BS-4452 Entrepreneurship & SmallBusinessManagement Bülent Şenver [email protected].
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Transcript of BS-4452 Entrepreneurship & SmallBusinessManagement Bülent Şenver [email protected].
What is an Entrepreneur?
One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.
1 - 2Ch. 1: The Foundations of Entrepreneurship
Characteristics of Entrepreneurs
• Desire for responsibility• Preference for moderate levels of risk – risk
eliminators• Confidence in their ability to succeed• Determination• Desire for immediate feedback• High level of energy• Future orientation – opportunity, necessity, and
serial entrepreneurs• Skilled at organizing• Value achievement over money
1 - 3Ch. 1: The Foundations of Entrepreneurship
Characteristics of Entrepreneurs
• Entrepreneurs tend to exhibit:►A high degree of commitment►Tolerance for ambiguity►Flexibility►A willingness to work hard►Tenacity
1 - 4Ch. 1: The Foundations of Entrepreneurship
Benefits of EntrepreneurshipThe opportunity to:►Create your own destiny►Make a difference►Reach your full potential►Reap impressive profits►Contribute to society and to
be recognized for your efforts►Do what you enjoy and to have fun at it
1 - 5Ch. 1: The Foundations of Entrepreneurship
Drawbacks of Entrepreneurship
Uncertainty of incomeRisk of losing your entire investmentLong hours and hard workLower quality of life until the business gets
establishedHigh levels of stressComplete responsibilityDiscouragement
1 - 6Ch. 1: The Foundations of Entrepreneurship
Avoiding the Pitfalls of Small Business Failure
• Know your business in depth• Develop a solid business plan• Manage financial resources• Understand financial statements• Learn to manage people effectively• Set your business apart from the competition• Maintain a positive attitude
1 - 7Ch. 1: The Foundations of Entrepreneurship
Putting Failure Into Perspective
• Entrepreneurs are not paralyzed by the prospect of failure.
• Failure – a natural part of the creative process.
• Successful entrepreneurs learn to fail intelligently.
1 - 8Ch. 1: The Foundations of Entrepreneurship
2 - 9Ch. 2: Inside the Entrepreneurial Mind
Creativity and Innovation
Creativity – the ability to develop new ideas and to discover new ways of looking at problems and opportunities; thinking new things
Innovation – the ability to apply creative solutions to problems or opportunities to enhance or to enrich people’s lives; doing new things.
2 - 10Ch. 2: Inside the Entrepreneurial Mind
Entrepreneurship
• Entrepreneurship – the result of a disciplined, systematic process of applying creativity and innovation to the needs and opportunities in the marketplace.
• Entrepreneurs connect their creative ideas with the purposeful action and structure of a business.
2 - 11Ch. 2: Inside the Entrepreneurial Mind
Failure: Part of the Creative Process!
• For every 3,000 new product ideas:►Four make it to the development stage►Two are actually launched►One becomes a success in the market
• On average, new products account for 40% of companies’ sales!!
• Creativity is an important source of building a competitive advantage.
2 - 12Ch. 2: Inside the Entrepreneurial Mind
Right-Brained, Creative Thinkers
• Always ask: “Is there a better way?”• Challenge custom, routine, and tradition.• Are reflective.• Are prolific thinkers.
• Play mental games.
2 - 13Ch. 2: Inside the Entrepreneurial Mind
Right-Brained, Creative Thinkers
• Realize that there may be more than one “right” answer.
• Know that mistakes are pit stops on the way to success.
• Recognize that problems are springboards for new ideas.
2 - 14Ch. 2: Inside the Entrepreneurial Mind
Right-Brained, Creative Thinkers
• Understand that failure is a natural part of the creative process.
• Relate seemingly unrelated ideas to a problem. • Have “helicopter skills.”
2 - 15Ch. 2: Inside the Entrepreneurial Mind
Left-Brained or Right-Brained?
Entrepreneurship requires both left-and right-brained thinking.
– Right-brained thinking draws on divergent reasoning, the ability to create a multitude of original, diverse ideas.
– Left-brained thinking counts on convergent reasoning, the ability to evaluate multiple ideas and to choose the best solution to a problem.
