Strategic Planning in the Small Business

Unit 3

Content

Process

Here the firms

original market approaches

are tested and refined,

as steady, con­

trolled growth prevails.

As the business

develops, it encounters

problems resulting from growth.

For

example, new

employees are added, need

to delegate operating

decisions, standards

and

controls need to be formalized,

and

job responsibilities

must be delineated

as

a workable

organizational structure

evol­

ves.

As noted previously, the

choice of proper

strategic

posture is strongly influenced

by

the firm's relative

competitive position and

the product and

industry attractiveness.

Two cautions

must be stressed!

First, attempts

at securing growth are

risky

if the business is experiencing

a

relatively weak competitive

position in its

original product or market

areas. Second,

if product

or industry attractiveness is

becoming or is projected

to be less favor­

able, one should be

cautious about further

growth

in that industry.

These cautions

are not meant to suggest

that a business is precluded

from growth

opportunities

if eitber relative competitive

position or product/industry

attractiveness

are unfavorable,

but the additional

risk

involved must be

noted.

Given competitive strength

and p:oduct/

industry attractiveness

a number of

growth-oriented strategic

postures are

possible.

Depending

on the nature of the

industry

and the specifics
of the business, any of

the si
strategic postures may
foster

effective
growth.

260