Strategic Planning in the Small Business

Unit

3

Content

Process

Differentiate mission

from philosophy.

The

mission statement

is important for

three

reasons. First,

it is a tool for

communication

both inside and

outside

the firrn. Second,

is that once the mission

is

printed and publicized

the firm has

made a strong

statement of commitment.

Finally, the mission statement

is important

because it enables

the firm to focus on

its'

"strategic

fit".

Put up TP

3-5: Strategic

Fit.

Strategic

fit refers to the intersection

of

"What

we intend to do?";

with "What is

needed

in our geographic

area?"; with

"What

we are capable of doing?"

Another way of making

this point is as

follows:

Put up TP 3-6:

Strategic Fit Illustration.

No matter

how hard this guy

tries he

won't

fit through this door.

STRATEGIC

POSTURE

The mission statement,

if developed pro­

perly, gives

a guideline and general

direction

for the business and

an indica­

tion of its management

philosophy.

Before goals

and objectives can be

defined

more specifically

or strategies developed

to achieve

those objectives, it is necessary

to determine

the firm's strategic

posture.

Strategic postures provide

a general indi­

cation of how

the business will achieve

its

overall

mission and secure

a competitive

advantage.

The strategic posture
is management's

overall
plan of action for
running the busi­

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