Learning Objectives,1.Differentiate between a small business and an entrepreneurial venture.,2.Explain why small businesses and entrepreneurial ventures are important. 3.Describe how the strategic management process is used in small businesses and entrepreneurial ventures. 4.Discuss the special strategic issues facing small businesses and entrepreneurial ventures.,(continued on next slide),Learning Objectives,5.Define not-for-profit organization and public-sector organization.,6.Describe the various types of not-for-profit organizations. 7.Describe how the strategic management process is used in not-for-profit and public-sector organizations. 8.Discuss the special strategic issues facing not-for-profit and public-sector organizations. 9.Describe the unique strategies developed by not-for-profit organizations.,SMALL BUSINESSES ANDENTREPRENEURIAL VENTURES,Table 8-1 Characteristics of Small Business versus Entrepreneurial Venture,Small BusinessEntrepreneurial Venture, ,Independently owned, operated, and financed Fewer than 100 employees Doesnt emphasize new or innovative practices Little impact on industry,Innovative strategic practices Strategic goals are profitability and growth Seeks out new opportunities Willingness to take risks,Why Are These Types ofOrganizations Important?,Where the New Jobs Are Figure 8-1,Number of Jobs Created*,6.0 5.0 4.0 3.0 2.0 1.0,Organization Size,145192099100499 employeesemployeesemployeesemployees,5,810,2,274,1,417,2,326,*In thousands from 19921996.,The Strategic Management Process inSmall Businesses & Entrepreneurial Ventures,Strategic Management Process ,Value of strategic planning The overall approach to the strategic planning process External and internal environmental analysis Strategy choices Strategy evaluation and control,Strategy Evaluation and Control,Strategic Management Process for Small Businesses and Entrepreneurial Ventures Figure 8-2,Mission Statement,Situation Analysis, Internal Ss and Ws External Os and Ts Competitive Advantage(s),Strategy Formulation, Functional Competitive,Business Plan, Broad, Overall,Strategy Implementation, Resources Capabilities Budgets Structure Culture,Strategy Evaluation, Performance Measures Companion to Goals Comparison to Competitors,Specific Strategic Issues FacingSmall Businesses & Entrepreneurial Ventures,Specific Strategic Issues ,Global-international opportunities and challenges Human resources management issues Innovation and flexibility considerations,NOT-FOR-PROFIT ANDPUBLIC-SECTOR ORGANIZATIONS,What Are Not-for-profit Organizations and What Are Public-Sector Organizations? ,Not-for-Profit (NFP) An organization that provides some service or good with no intention of earning a profit,Public Sector An NFP created, funded, and regulated by the public sector or government,What Are Not-for-Profit Organizations and What Are Public-Sector Organizations?,Not-for-Profit Organization,Charitable,Religious,Social Service,Public Sector,Associations,Health Service,Cultural,Cause-Related,Foundations,Educational,Types of Not-for-Profit Organizations Figure 8-4,What Are Not-for-Profit Organizations and What Are Public-Sector Organizations?,Public-Sector Organization,Governmental Units,Police Protection,Paved Roads and Other Transportation Needs,Recreation Facilities,Care and Help for Needy and Disabled Citizens,Laws and Regulations to Protect and Enhance Life,What Are Not-for-Profit Organizations and What Are Public-Sector Organizations?,Economic Contributions of Not-for-Profit and Public-Sector Organizations Figure 8-5,Employment (1999 Figures) Number (in thousands) Percent of Total Employment Gross Domestic Product (1997 Figures) Amount Percent of Total GDP,Public SectorNot-for-Profits,20,161 15.7%,10,200 6.9%,$1.02 Trillion 12.7%,$621.4 Billion 6.2%,The Strategic Management Process in Not-for-Profit & Public-Sector Organizations,The Strategic Management Process Involves ,External and internal environmental analysis Strategy choices Strategy evaluation and control,Specific Strategic Issues Facing Not-for-Profit & Public-Sector Organizations,Specific Strategic Issues ,Misperception about theusefulness of strategic management Multiple stakeholders Unique strategies developed by NFPorganizations,Unique StrategiesDeveloped by NFP Organizations,Cause-Related Marketing ,Funds a good cause Benefits NFPs through public exposure and corporate donations Enhances the image of the supporting company Designed for the strategic advantage of the sponsoring corporation Benefits NFPs from the marketing link,Unique StrategiesDeveloped by NFP Organizations,Types of NFP Marketing Alliances Figure 8-6,NFP Organization,Transaction-Based Promotions,Joint Issue Promotions,Licensing,Unique StrategiesDeveloped by NFP Organizations,Strategic Piggybacking ,Special Olympics organization selling clothing Symphony selling cookbooks to supplement revenue,