The
statements of the Company Business and the Mission Statement are
essentially documentations of the vision of the entrepreneur. These
two are simply different sides of the same coin. However, as has
been noted under the discussion of the
Mission
Statement they serve different purposes. Yet, the very fact that
the Definition of the Company Business is a documentation of the
corporation founding vision makes it imperative that there is a
clear understanding of the methodology involved in the construction
of the definition.Indisputably, there may now
exist a level of curiosity regarding all these facetiousness over
the definition of a Company Business which usually takes no more
than the form:
The Fictional Corporation is
in the Business of the development, manufacture, marketing and
sales of widgets.
where again the normal
Fictional Corporation is being analysed for these purposes; and
admittedly, at the end of this discussion it is entirely possible
that the definition of Company Business would have the same form,
and so this presentation may seem as mere exercise at vacuous
discussion, yet as will become self-evident presently this is not
the case. The attestation to this assertion is provided by the
simple observation of the choice of the business functions that are
included in the definition: Such would be the rationale for
including the function of "development" and or 'manufacture" in the
definition, when the definition could very well have taken the form:
The Fictional Corporation is
in the Business of marketing and sales of widgets.
Evidently then, there exists a
rational substratum of operation on which the definition of
Company Business is generally based. In that case, then the reality
is that the definition of the Company Business is a documentation
not only of the founding vision of the corporation but also a
synopsized presentation of the competitive strategic plan adopted by
the corporation towards the realization of the vision or corporate
strategic goal.
Inferentially then, the
Company Business definition is a statement of the Competitive
Strategic Framework by which the corporation competitive strategy is
implemented at the operations layer. Of course, it must be noted
that implicit in this strategic framework is the corporation driving
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force. Hence, the definition of the company business necessarily
also reflects, rather implicitly the Corporation Driving Force.
The development of the
corporation strategic thrust however is usually and should be based
on the Porters Strategic Forces Model or the Extended Strategic
Forces Model. Basing the corporation strategic thrust and hence the
Driving Force on the Porters Strategic Forces Model makes sense
because the development of the competitive strategy is then
supported rationally with an understanding of all the competitive
factors at play. Yet the development of the Competitive Framework
for the venture is not as linear as to permit the construction of
counter-competitive factor in direct linear correspondence to the
competitor forces of the Strategic Forces Model.
The reality is that to be
successful, the entrepreneur must develop and operate with the "Mind
of the Strategist" of the type of Kenichii Ohmae. Very simply the
entrepreneur must take proper steps to become pragmatic student with
deep understanding of military strategy. The concepts of stratagem
are indispensable in the development of an efficacious
Competitive Strategy for achieving the corporate strategic goal of
viability and growth.
Obviously, then the Company
Business definition is actually much more involved than it appears.
In effect, then
the entrepreneur must take proper care to perform detailed strategic
analyses of all options scenario, translate the military type
strategic options into its business equivalent and adopt that
equivalent with thorough understanding before developing the
verbiage of the definition of the Company Business. Only after the
development of the competitive strategy can an entrepreneur
confidently define the operational business functions that should
efficaciously support the viability and competitive growth of the
venture.
Now then, for the strategic
entrepreneur, the Definition of Company Business for a defined
competitive functions set of operation, becomes of the form:
The Fictional Corporation is
in the business of performing the competitive business-functions
set.
of course, with an enumeration
of the business function set to better clarify the scope of the
tasks assumed by the operating venture when it begins operations.
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