Entrepreneurial Vision-is a picture of the new world he or she wishes to create. * Picture into which the entrepreneur fits an understanding of why people will be better off, the source of the new value that will be created, and the relationship that will exist.

Vision-is a mental image in that it is something the entrepreneur carries around in their head. * It is a very powerful tool for the management of the venture. * It provides a sense of direction by being the light at the end of the tunnel. * It helps the entrepreneur to define his or her goals. * It provides the entrepreneur with a sense of warmth and encouragement when the going gets tough. * It guides the generation of strategy for the venture. * It gives the venture a moral content and helps define social responsibilities. * It can be used to communicate what the entrepreneur wishes to achieve to other people. * It can be used to attract people to the venture and motivate them to support it. * It plays a crucial role in supporting the entrepreneur’s communication and leadership strategy.

Communicating and Sharing Vision-the first stage must be to understand why other people will find the vision attractive.

Approaches to Communicating Vision 1. I have a Dream-entrepreneurs are explicit about their vision. * They describe the better world just as they see. 2. Talking Specific Goals-entrepreneurs can break down their vision into a specific goals relating. * To the value that will be gained * To the relationships that will be created * To the moral content of the new world 3. Talking Strategy-approach that the business will take to achieving its goals and the task that must be undertaken in order to create the new world. 4. Story-telling-entrepreneurs give their vision a dynamic form by describing scenarios and telling stories about what might happen. * Aim to motivate people by ATTRACTING them to their roles within the story. 5. Why things can be better-entrepreneur emphasis what is wrong with the world as it is rather than what will better in the new world. 6. What’s in it for you-entrepreneur focus on the benefits that will be gained by the recipient of the communication. 7. Selecting a Communication Strategy-using a diverse approach to communicating this vision the entrepreneur keeps its relevant, avoids being repetitive and keeps the message fresh to recipients.

Entrepreneurial Mission-formal statement defining the purposes of the venture and what it aims to achieve. * Powerful communication tool which can both guide internal decision making and relate the venture to external supporters.

Why a well-defined Mission can help the Venture

1. It articulates the entrepreneur’s vision-developing a mission offers entrepreneur a chance to articulate and give form to their vision. * Helps them to refine and shape their vision, and its facilitates communication of the vision to the venture’s stakeholders. 2. It encourages analysis of the venture-the process of developing a mission demands that entrepreneurs and those that work with them stand back and think their venture in some detail. 3. It defines the scope of the business-mission helps distinguish between those opportunities which belong to the venture and those which do not. 4. It provides a guide for setting objectives-mission provides a starting point for defining specific objectives, for testing their sustainability for the venture and for ordering of their priorities. 5. It clarifies strategic options-mission provides a starting point for developing strategic options, for evaluating their consistency in delivering the objectives and for judging their resource demands. 6. It facilitates communication about the venture to potential investors- facilitates commitment and encourages further inquiry about the opportunity the venture aims to exploit and the rewards it may offer. 7. It draws together disparate internal stakeholder groups-mission can be used to provide a common point of reference around which to draw internal stakeholders together. 8. It provides a constant point of reference during periods of change-provide the organization with a fixed point or a recognizable landmark connecting the organization’s past to its future. 9. It acts as an aide-memoire for customers and suppliers-encourages them to give the venture priority and service.

What a Mission statement should include * Define both what the business aims to achieve and the values it will uphold while going about its business. * Strategic and Philosophical components of the mission statement.

The Strategic component of a Mission Statement can, potentially, include the following elements:

1. Product/Service Scope-element specifies exactly what the firm will offer to the world. 2. Customer groups served-element stipulates which customer and distinct customer groups that will be addressed by the firm. 3. Benefits offered and customer needs served-specifies the particular needs that the customer groups have and the benefits that the firm’ 4. The innovation on which the business is based and sources of sustainable competitive advantage-defines the way in which the firm has innovated, how this provides it with a competitive advantage in the marketplace that can be sustained in the face of pressure from competitors. 5. The aspiration of the business-defines what the business aims to achieve.