2 - 16Ch. 2: Inside the Entrepreneurial Mind
Barriers to Creativity
• Searching for the one “right” answer
• Focusing on “being logical”
• Blindly following the rules
• Constantly being practical
• Viewing play as frivolous
2 - 17Ch. 2: Inside the Entrepreneurial Mind
Barriers to Creativity
• Becoming overly specialized
• Avoiding ambiguity
• Fearing looking foolish
• Fearing mistakes and failure
• Believing that “I’m not creative”
2 - 18Ch. 2: Inside the Entrepreneurial Mind
Questions to Spur the Imagination
• Is there a new way to do it?• Can you borrow or adapt it?• Can you give it a new twist?• Do you merely need more of the same?• Do you need less of the same?
2 - 19Ch. 2: Inside the Entrepreneurial Mind
Questions to Spur the Imagination
• Is there a substitute?• Can you rearrange the parts?• What if you do just the opposite?• Can you combine ideas?• Can you put it to other uses?
(continued)
2 - 20Ch. 2: Inside the Entrepreneurial Mind
Questions to Spur the Imagination
• What else could you make from this?• Are there other markets for it?• Can you reverse it?• Can you eliminate it? • Can you put it to another use?• What idea seems impossible, but if executed,
would revolutionize your business?
(continued)
2 - 21Ch. 2: Inside the Entrepreneurial Mind
Tips for Enhancing Organizational Creativity
• Include creativity as a core company value• Embrace diversity• Expect creativity• Expect and tolerate failure • Create an organizational structure that
nourishes creativity
2 - 22Ch. 2: Inside the Entrepreneurial Mind
Tips for Enhancing Organizational Creativity
• Encourage curiosity• Create a change of scenery periodically• View problems as opportunities• Provide creativity training• Provide support• Develop a procedure for capturing ideas
(continued)
2 - 23Ch. 2: Inside the Entrepreneurial Mind
Tips for Enhancing Organizational Creativity
• Talk and interact with customers• Reward creativity• Model creative behavior • Monitor emerging trends and identify ways
your company can capitalize on them• Hire for creativity
Continued
2 - 24Ch. 2: Inside the Entrepreneurial Mind
Tips for Enhancing Organizational Creativity
• View problems as opportunities• Incorporate fun into the work environment• Design a work space that encourages creativity• Look for uses for your company’s products or
services in other markets
Continued
2 - 25Ch. 2: Inside the Entrepreneurial Mind
Tips for Enhancing Individual Creativity
• Allow yourself to be creative• Give your mind fresh input every day• Observe the products and services
of other companies, especially those in completely different markets
• Recognize the creative power of mistakes
• Notice what is missing
2 - 26Ch. 2: Inside the Entrepreneurial Mind
Tips for Enhancing Individual Creativity
• Keep a journal to record your thoughts and ideas
• Listen to other people• Listen to customers• Talk to a child• Do something ordinary in an unusual way
2 - 27Ch. 2: Inside the Entrepreneurial Mind
Tips for Enhancing Individual Creativity
• Keep a toy box in your office• Do not throw away seeming “bad” ideas• Take some time off• Be persistent
2 - 28Ch. 2: Inside the Entrepreneurial Mind
Tips for Enhancing Individual Creativity
• Forget the “rules”• Take note of your “pain points”• Read books on stimulating creativity or take
a class on creativity• Travel - and observe• Watch a movie
Continued
2 - 29Ch. 2: Inside the Entrepreneurial Mind
The Creative Process
Preparation Investigation Transformation
Incubation Illumination Verification
Implementation
2 - 30Ch. 2: Inside the Entrepreneurial Mind
The Creative Process
Preparation Investigation Transformation
Incubation Illumination Verification
Implementation
2 - 31Ch. 2: Inside the Entrepreneurial Mind
PreparationGet your mind ready for creative thinking.
– Adopt the attitude of a lifelong student.
– Read … a lot … and not just in your field of expertise.
– Clip articles of interest to you and save them.
– Develop your listening skills.
2 - 32Ch. 2: Inside the Entrepreneurial Mind
Preparation
Get your mind ready for creative thinking.– Join professional or trade associations and
attend their meetings.
– Eliminate creative distractions.
– Take time to discuss your ideas with other people.
2 - 33Ch. 2: Inside the Entrepreneurial Mind
The Creative Process
Preparation Investigation Transformation
Incubation Illumination Verification
Implementation
2 - 34Ch. 2: Inside the Entrepreneurial Mind
The Creative Process
Preparation Investigation Transformation
Incubation Illumination Verification
Implementation
2 - 35Ch. 2: Inside the Entrepreneurial Mind
Transformation• Involves viewing both the similarities and the
differences among the information collected.
