This document discusses various frameworks and tools for analyzing organizations and developing corporate strategies. It covers internal analysis methods like the VRIO framework and organizational capability analysis. It also discusses external analysis techniques like Porter's 5 forces, PESTEL analysis, and SWOT analysis. Strategy formulation tools covered include the BCG matrix, GE business screen matrix, Grand strategy matrix, and PIMS analysis.
The document discusses various frameworks and models for strategic analysis and choice, including the SWOT analysis, SPACE matrix, BCG matrix, IE matrix, and grand strategy matrix. It explains that strategic analysis involves generating alternative strategies by considering internal strengths and weaknesses and external opportunities and threats. The models help match internal resources with external factors to develop alternative strategies and ultimately select the best strategies to pursue the organization's objectives and mission.
This document provides an overview of strategic analysis techniques used to understand a company's internal and external environment. It discusses environmental scanning, situational analysis using SWOT and TOWS matrices, industry and competitive analysis methods like Porter's 5 Forces and strategic group mapping. Product portfolio analysis techniques like BCG matrix and product life cycle are also covered. The document aims to equip readers with frameworks to evaluate a company's strategy and make strategic decisions.
This document outlines the strategy formulation framework presented in Chapter 6 of the textbook. It discusses the 3 main stages of the framework: 1) The Input Stage which involves gathering internal/external data, 2) The Matching Stage which matches internal strengths/weaknesses to external opportunities/threats using tools like SWOT and SPACE matrices, and 3) The Decision Stage which uses tools like QSPM to evaluate alternative strategies. It also covers how organizational culture and politics can influence strategy choice.
The document discusses business strategy, including defining strategy, strategic management, strategic analysis, and strategic choice. It covers analyzing industry competitors using Porter's Five Forces model and a company's internal environment using value chain analysis. Key factors that influence strategic choices are also examined, such as the business environment, stakeholders, and pursuing global strategies. Effective strategy implementation and evaluation are emphasized.
The document provides an overview of SWOT analysis, a framework used to identify strategies that align an entity's resources and capabilities with its external environment. It defines strengths, weaknesses, opportunities, and threats and gives examples of each. Strengths and weaknesses refer to internal factors while opportunities and threats refer to external factors. The aim is to identify strategies that maximize strengths and opportunities, and minimize weaknesses and threats. Strategy formation involves matching specific SWOT elements to extract tactics. The analysis should be revisited regularly and revised as needed.
How to create sustainable Competitive Advantage using Strategy Mechanism?Petrilau
Â
The company operating in a turbulent environment needs a working strategy mechanism rather than a detailed road map for a road when the environment is fast changing, and topography is unknown
Ansoffâs strategic success formula states that for optimum return on investment, both the aggressiveness of the firmâs strategy and its capabilities must match the turbulence of the environment.
This document provides summaries of several common strategic planning models:
- SWOT analysis evaluates internal strengths and weaknesses and external opportunities and threats. Insights can be summarized in a SWOT.
- McKinsey 7-S model analyzes seven internal elements: strategy, structure, systems, shared values, style, staff, and skills. Insights become SWOT factors.
- Porter's 5 Forces analyzes competitive forces. Insights become SWOT opportunities and threats.
- PEST analysis evaluates political, economic, social, and technological trends. Insights become SWOT opportunities and threats.
- Other models covered include the business model canvas, target operating model, activity system, customer segmentation, strategy canvas,
The document discusses various frameworks and models for strategic analysis and choice, including the SWOT analysis, SPACE matrix, BCG matrix, IE matrix, and grand strategy matrix. It explains that strategic analysis involves generating alternative strategies by considering internal strengths and weaknesses and external opportunities and threats. The models help match internal resources with external factors to develop alternative strategies and ultimately select the best strategies to pursue the organization's objectives and mission.
This document provides an overview of strategic analysis techniques used to understand a company's internal and external environment. It discusses environmental scanning, situational analysis using SWOT and TOWS matrices, industry and competitive analysis methods like Porter's 5 Forces and strategic group mapping. Product portfolio analysis techniques like BCG matrix and product life cycle are also covered. The document aims to equip readers with frameworks to evaluate a company's strategy and make strategic decisions.
This document outlines the strategy formulation framework presented in Chapter 6 of the textbook. It discusses the 3 main stages of the framework: 1) The Input Stage which involves gathering internal/external data, 2) The Matching Stage which matches internal strengths/weaknesses to external opportunities/threats using tools like SWOT and SPACE matrices, and 3) The Decision Stage which uses tools like QSPM to evaluate alternative strategies. It also covers how organizational culture and politics can influence strategy choice.
