StrategicManagementinAction,8,StrategicManagementinOtherOrganizationTypes,LearningObjectives,1.Differentiatebetweenasmallbusinessandanentrepreneurialventure.,2.Explainwhysmallbusinessesandentrepreneurialventuresareimportant.3.Describehowthestrategicmanagementprocessisusedinsmallbusinessesandentrepreneurialventures.4.Discussthespecialstrategicissuesfacingsmallbusinessesandentrepreneurialventures.,(continuedonnextslide),LearningObjectives,5.Definenot-for-profitorganizationandpublic-sectororganization.,6.Describethevarioustypesofnot-for-profitorganizations.7.Describehowthestrategicmanagementprocessisusedinnot-for-profitandpublic-sectororganizations.8.Discussthespecialstrategicissuesfacingnot-for-profitandpublic-sectororganizations.9.Describetheuniquestrategiesdevelopedbynot-for-profitorganizations.,SMALLBUSINESSESANDENTREPRENEURIALVENTURES,Table8-1CharacteristicsofSmallBusinessversusEntrepreneurialVenture,SmallBusinessEntrepreneurialVenture,Independentlyowned,operated,andfinancedFewerthan100employeesDoesntemphasizeneworinnovativepracticesLittleimpactonindustry,InnovativestrategicpracticesStrategicgoalsareprofitabilityandgrowthSeeksoutnewopportunitiesWillingnesstotakerisks,WhyAreTheseTypesofOrganizationsImportant?,WheretheNewJobsAreFigure8-1,NumberofJobsCreated*,6.05.04.03.02.01.0,OrganizationSize,145192099100499employeesemployeesemployeesemployees,5,810,2,274,1,417,2,326,*Inthousandsfrom19921996.,TheStrategicManagementProcessinSmallBusinesses&EntrepreneurialVentures,StrategicManagementProcess,ValueofstrategicplanningTheoverallapproachtothestrategicplanningprocessExternalandinternalenvironmentalanalysisStrategychoicesStrategyevaluationandcontrol,StrategyEvaluationandControl,StrategicManagementProcessforSmallBusinessesandEntrepreneurialVenturesFigure8-2,MissionStatement,SituationAnalysis,InternalSsandWsExternalOsandTsCompetitiveAdvantage(s),StrategyFormulation,FunctionalCompetitive,BusinessPlan,Broad,Overall,StrategyImplementation,ResourcesCapabilitiesBudgetsStructureCulture,StrategyEvaluation,PerformanceMeasuresCompaniontoGoalsComparisontoCompetitors,SpecificStrategicIssuesFacingSmallBusinesses&EntrepreneurialVentures,SpecificStrategicIssues,Global-internationalopportunitiesandchallengesHumanresourcesmanagementissuesInnovationandflexibilityconsiderations,NOT-FOR-PROFITANDPUBLIC-SECTORORGANIZATIONS,WhatAreNot-for-profitOrganizationsandWhatArePublic-SectorOrganizations?,Not-for-Profit(NFP)Anorganizationthatprovidessomeserviceorgoodwithnointentionofearningaprofit,PublicSectorAnNFPcreated,funded,andregulatedbythepublicsectororgovernment,WhatAreNot-for-ProfitOrganizationsandWhatArePublic-SectorOrganizations?,Not-for-ProfitOrganization,Charitable,Religious,SocialService,PublicSector,Associations,HealthService,Cultural,Cause-Related,Foundations,Educational,TypesofNot-for-ProfitOrganizationsFigure8-4,WhatAreNot-for-ProfitOrganizationsandWhatArePublic-SectorOrganizations?,Public-SectorOrganization,GovernmentalUnits,PoliceProtection,PavedRoadsandOtherTransportationNeeds,RecreationFacilities,CareandHelpforNeedyandDisabledCitizens,LawsandRegulationstoProtectandEnhanceLife,WhatAreNot-for-ProfitOrganizationsandWhatArePublic-SectorOrganizations?,EconomicContributionsofNot-for-ProfitandPublic-SectorOrganizationsFigure8-5,Employment(1999Figures)Number(inthousands)PercentofTotalEmploymentGrossDomesticProduct(1997Figures)AmountPercentofTotalGDP,PublicSectorNot-for-Profits,20,16115.7%,10,2006.9%,$1.02Trillion12.7%,$621.4Billion6.2%,TheStrategicManagementProcessinNot-for-Profit&Public-SectorOrganizations,TheStrategicManagementProcessInvolves,ExternalandinternalenvironmentalanalysisStrategychoicesStrategyevaluationandcontrol,SpecificStrategicIssuesFacingNot-for-Profit&Public-SectorOrganizations,SpecificStrategicIssues,MisperceptionabouttheusefulnessofstrategicmanagementMultiplestakeholdersUniquestrategiesdevelopedbyNFPorganizations,UniqueStrategiesDevelopedbyNFPOrganizations,Cause-RelatedMarketing,FundsagoodcauseBenefitsNFPsthroughpublicexposureandcorporatedonationsEnhancestheimageofthesupportingcompanyDesignedforthestrategicadvantageofthesponsoringcorporationBenefitsNFPsfromthemarketinglink,UniqueStrategiesDevelopedbyNFPOrganizations,TypesofNFPMarketingAlliancesFigure8-6,NFPOrganization,Transaction-B