• Two types of thinking are required:
►Convergent – the ability to see the similarities and the connections among various and often diverse data and events.
►Divergent – the ability to see the differences among various data and events.
2 - 36Ch. 2: Inside the Entrepreneurial Mind
Transformation• How can you transform information into
purposeful ideas? – Grasp the “big picture” by looking for patterns
that emerge.– Rearrange the elements of the situation.– Use synectics, taking two seeming nonsensical
ideas and combining them. – Remember that several approaches can be
successful. If one fails, jump to another.
2 - 37Ch. 2: Inside the Entrepreneurial Mind
The Creative Process
Preparation Investigation Transformation
Incubation Illumination Verification
Implementation
2 - 38Ch. 2: Inside the Entrepreneurial Mind
Incubation Allow your subconscious to reflect on the
information collected.– Walk away from the situation.
– Take the time to daydream.
– Relax – and play – regularly.
– Dream about the problem or opportunity.
– Work on the problem in a different environment.
2 - 39Ch. 2: Inside the Entrepreneurial Mind
The Creative Process
Preparation Investigation Transformation
Incubation Illumination Verification
Implementation
2 - 40Ch. 2: Inside the Entrepreneurial Mind
The Creative Process
Preparation Investigation Transformation
Incubation Illumination Verification
Implementation
2 - 41Ch. 2: Inside the Entrepreneurial Mind
Verification Validate the idea as accurate and useful.
– Is it really a better solution?– Will it work?– Is there a need for it?– If so, what is the best application of this idea in the
marketplace?– Does this product or service fit into our core
competencies?– How much will it cost to produce or to provide? – Can we sell it at a reasonable price that will
produce a profit?
2 - 42Ch. 2: Inside the Entrepreneurial Mind
The Creative Process
Preparation Investigation Transformation
Incubation Illumination Verification
Implementation
2 - 43Ch. 2: Inside the Entrepreneurial Mind
Techniques for Improving the Creative Process
Brainstorming:
The goal is to create a large quantity of novel and imaginative ideas.
2 - 44Ch. 2: Inside the Entrepreneurial Mind
Brainstorming Guidelines
• Keep the group small – “Two pizza rule.”• Make the group as diverse as possible.• Emphasize that company rank is irrelevant.• Have a well-defined problem, but don’t reveal it
ahead of time.• Limit the session to 40 to 60 minutes.• Take a field trip.
2 - 45Ch. 2: Inside the Entrepreneurial Mind
Brainstorming Guidelines
• Throw logic out the window.• Encourage all ideas from the team.• Shoot for quantity of ideas over quality of ideas. • Forbid criticism.• Encourage idea “hitch-hiking.” • Dare to imagine the unreasonable.• Appoint a recorder.
2 - 46Ch. 2: Inside the Entrepreneurial Mind
Brainstorming Guidelines
• Get people focused on the issue by inviting participants to submit at least three ideas by email before the session takes place.
• Encourage aerobic exercise before the session.• Use a seating pattern that encourages
interaction.
2 - 47Ch. 2: Inside the Entrepreneurial Mind
Techniques for Improving the Creative Process
• Brainstorming– The goal is to create a large quantity of novel and
imaginative ideas.
• Mind-mapping– A graphical technique that encourages thinking on
both sides of the brain, visually displays relationships among ideas, and improves the ability to see a problem from many sides.
The Mind-Mapping Process
• Start by writing down or sketching a picture symbolizing the problem or area of focus in the center of a blank page.
• Work as quickly as possible and write down every idea that comes into your mind for 20 minutes, connecting each to the central picture or words with a line.
• Don’t try to force creativity.• After a brief rest, begin to integrate the ideas into
a mind map.
2 - 48Ch. 2: Inside the Entrepreneurial Mind
2 - 49Ch. 2: Inside the Entrepreneurial Mind
Techniques for Improving the Creative Process
Force Field Analysis A useful technique for evaluating the forces
that support and oppose a proposed change. Three columns:
Center: Problem to be addressed Left: Driving forces Right: Restraining forces
Score each force (-1 to +4) and add them.
2 - 50Ch. 2: Inside the Entrepreneurial Mind
Sample Force Field Analysis
2 - 51Ch. 2: Inside the Entrepreneurial Mind
Protecting Your Ideas
• Patent – a grant from the Patent and Trademark Office to the inventor of product, giving the exclusive right to make, use, or sell the invention for 20 years from the date of filing the patent application.
