Small business needs strategy
Small businesses can't afford to be on the edge, but they are in danger for a long time. Therefore, it must carefully consider a strategy that can make it distinctive. In terms of biology, it must find a special ecological position in which it has advantages and can stand the competition. This special position may be the leading position in a particular market (whether it is geographically, in terms of consumer needs, or in terms of consumer values), or it may be manifested as being very outstanding in a certain aspect (such as the ability to provide a certain service), or having a certain unique technology. An example of this ecological niche is a small pharmaceutical company in the United States. It's enough to survive in a market dominated by giant multinationals. It focuses its strength on the needs of ophthalmologists to treat patients, especially the needs of ophthalmic surgery, and establishes an ecological market niche for itself. In this niche of ecological market, although it is not without competition, it has established a strong leading position. Another example is checker cab, which makes taxis only for big cities in the United States. Chick, which produces only 4000 cars a year, leads the taxi industry; American Motors, which produces 80 times more cars, is a marginal company. A small business's strategy may also be to focus on providing excellent services in a small and important area. While the service quality of large supermarket chains in the United States is generally poor, some regional chain stores on the East and west coasts of the United States have achieved outstanding results. The reason why they can achieve outstanding results is that their managers decide to focus on a certain field and provide excellent services. Typically, one of the managers is sure that he can't surpass the large supermarket chain in providing all kinds of processed food, but he can provide real first-class meat and truly polite services; this is what the large supermarket is difficult to provide because of its large scale, but it is what the customers of the supermarket attach the most importance to. Even smaller businesses need and can develop a strategy.
There are usually too many real estate agents in the suburbs around big cities in the United States, most of which can only barely maintain. In one area, a real estate agent developed a small but very profitable business by carefully considering a strategy to gain a leading position. When he began his career around 1950, he carefully examined his area and found that the main "industry" in the area was higher education. Although many local residents leave early and return late to work in the nearby big cities, a considerable number of them are relatively rich teachers who live there. These teachers teach in more than twenty colleges and universities. Most of these institutions are small, but a few are quite large. Young college teachers may have the highest turnover rate of any profession in the United States. These young teachers usually transfer to other schools after teaching in one place for several years. More than 500 new teachers are employed in more than 20 colleges and universities in this area every year, and the number of people who leave is also equal to this. The young real estate agent decided to focus on the market and provide it with the services it needed. He also found that he could have direct contact with the market at the lowest cost. Because, of course, the list of new teachers to be hired and those to leave at the end of the school year was known months ago. Of course, every college is happy to have a reliable person to undertake the difficult and troublesome task of finding housing for new teachers. As a result, the real estate agent is doing three times as much business as a firm of the same size at the lowest cost. His annual turnover is about 500 to 1000 houses, which is still not large, but his profit is almost four times that of the average suburban real estate agent. These examples are clearly extraordinary. Because, general small business does not have what strategy. Ordinary small enterprises are not "opportunity oriented", but "problem oriented" - solving one problem and another. Therefore, the general small enterprises are not successful enterprises. Therefore, the first requirement of managing a small enterprise is to ask and answer the question: "what is our enterprise and what should it be?"?
Small enterprises need to organize the tasks of top management
Small business is a business that requires at most one person to engage in senior management work all the time without doing anything else. In fact, the first hand in the vast majority of small enterprises often also undertakes some functional work, which is often appropriate. But this makes it more necessary for small businesses to identify the key activities necessary to achieve their goals, and make sure that these key activities have been assigned to those who can be responsible. Otherwise, these key activities cannot be completed at all. The vast majority of small businesses believe that they know what key activities are and that they have noticed them. However, a simple analysis will show that they are deceiving themselves. Everyone may be talking about key activities, but no one pays more attention to them. People turn a blind eye to these key activities - often as a result
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