Unit 2
HO
2-6 (continued)RELATING DISTINCTIVE COMPETENCIES TO
RELEVANTBUSINESS OPPORTUNITIESAt this point, an important strategic question emerges. As
notedearlier, not all environmental opportunities are
relevant business
opportunities. Further, not all busiress opportunities shouldbe exploited. Given a series of relevant
business opportunities,which
of these will the business choose to pursue? In general,managers will select those business opportunities
where theypossess some unique or special advantage over competitors.
Inother words, the business should focus on
those opportunitiesfor which its strengths are distinctive competencies.The significance of this point is often
overlooked or misunderstood by small
business owners. Often, these individualsbelieve that
if a relevant business opportunity is present, aprudent
manager will respond and seek to capitalize on
itspotential. This view may result in poor
utilization of the firm'sresources.
For example, a number of competitors may be
setto respond to the same opportunity. In fact, some competitorsmay be better able to service these opportunities
than others.Thus, a business may commit to an area where it is, from
theoutset, at a definite competitive disadvantage. A
business shouldpursue
those areas where it performs well. This concept ofperformance must be viewed
from a competitive perspectiveso that those areas where the business possesses a meaningfulcompetitive
edge are emphasized.DISTINCTIVE COMPETENCE AND STRATEGIC PLANNINGThe determination or recognition of a
firm's distinctive competency is one of the critical,
culminating events of the analysisphase of strategic planning. The
distinctive competency of thebusiness becomes the focus or driving force around which
relevant business opportunities are chosen, mission
and goal statements arranged,
and strategic actions structured.It may
be useful, as noted in Figure 3-1, to refine thesteps or processes that comprise the analysis phase
of the strategic planning model.94 Part One The Analysis Phase
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