2 - 52Ch. 2: Inside the Entrepreneurial Mind
The Six Steps to a Patent
1. Establish the invention’s novelty
2. Document the device
3. Search existing patents
5. Complete the patent application
6. File the patent application
4. Study search results
2 - 53Ch. 2: Inside the Entrepreneurial Mind
Protecting Your Ideas
• Trademark – any distinctive word, symbol, design, name, logo, slogan, or trade dress a company uses to identify the origin of a product or to distinguish it from other goods on the market.
• Servicemark – the same as a trademark except that it identifies the source of a service rather than a product.
2 - 54Ch. 2: Inside the Entrepreneurial Mind
Protecting Your Ideas
• Copyright – an exclusive right that protects the creators of original works of authorship such as literary, dramatic, musical, and artistic works.
• Copyrighted material is denoted by the symbol ©.
Protecting Intellectual Property
• The primary weapon an entrepreneur has to protect patents, trademarks, and copyrights is the legal system.
• Before engaging in a legal battle consider:►Can the opponent afford to pay if you win?►Do you expect to win enough to cover your legal
costs?►Can you afford the loss of time, money, and
privacy involved?
2 - 55Ch. 2: Inside the Entrepreneurial Mind
2 - 56Ch. 2: Inside the Entrepreneurial Mind
Characteristics of Patents, Trademarks, and Copyrights
Conclusion• The creative process is a tenant of the
entrepreneurial experience. • Success, and even survival itself, requires
entrepreneurs to tap their creativity. • The seven steps of the creative process transform an
idea into a business reality. • Creativity results in value, and value provides a
competitive advantage. • Entrepreneurs protect their creative ideas with
patents, trademarks, servicemarks, and copyrights to sustain a competitive edge.
2 - 57Ch. 2: Inside the Entrepreneurial Mind
3 - 58Ch. 3: Business Model and Strategic Plan
A Major Shift . . .
From financial capital to intellectual capital
– Human– Structural– Customer
3 - 59Ch. 3: Business Model and Strategic Plan
Strategic Management
• Is crucial to building a successful business.
• Involves developing a game plan to guide a company as it strives to accomplish its mission, goals, and objectives, and to keep it on its desired course.
3 - 60Ch. 3: Business Model and Strategic Plan
Strategic Management and Competitive Advantage
• Developing a strategic plan is crucial to creating a sustainable competitive advantage, the aggregation of factors that sets a company apart from its competitors and gives it a unique position in the market that is superior to its competition.
• Example: Whole Foods
3 - 61Ch. 3: Business Model and Strategic Plan
Building a Competitive Advantage
• Consider five aspects of a small company:
1. Products they sell
2. Service they provide
3. Pricing they offer
4. Way they sell
5. Values to which they are committed
3 - 62Ch. 3: Business Model and Strategic Plan
Key: Core Competencies
• Unique set of capabilities a company develops in key areas, such as superior quality, customer service, innovation, team-building, flexibility, responsiveness, and others that allow it to vault past competitors. – They are what a company does best. – Best to rely on a natural advantage (often linked
to a company’s “smallness”). • Example: Pizza Fusion
3 - 63Ch. 3: Business Model and Strategic Plan
Building a Sustainable Competitive Advantage
Superior value for customers
Sustainable competitive advantage
Capabilities
Core competencies
Skills
Lessons learned
3 - 64Ch. 3: Business Model and Strategic Plan
Strategic Management Process
Step 1 Develop a vision and translate it into a mission statement
Step 2 Assess strengths and weaknessesStep 3 Scan environment for opportunities
and threatsStep 4 Identify key success factors
3 - 65Ch. 3: Business Model and Strategic Plan
Strategic Management Process
Step 5 Analyze competition Step 6 Create goals & objectives Step 7 Formulate strategies Step 8 Translate plans into actions Step 9 Establish accurate controls
(continued)
3 - 66Ch. 3: Business Model and Strategic Plan
Step 1: Develop a Vision and Create a Mission Statement
• Vision – the result of an entrepreneur’s dream of something that does not exist yet and the ability to paint a compelling picture of that dream for everyone to see.
