Strategic Thinking for Smaller Businesses and Divisions

Part I: Strategic Ideas:1. Introduction to Strategic Thinking: The Concept of Business Strategy. The Development of Strategic Thinking. Strategic Processes: Analysis, Planning, Implementation and Control. Level of Strategy. Benefits of Strategic Thinking. Who Is Responsible for Strategic Thinking and Planning? 2. Developing Long Run Thinking: The Conflict Between the Long and Short Run. Long Run Thinking in Periods of Growth and Contraction. The Importance of Quality. Measuring Success. 3. An Overview of the Strategic Process for Small Business: The Strategic Process. Phases of the Strategic Process. Strategic Steps. Part II: Creating a Strategic Framework:4. Developing a Mission and Setting Objectives: Developing a Mission. Mission: Concept and Statement. Mission Statement Basics. Defining the Business. A Realistic Mission for Your Business. The Mission and Attention to Change. Communicating and Buy-In. Inconsistent Actions. Examples. Setting Objectives. The Nature of an Objective. Objectives for Who and What. Upward Support. Measurability. Long vs. Short Run Objectives. Challenging but Achievable Objectives. Objectives and Predictions. Summary. 5. Analysis of the Present External Position: The Industrial Environment: Industry Analysis - Overview. Industry Profile. Analysis of the Competitive Environment. Agents of Change. Assessment of Industry Structure and Important Rivals. Key Success Factors. Summarizing the Industry Environment. 6. Analysis of the Present Position: Internal to the Firm: Internal Analysis - Overview. Understanding How the Firm Got Where It Is Now. Identifying the Present Strategy and Assessing How Well It's Working. SWOT (Strengths, Weaknesses, Opportunities and Threats). Analysis - The Concept of a Core Competence. Competitive Cost Analysis. Overall Competitive Assessment. Strategic Issues. Putting It All Together - A Self-Assessment. 7. Crafting a Strategy: The Nature of the Strategy Crafting Task. The Concept of Competitive Advantage. Generic Strategies. Low Cost Leadership. Differentiation. Hybrid Strategy - Best Cost Provider. Focus (Niche) Strategies. Offensive and Defensive Strategies. First Mover and Late Mover Advantages and Disadvantages. Strategic Issues in Emerging Industries. Fragmented Industries. Crafting a Strategy - Summary. Part III: Strategic Planning and Implementation:8. Implementation and Control: Implementing the Chosen Strategy. The Nature of the Implementation Problem. An Overview of the Implementation Process. Designing the Organizational Structure. Managing Core Competencies. Selecting Key People. Budgeting to Support Strategy. Strategic Support Systems. Incentive Systems. Corporate Culture. Control - Evaluation and Adjustment. Control Processes and the Feedback Loop. Strategic Control. The Comparison with Planned Performance. Summary - Strategic Control. 9. Strategy and Business Planning: Business Planning. The Outline of a Typical Business Plan. The Purpose of Business Planning. Four Kinds of Business Plan. Relating Planning Activity in Small and Large Firms. Strategic Planning Documents. The Strategic Audit. The Strategic Planning Process. Part IV: Strategic Issues for Small Businesses:10. Marketing and Sales - The Strategic Center of Small Business: The Target Market. Marketing Mix. Advertising in Small Business - A Strategic Problem. Market Research. Marketing Strategy and Business Planning. Motivating the Sales Force - Commission Plans. 11. Financing Strategies: Basic Principles. Financing by Borrowing - Debt. Equity Financing. Strategic Financial Thinking. Strategy for Venture Capital Financing. Strategy for Lenders - Usually Banks. More Detailed Guidelines to Working with Banks. Corporate Financing of Divisions. Private Sources of Money. Make Use of the Way People Read Plans and Proposals. 12. Breakeven Analysis: Introduction. Fixed and Variable Costs. Break Even Diagrams. Break Even Calculations. Extending B/E to Include Profit and ROI (Return on Investment). Using B/E Strategically - A Retail Location. Sensitivity Analysis. 13. Strategies for Service Businesses: Introduction. Defining a Service Business. Pricing a Service. Other Factors to Consider. 14. Selecting a Location: Location Analysis - A Science or an Art? The Nature of Location. Types of Businesses. Community. Site Location. Bankers and Realtors. 15. Diversification: How Diversification Is Accomplished. When and Why Firms Diversify. Types of Diversification. Justifying the Cost of Getting into the New Business. Appendix: The Pros and Cons of Acquiring an Existing Business. Advantages of Acquisition. Problems and Risks. Pricing a Business. Part V: Restructuring Strategies:16. Cost Reduction and Downsizing: Planning to Get Leaner or Smaller: Downsizing. The Economics of a Crunch. Supply and Demand Analysis for an Industry. Supply and Demand for a Single Firm. Cost Curves for a Firm - The Essence of Downsizing. The Meaning of Plant Size. Shrinking - Growth in Reverse: Cost Reduction vs. Downsizing. Why Its Harder to Shrink than Grow: Organizational Hysteresis. Changes in the Market. A Crunch for the Individual Firm. The Response to an Increase in Supply. The Response to a Decrease in Demand. The Issue of Can vs. Must - Who Are We. Case Study: Downsizing and Cost Reduction. 17. Cost Reduction and Downsizing: Practical Applications: Cost Reductions in General. The First Layer of Reduction. Subsequent Layers and the Issue of Function. A Simple General Approach. Estimating the Improvement Available Through Layoff Action. Post-Layoff Spending. Timing and Cost Effects of Expense Reductions. Can We Make a Plan We're Missing Through a Layoff? Preparing for Cost Reductions in Risky Times. Morale Effects. People-Related Expenses. Layoffs in Sales. A Few Words About Expenses in General. Case Study: The Barton Corporation.