Developing a

Business
Mission and
Strategy
Topic will be covered:

• Introduction
• Mission statements
• The fives keys to designing a
mission statement
• Strategy
Introduction

• Mission statement
: A brief statement that summarizes
how and where the firms will
compete
• Strategy
: Specified the board approaches the
small business will use to accomplish
its mission
Mission statements

• Benefits of The firm’s mission

• Developing a mission statement
• A sustainable competitive
advantage
Identifying a sustainable
competitive advantage
• Step 1- Develop a list of your business’s
asset and Capabilities
• Step 2- Break the list into 2 groups:
standard (Orthodox) and Extraordinary
(Unorthodox)
• Step 3- Evaluate the extraordinary
resources/Capabilities
Step 1- Develop a list of your
business’s asset and
Capabilities
Tangible Assets Intangible Assets
•Building location
•Equipment (List) •Industry experience
•Initial financing (equity or •Contacts
debt) •Previous start up
•Inventory experience
•Patent or patent pending •Education
•Software and system for •Unique knowledge of
business the industry
•Skill set of founders
(Presentation,
innovation etc.)
• Name branding
Step 2- Break the list into 2
groups
• Standard (Orthodox)
• Extraordinary (Unorthodox)
Step 3- Evaluate the
extraordinary
resources/Capabilities
RBV Concept Meaning Illustration
Rare Few firms have There are only four corners at an
it intersection. Once they are gone
on other firms can locate there.
Substitutabl Can it be Yours firm may be able to supply
e replaced by original auto pats for
something else automobiles from the 1950.
easily? However, newly produced auto
parts for such car would
substitute for those parts easily.
Durable How long will it Can firms match what you do in
last? days, months, or years?
Valuable Customer want What you do is something that
it customer’s value and will pay
more than that charged by your
competitors.
The fives keys to designing a
mission statement
1. Keep it short
2. Keep it simple
3. Keep it
straightforward
4. Keep it clear
5. Keep it measurable
Strategy

– Business’s strategy
• Low –cost strategy
• Differentiate focus strategy
• Smaller niches focus
strategy ( By Michael
Porter)
Developing the strategy
•Employing the firm’s mission
statement to specified where the firm
is to compete and how
•The ‘How” is developed into
actionable detail
•The strategy needs to be defendable
for some length of time
•The firm’s strategy needs to be
constantly re- evaluated
Applying the strategy

“The firm must be seeking out a

consistent set of activities
around the strategy of the firm”
THANK YOU FOR
YOUR ATTENTION