Session - 01

Ms. Prasangika Maithripala

Management Consultant/Lecturer
National Institute of Business Management
 What is a “Business”?

The production and distribution of goods

and/or services to satisfy the needs and wants
of the consumer at a profit.
 Role of "Business”?

❑ Supply of goods and services

❑ Creation of job opportunities
❑ Offer better quality of life
❑ Contributing for the growth of the country
❑ Taking the nation to the global market
Discussion questions ??
 Three big strategic
questions
1. What’s the company’s current situation?
2. Where does the company need to go from here?
3. How should it get there?
– A company’s answer to “how
will we get there?” is its strategy
A question for you:
Why do some small business
succeed and some fail?
Strategic Planning: These are decisions you make about
investing resources TODAY in order to maximize
performance in the FUTURE.

Example?
 How do small businesses
undertake strategic planning?
1. Start with goals – what do I want out of my small business?
2. Create a vision of what the business needs to look like in order to
accomplish your goals.
3. Create a mission to guide how you will serve your stakeholders along
the way.
4. Develop strategies to get you from where you are now to where you
want to be in the future. Strategies require investments – which
means budgets and timelines.
 Goal Setting
Life is a series of investments…you make
decisions about where to spend your time
and energy. Give some thought to what types
of outcomes would make you happy.

Setting specific, measurable, assignable,

realistic, and time-bound (SMART) goals leads
to personal and business growth.
 A goal setting process
Effective goals are part of a process:

1. Set goals.
2. Determine costs and benefits of goal achievement
3. Establish measurement tools
4. Periodically reassess and adjust goals as needed
5. Enjoy achievement of goals
6. Set new goals
 From goals to strategies
Goals are a big part of the strategy process…once you have your
goals set, here is a typical strategy process:
a) Assess your current business position (honestly!)
b) Assess your desired future position – this is your vision
statement.
c) How will you treat stakeholders? This is your mission
statement
d) Develop specific strategies (products, services, business
processes, location, pricing, marketing, people, etc).
e) Identify resources will we need to get from current to desired
future position (and attain your goals)? Create a budget and
timeline.
 a) Assess your current
position
Where are we?
• Who are we serving (customers)?
• What products and services are we
offering?
• Are we providing a good value for our
customers?
 Vision
• How large and how broad do we need to
get to accomplish these goals?
• How will we need to position ourselves
against rivals?
The Mission Statement
 Decisions about size, scope, and
competitive position
How large will we need to become?
How will we grow? (Acquisitions, alliances, internal growth?)
How broad will our product/service line need to be?
How will we need to position ourselves against rivals?
How will we manage our costs?