Entrep beh 2

• Strategic management


  The ongoing planning, monitoring, analysis and assessment of all necessities an organization needs to meet its goals and objectives
• Strategic management process


  1. Take stock of present situation

  2. Chalk out strategies

  3. Deploy them

  4. Analyze effectiveness of implemented strategies
• SWOT analysis


  A simple and incredible self-questioning technique or value chain analysis that helps an industry to access the internal attributes of the business and external attributes of the environments
• Strengths (SWOT)


  • Internal characteristics that give a company an advantage and/or does particularly well in over others (competitors)
  • Unique selling propositions (USPs)
  • Firm-specific advantages (FSAs)
  • Competitive advantage
  • Arise from resources and capabilities that are valuable, rare, hard-to-imitate and organization-wide supported
• Weaknesses (SWOT)


  • Internal inherent features that place a company at a disadvantage relative to others
  • Harmful to a company
  • Examples: lack of patent protection, poor reputation, small working capital, bad leadership, inefficient production process
• Opportunities (SWOT)


  • External factors that may affect a company's performance positively
  • Openings or chances for something positive to happen
  • Arise from situations outside the organization
  • Require an eye to what might happen in the future
  • Might arise as developments in the market or technology
• Threats (SWOT)


  • External factors that can negatively affect a business from the outside
  • Examples: supply chain problems, shifts in market requirements, shortage of recruits
• Common mistakes industries make when carrying out a SWOT analysis:
• Porter's Five Forces


  A framework that analyses the level of competition within an industry
• Threat of new entrants

  • New entrants bring new capacity and desire to gain market share, affecting existing firms' power
  • The bigger the limiting factors to entry, the smaller the threat for existing players
• Bargaining power of suppliers/inputs


  • Suppliers may influence the potential to raise input prices and reduce quality, affecting industry profitability
• Bargaining power of buyers/customers/market outputs


  • Extent customers can put the company under pressure, affecting customer price sensitivity
  • Affected by number of buyers, significance of each customer, and size of orders
• Threat of substitutes


  • Existence of products outside common product boundaries increases propensity of customers to switch to alternatives
  • Need to look beyond similar products branded differently by competitors
• Rivalry among existing competitors


  • Examines intensity of current competition in the marketplace
  • Determined by number of existing competitors and their capabilities and ability to undercut