organization's. capability to identify major changes in the external environment, quickly commit. resources to new courses of action in response to those changes, and recognize and act. promptly when it is time to halt or reverse existing resource commitments. 7

8. Strategy of Effectiveness as Higher Priority 8 Effectiveness is sometimes sacrificed for the sake of efficiency. Although efficiency is a desirable goal, it is oftentimes disastrous for small business to neglect effectiveness .

9. Strategy for Starting Simple 9 The general idea is for the small business venture to start simple and absorb slowly the more complicated tasks as it grows.

10. Strategy Concerns of Small Business In determining what strategy to adapt, the entrepreneur is confronted with two general situation: Is he organizing a new business? Or Is he currently running an old business? 10

11. New Business This term refers to one that will be operated for the first time by the small business operator. If so, his options consist of the following: Acquiring an existing business Organizing new business and Buying a franchise 11

12. Strategy Situation confronting the Entrepreneur 12 SITUATION NEW BUSINESS OLD BUSINESS Acquire an existing business Buy a franchise Start a new business Compete with small business Compete with large business

13. Note: When making a choice, the three options, the entrepreneur or the small business operator must consider the advantages and disadvantages of each. The resources of the prospective entrepreneur are also important factor 13

14. Strategies for a going concern The strategic problems of small business are not as intense as those of large business. Even if small business cannot compete head on with big business, its size has a built-in maneuverability which is a very important competitive weapon. Any of all of the following strategies are applicable to small business: 14

15. 1. Segment Market The small business operator will have to identify the market segment with which it has expertise then compete. 15

16. 2. Efficient use of Research and Development Since the small business cannot fight the research and development efforts of big companies , it must concentrate its R and D efforts to lowering process costs or to bring new products to the market. 16

17. 3. Think Small The small business can still be strong with being small . The emphasis must be on profits rather than sales growth, and specialization rather than diversification. 17

18. Why small business operators Ignore SP? Lack of expertise Inability to get started Uncontrollable, often intangible variables Resource Poverty Focus on Daily Operations Failure to realize the importance of strategic planning 18

19. THANK YOU! ADRIAN A. BIGAY Phone Email