INTRODUCT
                                                                                ION
                                                                             -  Developing and 
                                                                                implementing strategies 
                                                                                to remain competitive in 
                                                                                the environment
                                                                             -  most small businesses 
                                                                                have an initial strategy, 
                                                                                a business plan
                                                                                 A strategy is a plan of 
                                                                                  action to address an 
                                                                             opportunity or to solve and 
                                                                                            problem
                                                                              Strategic plan = corporate 
                                                                               strategies + operational 
                                                                                          strategies
  DIFFERENT BUSINESS ENVIRONMENTS AND 
  THEIR RELATED CHALLENGES
   ENVIRONMENT COMPONENETS                            EXTENT OF                 CHALLENGES
                                                      CONTROL
   MICRO              Vision, mission goal and        FULL control              Difficult employees
                      objectives                                                Lack of vision and 
                      Business functions                                        mission
                      Management structure                                      Lack of management 
                      Resources                                                 skills
                      Culture of the business
   MARKET             Consumers                       LIMITED control but       Competition
                      Competitors                     can influence             Changes in consumer 
                      Suppliers                       components                habits
                      Civil Society                                             Shortage of Suppliers
                      Intermediaries
   MACRO              Political                       NO control it can adapt  Changes in income 
                      Economic                        to challenges             levels
                      Social                                                    Globalisation
                      Technology                                                Political changes
                      Legal                                                     Recent legislation
                      Environmental                                             Inflation, interest rates
                                                                                Socio-economic issues
                                      STEP TO DEVELOP 
                                      STRATEGY
                                      Application of SWOT 
                                      analysis/PESTLE/Porter’s 
                                      Five Forces/environmental 
                                      scanning
                                      Formulate strategies to 
                                      meet objectives
                                      Implement strategies 
                                      using action plans
                                      Evaluation of strategies 
                                      (compare expected 
                                      performance with actual)
                             STRATEGIC 
                             MANAGEMEN
                             T PROCESS
                            STEPS:
                            1. Review vision statement
                            2. Analyse mission statement
                            3. Conduct analysis using 
                              models
                            4. Formulate strategy
                            5. Implement strategy
                            6. Evaluate implemented 
                              strategy and identify gaps
                            7. Take corrective action to 
                              ensure goals are met
   IMPLEMENT
   ATION
   • Takes place after formulation and 
   involves all activities required to 
   carry out strategic plan
   • Begins with the following questions:
    • Who is going to carry out the strategic 
    plan?
    • What must be done to bring the strategic 
    plan in line with the business’s objectives
    • How is the strategy going to be 
    implemented?
   • Management is responsible for 
   implementation of strategies