MGT680 Unit 3 Strategic Management for Entrepreneurial Ventures

.docx

School

American InterContinental University *

*We aren’t endorsed by this school

Course

680

Subject

Management

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by ChefProtonPanther21

Strategic Management for Entrepreneurial Ventures Introduction Strategic management formulation for an entrepreneurial venture is shaped, in part, by the past experiences, knowledge, and abilities of the entrepreneur. In the beginning, the decisions made for the venture is the sole decision of one person who may seek out assistance from others in the industry. Entrepreneurs have a different attitude about growth, with motives and behaviors that support their vision. Entrepreneurial ventures use strategic management to grow, stabilize, renew, improve operations, and obtain and maintain competitive advantage. The process of planning for each of these can be modest or far-reaching, based on the aspirations of the entrepreneur and taking the venture’s current operations, capabilities, and resources into account. Learning Materials The Strategic Plan When developing a strategic plan, the entrepreneur will identify the possible end goals that are desired and list the steps that must occur to achieve that goal. These milestones allow the strategic plan to have a well-defined path to completion. Creation of the strategic plan in a logical manner helps make the implementation smoother. During the implementation, close attention should be paid to ensure the plan is going as envisioned. The milestones that were established will help set controls to determine if modifications are needed. Once the strategic plan has run its course, the results are evaluated to determine if the end goal was missed, achieved, or surpassed. Determine the End Goal When considering a strategic management venture, the first step is to determine what the end goal will be. Whether the initiative is to achieve growth, What is the reason a stability strategy is used. , renewal, improvement of operations, or to attain competitive advantage in the industry, the end goal must be identified.

When identifying possible end goals, it is imperative that the goal be specific. Vague goals lead to vague plans and results. Essentially, the end goal must be identifiable. Taking growth as an end goal, what does the growth entail? Is it growing the company bigger, hiring more employees, developing a larger product or service line, expanding into a larger space, or perhaps a combination of any of these? The thought of implementing a strategic plan can be daunting, because it is enabling a change within the venture. Change can be a frightening thing in itself, but integrating a strategy to achieve stability allows the change to settle while being evaluated for future modifications. Stability Strategy There are many reasons for implementing a stability strategy, such as a volatile market or economy, the lack of the entry of major threats, the recent occurrence of rapid growth or expansion, the desire for incremental growth, or the lack of foreseeable growth options in the industry. Just as the reasons for stability strategies vary, so do the intended results. Strategic plans for stability are necessary when the market is volatile or when the economy is in turmoil. This type of plan allows the organization to stabilize and maintain the current operations. Allow time to refocus the operations by aiming the focus away from the external environment and bringing it to the internal environment where changes can be implemented to streamline the operations. After a major strategic initiative has been completed and the organization needs to ensure the products or services are being completed at the new level of production, an organization will use this strategy to ensure it is operating at optimal efficiency. Click on the icon below to learn more about stability strategy: (Management4all, 2012). Improvement of Supporting Processes It is important to note that during the creation of a stability strategy, the same products and services are offered, so they are not the focus. Instead the focus points to the improvement of the processes that support the products or services.

When the focus is on growth or expansion, the organization’s attention can stray away from the very operational practices that need the most attention. Taking the time to evaluate how operations can be improved to support the products or services in a more efficient manner can have an impact on the resources of the organization. Maintaining Current Operations During the life cycle of an organization, there comes a point in time when the optimal growth in an industry has reached its pinnacle. By implementing the stability strategy, the current operations are maintained. Creating a strategic plan for implementation is like creating a road map with a destination. The steps along the way are used to make sure the company, like a car, is headed in the right direction. Without a well-thought-out plan, the process can go awry. An entrepreneurial venture has to take the current operations, capabilities, and resources in mind for the strategic initiative, but also for the implementation phase. The goal of the strategic initiative is to enact change —however, if the goal is too lofty and not supported by the capabilities and resources of the organization, the plan is doomed to failure. Of course, an entrepreneur is generally creative and should look at the possibility of making changes and increasing the capabilities and resources in a manner that will allow the plan to grow into fruition. The change should stretch the organization to a new level, but should not be unattainable. Monitor the Progress of the Plan Regardless of the type or reason of a strategic initiative, the entrepreneurial venture must monitor the progress of the plan. When controls are in place, the plan can be evaluated at key incremental checkpoints to determine if modification is needed. If a strategic plan does not go as initially intended, this does not mean the plan was bad. By evaluating the ongoing results for modification and making the necessary changes, the overall goal can still be achieved. The important thing to remember is the final goal. Self-Reflection There is a lot of planning that goes into creating a strategic plan, but the most important aspect of any strategy is to evaluate the results. For an entrepreneurial venture, this requires a lot of self-reflection on the planning, implementation, and follow-through.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version