Strategic Thinking for Smaller Businesses and Divisions

by Lasher, William R.

• ISBN13: 9780631208396
• ISBN10: 0631208399
• Format: Paperback
• Copyright: 1999-08-01
• Publisher: John Wiley & Sons Inc

Summary

Strategic Thinking for Smaller Businesses and Divisions effectively packages - for the first time - real-world business strategy for small- to medium-sized firms and divisions within larger companies. The book applies the principles of strategy to smaller businesses with systematic strategic analysis and shows how to bring order to the chaos of a small company.

Author Biography

William R. Lasher, CPA, is Professor of Business Administration at Nichols College.

Table of Contents

Preface	x
Acknowledgments	xiii
Part I: Strategic Ideas	1	(32)
Introduction to Strategic Thinking	3	(12)
The Concept of Business Strategy	3	(2)
The Development of Strategic Thinking	5	(2)
The Strategic Process - Analysis, Planning, Implementation, and Control	7	(1)
Levels of Strategy	8	(3)
Benefits of Strategic Thinking	11	(1)
Who Is Responsible for Strategic Thinking and Planning?	12	(3)
Developing Long-Run Thinking	15	(10)
The Conflict between the Long and Short Run	15	(5)
Long-Run Thinking in Periods of Growth and Contraction	20	(2)
The Importance of Quality	22	(1)
Measuring Success	23	(2)
An Overview of the Strategic Process for Small Business	25	(8)
The Strategic Process	25	(1)
Phases of the Strategic Process	25	(5)
Strategic Steps	30	(3)
Part II: Creating a Strategic Framework	33	(74)
Developing a Mission and Setting Objectives	35	(16)
Developing a Mission	35	(1)
Mission: Concept and Statement	35	(1)
Mission Statement Basics	36	(1)
Defining the Business	37	(2)
A Realistic Mission Statement for Your Business	39	(1)
The Mission and Attention to Change	40	(1)
Communicating and Buy-in	40	(1)
Inconsistent Actions	41	(1)
A Few More Mission Statement Examples	41	(2)
Setting Objectives	43	(1)
The Nature of an Objective	44	(1)
Objectives for Who and What	44	(1)
Upward Support	44	(2)
Measurability	46	(1)
Long-vs. Short-Run Objectives	47	(2)
Challenging but Achievable Objectives	49	(1)
Objectives as Predictions	50	(1)
Summary	50	(1)
Analysis of the Present External Position: The Industrial Environment	51	(20)
Industry Analysis - Overview	52	(1)
Industry Profile	53	(4)
Analyzing the Competitive Environment	57	(8)
The Effects of Change	65	(2)
Assessment of Industry Structure and Important Rivals	67	(2)
Key Success Factors	69	(1)
Summarizing the Industry Environment	70	(1)
Analysis of the Present Position: Internal to the Firm	71	(14)
Internal Analysis - Overview	71	(1)
Understanding How the Firm Got Where It Is Now	71	(1)
Identifying the Present Strategy and Assessing How Well It's Working	72	(2)
SWOT Analysis - Strengths, Weaknesses, Opportunities, and Threats - The Concept of a Distinctive Competence	74	(4)
Competitive Cost Analysis	78	(2)
Long Run Problems	80	(1)
Overall Competitive Assessment	81	(3)
Putting It All Together - A Self-Assessment	84	(1)
Developing a Strategy	85	(22)
The Nature of the Strategy Making Task	85	(1)
The Concept of Competitive Advantage	86	(2)
Generic Strategies	88	(1)
Overall Cost Leadership	88	(4)
Differentiation	92	(5)
A Hybrid Strategy - Best Cost Provider	97	(1)
Focus (Niche) Strategies	98	(3)
Offensive and Defensive Strategies	101	(1)
Timing Competitive Actions	102	(1)
Strategic Issues in Emerging Industries	103	(1)
Fragmented Industries	104	(1)
Developing a Strategy - Summary	105	(2)
Part III: Strategic Planning and Implementation	107	(40)
Implementation and Control	109	(27)
Implementing the Chosen Strategy	109	(1)
The Nature of the Implementation Problem	109	(1)
An Overview of the Implementation Process	110	(1)
Designing the Organizational Process	110	(7)
Managing Competences	117	(1)
Selecting Key People	118	(2)
