STRATEGY FOR ENTREPRENEURIAL VENTURES

Presented by Smitha Mary Philip Sooraj Sukumaran Sreela Chandran

Overview
Entrepreneurial Venture - Any business whose primary goals are profitability and growth that are characterized by innovative strategic practices. Entrepreneur - person who organizes and manages a business undertaking and who assumes risk for profit and acts as the ultimate strategist

Entrepreneurial Characteristics for Success of a new Venture

Ability to identify potential venture opportunities Sense of Urgency Detailed knowledge of keys to success Access to outside help to supplement their skills

Lifecycle of a Venture and Strategies Adopted

Start-up stage : Survival Expansion stage : Intense market development Consolidation stage : Competitive strategies Revival stage : Distinct competencies Decline Stage

Mintzbergs Modes of Strategic Planning In Entrepreneurial Ventures

Early life of the venture Entrepreneurial Mode Established venture wanting to continue strong growth Planning Mode Established venture wanting stability Adaptive Mode

Mintzbergs Modes of Strategic Planning In Entrepreneurial Ventures

Planning Mode
 Gathering information for situation analysis  Generation of alternative strategies  Selection of most appropriate strategy

Adaptive Mode
 Characterized by reactive solutions to existing problems  Strategy is developed to move the corporation forward

incrementally

Entrepreneurial Mode
 Strategy made by one powerful individual  Dominant goal is growth

Strategic Management Process In Entrepreneurial Ventures

Strategic Decision Making Process For Entrepreneurial Ventures

1. Develop a basic business idea
- Products or services - Customers or market

2. Scan and Assess external environment

3. Scan and assess internal factors

consider personal growth relevant to the new business abilities assets experience expertise strengths weaknesses

4. Analyze strategic factors

Current situation

SWOT SFAS

5. Decide go or no go

Determine whether it is feasible business opportunity Further development of idea cancelled unless strategic factors changed

6. Generate business plan

How idea will be transformed into reality Key internal factors specified Financial support from potential investors and creditors

6. Generate business plan

Development of ventures
Mission Objectives Strategies Policies BOD(corporation) and key managers

Preparation of Business Plan

Develop Management Profile
board key managers

Develop Internal Environment

structure Culture key recourses

Develop Performance Projections

Breakeven Pro formas payback

7. Implement the business plan

through
Actions Plans Procedures

8. Evaluate the implemented business plan

Through comparisons of actual performance against projected performance results Actual results shouldn't be < or much> anticipated results

Corporate Governance in Entrepreneurial Ventures

Owners and managers are the same Incorporated or not incorporated(sole proprietorship or simple partnership) Incorporated venture will have shareholders(venture capitalists) BOD if shareholders present

Corporate Governance in Entrepreneurial Ventures

BOD either very active or very passive Advisory board for passive BOD

Sources of Innovation for Entrepreneurs

Peter Drucker proposes Seven sources for innovative opportunity that should be monitored by those interested in starting an entrepreneurial venture, either with an established company or as an independent small business.

The unexpected

An unexpected success, an unexpected failure, or an unexpected outside event can be a symptom of a unique opportunity.

The incongruity

A discrepancy between reality and what everyone assumes it to be, or between what is and what ought to be, can create an opportunity for innovation.

Innovation based on process need

When a weak link is evident in a particular process, but people work around it instead of doing something about it, an opportunity is present for the person or company willing to forge a stronger one.

Changes in industry or market structure

A business is ready for an innovative product, service, or approach to the business when the underlying foundation of the industry or market shifts

Demographics

Changes in the populations size, age structure, composition, employment, level of education, and income can create opportunities for innovation.

Changes in perception, mood, and meaning

Opportunities for innovation can develop when a societys general assumptions, attitudes, and beliefs change.

New knowledge

Advances in scientific and nonscientific knowledge can create new products and new markets. Advances in two different areas can sometimes be integrated to form the basis of a new product.

Benefits of Strategic Planning in a Entrepreneurial Venture

Improve your business decisions Enhance your understanding of customers Improve customer relations Increase the probability of beating competitors Aids in effective use of resources

THANKYOU