c



IntroductionY Y
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~trategic PlanningY Y
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Business IdeaY Y
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Entrepreneur¶s missionY Y
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Entrepreneur¶s ObjectivesY Y
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Environmental FactorsY YY
External analysisY YY
Internal analysisY YY
Develop ~trategy Formulation and ImplementationY YY
Market OrientationY YY
Balanced ~corecardsY YY
ConclusionY YY
ReferencingY YY
AppendixY YError! Bookmark not defined.Y
uestionY YError! Bookmark not defined.Y
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Graetz, Rimmer, Lawrence, and ~mith (2002, 72) pointed out that strategy is defined as the
direction and scope of an organisation over the long term-its managerial game plan for the
future, which is influenced by environmental forces and resources availability, and the values
and expectations of its power base (stakeholders) while strategy planning is a process of
making a strategy which defined as a traditional linear, rational, systematic approach to
strategy formation and implementation.

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~trategic planning is the process of formulating a short to long range of plants in order to
manage an effective management by evaluating either external or internal analysis in the light
of a venture's strengths and weaknesses. ~trategic planning is basically involving in
evaluating an environment, defining a venture¶s mission, objectives, and obtaining type of
strategies (Hitt, Ireland, & Hoskisson, 2009).

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In order to get into strategic planning, entrepreneurs should know the business idea first.
First, entrepreneurs need an idea to pursue something which is valued and the main thing in
business world is to find a solution that most people are now currently suffering.


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The mission statement must be clear and it should be valuable. The most important thing is to
avoid an absurd word and remember reason for a statement in the first place. Based on
Wilson learning survey, more than 25,000 employees from his organisation demanded to
have a leader that can convey clearly what the work unit is trying to do (Lublin 2009, 86) Y
Therefore, a very clear mission statement is very important to get employees know what are
the objectives of the business.


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Objectives are defined as goals that are intended to be completed within one operatic cycle
(Kallman 2007, 56). He argued that entrepreneurs like it or not will be getting into risk
management. They do plan for a risk and to avoid a risk, an entrepreneur should have a clear
objective. The good way to embody an objective is creating ~MART goals which are
specific, measurable, achievable, realistic, and told. An objective should be specific and clear
such as increase 25% market share in wine industry in the next 2 years. This goal is also
measurable and realistic because 2 years is plenty of time to embody it. The goal must be
achievable too considering whether a venture has good talented and skilled people. And an
objective should be told which means a clear objective should be communicated to people
who are involving in the business (Kallman 2007, 56).

  
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Once the business idea is already established, an entrepreneur should understand about the
external and internal analysis in industry. Hanson et al (2008, 41) state that in order to have a
deep understanding of external environment, every ventures need to assess the market
through scanning, monitoring, forecasting, and assessing. Then, they will need to evaluate the
general environment which has six segments: demographic, economic, political/legal, socio
cultural, and technology. In external environments, an entrepreneur should focus on potential
opportunities and come up with questions like:

yY Is there something in the market that can be turn into a niche market and have not
been found by others?
yY Is the venture having a core competency to be applied for niche market and do they
have an ability to make something new and needed by society?
yY Are there economic, social or business trend that could benefit the business?
(Fleet, Fleet, and Flint 2010, 57)

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Once the assessment of external analysis has been completed, then internal analysis has to be
conducted. Basically, internal analysis consists an internal resource. There are intangible and
tangible elements. ~urroca, Tribo, and Wardock (2006, 463) argue that intangible assets are
the basic elements of getting a sustained competitive advantage because it is more invisible
and hard to imitate compared to tangible elements. The types of intangible elements are the
culture of innovation, human, and reputation while financial resources, physical and
technological are categorised as tangible assets (Hanson et al 2008, 79). In internal
environments, an entrepreneur should focus on the organisation aspects and come up with
questions like:

yY What resources that the venture has?

yY What are their core competencies based on the resources and capabilities?
yY In what market can they succeed?
yY Do they have enough resources to compete in the niche market?
yY How the ventures manage its assets?
(Fleet, Fleet, and Flint 2010, 57)

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Fleet, Fleet, and Flint (2010, 51) stated that one of the most important steps to tap into a
strategic planning is by conducting a strategic approach to a market. They also added that an
entrepreneur should understand about the market he/she is in because the clear of industry
definition will enable an entrepreneur to get a better costs and revenue and understand to
obtain a successful market. Market orientation helps an entrepreneur to approach the
marketing concept. It is basically measured by emphasizing an entrepreneur to make a
strategic concept and decision and to be a customer oriented market. All entrepreneurs must
build a strong market orientation in order to get know about customer preference, what they
need (like and dislike), their range of satisfaction, perception and ect. The need to aware with
the external condition is essential too like what factors are likely to affect the business in term
of competition, economic condition, socialtrends, regulation, and so on. Entrepreneurs should
also have a look and have a deep understanding about their internal resources such as
technology, source of capital, and so on. All of these steps must be done in order to get an
organizational objective which is customer satisfaction (Baker and ~inkula 2009, 446-447).

