Module 11

Question 1

refers to the process of determining the primary objectives of the entrepreneurship and then adopting courses of action and allocating resources to achieve those objectives.

Answer 1

strategic planning

Question 2

strategic planning involves three distinct steps:

Answer 2

The determination of objectives
Adoption of course of action
Allocation of resources

Question 3

The objectives of the firm are important components of the firm’s strategic planning activities but before these are determined, the firm’s mission statement must first be developed.

Answer 3

The determination of objectives

Question 4

This term refers to the basic description of the fundamental nature, rationale and direction of the firm. It consists of three concerns:

1. how the entrepreneur intends to use his resources;
2. how the entrepreneur expects to relate to the ever-changing environment; and
3. the kinds of values the entrepreneur intends to offer to his customers.

Answer 4

The mission statement

Question 5

This term refers to the specific performance targets that the entrepreneurship hopes to accomplish. The objectives define, in specific terms, how the firm’s mission will be realized.

Answer 5

Strategic objectives

Question 6

After the primary [or strategic] objectives are stablished, the entrepreneur must develop a strategy which is alternately called course of action. A strategy is a carefully designed plan for achieving the firm’s objectives. A strategy indicates how the entrepreneur will attempt to accomplish the goals with the resources available.

Answer 6

adoption of course of action

Question 7

The firm which is fully aware of its internal environment [specifically its strengths and weaknesses] as well as external environment [specifically threats and opportunities] is most likely to develop a strategy that considers the firm’s needs.

The purpose of SWOT Analysis is to match the firm’s strengths and weaknesses with external opportunities and treats to determine what strategy to adopt.

Answer 7

swot analysis

Question 8

Refers to a skill, a competence, a valuable organizational resource or competitive capability, or an achievement that gives the firm a market advantage

Answer 8

firm’s strength

Question 9

refers to something a company lacks or does poorly [compared with others] or a condition that puts it at disadvantage.

Answer 9

firm’s weakness

Question 10

refers to the chance offered by the external environment to improve the firm’s situation significantly.

Answer 10

opportunity

Question 11

refers to a challenge posed by an unfavorable trend or development in the external environment that would lead to, in the absence of purposeful entrepreneurial action, the erosion of the entrepreneurship’s position.

Answer 11

threats

Question 12

are supplementary tools for SWOT analysis. It is an estimate or prediction of the future sales or income of the firm. Forecasts may be short-term [one year or less] medium-term [one to five years], long-term [over five years]

Answer 12

forecasts

Question 13

are often determined through a combination of statistical and intuitive forecasts tempered by the experience of the entrepreneur

Answer 13

sales forecasts

Question 14

Strategies determine the best way to use resources. There is a need, however to develop tactics which will be used to implement the strategies. Tactics are more detailed and they are used to implement the strategies. Tactics are more detailed and they are used to determined how the specific task can best be accomplished on time with available resources.

Answer 14

implementing strategic methods

Question 15

The specific aim for planning is to be able to deploy the right quality and quantity of resources in the various activities required to achieve objectives. The resources would be indicated in terms of human and nonhuman elements.

Answer 15

deploying the resources

Question 16

fundamental strategies for small businesse

There are certain basic strategies that are necessary for survival of small business. These are the following.

Answer 16

1. Flexible strategy
2. strategy of effectiveness as a higher priority; and
3. strategy of starting simple

Question 17

Small business ventures are not usually afforded the advantages enjoyed by large business. It is very difficult for a small business to affect changes in its environment because its sources are usually limited. For instance, a small business cannot match the adverting budget of a large business if they are not in competition with one another

Answer 17

flexibility strategy

Question 18

Effectiveness is sometimes sacrificed for the sake of efficiency. Although efficiency is a desirable goal, it is oftentimes disastrous for small business to neglect effectiveness.

Answer 18

Strategy of Effectiveness as a Higher Priority

Question 19

In starting a new business venture, the entrepreneur often encounter problems related to financing. The temptation is great for entrepreneur to finance all the activities required in operating the venture.

Answer 19

strategy starting simple

Question 20

In determining what strategy to adapt, the entrepreneur is confronted with two general situation

1. is he organizing a new business
2. or he currently running old business?

Answer 20

strategy concerns of small business

Question 21

This term refers to one that will operated for the first time by small business operator. If so, his option consist of the following.

1. Acquiring existing business;
2. organizing new business ;and
3. buying a franchise

Answer 21

new business

Question 22

Why Small Business Operators Ignore Strategic Planning

Answer 22

1. lack of expertise
2. inability to get started
3. uncomfortable, often intangible variables
4. resource poverty
5. focus on daily operation
6. failure to realize the importance of strategic planning

Question 23

Few small business operators are trained in strategic planning

Answer 23

lacks of expertise

Question 24

Even if small business operators are convinced about the importance of planning, they fail to get lack of sufficient exposure to planning activities.

Answer 24

inability to get started

Question 25

The uncontrolled and often intangible variables complicate planning which later on discourages the small business operator from repeating the exercise.

Answer 25

uncomfortable, often intangible variables

Question 26

Planning requires time, but the small business operator often
times does not have it.

Answer 26

resource poverty

Question 27

The daily requirements of small business usually keep the small business operator to busy that he is left with no time on planning.

Answer 27

focus on daily operation

Question 28

The small business operator is expose to the environment of successful Filipino business man who do not engage in strategic planning.

Answer 28

failure to realize the importance of strategic planning