Dollinger index

(Kiana) #1
168 ENTREPRENEURSHIP

“to be a good corporate citizen” or “to have a reputation for integrity” or “to develop
innovative products” are hard to quantify. Qualitative objectives involve the effectiveness
of the new venture, the extent to which the firm maintains and expands its position in
the competitive environment and in the macroenvironment. Qualitative objectives,
therefore, concern with external and environmental issues and are viewed over the long
term.
Table 5.1 lists possible objectives, and the three dimensions are shown as continua
along the arrows. The objectives toward the top of the list (beginning with sales prof-
itability) represent short-term, quantitative measures of efficiency. The objectives toward
the bottom (anchored by social concern/responsibility) represent long-term, qualitative
measures of effectiveness. The firm’s objectives should be both realistic and challenging
and should be consistent with the rest of the narrative and with the plan’s financial pro-
jections.

Market Analysis. The market analysis section aims to convince the reader or investor
that the entrepreneur fully understands the competitive environment and the macroen-
vironment. It must demonstrate that (1) the addressable market for the product or ser-
vice is substantial and growing, and (2) the entrepreneur can achieve a defendable com-
petitive position. Suggestions and recommendations for market analysis follow:


  • Overall Market: A description of the firm’s industry includes its current conditions,
    and its projections for sales, profits, rates of growth, and other trends. Who are the
    leading competitors and why have they been successful? Where is the market located
    and what is its scope—international, regional, national, local? Because investors pre-
    fer industries with the potential for large sales volumes and high growth rates, they
    need to see the big picture.


TABLE 5.1 Specific Objectives


Sales Profitability
Market share
Market position
Productivity
Product/service quality
Innovation
Employee morale
Training/development
Social concern/responsibility
Effectiveness Qualitative Long Term

Objective Efficiency Quantitative Short Term


Time Frame
for Objectives
Measurement of Objectives
Free download pdf