Budgeting to Support Strategy	120	(1)
Strategic Support Systems	121	(2)
Incentive Systems	123	(5)
Corporate Culture	128	(3)
Control - Evaluation and Adjustment	131	(1)
Control Processes and the Feedback Loop	132	(1)
Strategic Control	132	(1)
The Comparison with Planned Performance	133	(2)
Summary - Strategic Control	135	(1)
Strategy and Business Planning	136	(11)
Business Planning	136	(1)
The Outline of a Typical Business Plan	137	(1)
The Purpose of Business Planning	137	(2)
Four Kinds of Business Plan	139	(3)
Relating Planning Activity in Small and Large Firms	142	(1)
Strategic Planning Documents	143	(1)
The Strategic Audit	144	(1)
The Strategic Planning Process	144	(3)
Part IV: Strategic Issues for Small Businesses	147	(68)
Marketing and Sales: The Strategic Center of Small Business	149	(16)
The Target Market	150	(1)
Marketing Mix	151	(3)
Advertising in Small Business - A Strategic Problem	154	(3)
Market Research	157	(3)
Marketing Strategy and Business Planning	160	(2)
Motivating the Sales Force - Commission Plans	162	(3)
Financing Strategies	165	(17)
Basic Principles	166	(1)
Financing by Borrowing - Debt	166	(3)
Equity Financing	169	(2)
Strategic Financial Thinking	171	(1)
Strategy for Venture Capital Financing	171	(3)
Strategy for Lenders - Usually Banks	174	(2)
More Detailed Guidelines to Working with Banks	176	(3)
Corporate Financing of Divisions	179	(1)
Private Sources of Money	180	(1)
Make Use of the Way People Read Plans and Proposals	180	(2)
Break-Even Analysis	182	(9)
Introduction	182	(1)
Fixed and Variable Costs	183	(1)
Break-Even Diagrams	184	(1)
Break-Even Calculations	185	(2)
Extending Break-Even to Include Profit and Return on Investment (ROI)	187	(1)
Using Break-Even Strategically - A Retail Location	188	(2)
Sensitivity Analysis	190	(1)
Strategies for Service Businesses	191	(7)
Introduction	191	(1)
Defining a Service Business	192	(1)
Pricing a Service	192	(4)
Other Factors to Consider	196	(2)
Location Analysis	198	(5)
A Science or an Art?	198	(1)
The Dimensions of Location	198	(1)
Choosing a Community	199	(1)
Choosing a Site Within a Community	200	(1)
Bankers and Realtors	201	(2)
Diversification	203	(12)
How Diversification is Accomplished	204	(1)
When and Why Firms Diversify	205	(3)
Types of Diversification	208	(2)
Justifying the Cost of Getting into the New Business	210	(5)
Part V: Restructuring Strategies	215	(48)
Cost Reduction and Downsizing: Planning to get Leaner or Smaller	217	(18)
Introduction to Part V	217	(1)
Reducing Spending	218	(1)
Downsizing	218	(1)
The Economics of a Crunch	219	(1)
Supply and Demand Analysis for an Industry	219	(1)
Supply and Demand for a Single Firm	220	(3)
Cost Curves for a Firm - The Essence of Downsizing	223	(2)
The Meaning of Plant Size	225	(1)
Shrinking - Growth in Reverse: Cost Reduction vs. Downsizing	226	(1)
Why it's Harder to Shrink than Grow: Organizational Hysteresis	227	(1)
Changes in the Market	228	(1)
A Crunch for the Individual Firm	229	(2)
The Response to an Increase in Supply	231	(2)
The Response to a Decrease in Demand	233	(1)
The Issue of Can vs. Must - Who Are We?	233	(2)
Cost Reduction and Downsizing: Practical Applications	235	(28)
Cost Reductions in General	235	(1)
The First Layer of Reduction	236	(3)
Subsequent Layers and the Issue of Function	239	(4)
A Simple, General Approach to Analyzing a Department in a Cost-Reduction/Layoff Situation	243	(1)
Estimating the Improvement Available Through Layoff Action	244	(4)
Post-Layoff Spending	248	(1)
Timing and Cost Effects of Expense Reductions	248	(1)
Can We Make a Plan We're Missing Through a Layoff?	249	(1)
Preparing for Cost Reductions in Risky Times	250	(1)
Morale Effects	250	(1)
People-Related Expenses	251	(1)
Layoffs in Sales	252	(2)
A Few Words About Expenses in General	254	(1)
The Barton Corporation	255	(8)
Index	263