Chapter 11Chapter Eleven
Strategic entrepreneurship
Theoretical learning outcomes:
Identify the growth opportunities for an entrepreneurial venture
Understand the role of the business and product life-cycle in strategic decisions.
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Practical outcomes:
Explain the components of a holistic strategic viewpoint (in terms of a small business known to you)
Explain the role of competitive advantage in the growth of an entrepreneurial venture.
© Oxford University Press Southern Africa, 2008. All rights reserved.
11.1. Introduction
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11.1 Introduction (Cont.)
11.2 Strategy defined:
Direction
In the future when mindful of
Context
Resources
Purpose
Objectives.
11.3. Context
Highly complex
Ever changing
PESTLIED
11.3. Context (Cont.)
11.4. Resources
Examples: people, money, factors that make and keep an organisation competitive, deliver profit & value
Industry key success factors (KSF)
Organisational resources (strengths & weaknesses)
Tangible, intangible, organisational capability.
11.5 Purpose
Vision (mission)
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11.6. Objectives
Strategic objectives
Financial objectives
11.6. Objectives (Cont.)
11.7. Growth opportunities
7 strategies:
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11.7. Growth opportunities (Cont.)
11.8. Competitive advantage
Can be created in any one or all of the following areas:
Product or service at lower price
Differentiating through features & performance
Differentiating via brand & image
Differentiating via access & distribution
11.8. Competitive advantage (Cont.)
Most competitive advantage strategies can be seen as one of four capabilities:
Internal business structure
© Oxford University Press Southern Africa, 2008. All rights reserved.
11.8. Competitive advantage (Cont.)
Cost
Knowledge
Relationship
Structure.
Case study: FNB & internet security
Class discussion.
Summary of main points:
Objectives: strategic, measurable, realistic, flexible, consistent, clear
Growth
Competition.