Entrepreneurship

1. Entrepreneurship A strategic viewpoint

2. Entrepreneurship Defined Economically Socially Characteristically Systematically Behaviorally Strategically

3. What is Strategy? The essence of strategy is to match strengths and distinctive competencies with the environment in such a way that one enjhoys a competitive advantage over one�s rivals in the same environment.

4. Entrepreneurship as a business strategy Four Strategic Plans Personal Opportunity Recognition Business Strategy Functional Strategy

5. What is a PES? The equivalent of a personal business plan Puts you in charge of evaluating and shaping choices Puts you in charge of initiating action Choice rather than random happenstance

6. Why plans fail Frustration with lack of immediate success Inability to make the switch to results, or goal orientation. Poor planning and implementation skills.

7. Basis for a Personal Entrepreneurial Strategy Self assessment based on evaluation of Your thoughts and actions Feedback from others Become aware of blind spots Reinforces your concepts of your strengths and weaknesses Evaluation of data that you gather Develop insights about yourself Establish goals to fill in the blank spots Education Experience To make appropriate choices-to find fit with the ideas that present themselves.

8. Crafting the Strategy Profile the past What have you done What are your lifelong preferences What would you most like to be doing How has your history influenced your value system, motivations, attitudes and behaviors

9. Crafting the Strategy Profile the present (cont�d) Take stock of your entrepreneurial attitudes, needs, wants Compare with key attributes of an entrepreneur Determination, commitment, perseverance, goal orientation, internal locus of control Compare with the Behavioral Orientation Promotor or Trustee Compare with the external environmental demands Stress, time constraints,commitment required, ethics

10. Crafting the Strategy Get Constructive Feedback Solicit the feedback Understand the context Set up the interchange-ask questions first Be sure you understand what you are being told. Ask clarifying questions. Encourage straight forward answers-build a supportive climate. Feedback needs to be both positive and negative. Get feedback in writing. No hidden agendas and no games- be honest with yourself Don�t become defensive Be an active listener and listen to answers carefully. Don�t reach conclusions prematurely

11. Structure of a Personal Entrepreneurial Strategy Vision Strengths Weaknesses Personal Wants Specific Goals Plan to fill in the missing pieces Personal strategy-How will you accomplish each of the goals Get feedback from trusted sources

12. Business Strategy

13. Crafting the Strategy Examine the fit between you, the entrepreneur, and the potential opportunity SWOT analysis Sustainable competitive advantage Match attractiveness to entrepreneurial needs

14. Strategy depends on enterprise, entrepreneur, environment (three e�s) Strengths, Weaknesses, Competencies Entrepreneur Enterprise

15. Competencies vs. Core Competenciesvs. Distinctive Competencies A company competence, or strength, is the product of organizational learning and experience and represents real proficiency in performing an internal activity A core competence is a well-performed internal activity that is central (not peripheral or incidental) to a company�s competitiveness and profitability A distinctive competence is a competitively valuable activity that a company performs better than its rivals

16. Industry Key Success Factors 3 - 5 really major determinants of financial and competitive success in an industry

17. Distinctive Competencies Key Success Factors and Sustainable Competitive Advantage

18. Characteristics of Business Strategy Mission and Vision Goals Strategy Implementation Evaluation of Results

19. Process Begins with a Personal and Company Vision Charts your personal and the company�s future strategic course Defines the business makeup for 5 years (or more) Specifies future technology-product-customer focus Indicates capabilities to be developed

20. Goal setting Goals are the targets that you need to accomplish in order to make your vision a reality Goals must be Specific Time constrained Measurable Realistic and attainable

21. Strategy Grand Growth, Pause and Reorganize, Retrenchment Generic Low Cost Differentiation Best Cost

22. Strategy (cont�d) International Domestic Export Multi-country Global

23. Opportunity Recognition Strategy Strategy to create flow of ideas Strategy to quickly and efficiently evaluate ideas Determine fit with PES

24. Four Anchors that Define the Opportunity as a Superior business Create or add significant value to a customer or end user Solve a significant problem or meet a significant want or need for which someone is willing to pay a premium

25. Four Anchors that Define the Opportunity as a Superior business 3. Possess robust market, margins, moneymaking characteristics a. Large enough market (at least $50 million) b. High enough growth rate ( 20% per year) c. High gross margins d. Strong and early free cash flow e. High Profit Potential (10-15 % after tax) f. Attractive, realizable returns for investors (25-30 percent IRR)

26. Four Anchors that Define the Opportunity as a Superior business 4. A good fit with the entrepreneur�s personal criteria and needs, and with the management team�s needs, at this time and in this marketplace with a risk/reward balance

27. Functional Strategies Marketing Financial Organizational Lots of others depending on the venture