The document discusses strategic entrepreneurship and new venture creation. It begins by defining business strategy as the actions an organization takes to pursue its objectives. There are three components of strategy content: product range, customers served, and competitive advantage sought. The strategy process refers to how decisions are made about desired strategy. A well-defined strategy can help a venture by providing focus and guiding decision-making. The document also discusses generating and exploiting new venture opportunities, various entry strategies, creating a strategic vision, developing strategy through business ethics and values, and writing a code of ethics.

1. STRATEGIC ENTREPRENEURSHIP
TOPIC 5
DR ANIS AMIRA AB RAHMAN
RAJA ROSNAH BINTI RAJA DAUD
FACULTY OF ENTREPRENEURSHIP AND BUSINESS
UNIVERSITI MALAYSIA KELANTAN
anisamira@umk.edu.my
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2. NEW VENTURE CREATION
STRATEGIC APPROACH
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3. Strategic Entrepreneurship and Strategic Management
Source : Wheelen, T. L. and Hunger, J. D.
(2000 cited in Kuratko, D. F. & Hodgetts,
R. M., 2004: 521).
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4. What is a business strategy?
 The actions an organization takes to pursue its
business objectives.
 Strategy drives performance and an effective strategy
results in a good performance.
 A basic distinction exists among the content of a
business’s strategy, the strategy process that the
business adopts to maintain that strategy and the
environmental context within which the strategy
must be made to work.
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5. Strategy content
 The strategy content relates to three (3) things: the
final product range, the customers it serves and the
advantage it seeks in the marketplace.
 The product range:-
 Covers the types and range of products that the firms
supplies to its market.
 E.g. what type of products should the business offer?
What should their features be?
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6. Strategy content
 Market scope:-
 Defines the customer groups and market segments that
will be addressed by the firm.
 Key decision includes:
 How is the total market to be defined?
 What features are important for characterizing the market
and defining its sectors?
 On what groups of customers should the business
concentrate?
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7. Strategy content
 Competitive approach:-
 Refers to the way in which the firm competes within its
product-market domain to sustain and develop its
business in the face of competitive pressures.
 Reflects the way in which the firm tries to influence the
customers to favor their offerings.
 E.g. how should the product be priced relative to
competitors? What distribution route will be used to get
the product to the customer?
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8.  Decisions about strategy content must be made in the light
of understanding of ‘external’ conditions and ‘internal’
concerns.
 External – characteristics of the market, the competitive
situation and the way in which different sectors can be
served.
 Internal – mission and goals of the organization, the
resources it has to hand and its capabilities.
Strategy content
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9. Strategy process in the entrepreneurial
business
Desired strategy
content
Achieved
strategy content
Existing strategy
content
The way in which
the decision
about what the
business wishes
to achieve is
taken and
communicated
Control over
delivering the defined
strategy content
Ongoing processes,
routines and decision
making within the
organization
The firm’s strategy process is the way in which the business
makes decisions about the strategy content it wishes to achieve.
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10. The link between existing strategy content
and the strategy content achieved in the
future
 The strategy content of the business will evolve over time.
 The way in which the business modifies its range of
products, changes its customer base and develops its
competitive approach will be the results of a series of
ongoing decisions and actions taken by the people who
make up the organization.
 These decisions occur even if the organization does not
have an explicit strategy to guide them
 They may be made in response to immediate market
opportunities
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11. The link between existing strategy
content and desired strategy content
 There are a number of ways in which the organization can
become aware of the desired strategy content:-
 The entrepreneur ‘s communication of their vision
 The definition of a mission
 The setting of objectives
 Through informal discussion
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12. The link between desired strategy
content and achieved strategy
content
 The link is manifest in the ability of entrepreneur to
deliver the strategy content they desire for their
organization.
 Two (2) things may limits this:-
 Must be both achievable, given the market conditions
and the competitive forces present, and feasible, in
terms of the resources available to make the necessary
investments.
 The degree of control the entrepreneur has over the
organization.
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13. Controlling strategy process in the
venture
 If the entrepreneur is to maintain control of the
organization and focus it on the opportunities that it
seeks to exploit, then they must control its strategy.
 Essential decision includes:-
 Decision relating to the development of the mission
 Decision relating to the development of strategy
 Decision relating to the control of resources
 Decision relating to the way objectives will be set,
monitored and rewarded
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14. A well defined strategy can help the
venture
 A strategy….
 Encourages entrepreneurs to assess and articulate their vision
 Ensures auditing of the organization and its environment
 Illuminates new possibilities and latitudes
 Provides organizational focus
 Guides the structuring of the organization
 Acts as a guide to decision making
 Provide a starting point for the setting of objectives
 Acts as a common language for stakeholders
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15. The Generation and Exploitation of New Venture
Creation Opportunities
Source : Hisrich, R. D., Peters, 2009
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16. The Generation and Exploitation of New
Venture Creation Opportunities
 Stage 1: New entry generation
 The new entry generation should concern about the
establishment of new product in new market. A part from
that creating new organization is also listed as new
venture creation.
 In this stage, the entrepreneur will learn new knowledge
experiences and exploiting other resources to get a
better picture about business. This stage is very important
for new comers in order to capturing new or existing
opportunities in business environment.