• A clearly defined vision:►Provides direction►Determines decisions►Inspires people►Allows for perseverance in the face of adversity
3 - 67Ch. 3: Business Model and Strategic Plan
Step 1: Develop a Vision and Create a Mission Statement
• Addresses question: “What business are we in?”
• The mission is a written expression of how the company will reflect an entrepreneur’s values, beliefs, and vision – more
than just “making money.”• Serves as a “strategic compass.” • Examples: Chick-fil-A, Google
3 - 68Ch. 3: Business Model and Strategic Plan
Step 1: Develop a Vision and Create a Mission Statement
• Elements of a mission statement:– Purpose of the company: What are we in
business to accomplish?– Business we are in: How are we going to
accomplish that purpose?– Values of the company: What principles and
beliefs form the foundation of the way we do business?
3 - 69Ch. 3: Business Model and Strategic Plan
Step 2: Assess Company Strengths and Weaknesses
• Strengths– Positive internal factors a company can draw
on to accomplish its mission, goals, and objectives.
• Weaknesses– Negative internal factors that inhibit a
company’s ability to accomplish its mission, goals, and objectives.
3 - 70Ch. 3: Business Model and Strategic Plan
Step 3: Scan for Opportunities and Threats
• Opportunities– Positive external factors the company can
exploit to accomplish its mission, goals, and objectives.
• Threats– Negative external factors that inhibit the
firm's ability to accomplish its mission, goals, and objectives.
3 - 71Ch. 3: Business Model and Strategic Plan
The Power of External Market Forces
Competitive
Economic
Political and Regulatory
Technological
Social and Demographic
Identifying and Managing Threats
3 - 72Ch. 3: Business Model and Strategic Plan
3 - 73Ch. 3: Business Model and Strategic Plan
Step 4: Identify Key Success Factors
Key success factors (KSFs): factors that determine the relative success of market participants.
The keys to unlocking the secrets of competing successfully in a particular market
segment. Example: Five Guys Burgers and Fries
3 - 74Ch. 3: Business Model and Strategic Plan
Identifying Key Success FactorsList the skills, characteristics, and core competencies that
your business must possess to be successful in its market segment.
Key Success Factor How Your Company Rates
1. Low 1 2 3 4 5 6 7 8 9 10 High
2. Low 1 2 3 4 5 6 7 8 9 10 High
3. Low 1 2 3 4 5 6 7 8 9 10 High
4. Low 1 2 3 4 5 6 7 8 9 10 High
5. Low 1 2 3 4 5 6 7 8 9 10 High
Conclusions:
3 - 75Ch. 3: Business Model and Strategic Plan
Step 5: Analyze Competitors
• NFIB study: Small business owners believe they operate in a highly competitive environment and the level of competition is increasing.
• Yet, 97 percent of all U.S. businesses do not systematically track the progress of their key competitors.
Small Business Success Index
3 - 76Ch. 3: Business Model and Strategic Plan
Competitor Analysis• Direct competitors
– Offer the same products and services– Customers often compare prices, features and deals among
these competitors when they shop
• Significant competitors– Offer some of the same or similar products or services– Product or service lines overlap but not completely
• Indirect competitors– Offer same or similar products in only a small number of
areas
3 - 77Ch. 3: Business Model and Strategic Plan
3 - 78Ch. 3: Business Model and Strategic Plan
Step 5: Analyze Competitors
Analyzing key competitors allows an entrepreneur to:►Avoid surprises from existing competitors’ new
strategies and tactics.►Identify potential new competitors and the threats
they pose.►Improve reaction time to competitors’ actions.►Anticipate rivals’ next strategic moves.
3 - 79Ch. 3: Business Model and Strategic Plan
Step 5: Analyze CompetitorsTechniques do not require unethical behavior:
►Monitor industry and trade publications.►Talk to customers and suppliers.►Debrief employees, especially sales representatives and
purchasing agents.►Attend trade shows and conferences and study
competitors’ sales literature.►Watch for competitor’s employment ads.►Conduct patent searches for patents competitors have
filed. ►Get EPA reports for the factories of competing
manufacturers.►Monitor direct competitors via social media
3 - 80Ch. 3: Business Model and Strategic Plan
Step 5: Analyze Competitors
Techniques do not require unethical behavior:►Learn about the kinds of equipment and raw materials
competitors are importing from the Journal of Commerce Port Import Export Reporting Service.