The document discusses business strategy, including defining strategy, strategic management, strategic analysis, and strategic choice. It covers analyzing industry competitors using Porter's Five Forces model and a company's internal environment using value chain analysis. Key factors that influence strategic choices are also examined, such as the business environment, stakeholders, and pursuing global strategies. Effective strategy implementation and evaluation are emphasized.
The document provides an overview of SWOT analysis, a framework used to identify strategies that align an entity's resources and capabilities with its external environment. It defines strengths, weaknesses, opportunities, and threats and gives examples of each. Strengths and weaknesses refer to internal factors while opportunities and threats refer to external factors. The aim is to identify strategies that maximize strengths and opportunities, and minimize weaknesses and threats. Strategy formation involves matching specific SWOT elements to extract tactics. The analysis should be revisited regularly and revised as needed.
How to create sustainable Competitive Advantage using Strategy Mechanism?Petrilau
Â
The company operating in a turbulent environment needs a working strategy mechanism rather than a detailed road map for a road when the environment is fast changing, and topography is unknown
Ansoffâs strategic success formula states that for optimum return on investment, both the aggressiveness of the firmâs strategy and its capabilities must match the turbulence of the environment.
This document provides summaries of several common strategic planning models:
- SWOT analysis evaluates internal strengths and weaknesses and external opportunities and threats. Insights can be summarized in a SWOT.
- McKinsey 7-S model analyzes seven internal elements: strategy, structure, systems, shared values, style, staff, and skills. Insights become SWOT factors.
- Porter's 5 Forces analyzes competitive forces. Insights become SWOT opportunities and threats.
- PEST analysis evaluates political, economic, social, and technological trends. Insights become SWOT opportunities and threats.
- Other models covered include the business model canvas, target operating model, activity system, customer segmentation, strategy canvas,
Porter was right, when he said: "A Sustainable Strategic Position Requires Trade-off".
Kaplan & Norton were right, when they said: "A strategy is a set of hypotheses about cause and effect. Cause and effect relationships can be expressed by a sequence of if-then statements. A properly constructed Scorecard should tell the story of the business unit´s strategy. The measurement system should make the relationships (hypotheses) among objectives (and measures) in the various perspectives explicit so that they can be managed and validated."
However, at the end of the day it is all about leadership, alignment, accountability, engagement and adaptability.
This document outlines a comprehensive framework for strategic formulation that includes three main stages: input, matching, and decision. The input stage involves analyzing internal/external factors and competitors. The matching stage uses tools like SWOT, SPACE, and BCG matrices to identify strategies. The decision stage selects strategies using tools like the IE matrix and Grand Strategy matrix to identify appropriate actions based on internal/external profiles and competitive positioning.
The document discusses various tools and frameworks for developing strategies, including generating alternative strategies, evaluating them, and selecting strategies. It describes tools like the SWOT analysis, SPACE matrix, BCG matrix, IE matrix, and QSPM. The SWOT matches internal strengths and weaknesses with external opportunities and threats to develop four types of strategies. The QSPM objectively evaluates alternative strategies based on weights assigned to external and internal factors. It also discusses the culture and politics involved in strategic choice.
The document discusses how internal analysis is used to understand a business's performance and determine strategic options. It examines analyzing a business's financials like sales, profits, and costs. It also discusses measuring non-financial performance through customer satisfaction, product quality, brand associations, costs, innovation, and employee capabilities. Finally, it explains how the analysis informs identifying organizational strengths and weaknesses, and relating these to competitors and the market to guide strategic decisions.
The document discusses the decision stage of the quantitative strategic planning matrix (QSPM) strategy formulation framework. It provides details on the 6 steps to develop a QSPM, including listing key internal and external factors, assigning them weights, determining attractiveness scores for alternative strategies, and computing total and sum attractiveness scores. It notes the QSPM allows for objective evaluation of strategies while requiring good judgment. Limitations include reliance on assumptions while strengths are consideration of relevant external and internal factors.
The document provides an overview of conducting an internal analysis for strategic management. It discusses analyzing an organization's resources and capabilities, including its resource-based view, business model, value chain, functional resources, and functional capabilities. Key aspects covered include identifying the organization's strengths and weaknesses, distinctive competencies, core competencies, management functions, strategic marketing issues like market position and segmentation, marketing mix, product life cycle, and brand reputation. The internal analysis is critical for understanding an organization's internal strategic factors to determine if it can take advantage of opportunities and avoid threats.