Philosophical component of the mission statement- illuminates the values and moral standards that the organization will uphold while pursuing its business.

Developing the Mission Statement

Two Approaches

1. Through Consensus-involves getting the whole, or as many parts as possible, of the organization to contribute towards the development of the mission. * The aim is to gather information, create ideas and gain as many insights as possible for generating and evaluating the mission. * Developing the mission in this way may present a logical challenge, especially if a large number of people are involved. 2. By Imposition-entrepreneur may feel that consensus is not the best way to generate the mission. * He or she may decide that it is better for them to develop the mission himself or herself, or in consultation with a small group, and then to impose it on the organization as a whole.

Articulating the Mission Statement-the starting point for articulating the mission in this way is to find phrases describing each element.

Business Strategy-the actions as organization takes to pursue its business objectives. Strategy Content: 1. The Product Range-covers the type and range of products that the firm supplies to its markets. 2. Market scope-customer groups and market segments that will be addressed by the firm. 3. Competitive Approach-refers to the way which the firm competes within its product-market domain to sustain and develop its business in the face of competitive pressures.

Strategy Process in the Entrepreneurial Business

1. The link between existing strategy content and the strategy content achieved in the future 2. The link between existing strategy content and desired strategy content 3. The link between strategy content and achieved strategy content

Controlling strategy process in the venture

1. Decisions relating to the development of the mission 2. Decisions relating to the development of strategy 3. Decisions relating to the control of resources 4. Decisions relating to the way objectives will be set, monitored and rewarded

Entrepreneurial Entry Strategies

1. Product-Market Domain-the scope of the product they wish to offer to what market segments.
Factors:
* Product features * Product quality * Patterns of product usage in terms of place * Time and quantity * Market positioning * Branding and imagery

Five Generic Entry Strategies

1. Focused Entry-addressing a single well-defined product-market domain. 2. Product spread-offering a wide range of products to a single well-defined market. 3. Customer spread-delivering a single or narrow range of products to a wide base of customers. 4. Adjacency-offering a wide range of products to a broad customer base. 5. Scatter-a variety of different products are offered to a variety of different customers.

2. Competitive Approach-refer to the way the venture attracts customers by offering them the value that existing competitors do not.

Generic Strategies

1. Offering a new product or service-delivering the customer an innovative product and service. 2. Offering greater value-offering the customer a product or service which is comparable to those already in existence but at a lower price, so offering them greater value for money. 3. Creating new relationships-entrepreneur exists in a network of relationships built on trust. * Trust both reduces cost and adds value. 4. Being more flexible-customer’s needs are not fixed. 5. Being more responsive-entrepreneur can add value in the marketplace by being attuned to those changes, in terms of recognizing the new opportunities.

The Role of Business Plan

1. By working as a tool for Analysis-creating the plan guides and disciplines the entrepreneur in gathering this information. 2. By working as a tool for Synthesis-synthesis converts the vision into a strategy for the venture, and then into the actions appropriate to pursuing that strategy. 3. By working as a tool of Communication-gaining their interest and attracting them to the venture. 4. By working as a call of action-it provides detailed list of activities that must be undertaken, the task that must be performed and the outcomes that must be achieved if the entrepreneur is to convert his or her vision into a new world.

What a Business Plan should include

1. Mission-the formal statement that defines the business. 2. Overview of key objectives * Financial objectives * Strategic objectives 3. The market environment * Background to the market * Competitors * Competitive conditions * Competitive advantages of the venture * Definition of product offerings * Definition of target markets 4. Strategy * Product strategy * Pricing strategy * Distribution strategy * Promotional strategy * Networking 5. Financial forecast * Income * Routine expenditure * Capital expenditure * Cash flow 6. Activity * Major projects 7. People * Key players in the venture

ADAMSON UNIVERSITY

COLLEGE OF BUSINESS ADMINISTRATION

Topic: ENTREPRENEURIAL VISION

Submitted by: CHESTER G. RANOCO
B.S.B.S-FM/200810616

Submitted to: Prof. LIZA PALILEO

JANUARY 13, 2014
MWF/7:00-8:00