17.  Stage 2: New entry exploitation
 In this stage, entrepreneurs will scan, skimming and
exploit the new opportunities with the help from
knowledge. Entry strategy, of course, will become a major
boost for company to go into business.
 Most decision, the entrepreneurs make don't fit into
assumption of perfect rationality in entry strategy but it is
most likely influenced by cultural and resources. Some of
the entry strategies are exporting and licensing.
 Stage 3: Feedback loop of resources.
 The decision to exploit or not to exploit the new venture
creation opportunity
The Generation and Exploitation of New Venture
Creation Opportunities

18. An overview of entrepreneurial entry
strategies
 A strategy is the pattern of actions that define an
organization.
 Two (2) generic strategies are commonly used;
product-market domain and competitive approach.
 Product-market domain:-
 Focused entry
 Addressing a single well-defined product-market domain
 Product spread
 Offering a wide range of products to single well-defined
market
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19. An overview of entrepreneurial entry
strategies
 Customer spread
 Delivering a single or narrow range of products to a wide base
of customers
 Adjacency
 Offering a wide range of products to a broad customer base.
All product-market segments are adjacent in that the
characterizing features of each segment are continuous or can
be related to each other
 Scatter
 A variety of different products are offered to a variety of
different customers. The segments are not adjacent.
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20. An overview of entrepreneurial entry
strategies
 Competitive approach:-
 Offering a new product or service
 Offering greater value
 Creating new relationships
 Being more flexible
 Being more responsive
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21. Creating the Strategic Vision:
Articulating Need and Purpose
 A process of merging and combining, then deciding
and eliminating.
QUESTION/AREA OF
INQUIRY
COMPONENT OF STRATEGIC
VISION
What opportunity or problem
led to venture launch?
Purpose: What we are
attempting to do?
What obstacles confront the
venture team?
Potential pitfalls to overcome
What blocks progress? Resources needed
How we will know we are on
the right track?
Data to be gathered
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22. Values Creation: Developing Strategy
in Good Company
 Business ethics and values are the subject of increasingly
great attention today in light of numerous scandals
involving unethical and unlawful actions on the part of
managers.
 Ethics – behavior that conforms to moral principles and
values.
 Business ethics – the discipline of developing and
practicing business relationships that conform to these
moral (Alford, 2005)
 Many businesses design formal ethics programs, including
a code of ethics.
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23. Values Creation: Developing Strategy
in Good Company
 Research has identified key strategic benefits to
businesses that have ethics programs (Devero, 2003):
 Build employee loyalty, reducing hiring and training
costs
 Reduce theft
 Drive sales and build customer loyalty
 Attract quality applicants with minimum investment in
recruitment
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24. Writing a Code of Ethics
 It is never too early in the formulation of a new
venture to write a code of ethics.
 Once written, the document can and should be
revisited each year, and as the firm grows, more
information can be added to it.
 Code of ethics should contain the following types of
information (Alford, 2005):
 Purpose
 policy
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25. Writing a Code of Ethics
 Procedures (e.g. honesty and fairness, labor and
employee relations matters etc)
 Environmental
 Accurate and complete records
 Workplace safety
 Bidding, negotiation and performance on contracts
 Reporting suspected violations
 Training
 Review procedures
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26.  Strategic attributes for new venture entrepreneur
Sensitive to environment
Dare to take risk
Tolerate with uncertainty
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Entrepreneur’s Strategy

27. References
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 Aashish Mehra, G. S. (2011). Managing rapid growth : How mid caps can leap into the billion
dollar club .
 Dollinger, M, J. (2008). “ENTREPRENEURSHIP: Strategies and Resources Fourth Edition”,
Kelley School of Business, Indiana University. MARSH publications, pp. 33-40.
 Drucker, P. F., & Drucker, P. F. (2007). Innovation and entrepreneurship: Practice and
principles. Routledge.
 Kuratko, D. F., & Hodgetts, R. M. (2004). Entrepreneurship: Theory, process, practice.
Mason, Ohio: Thomson/South-Western
 Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2009). Entrepreneurship. New York:
McGraw-Hill Higher Education.
 Lieberman, M. B., & Montgomery, D. B. (1988). First‐mover advantages. Strategic
management journal, 9(S1), 41-58.
 R. Barringer, Duane,(2009).Successfully Launching New Ventures: McGraw-Hill Higher
Education.
 Zimmerer, T., Scarborough, N. M., & Wilson, D. (2002). Essentials of entrepreneurship and
small business management (Vol. 2). Upper Saddle River, NJ: Prentice Hall.