1. MS3024 New Venture Creation Week 8 Understanding Success

2. Success stepping stones for you
SIE New Ideas Competition
SIE New Ventures Competition
University of Aberdeen Blues Skies Competition

3. Entrepreneurial Character Business Culture
LUCK
Entrepreneurial Character
Business Culture
Business Decisions
Company Strengths
9: Understanding Success Entrepreneurship and Small Business

4. The Strategic Planning Process
VISION
STRATGY IMPLEMENTATION
STRATEGIC ANALYSIS
STRATEGY FORMULATION
Feedback loops

5. The Strategic Planning Process
VISION
STRATGY IMPLEMENTATION
STRATEGIC ANALYSIS
STRATEGY FORMULATION
Feedback loops
Enduring
Continuous, multi-level activity, informed by real-time, realistic information
Continuous, multi-level activity with selection made by management – Fraser Doherty
Incremental & adaptive decision-making to maintain maximum flexibility

6. Marketing Planning Aims & Mission Business objectives Company Analysis
Company Capability: Strengths & Weaknesses
Internal Appraisal
Market Research
Business Environment: Opportunities &
Threats
External Appraisal
Business objectives

7. Questions to be answered
What are the dimensions of value customers care about – operational excellence, product leadership or customer intimacy?
For each dimension, what proportion of customers focus on it as their primary decision criteria?
Which competitors provide the best value in each dimension?
How does the firm compare to these competitors?
Why does the firm fall short of the value leaders? Treacy & Wiersema

8. Tools of SWOT Analysis External appraisal: Internal appraisal:
Benchmarking
Financial ratio analysis
Value Chain
Generic marketing strategies
Life cycle analysis
Portfolio analysis
External appraisal:
Market research
Economies of scale
Porter’s Five Forces
PESTLE analysis

9. Marketing Planning Aims & Mission Business objectives Company Analysis
Company Capability: Strengths & Weaknesses
Internal Appraisal
Market Research
Business Environment: Opportunities &
Threats
External Appraisal
Business objectives
9: Understanding Success Entrepreneurship and Small Business

10. Marketing Planning Aims & Mission Business objectives
Customer analysis
Marketing mix: product, price, promotion, place & people
Marketing strategy
Company Analysis
Company Capability: Strengths & Weaknesses
Internal Appraisal
Market Research
Business Environment: Opportunities &
Threats
External Appraisal
Marketing plans
Operating plans
9: Understanding Success Entrepreneurship and Small Business

11. Marketing Planning Aims & Mission Business objectives
Feedback loops caused by resource limitations
Company Analysis
Company Capability: Strengths & Weaknesses
Internal Appraisal
Market Research
Business Environment: Opportunities &
Threats
External Appraisal
Business objectives
Customer analysis
Marketing strategy
Marketing mix: product, price, promotion, place & people
Marketing plans
Operating plans

12. Tools of SWOT Analysis Internal appraisal: Benchmarking
Financial ratio analysis (see Week 4)
Value Chain
Generic marketing strategies
Life cycle analysis
Portfolio analysis
External appraisal:
Market research
Economies of scale
Porter’s Five Forces
PESTLE analysis

13. Return to shareholders = Profit after interest
Shareholders’ Wealth
Return to shareholders = Profit after interest
Shareholders funds

14. Tools of SWOT Analysis External appraisal: Internal appraisal:
Benchmarking
Financial ratio analysis
Value Chain
Generic marketing strategies
Life cycle analysis
Portfolio analysis
External appraisal:
Market research
Economies of scale
Porter’s Five Forces
PESTLE analysis

15. Human resource management Technology development
The Value Chain
PRIMARY ACTIVITIES
Inbound logistics
Service
Outbound logistics
Operations
Marketing & sales
SUPPORT ACTIVITIES
Firm infrastructure
Human resource management
Technology development
Procurement

16. Tools of SWOT Analysis External appraisal: Internal appraisal:
Benchmarking
Financial ratio analysis
Value Chain
Generic marketing strategies
Life cycle analysis
Portfolio analysis
External appraisal:
Market research
Economies of scale
Porter’s Five Forces
PESTLE analysis

17. Generic Marketing Strategies
COMMODITY SUPPLIER
OUTSTANDING SUCCESS
MARKET TRADER
NICHE PLAYER
Broad market
Focused market
Low price
Low differentiation
High differentiation
High price

18. We learned to identify our core strengths…
We learned to identify our core strengths….The idea of building a business solely on cost or price was NOT a sustainable advantage. There would always be someone with something that was lower in price or cheaper to produce. What was really important was sustaining loyalty among customers and employees, and that could only be derived from having the highest level of service and very high performing products Michael Dell – (How does the recession affect him?)

19. Tools of SWOT Analysis External appraisal: Internal appraisal:
Benchmarking
Financial ratio analysis
Value Chain
Generic marketing strategies
Life cycle analysis
Portfolio analysis
External appraisal:
Market research
Economies of scale
Porter’s Five Forces
PESTLE analysis

20. Political Environmental PESTLE Analysis Economic Socioeconomic
Technological
Legal
Environmental

21. Successful Entrepreneurial Strategies
Strategy should emphasise something that makes your firm as unique as possible and delivers as much value as possible to the customer
The best chance of doing this comes from differentiation with the aim of dominating your market and to do this effectively and quickly
Then to continue to innovate based upon your differential advantage

22. Futures Thinking Holistic perspective
Avoids a rigid approach to strategic planning
Develops a vision about a desired future state
Plans backwards from that state
Scenario planning is similar

23. Strategy Misfit – Three Key Questions
What new types of customer benefits should we seek to provide in 5, 10 or 15 years?
What new competencies will we need to build or acquire to offer these benefits?
How will we need to reconfigure our customer interface over the next few years? Hamel & Prahalad

24. Any brand is an assurance to customers
Any brand is an assurance to customers. It is an assurance of quality, an assurance of consistency. There is an immediate recognition….all those things are guaranteed Sir Adrian Cadbury
Notes on Cadbury: Kraft vs Cadbury

25. Finally…. Strategy should be clear and focused
Supported by a culture that aims high - a structure that is flexible & responsive
A good strategy is important but effective strategy execution is vital (and often ignored)