APT 3083STRATEGIC ENTREPRENEURSHIP

TITLE : THE STRATEGY FOR THE VENTURE

1)NURUL AIN NABILAH BINTI MOHAMAD ZAWAWI(B11A329)

2) AZIFAH BINTI MOHD SUHAIMI(B11A038)

3) NOR SYAKIRA BINTI MAT(B11A289)

4) MUHAMMAD IQBAL BIN ALI AKBAR(B11A233)

What is business strategy?

• Strategy is an action of the organization takes to pursue its

business objectives.• Business strategy is depends on

different view on which aspects are of its actions.

• A basic distinction based on content of business strategy, business process

and environmental context.

• Strategy content based on three distinct decisions area-the product to be offered-the market to be targeted

-approach taken to be competing

Product range • This covers the type and range of the

product.• The decision that face by entrepreneurs are

type of product business offerFeatures

How will address the customers need? What benefits they offered?

What unit cost is acceptable?How wide should be product range offered?

Market scope

• The market scope defines customers group and market segments that will

be address by firm.Features

On what groups of customers that entrepreneurs concentrate on?

In what sectors this customers will be?Should the firm concentrate on narrow

group or spread it effort widely?

Competitive approach• Competitive approach refers way the firms compete with its product market

domain to sustain and develop its business in the face of competitive

pressures.How should the product be priced

compared to competitor?What supports to be expected from

distributors?How customers buying decisions can

be influence?

Strategy process in the entrepreneurial business

It is about the decision making of a business on how to achieve strategy

content. Eg: goals of the business.Strategy content ( competition in external

marketplace ) Strategy content consist of:

1) Product sold2) Market targeted

3) Approach to competingA product range being sold to a distinct

group of customers with a particular approach taken to attracting those

customers and competing within the marketplace.

Important themes in modern strategic management:

- The deliberate approach to strategy creation; entrepreneurs planned their

venture towards their goals and objectives.

- Emergent approaches to strategy creation; entrepreneurs managed their venture for a

short-term capabilities, did not concern where the venture is heading.

*Traditional approach: planning for the future is not important.

The link between existing strategy content and strategy content achieved in the

future- The strategy process can be said to be

emergent as an entrepreneur have to make a decision in response to immediate market opportunities without reference to

an overriding strategic context.The link between existing strategy content

and desired strategy content- Entrepreneur is unlikely to be satisfied

except if the organization can operate what it might achieve in the future.

The link between desired strategy content and achieved strategy content

- It is about the ability of the entrepreneur to deliver the strategy content they desire

for their organization.- But the limitations for them to achieve it are the potential to achieve that strategy content in the marketplace (achievable, competitive forces present, feasible) and the power of controlling the organization

by entrepreneur.

Vision

- It highlight the desirability of achieving certain contents.

- It is powerful to motivate the whole organization to achieve it.

Mission

- It specify the key element of a strategy content.

- It can be as an indicator as to what strategy contents are desirable and acceptable.

Objectives- The approach taken depends upon the

entrepreneur’s personal style and leadership strategy.

- The quantity of objectives resembles the achievement of a desired strategy content.

Discussion- The discussion about the identification of a desired strategy content may not occur by a formal process, it may involve a variety of people within and outside the organization and may take place over a period of time.

Controlling strategy process in venture

• A recognition of the decision the entrepreneurs must make to control

strategy process in their venture.1)Decision relating to development of the

mission.By what process will be business

mission be develop?How will it be articulated?

To whom will it be communicated?

2)Decision relating to the development of strategy

Who is the organization will be invited to contribute to the development of the

desired strategy content?How will their ideas be evaluated and

judge?3)Decision relating to the control of

resources.Procedure will control how decision are

madeWho will responsibility for what level of

investment?

4) Decision relating to the way objectives will be set, monitored and rewarded.

How will objectives will set?Who will be responsible for setting

them?For whom will objectives be set?

Why a well-defined strategy can help the

venture???

An overview of entrepreneurial entry

strategies

Introduction

As we see, every entrepreneurial venture is different, but there are all

can be recognizable patterns

Its called Generic Strategies

The pattern is mainly depends on Product-Market domain

Product-Market domain

The product scope is the range of product categories while market sector

served are the distinct customer groups addressed by the firm

The important factors includes product features, product quality, patterns of

product usage in term of place.

Product-Market domain

The entrepreneur has five generic entry strategies in relation to product-

market domain.• Focused entry• Product spread• Customer spread

• Adjecency• Scatter

Competitive approach1. Offering a new product or services

Delivering the customer an innovative product or service

2. Offering greater value A lower price within the same

product existance in the market

3. Creating new relationship A network of relationship built on

trust

Product-Market domain

4. Being more flexibleCustomers needs are not fixed

5. Being more responsive Existing products serve those needs

less effectively.

Choice of entry strategy

Product-market

domain entry strategy

Approach to competing

Resource and capabalities

Talking Strategy: Entrepreneurial

Strategic Heuristic

Introduction

Heuristic is a decision rule based on insight and experience.

Used to speed up the process of finding a satisfactory solution via

mental shortcutsExamples of this method:-

• Rule of thumb• Educated guess• Common sense