Strategic Planning in the Small Business

Unit 2

HO 2-6

(continued)

restaurant

in the community

may accurately recognize

this as

an environmental

opportunity.Yet,

internal analysis

clearly reveals

that tie restaurant

has neither

the personnel nor

financial re­

sources

to commit to such

a project. Therefore,

to this restau­

rant an environmental

opportunity

cannot be translated

into a

re!evant business

opportunity. Environmental

opportunities

only

become

relevant business

opportunities when

the internal anal­

ysis reveals that the

business possesses the

capacity to avail

itself

of

these environmental

potentials.

A business

may be able

to specify a number

of environ­

mental opportunities.

In general,

the more dynamic

and growth­

oriented the

industry, the greater

the number of environmental

opportunities.

Similarly,

the more open,

responsive, flexible,

and sound

the business, the greater

the number

of relevant

busines. opportunities

it is likely

to face.

The distinction

between environmental

opportunities

and

relevant business

opportunities may

be somewhat arbitrary

or

judgmental.

Yet, this recognition

is critical to the strategic

plan­

ning process.

The business is

concerned with acting

on and

dealing

with those opportunities

that have survived

the scrutiny

of internal analysis

to be placed

in the restricted domain

of

relevant business

opportunities.

THE ROLE

OF DISTINCTIVE

COMPETENCY

A distinctive

competency

is any area, factor,

or consideration

that

provides a business

a meaningful, competitive

edge over

its business

rivals. Distinctive

competencies represent

those sets

of factors

that positively

distinguish a firm

from its competitors.

Courtland

Clubs, presented

in Capsule 3-1, offers

an example

of a firm's distinctive

competency.

Capsule 3-1
Courtland Clubs

Courtland Clubs

was an established

tennis club in a medium­

sized

metropolitan location.

Courtland had been

in business for

over twenty-five

years and had

prided itself on the

quality and

aesthetics of

both its indoor and outdoor

courts. Although

their

ChapterThree Recognizing

Distinctive Competencies

and CompeitiVe

Weaknesses 89

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