Strategic Planning for Small Business

0STRATEGIC PLANNING FOR SMALL BUSINESS
Strategic Planning for Small Business
Name of the Student
Name of the University
Author Note

1STRATEGIC PLANNING FOR SMALL BUSINESS
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Competitive Strategies.............................................................................................................2
Selection of Strategy................................................................................................................4
Value Proposition....................................................................................................................5
Balanced Scorecard.................................................................................................................5
Strategic Initiatives for implementing focus group strategy....................................................7
Strategic goals of the initiatives...............................................................................................8
Conclusion.....................................................................................................................................11
Reference.......................................................................................................................................12

2STRATEGIC PLANNING FOR SMALL BUSINESS
Introduction
The concept of strategic planning simply encompasses the process of arranging and
organizing the business procedures of a firm in a systematic manner and under a set period of
time. It helps an organization to achieve the business goals and the small firms can compete with
the market giants as well supports Burns (2016). In order to build an individual strategic
planning regarding how the organization can move ahead and how can they win the customer
preference in a short period, the company at first set the business objective and their
organizational goal. The goal must be clear to each of the employees. The next step is to have a
strategy plan for each goal. The action plan must follow the strategy implementation. Lastly, the
organization must keep in view that the strategy plan is being executed properly in each level of
the organization. The aim of this report is to highlight how the Wigram Borneo Restaurant must
develop their business strategy and how these strategies should be implemented in their business.
The report concludes by giving a proper overview of the entire topic.
Discussion
Competitive Strategies
Competitive strategies are necessary to gain competitive advantage in the existing
market dominated by the marketing giants. According to Dibrell, Craig & Neubaum (2014),
those organizations which do not seem to be flourishing greatly, must have been suffering from
the problem of lack of competitive advantage. Until the competitive edge or advantage is
realized, the competitive strategies cannot be built. An organization must build its competitive
strategies in order to get distinguished among all the rival companies. The small business or the
start- up companies get highly benefitted by the competitive strategies. The competitive
strategies proposed by Michael Porter, considered to be the management guru are differentiation,
cost leadership and focus strategy (Dodgson,2018). These are the cornerstones for any business.
The competitive strategies are necessary for an organization to sustain and survive in the
industry. The cost leadership is the strategy of being the lowest cost producer in the market.
Differentiation on the other hand is by which strategy the conventional customer belief in the
uniqueness of a product is exploited by introducing and innovative products. The focus strategy
concentrates on some particular segments in the market.

3STRATEGIC PLANNING FOR SMALL BUSINESS
Advantages Disadvantages
Cost Leadership The cost –friendly nature of
the products decreases the
market entry barriers that the
restaurant faced initially. The
threat of substitutes becomes
lower since the firm is not
firm is not vulnerable. The
power of the buyers also
reduces as they cannot drive
the prices down further. The
organization becomes flexible
to handle hikes in prices. The
organization enjoys profits
even in the periods when the
rivals face extreme price
competition.
The cost –friendly nature of
the organization demands
huge capital investment in
order to make the products
cheaper. The product design
or marketing issues might be
ignored due to cost concerns.
The competitors can
benchmark their cost-
friendly strategy and copy it.
Differentiation The entry into the market
becomes easier for the small
firms by adopting the
differentiation strategy
because the uniqueness in the
products can increase the
popularity of the restaurant
(Elmes & Barry,2017). The
organization can avail
customer loyalty due to their
different approach towards
the customers. Since the
The new entrants can bring
more exclusive product range
which can allure the
customers more. It is true at
the customers initially get
driven by the uniqueness of
the product but after some
times, inevitably they become
price concerned. The concern
of whether the customers will
understand the unique feature
of the products and accept it