STRA TEGY

BOOK REVIEW

STRATEGIC PLANNING FOR NEW dr EMERGING BUSINESSES:
A CONSULTING APPROACH

Fred L Fry
Charles R. Stoner

Laurence G. Weinzimmer
Dearborn Financial Publishing, second edition, l 999

Reviewed By:
Justin G. Longenecker

Professor Emeritus, Baylor University

Strategic Planning For New And Emerging Burinessest A Consulting Approach is well described
by its title. It is, first and foremost, a business strategy textbook. Its focus is the world of small
business with a particular emphasis on growing businesses, what the authors term "emerging"

businesses. And throughout the book, the authors examine strategic planning through the eyes
of a consultant.

The book is well organized in its coverage of strategic planning, even though the table of contents
fails to provide clues as to its overall organization. Chapters 1-3 are basically an introductory
section. This section is followed by Chapters 4-7, which treat the analytical steps needed to
provide the foundation for a strategic plan. The final section, Chapters 8-11,presents the action
stage of formulating company strategy.

The heart of the text is the second section, the chapters on strategic analysis and development,
that cover processes common to that field. Two chapters explain analysis of the environment-the
general environment and the industry environment. The other two chapters look internally at the

firm as it faces the challenges and opportunities of that environment. One part of the internal
analysis considers the firm's resources as they relate to environmental factors. The discussion
also highlights the distinctive competencies and competitive weaknesses that emerge from the

internal analysis. The objective of the entire process, of course, is to match competencies with
environmental opportunities while recognizing dangers that may stem from competitive

weaknesses.

Following the section on strategic analysis, the authors proceed to the application or action stage
of formulating a strategic plan. In this, the final section of the book, readers would apply the
tools of strategic analysis to specific business situations. Prospective entrepreneurs would
develop strategies for new ventures. Consultants would critique and/or assist in modifying or
developing strategic plans of client companies. Included for consideration are such strategies as
focus strategies, market development strategies,and product developmentstrategies. Other

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chapters cover goal setting and unit strategies. The final chapter recaps the strategy development
process in the context of preparing a business plan. A sample plan follows the final chapter.

Most chapters of the book conclude with a section entitled "The Consultant's Viewpoint." In
these parts, the authors alert consultants to the crux or primary focus of the topic under discussion
and provide hints for getting on well with business clients. In Chapter 9 (Setting Goals), for
example, they explain to consultants that goal setting is not easy, that the process should not be

rushed, that consultants should communicate extensively with clients, and that they should focus

on the characteristics of "good" goals. Such commentary is probably most helpful to student
consulting teams. Most chapters of the book also include two or three one- or two-page well-
chosen protiles of real businesses whose characteristics or strategy illustrate the chapter topic.

The book as a whole deals with the issues of strategy and planning at a relatively elementary
level. (It could hardly do otherwise in view of its brevity-242 pages.) Its sample business plan,
for example, includes the broad statements related to mission and environment but does not
contain financials.

The textbook would be relevant for courses that are intended to focus on the basics of business
strategy and then apply those concepts to new, small, and/or growing firms. The consulting
emphasis makes it particularly appropriate for the use of student consulting teams. The roles of
consultant and potential entrepreneur would merge in the case of students who prepare their own
new venture plans.

The authors write from their areas of academic specialization in management and strategy and
from backgrounds of consulting with business firms. They are members of the faculty of Bradley
University and are known for their work in small business and entrepreneurship.

Justin G. Longenecker, a pioneer in the field ofsmall business and entrepreneurship, received
his Ph D porn the University of IVashington. He authoredseveral books on the subject including
the popular small business management text Small Business Management. He has also published
numerous articles in such journals as Academy of Management Review, Journal of Small
Business Management, and Business Horizons.

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