This document provides an overview of strategic analysis. It begins by outlining the components of strategic management and analysis. It then discusses approaches to assessing strategy, including qualitative and quantitative assessments. Key indicators for strategic success are also presented. The document also covers analyzing a company's resources and competitive position using SWOT analysis. It defines strengths, weaknesses, opportunities, and threats. Additionally, it discusses core competencies, distinctive competencies, and how to determine the competitive value of resources. Finally, the document outlines organizational capability profiles and strategic advantage.
This document discusses internal analysis, which involves identifying an organization's strengths and weaknesses by examining its resources, capabilities, core competencies, vision, mission, objectives, and strategies. Internal analysis enables firms to better understand themselves and make strategic decisions. It reviews the different types of organizational resources and capabilities that can provide competitive advantages if leveraged effectively. Various approaches to conducting internal analysis like value chain analysis and competitive strength assessment are presented.
You can view and download the full presentation here:
http://pptlab.com/ppt/Strategic-Analysis-Framework-25
This document outlines a 3-phase framework for conducting robust Strategic Analysis. Concepts and supporting frameworks discussed include Impact Matrix, Political Strategy, Solution Analysis, Life Cycle Portfolio Matrix, GE Matrix, Portfolio Matrix, Performance Assessment Tool, and PEST Analysis.
The document discusses how to conduct a functional analysis of an organization by identifying strengths and weaknesses across key functional areas like marketing, finance, operations, human resources, and technology. It provides examples of strengths in these areas for different companies. The document also discusses how to analyze an organization's value chain and resources using frameworks like the VRIO model to assess strategic importance.
This document provides an overview of assessing a firm's internal environment through analyzing its resources, capabilities, and value chain. It discusses:
- The benefits and limitations of SWOT analysis for conducting an internal analysis of a firm's strengths, weaknesses, opportunities, and threats.
- Porter's value chain framework for analyzing a firm's primary activities like operations, marketing, and service, as well as support activities like procurement, technology development, and human resource management. This can help identify relationships between activities to create a competitive advantage.
- Examples of tangible and intangible resources a firm can possess like patents, brand equity, and proprietary know-how. Organizational capabilities refer to effectively utilizing resources.
The document discusses analyzing an organization's internal environment and capabilities. It describes reviewing organizational resources and activities to identify strengths and weaknesses. This helps understand current standing, select growth opportunities aligned with capabilities, and identify capability gaps. Key factors of the internal environment include organizational resources, behavior, strengths/weaknesses, synergies, competencies, and capabilities. Analyzing these areas through tools like the organizational capability profile and strategic advantage profile helps understand competitive advantage.
The document discusses various strategic analysis and choice frameworks including the EFE matrix, IFE matrix, SWOT matrix, SPACE matrix, BCG matrix, GE nine-cell matrix, and IE matrix. It provides details on how to conduct an analysis using each framework, including how to evaluate internal and external factors, match strategies, and determine the appropriate strategic position and actions. The frameworks help organizations generate strategies by analyzing their internal strengths and weaknesses as well as external opportunities and threats.
Internal scanning is important for identifying a firm's internal strategic factors and resources. A resource provides competitive advantage if it is valuable, rare, difficult to imitate, and the organization is well-structured to exploit it. A strategic audit examines a firm's functional resources, organizational structure, culture, and assesses its strengths and weaknesses using frameworks like VRIO and IFAS.
The document discusses factors that influence the sustainability of a competitive advantage, including the rate of change in core competencies, availability of substitutes, and ease of imitation. It also outlines the criteria for sustainable competitive advantages, namely that core competencies must be valuable, rare, costly to imitate, and non-substitutable. Finally, it examines the competitive consequences of whether a firm's resources, capabilities, and core competencies meet these criteria.
This document provides an introduction to strategic management. It defines strategic management as the process of formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives. The key steps in strategic management are environmental analysis, establishing organizational direction through a mission and objectives, strategy formulation, strategy implementation, and strategic control. The benefits of strategic management include taking a proactive approach to shaping the future, formulating better strategies through a systematic process, and improved financial and non-financial performance.
