{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Comm320_Section6-StrategyStagesofGrowth

Comm320_Section6-StrategyStagesofGrowth - Strategy and the...

Info icon This preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Strategy and the Small Firm / Stages of Growth Course Pack -Section 6
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Group activity Think about the business that you are working with. Identify an opportunity or a problem. Convert this opportunity or problem into a question, using the following format : In what ways might we . . . ? For example: In what ways might we sell books to professionals on the internet? 2
Image of page 2
Make the question more abstract. Original question: In what ways might we sell books to professionals on the Internet? Question at the next higher level: In what ways might we sell books on the Internet? Question at the next higher level: In what ways might we sell things on the Internet? Question at the next higher level: In what ways might we sell things? Question at the next higher level: In what ways might we persuade and influence others? 3
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Strategy Consider two questions: What business should we be in? How do we compete in this business? Keys to a good strategy: It should be feasible and consistent with skills and resources of the business; It should provide a competitive advantage; There should be a “fit” between the business and the external environment. 4
Image of page 4
Competitive Advantage Common areas for small business: Experience and knowledge; Uniqueness of product / service; Better than average service; Good location; Low cost / competitive pricing; Quality and variety of products; Friendly atmosphere; Reputation; Unique approach to marketing. 5
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The Holy Trilogy of Success Successful New Venture The Firm’s Industry 6 Strategy The Behavioral Characteristics Of the Entrepreneur Structure
Image of page 6
‘Where’ to compete? Typically a small business is most successful by following a focus strategy. Pinpoint a narrow market niche and focus the limited resources on this niche; This avoids direct competition with larger companies who find the niche too small (the business remains “under the radar” of the big players); also, they do not have the economies of scale to compete 7 on cost leadership. The risk in a focus strategy is the “all your eggs are in one basket” idea; also, the business may select the wrong niche, or incorrectly define the niche; Another risk is that the niche may be too small to ensure financial viability, and then failure is imminent;
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
‘How’ to compete Porter developed three generic strategies: Cost Leadership:
Image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern