1. 11/8/2018
DEVELOPING A BUSINESS STRATEGY FOR WORKING WITH PENNDOT Week Three SWOT Strengths, Weaknesses, Opportunities and Threats
Good morning and welcome to Wk 3 Develop a Business Plan and Strategy for working with PennDOT .
Housekeeping items
If you have been attending we have covered;
Our business concept. We have evaluated our business concept, discussed how it applies to PennDOT. We have gone onto ECMS and found the project that should have been ours. We have looked at the language for these projects and the websites for the firms who got our dollars. We have evaluated a business description that describes the business we do in heavy highway.
If you have not been with us or if you have not done this yet. You need to star there.
That does not prevent you from participating in this weeks class on SWOT analysis and why we do it and why we do it every eyar.
PennDOT Rapid Bridge Replacement Project

2. DEVELOPING A BUSINESS STRATEGY FOR WORKING WITH PENNDOT Week Three
11/8/2018
DEVELOPING A BUSINESS STRATEGY FOR WORKING WITH PENNDOT Week Three
SWOT means
Strengths and weaknesses are inside our organization. We look at these for the sole purpose of deciding what strengths should we promote in our marketing and how to build on these gives our company direction.
Weaknesses are the areas that we feel we need to strengthen in order to go forward. Weakness result in a training or action plan – Milestones for things that we need to do.
Opportunities are outside of our organization. Given our Strengths and Weaknesses, what are the opportunities available for a firm like ours,
Threats are the things outside of our organization , that could sidetrack us. We look at these so that we can prepare to avoid or overcome them
PennDOT Rapid Bridge Replacement Project

3. 11/8/2018
Identity
What makes your business different from all others? What you want, do well, how you do things, what makes you unique. Its something like looking at the mirror and recognizing what you see, but …
When we think about strengths we want to look at our identity.
What makes your business different from all others? What you want, do well, how you do things, what makes you unique. Its something like looking at the mirror and recognizing what you see, but as a business rather than an individual
PennDOT Rapid Bridge Replacement Project

4. Internal to your company
11/8/2018
Internal to your company
These are things we can change with planning
The most obvious example comes from the SWOT, strengths, weaknesses, opportunities and threats, that follows in the plan-as you go outline. What are your business’s strengths and weaknesses. Think about how that works into your strategy.
Strenegths and Weaknessess can change and do each year. If you are saying today that your strength is your reputation they you want to make sure that you marketing materials reflect that. Your website should have testimoninals and so should your cabability statement. You should have no problem getting references. If you are saying that your strength is your reputation and you can find no one who is willing to go on the record and say so, they maybe you are not seeing what they see when you look inthat mirror. Weaknesses have to be addressed one at a time. You need a plan for turning weaknesses in to strengths. You can’t do them all at the same time but it can be done.
PennDOT Rapid Bridge Replacement Project

5. Another way to look at Strengths
11/8/2018
Core Competencies
Another way to look at Strengths
What are the things in transportation that you really have a handle on. And in turn what does that SWEET SPOT that bid opportunity that you can do best. My family has an accounting business. But my strength is in the detail. Making sure that the returns are process in a timely fashion and filed properly.
I am not good a reading the tax code.
This firm has:
--- Web Presence
--- Business Cards
--- Capability Statement
--- Business Plan
--- BPRID
--- DBE or other certification
PennDOT Rapid Bridge Replacement Project

6. 11/8/2018
What are the things that are going on outside of the company that pose both Opportunty and Threat
PennDOT Rapid Bridge Replacement Project

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PennDOT Rapid Bridge Replacement Project

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PennDOT Rapid Bridge Replacement Project

9. Risk
Every business has risk; risk is more than liability issues of someone injuring themselves through use of your product or service

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PennDOT Rapid Bridge Replacement Project

11. Types of Risk
Market risk – the market does not buy what you are selling
Competitive risk – new competitors change the environment
Technology risk – product design and engineering are faulty
Product risk – not finished on time, Product not as envisioned
Execution risk – cannot bring product to market due to management (in) capabilities
Capitalization risk – underestimated costs and or returns; run out of money
Global risk – when doing business internationally
Not just high risk or low risk but type of risks that small businesses face. Which risks are most critical to your business? E.g., if your business has low barrier to entry, then competitive risk is a factor. How do you plan to hold onto current clients and attract new ones? Global businesses face not only these risks but others such as political risk, and currency risk.