The document outlines key topics from Chapter 4 of a strategic management textbook, including:
- The internal audit process examines functional business areas to understand strengths and weaknesses
- Culture and strategy must be integrated, as culture can inhibit strategic changes if not aligned
- Resource-based view argues that internal resources are more important than external factors for competitive advantage
- Financial ratios and other metrics are used to evaluate performance across marketing, production, R&D, and other functions
The document discusses several strategic management concepts:
1. The resource-based model states that differences in firm performance are due to unique resources rather than external factors. The I/O model focuses on how the external environment influences strategy.
2. Stakeholders are any individuals or groups impacted by a business. Internal stakeholders include owners and employees, while external stakeholders include customers and the community.
3. Value chain analysis examines the activities within a firm, from procurement of raw materials to delivery of the final product, and how each activity adds value.
4. SWOT analysis assesses internal strengths and weaknesses as well as external opportunities and threats facing a business.
The document provides an overview of various corporate analysis frameworks and strategies. It discusses concepts like the resource-based approach, value chain analysis, SWOT analysis, and growth strategies. The resource-based approach emphasizes analyzing a firm's internal resources and capabilities to achieve competitive advantages. Value chain analysis examines a firm's activities to identify sources of value and competitive advantages. SWOT analysis involves analyzing internal strengths and weaknesses and external opportunities and threats. Growth strategies aim to accelerate sales, profits, and market share through entering new markets or developing new products.
Functional Capability and Resource Analysis PresentationBrandon Thomson
Â
This document outlines a methodology for analyzing a firm's functional capabilities and resources. The methodology involves 6 steps: 1) determining critical success factors, 2) identifying resources, 3) evaluating resources using the VRIO framework, 4) identifying gaps between resources and success factors, 5) diagnosing current strategy, and 6) formulating future strategies. The document then applies this methodology to analyze American Airlines, identifying its key resources, evaluating these using VRIO, diagnosing its current strategy, and proposing rational future strategies.
The document summarizes the application of Fred David's strategy formulation framework to analyze the domestic air transportation operations of Turkish Airlines. It first provides an overview of David's three-stage framework for strategy formulation, including techniques used at each stage like SWOT analysis, BCG matrix, and SPACE matrix. It then applies this framework to Turkish Airlines, analyzing internal/external factors, generating alternative strategies, and identifying the most appropriate strategy. Lastly, it notes some limitations of David's framework observed through this case study analysis.
Aygo is launching in Vietnam to target young families and A-B class consumers. Key factors for success include having a prestigious Toyota brand known for quality, affordable prices through financial schemes, and a reliable nationwide maintenance network. Analysis shows mini-cars have high growth and profit potential in Vietnam. Therefore, the directional policy recommends investing to develop the mini-car segment through the Aygo. Maintaining the SUV segment is also recommended for now, while continuing to invest in developing the family car segment.
Porter was right, when he said: "A Sustainable Strategic Position Requires Trade-off".
Kaplan & Norton were right, when they said: "A strategy is a set of hypotheses about cause and effect. Cause and effect relationships can be expressed by a sequence of if-then statements. A properly constructed Scorecard should tell the story of the business unit´s strategy. The measurement system should make the relationships (hypotheses) among objectives (and measures) in the various perspectives explicit so that they can be managed and validated."
However, at the end of the day it is all about leadership, alignment, accountability, engagement and adaptability.
This document outlines a comprehensive framework for strategic formulation that includes three main stages: input, matching, and decision. The input stage involves analyzing internal/external factors and competitors. The matching stage uses tools like SWOT, SPACE, and BCG matrices to identify strategies. The decision stage selects strategies using tools like the IE matrix and Grand Strategy matrix to identify appropriate actions based on internal/external profiles and competitive positioning.
The document discusses various tools and frameworks for developing strategies, including generating alternative strategies, evaluating them, and selecting strategies. It describes tools like the SWOT analysis, SPACE matrix, BCG matrix, IE matrix, and QSPM. The SWOT matches internal strengths and weaknesses with external opportunities and threats to develop four types of strategies. The QSPM objectively evaluates alternative strategies based on weights assigned to external and internal factors. It also discusses the culture and politics involved in strategic choice.
The document discusses how internal analysis is used to understand a business's performance and determine strategic options. It examines analyzing a business's financials like sales, profits, and costs. It also discusses measuring non-financial performance through customer satisfaction, product quality, brand associations, costs, innovation, and employee capabilities. Finally, it explains how the analysis informs identifying organizational strengths and weaknesses, and relating these to competitors and the market to guide strategic decisions.
