Strategic Planning in the Small Business

Unit

3

HO

3-3 (continued)

appropriate

posture(s)

may be a function

of at least

four significant

influences (see

Figure 4-2).

These are

(1) the stage of

business development,

(2) the attractiveness

of

the firm's products

and

industry, (3) the

firm's relative

competitive strength,

and (4)

the personal desires

and aspirations

of the business

owner. Because

of the magnitude

of its

impact, the discussion

of stages

of

development

will b-delayed

until a separate

section of this

chapter.

Figure

4-2

oTI of Chcodq A

8IWoo Pmtft

ICo Fact=s

Pouum

ciS3flakof

andmusndutrybeconideed.Assssig t e&ttrctvees

of thepro ti s ifcl.Amh

Wnoing

taegiei posurth

prsendutrydtr

s reltie

odtsvl

attractiveness

trn

wad

indursetrcvns

must be

atratveesent,

projedifct

cnied.Assessednolyi

the

ut

Atethe

firm's

planning horizon.

The

appropriate posture

depends heavily

on the firm's relative

competitive strength.

Through

internal

analysis, managers

must understand

the firm's

strengths and potential

in relatior

to its

key

competitors. This

is especially

important if one or

more large firms

dominate the

industry.

The

personaldesires,

aspirations,and

commitments of the

owner or manager

highlight the fact

that entrepreneurs

are different

and, as such, possess

differing views

of their businesses

and

di.what

they would like

them to become.

Some desire rapid

growth with

accompanying risks

and

potential returns.
Others feel
quite content to
remain small and
possess no strong
growth

aspirations. This
variable of eneeeurial
attitude frequently
defines and
limits the choices

of strategic posture
(see Figure 4-3).

292