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Furthermore, the model shows there is a direct benefit effect between market orientation and
profitability and also indirect effect on technology research and development area. This
basically means a strong action of an entrepreneur will lead to the good profitability but only
realize if the innovation of technology is also playing role in the place to bridge entrepreneur
action and profitability outcome in order to be more capable in a business environment
(Baker and ~inkula 2009, 445).

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'sing balance scorecards (B~C) is very helpful to develop a planning better. Bsc is like a
strategy map to embody evey single objective in every perspective. Bsc aims to force an
organisation to have a plan in every single area so a venture not only be profit oriented
(financial perspective) organisation but also take care of other perspective such as customer
perspective, internal business perspective, innovation and learning perspective (Graetz,
Rimmer, Lawrence, and ~mith 2002, 96). Basically, Bsc integrates the component of
stakeholders which are business owner, customer, and employees (Kaplan and Norton 1992,
72).
 Balance ~corecard approach
Financial
perspective
Goals Planning
Cost
production

Customer
Financial
perspective
perspective
Goals Planning
Goals Planning
Customer
Operation
satisfaction,
management
brand image

Innovation
and learning
Goals Planning
Develop new
skill,
innovative
culture

~o basically, Bsc help an organisation to plan in every single perspective to earn a

performance measurement. A business owner must be able to address the issues related to
every perspective. The performance measurement based on financial perspective focus on
developing a better cost production and whether the company have an implementation to the
bottom line improvement. Based on the customer perspective, some issues such as customer
satisfaction, loyalty, retention will be looking at and develop a plan to cover these issues.
Internal business process is to provide a value for a customer and every organisation need to
develop a strategy in term of internal business process in order to gain a sustained
competitive advantage. And lastly, innovation and learning will come with the issues such as
developing training program, keep learning organisation, empowering employees to get
involved in decision making process and so on.
c  Y
To sum up, before tapping into a market, an entrepreneur should firstly develop a strategic
planning as it is very essential to formulating a strategy to embody whether a short or long
term goal. Therefore basically a strategy planning involves a mission statement, evaluate an
external and internal environments, strategy formulation and implementation and feedback
and is used to gather an effective management.

   
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Baker, W.E., and J.M. ~inkula. 2009. The Complementary Effects of Market Orientation and
Entrepreneurial Orientation. U
   

    47(4): 443-464.
Proquest. http://proquest.umi.com (accessed April 25, 2010).

Fleet, E.W., Fleet, D.V.N., and G.D, Flint. 2010. Determining Market ~egments for
Entrepreneurial Venture. U
         
 15(1): 50-
65. Proquest. http://proquest.umi.com (accessed April 25, 2010).

Graetz, F., Rimmer, M., Lawrence, A., and A. ~mith. 2002.   
 . Milton LD: John Wiley & ~ons Australia.

Hanson, D., Dowling, P.J., Hitt,M.A., Ireland, R.d., and R.E Hoskisson. 2008.  
 . Melbourne: Thomson.

Hitt, T., Ireland, J.,and A. Hoskisson, 2009. Develop a Plan in Ventures. U
  
  32(3): 32-54. Proquest. http://proquest.umi.com (accessed April 25, 2010).

Kaplan, R.~., & Norton, D.P. (1992). The balanced scorecard ± measures that drive
performance. Harvard Business Review, 70(1), 71±79.

Kallman, J. 2007. Planning for a Risk.    54(8): 56-57. Proquest.

http://proquest.umi.com (accessed April 25, 2010).

Lublin, N. 2009. Wordplay. U
   

  140(2): 86. Proquest.
http://proquest.umi.com (accessed April 25, 2010).

~urroca, J., Tribo, J.A., and ~. Waddock. 2010. Corporate ~ocial Responsibility and Financial
Performance.     U
 31(2): 463-490. . Proquest.
http://proquest.umi.com (accessed April 25, 2010).
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