1. Part V – Growth and Development of Entrepreneurial Ventures
Chapter 15 – Strategic Planning for Emerging Ventures
Chapter 16 – Managing Entrepreneurial Growth
Chapter 17 – Global Opportunities for Entrepreneurs
Copyright (c) 2004 by South-Western, a division of Thomson Learning. All rights reserved.

2. Chapter 15 – Strategic Planning for Emerging Ventures

3. The Nature of Planning in Emerging Firms
Although most entrepreneurs do some form of planning for their ventures, it often tends to be informal and unsystematic.

4. Strategic Planning
Strategic Planning is the formulation of long-range plans for the effective management of environmental opportunities and threats in light of a venture’s strengths and weaknesses.

5. Strategic Management Model
Environmental Scanning
Strategy Formulation
Strategy Implementation
Evaluation and Control
External
Mission Reason for
existence
Programs Activities needed to accomplish a plan
Performance Process to monitor performance and take corrective action
Social Environment General Forces
Task Environment Industry Analysis
Objectives What results to accomplish by when
Budgets Cost of the programs
Internal
Structure Chain of Command
Strategies Plan to achieve the mission & objectives
Procedures Sequence of steps needed to do the job
Culture Beliefs, expectations, values
Resources Assets, skills, competencies, knowledge
Policies
Broad guidelines for decision making
Feedback/Learning

6. Key Dimensions Influencing a Firm’s Strategic Planning Activities
Demand on Strategic Managers’ Time
Decision-Making Speed
Problems of Internal Politics
Environmental Uncertainty
The Entrepreneur’s Vision

7. The Lack of Strategic Planning
Time scarcity
Lack of knowledge
Lack of expertise/skills
Lack of trust and openness
Perception of high cost

8. The Value of Strategic Planning
A number of other studies have focused on the impact of planning on small firms. These studies support the contention that strategic planning is of value to a venture. Most of the studies imply, if they do not directly state, that planning influences a venture’s survival.

9. Reported Benefits of Long-Range Planning
Cost savings
More efficient resource allocation
Improved competitive position
More timely information
More accurate forecasts
Reduced feelings of uncertainty
Faster decision making
Fewer cash-flow problems

10. Strategic Planning Levels
Structured strategic plans (SSP)
Structured operational plans (SOP)
Intuitive plans (IP)
Unstructured plans (UP)

11. Fatal Visions in Strategic Planning
Flaw 1: Misunderstanding industry attractiveness
Flaw 2: No real competitive advantage
Flaw 3: Pursuing an unattainable competitive position
Flaw 4: compromising strategy for growth
Flaw 5: Failure to explicitly communicate the venture’s strategy to employees

12. Entrepreneurial and Strategic Actions

13. The Integration of Entrepreneurial and Strategic Actions
Innovation
Networks
Internationalization
Organizational learning
Top Mgt teams and governance
Growth
Wealth Creation

14. Strategic Positioning: The Entrepreneurial Edge
Strategic positionings are often not obvious, and finding them requires creativity and insight. Entrepreneurs often discover unique positions that have been available but simply overlooked by established competitors.

15. Implementing a Strategic Plan

16. Opportunity Management Approach

17. Milestone Planning Approach

18. An Entrepreneurial Strategy Matrix Model

19. The Entrepreneurial Strategy Matrix: Independent Variables
High
I-r
I-R
High Innovation
low risk
High Innovation
High Risk
(creating a unique and different product/service)
Innovation
i-r
i-R
low innovation
low risk
low innovation
High Risk
Low
Low
High
Risk
(probability of major financial loss)