►Buy competitors’ products and “benchmark” them. ►Get competitors’ credit reports.►Check out the reports publicly-held competitors must file
with the SEC. ► Investigate UCC reports. ►Check out the resources in your local library.►Use the Internet to learn more about competitors.►Visit competing businesses to observe their operations.
(continued)
3 - 81Ch. 3: Business Model and Strategic Plan
Competitive Profile Matrix
3 - 82Ch. 3: Business Model and Strategic Plan
Is Setting Goals & ObjectivesReally Important?
“Would you tell me, please, which way I ought to go from here?” said Alice.
“That depends a good deal on where you want to get to,” said the Cheshire cat.
“I don’t much care where.…” said Alice.‘Then it doesn’t matter which way you go,” said the
cat.- Lewis Carroll’s Alice in Wonderland
3 - 83Ch. 3: Business Model and Strategic Plan
Step 6: Create Company Goalsand Objectives
• Goals: Broad, long-range attributes to be accomplished.
• “BHAGs”• Objectives: More detailed, specific targets of
performance that are:►Specific►Measurable►Assignable►Realistic (yet challenging)►Timely►Written down
What Makes an Effective BHAG?
3 - 84Ch. 3: Business Model and Strategic Plan
3 - 85Ch. 3: Business Model and Strategic Plan
Step 7: Formulate Strategies
Strategy - a road map of the actions an entrepreneur draws up to achieve a company’s mission, goals, and objectives. It is the company’s game plan for gaining a competitive advantage.
3 - 86Ch. 3: Business Model and Strategic Plan
Step 7: Formulate Strategies
Three basic strategies:
Strategy?
Cost Leadership
Differentiation
Focus
Three Strategic Options
3 - 87Ch. 3: Business Model and Strategic Plan
3 - 88Ch. 3: Business Model and Strategic Plan
Cost Leadership
• Goal: to be the low-cost producer in the industry (or market segment).
• Low-cost leaders have advantages:►Reaching buyers who buy on the basis of price
►The power to set the industry’s price floor.
3 - 89Ch. 3: Business Model and Strategic Plan
Cost Leadership
• Cost Leadership works well when:►Buyers are sensitive to price changes.
►Competing firms sell the same commodity products.
►A company can benefit from economies of scale.
• Example: Dollar General
3 - 90Ch. 3: Business Model and Strategic Plan
Differentiation• Company seeks to build customer loyalty by
positioning its goods or services in a unique or different fashion.
• Idea is to be special at something customers value.• Key: Build basis for differentiation on a distinctive
competence, something that the small company is uniquely good at doing in comparison to its competitors.
• Examples: Vosges-Haut Chocolate, Ice Hotel, and Indigenous Designs
3 - 91Ch. 3: Business Model and Strategic Plan
Focus• Company selects one or more customer segments in
a market, identifies customers’ special needs, wants, or interests, and then targets them with a product or service designed specifically for them.
• Strategy builds on the differences among market segments.
• Rather than try to serve the total market, the company focuses on serving a niche (or several niches) within that market.
• Example: Batteries Plus
3 - 92Ch. 3: Business Model and Strategic Plan
Step 8: Translate Strategies into Action Plans
Survey of senior executives: Companies achieved only 63% of the results in their strategic plans.
Create projects by defining:►Purpose►Scope►Contribution►Resource requirements►Timing
3 - 93Ch. 3: Business Model and Strategic Plan
Step 9: Establish Accurate Controls
• Plan establishes the standards against which actual performance is measured.
• Entrepreneur must:►Identify and track key performance
indicators.►Take corrective action.
3 - 94Ch. 3: Business Model and Strategic Plan
Balanced Scorecards
• A set of measurements unique to a company that includes both financial and operational measures.
• Gives managers a quick, yet comprehensive, picture of a company’s overall performance.
3 - 95Ch. 3: Business Model and Strategic Plan
Balanced Scorecards
Five Perspectives:1. Customer: How do customers see us?2. Internal Business: At what must we excel?3. Innovation and Learning: Can we continue to
improve and create value?4. Financial: How do we look to shareholders?5. Corporate Citizenship: Do we meet our
responsibility to society as a whole, the environment, the community, and other external stakeholders?
Balanced Scorecard
3 - 96Ch. 3: Business Model and Strategic Plan
3 - 97Ch. 3: Business Model and Strategic Plan
Conclusion
The strategic planning process:
►Begins with the nine steps.
►Becomes more efficient each time.
►Teaches entrepreneurial discipline for a higher chance of survival.