LESSON 2: STRATEGIC PLANNING PROCESS FOR ENTREPRENEURS

Question 1

Defining the vision as a future-focused goal and the mission as the business’s purpose and core values.

Answer 1

Setting Clear Vision and Mission

Question 2

Environmental Scanning tools

Answer 2

*PESTEL Analysis
*SWOT Analysis
*Competitor Analysis

Question 3

Assessing Political, Economic, Social,
Technological, Environmental, and Legal factors.

Answer 3

PESTEL Analysis

Question 4

Identifying internal Strengths and
Weaknesses, and external Opportunities and Threats.

Answer 4

SWOT Analysis

Question 5

Evaluating competitors’ strengths, weaknesses, and market positions

Answer 5

Competitor Analysis

Question 6

*Using the SMART Framework (Specific, Measurable, Achievable,
Relevant, Time-bound) for effective goal-setting

Answer 6

Defining Objectives and Goals

Question 7

SMART

Answer 7

Specific
Measurable
Achievable
Relevant
Time-bound

Question 8

Identifying Key Success Factors that align with
the company’s strengths.

Answer 8

Strategic Formulation and Choice

Question 9

Choosing a strategic approach that best suits
the business’s market and resource capabilities
(e.g., cost leadership or differentiation).

Answer 9

Strategic Formulation and Choice

Question 10

2 IMPLEMENTATION PLANNING

Answer 10

*Creating Action Plans
* Resource Allocation

Question 11

Step-by-step Implementation Planning
strategies with timelines and responsibilities.

Answer 11

Creating Action Plans

Question 12

Assigning financial, human, and material
resources for executing the plan.

Answer 12

Resource Allocation

Question 13

2 Monitoring and Evaluation

Answer 13

*Setting Up KPIs
* Regular Review and Adaptation

Question 14

Defining Key Performance
Indicators to measure strategy effectiveness.

Answer 14

Setting Up KPIs

Question 15

Ensuring the strategy remains relevant and adjusting based on performance data.

Answer 15

Regular Review and Adaptation

Question 16

Tools and Techniques for STRATEGIC PLANNING

Answer 16

1. Business Model Canvas
2. Balanced Scorecard
3. Porter’s Five Forces Model
4. Ansoff Matrix
5. Value Chain Analysis

Question 17

Visual tool to map out business’s Strategic Planning
value propositions, customer segments, revenue streams, etc.

Answer 17

Business Model Canvas

Question 18

Framework to track strategic performance across financial, customer, internal, and growth perspectives.

Answer 18

Balanced Scorecard

Question 19

Analyzes competition through the power of suppliers, buyers, substitute products, new entrants, and rivalry.

Answer 19

Porter’s Five Forces Model

Question 20

RIVALRY AMONG EXISTING COMPETITORS:

Answer 20

• Number of competitors
• Diversity of competitors
• Industry concentration
• Industry growth
• Quality differences
• Brand loyalty
• Barriers to exit
• Switching costs

Question 21

BARGAINING POWER OF SUPPLIERS:

Answer 21

• Number and size of suppliers
• Uniqueness of each supplier’s product
• Focal company’s ability to substitute

Question 22

THREAT OF SUBSTITUTE PRODUCTS:

Answer 22

• Number of substitute products available
• Buyer propensity to substitute
• Relative price performance of substitute
• Perceived level of product differentiation
• Switching costs

Question 23

THREAT OF NEW ENTRANTS:

Answer 23

• Barriers to entry
• Economies of scale
• Brand loyalty
• Capital requirements
• Cumulative experience
• Government policies
• Access to distribution channels
• Switching costs

Question 24

BARGAINING POWER OF BUYERS:

Answer 24

• Number of customers
• Size of each customer order
• Differences between competitors
• Price sensitivity
• Buyer’s ability to substitute
• Buyer’s information availability
• Switching costs

Question 25

Helps businesses determine growth strategies across existing or new markets and products.

Answer 25

Ansoff Matrix

Question 26

Identifies activities that add value to the business and those that could improve efficiency

Answer 26

Value Chain Analysis