The document discusses the decision stage of the quantitative strategic planning matrix (QSPM) strategy formulation framework. It provides details on the 6 steps to develop a QSPM, including listing key internal and external factors, assigning them weights, determining attractiveness scores for alternative strategies, and computing total and sum attractiveness scores. It notes the QSPM allows for objective evaluation of strategies while requiring good judgment. Limitations include reliance on assumptions while strengths are consideration of relevant external and internal factors.
The document provides an overview of conducting an internal analysis for strategic management. It discusses analyzing an organization's resources and capabilities, including its resource-based view, business model, value chain, functional resources, and functional capabilities. Key aspects covered include identifying the organization's strengths and weaknesses, distinctive competencies, core competencies, management functions, strategic marketing issues like market position and segmentation, marketing mix, product life cycle, and brand reputation. The internal analysis is critical for understanding an organization's internal strategic factors to determine if it can take advantage of opportunities and avoid threats.
This document provides an overview of strategic analysis. It begins by outlining the components of strategic management and analysis. It then discusses approaches to assessing strategy, including qualitative and quantitative assessments. Key indicators for strategic success are also presented. The document also covers analyzing a company's resources and competitive position using SWOT analysis. It defines strengths, weaknesses, opportunities, and threats. Additionally, it discusses core competencies, distinctive competencies, and how to determine the competitive value of resources. Finally, the document outlines organizational capability profiles and strategic advantage.
This document discusses internal analysis, which involves identifying an organization's strengths and weaknesses by examining its resources, capabilities, core competencies, vision, mission, objectives, and strategies. Internal analysis enables firms to better understand themselves and make strategic decisions. It reviews the different types of organizational resources and capabilities that can provide competitive advantages if leveraged effectively. Various approaches to conducting internal analysis like value chain analysis and competitive strength assessment are presented.
You can view and download the full presentation here:
http://pptlab.com/ppt/Strategic-Analysis-Framework-25
This document outlines a 3-phase framework for conducting robust Strategic Analysis. Concepts and supporting frameworks discussed include Impact Matrix, Political Strategy, Solution Analysis, Life Cycle Portfolio Matrix, GE Matrix, Portfolio Matrix, Performance Assessment Tool, and PEST Analysis.
The document discusses how to conduct a functional analysis of an organization by identifying strengths and weaknesses across key functional areas like marketing, finance, operations, human resources, and technology. It provides examples of strengths in these areas for different companies. The document also discusses how to analyze an organization's value chain and resources using frameworks like the VRIO model to assess strategic importance.
This document provides an overview of assessing a firm's internal environment through analyzing its resources, capabilities, and value chain. It discusses:
- The benefits and limitations of SWOT analysis for conducting an internal analysis of a firm's strengths, weaknesses, opportunities, and threats.
- Porter's value chain framework for analyzing a firm's primary activities like operations, marketing, and service, as well as support activities like procurement, technology development, and human resource management. This can help identify relationships between activities to create a competitive advantage.
- Examples of tangible and intangible resources a firm can possess like patents, brand equity, and proprietary know-how. Organizational capabilities refer to effectively utilizing resources.
The document discusses analyzing an organization's internal environment and capabilities. It describes reviewing organizational resources and activities to identify strengths and weaknesses. This helps understand current standing, select growth opportunities aligned with capabilities, and identify capability gaps. Key factors of the internal environment include organizational resources, behavior, strengths/weaknesses, synergies, competencies, and capabilities. Analyzing these areas through tools like the organizational capability profile and strategic advantage profile helps understand competitive advantage.
The document discusses various strategic analysis and choice frameworks including the EFE matrix, IFE matrix, SWOT matrix, SPACE matrix, BCG matrix, GE nine-cell matrix, and IE matrix. It provides details on how to conduct an analysis using each framework, including how to evaluate internal and external factors, match strategies, and determine the appropriate strategic position and actions. The frameworks help organizations generate strategies by analyzing their internal strengths and weaknesses as well as external opportunities and threats.
Internal scanning is important for identifying a firm's internal strategic factors and resources. A resource provides competitive advantage if it is valuable, rare, difficult to imitate, and the organization is well-structured to exploit it. A strategic audit examines a firm's functional resources, organizational structure, culture, and assesses its strengths and weaknesses using frameworks like VRIO and IFAS.