12. Strategic Positioning
11/8/2018
Strategic Positioning
and
Risk Assessment
Now that you have looked at your SWOT and the Risks, how to position your company
PennDOT Rapid Bridge Replacement Project

13. Strategy is Destiny What business are you running?
Where do you stand in the marketplace?
What makes customers buy from you?
What advantages do you have over competitors?
It is not enough to know HOW to run a business. These four factors define your strategic position.

14. Strategic Position Defines What You Do and Don’t Do
Strengths and weaknesses
Industry trends and developments
Competitive changes and opportunities
Changes and opportunities through new technologies
Don’t try to be all things to all people – that’s a New business desperation tactic. Be planful and decide your steps based on the long term. Don’t accept every job. I said this was not for the fainthearted but sometimes you need to let a job go by and wait for the right opportunity.
Strategic Positioning is more than advertising – in case you are thinking about a new message geared toward you new audience.
Though this may be necessary, there is more – customer service strategy, redesign in packaging, educate yourself on a new and different demographic. Example: Oprah and Lago shopping experience. Remember Lane.

15. Strategic Position
What unique role will your company hold in the marketplace, giving it a defensible competitive position?
But before you do any of this, determine the personal impacts of doing business, prepare for those impacts, mitigates risk of failure

16. What are your Differentiators
Customer perception factors
Market segment
Market share
Operational/technological advantages
Proprietary products
Sales channels
Customer perception factors - Factors that make customers choose your products/services over competitors “Better, faster, cheaper”
Market segment - Geography/location, Age, Income level, Gender, Specific needs
Market share - Establishing and maintaining market dominance, thus intimidating the competition
Operational/technological advantages - improving profit margins through operational/technological innovation/productivity
Proprietary products - develop or secure exclusive assets
Sales channels - develop and maintain unique or improved sales channels to reach customers

17. Branding
Gives customers trust in your products and services through consistency in:
Price
Quality
Cleanliness
Service
Convenience
Selection
Etc.
More than name recognition. What is the cost to provide this level of consistency?

18. How do we know your Brand?
Is your story told:
By Your Employees
On Your Website
In Your capability statement
In Your Business Plan

19. Industry Specific Strategic Considerations: Keys to Successful Selling
11/8/2018
Industry Specific Strategic Considerations: Keys to Successful Selling
The ability to tell your story
Knowing your client pain points
Selling what your client is buying
Customer service
PennDOT Rapid Bridge Replacement Project

20. Industry Specific Strategic Considerations for Construction Businesses
Low Profit Margin
High Equipment Costs
Significant up front cash requirements
Old Boy Network
Quality requirements
Certain items are a part of every highway construction job

21. Business Plan Outline Executive Summary Company Description
Industry Analysis and Trends
Target Market
The Competition
Strategic Position and Risk Assessment
Marketing Plan and Sales Strategy
Operations
Management and Organization
Development and Milestones
Financials
Complete these parts of the plan
Write your own SWOT
Next Week – Strategic Position
and Operations
Week 2 – Chapters 1 & 3

22. 11/8/2018
Questions???

23. Disadvantaged Business Enterprise Supportive Services Center
DBE/DB/SBE
Supportive Services Centers
Cynthia Moultrie, Director
Disadvantaged Business Enterprise Supportive Services Center
Telephone: 877-PENNDBE /
Kenyon Holley, Director Diverse Business Enterprise Supportive Services Center Telephone: /
Mark Corbin, Director Small Business Enterprise Supportive Services Center Telephone: /