Strategic Planning in the Small Business

Unit

2

HO 2-6 (continued)

and important areas

of competence are recognized and stressed.

These competencies may

have initially arisen out of the firm's

perceived mission

or managerial orientation and over

time,

have become an integral

part of the existence of the business.

Courtland Clubs

provides an example of this approach.

In its

competitive situation, Courtland

r,eded to recognize its areas

of competence,

determine whether they were still

viable, and

then proceed to use them as the

focus for evaluating environ­

mental opportunities

and strategic direction.

In some situations,

distinctive competetences may need to

be developed or nurtured-particularly

if none currently exist.

Here, the business

analyzes its competitive environment,

scru­

tinizes its internal resources,

and carefully and objectively de­

cides which areas

have the best chance for development.

In this

approach, the business is

attempting to build areas of compe­

tence. Such a building or development process

can be quite

trying for the

small business. Essentially, the business

should

investigate areas where it can create a meaningful

competence,

realizing that competencies are dictated

by the competitive en­

vironment, the firm's internal capacities,

and the firm's reac­

tions within its competitive

environment.

It is difficult to list an exhaustive set of

competencies. How­

ever, some

typical areas of distinctive competence

can be rec­

ognized. Table 3-1

notes nine of the more common areas of

distinctive

competence likely to be recognized by

small business.

Quality is a key area

of competence. Here, the business

offers the consumer a

product or service that is of discernably

Table 3-1
Areas of Distinctive Competence

Commonly Recognized by Small

Businesses

Quality Flexibility

and Adaptability

Service

Strong Consumer Orientation

Location

Reputation and Image

Filling a Special Niche Personnel

Price

Chapter Three Recognizing

Distinctive Competenci~s and Competitive Weaknesses

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