The document discusses factors that influence the sustainability of a competitive advantage, including the rate of change in core competencies, availability of substitutes, and ease of imitation. It also outlines the criteria for sustainable competitive advantages, namely that core competencies must be valuable, rare, costly to imitate, and non-substitutable. Finally, it examines the competitive consequences of whether a firm's resources, capabilities, and core competencies meet these criteria.
This document provides an introduction to strategic management. It defines strategic management as the process of formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives. The key steps in strategic management are environmental analysis, establishing organizational direction through a mission and objectives, strategy formulation, strategy implementation, and strategic control. The benefits of strategic management include taking a proactive approach to shaping the future, formulating better strategies through a systematic process, and improved financial and non-financial performance.
The document outlines key topics from Chapter 4 of a strategic management textbook, including:
- The internal audit process examines functional business areas to understand strengths and weaknesses
- Culture and strategy must be integrated, as culture can inhibit strategic changes if not aligned
- Resource-based view argues that internal resources are more important than external factors for competitive advantage
- Financial ratios and other metrics are used to evaluate performance across marketing, production, R&D, and other functions
The document discusses several strategic management concepts:
1. The resource-based model states that differences in firm performance are due to unique resources rather than external factors. The I/O model focuses on how the external environment influences strategy.
2. Stakeholders are any individuals or groups impacted by a business. Internal stakeholders include owners and employees, while external stakeholders include customers and the community.
3. Value chain analysis examines the activities within a firm, from procurement of raw materials to delivery of the final product, and how each activity adds value.
4. SWOT analysis assesses internal strengths and weaknesses as well as external opportunities and threats facing a business.
The document provides an overview of various corporate analysis frameworks and strategies. It discusses concepts like the resource-based approach, value chain analysis, SWOT analysis, and growth strategies. The resource-based approach emphasizes analyzing a firm's internal resources and capabilities to achieve competitive advantages. Value chain analysis examines a firm's activities to identify sources of value and competitive advantages. SWOT analysis involves analyzing internal strengths and weaknesses and external opportunities and threats. Growth strategies aim to accelerate sales, profits, and market share through entering new markets or developing new products.
Functional Capability and Resource Analysis PresentationBrandon Thomson
Â
This document outlines a methodology for analyzing a firm's functional capabilities and resources. The methodology involves 6 steps: 1) determining critical success factors, 2) identifying resources, 3) evaluating resources using the VRIO framework, 4) identifying gaps between resources and success factors, 5) diagnosing current strategy, and 6) formulating future strategies. The document then applies this methodology to analyze American Airlines, identifying its key resources, evaluating these using VRIO, diagnosing its current strategy, and proposing rational future strategies.
The document summarizes the application of Fred David's strategy formulation framework to analyze the domestic air transportation operations of Turkish Airlines. It first provides an overview of David's three-stage framework for strategy formulation, including techniques used at each stage like SWOT analysis, BCG matrix, and SPACE matrix. It then applies this framework to Turkish Airlines, analyzing internal/external factors, generating alternative strategies, and identifying the most appropriate strategy. Lastly, it notes some limitations of David's framework observed through this case study analysis.
Aygo is launching in Vietnam to target young families and A-B class consumers. Key factors for success include having a prestigious Toyota brand known for quality, affordable prices through financial schemes, and a reliable nationwide maintenance network. Analysis shows mini-cars have high growth and profit potential in Vietnam. Therefore, the directional policy recommends investing to develop the mini-car segment through the Aygo. Maintaining the SUV segment is also recommended for now, while continuing to invest in developing the family car segment.
This document discusses the application of the SPACE (Strategic Position and Action Evaluation) matrix to analyze the strategic position of Mahde Beton Concrete Construction Company. The SPACE matrix assesses four factors: 1) industry attractiveness, 2) environmental stability, 3) competitive advantage, and 4) financial strength. It can help identify whether an aggressive, conservative, defensive, or competitive strategy is most appropriate. The document provides details on how to evaluate each SPACE matrix factor, including examples of financial strength measures. Based on the combination of ratings across factors, the SPACE matrix guides the selection of an optimal strategic agenda.
The document discusses the SPACE Matrix, a four-quadrant framework that indicates which type of strategies are most appropriate for an organization based on its strategic position. The matrix evaluates an organization across internal dimensions like financial position and competitive position, and external dimensions like stability position and industry position to place the organization in an aggressive, conservative, defensive, or competitive quadrant. Each quadrant suggests different types of strategies, such as using strengths aggressively for the aggressive quadrant or focusing on weaknesses for the defensive quadrant.
Volkswagen installed software on 482,000 diesel vehicles sold in the US between 2008-2015 to trick emissions tests. The software could detect when the car was being tested and turned on full emissions controls, but turned them off during normal driving to improve performance and fuel economy. VW admitted nearly 11 million worldwide vehicles were fitted with similar "defeat devices", emitting nitrogen oxide levels up to 40 times the legal limit. US authorities can fine VW up to $37,500 per affected vehicle, totaling $18 billion. The scandal is a major setback that will severely damage Volkswagen's reputation.
Starbucks Mc kinsey 7 s framework modelMd Asif uddin
Â
The document summarizes Starbucks' 7S framework, which analyzes the company's strategy, structure, shared values, skills, style, staff, and systems. Starbucks' strategy focuses on global expansion and providing excellent customer service. Its structure is divided into three divisions based on geography. Starbucks' shared values center around ethical sourcing, environmental stewardship, and community involvement. Its skills involve strong brand awareness and strategic alliances.
5 things that still surprise me about Digital Marketing todayDave Chaffey
Â
Dave Chaffey discusses 5 things that still surprise him about digital marketing in 2016. First, he is surprised that more businesses do not have an integrated digital strategy and still treat digital as a separate silo. Second, he is surprised that businesses do not take search marketing more seriously. Third, he notes the importance of mobile and why "mobile first" has become a mantra for digital strategies. Fourth, he discusses why marketing automation has not fulfilled its promise for many businesses. Finally, he expresses surprise that more agencies do not offer conversion rate optimization (CRO) services to help businesses improve their digital marketing results.
The document discusses the Boston Consulting Group (BCG) Matrix, which classifies businesses into four categories based on their relative market share and market growth rate. The four categories are stars, question marks, cash cows, and dogs. Stars have high market share and growth, while cash cows have high share but low growth. Question marks and dogs have low relative market share, with question marks in a high growth market and dogs in a low growth market. The BCG Matrix helps companies assess their product portfolios and allocate resources efficiently.
Volkswagen Group India represents three major brands - Volkswagen, Audi and Skoda in India. It has established production facilities and dealerships across India. As part of its '18plus' strategy, Volkswagen aims to increase sales volumes globally including in high-growth markets like India and China. In India specifically, Volkswagen plans to increase its market share from 1% currently to 10% in the next five years through aggressive pricing, advertising and expanding its product portfolio across brands and segments.
Even if you already know what a SWOT analysis is and what itâs used for, it can be tough to translate that information into something you can action.
It can also be hard to examine your own business with a critical eye if youâre not entirely sure what you should be examining.
Reading an example SWOT analysis for a business that is either in your industry or based on a comparable business model can help get you started.
All of our SWOT analysis examples are based on real businesses that weâve featured in our gallery of free sample business plans on bplans.com
The following 6 examples are
broken into three parts:
1. A quick introduction to the company.
2. The companyâs SWOT analysis.
3. Some potential growth strategies for the company based on whatâs revealed by the SWOT analysis.
The document discusses strategic management and the strategic management process. It describes the process as having 6 steps: 1) identify the organization's mission, goals and strategies, 2) conduct an external analysis, 3) conduct an internal analysis, 4) formulate strategies, 5) implement strategies, and 6) evaluate results. It also discusses different types of organizational strategies including corporate-level strategies like growth, stability and retrenchment as well as business-level strategies and functional-level strategies.
The document discusses various strategic analysis and choice frameworks. It begins by defining strategic analysis and choice as involving objective information to make subjective decisions about long-term objectives, alternative strategies, and strategy selection. It then outlines several common frameworks used in the input, matching, and decision stages of strategy formulation:
In the input stage, the EFE and IFE matrices are used to evaluate external and internal factors. In the matching stage, frameworks like the SWOT, SPACE, BCG, GE Nine Cell, and IE matrices match internal and external factors. Finally, in the decision stage, the QSPM matrix quantitatively assesses alternative strategies based on weighted external and internal factors.
The document discusses various strategic analysis and choice frameworks including the EFE matrix, IFE matrix, SWOT matrix, SPACE matrix, BCG matrix, GE nine-cell matrix, and IE matrix. It provides details on how to conduct an analysis using each framework, including how to evaluate internal and external factors, match strategies, and determine the appropriate strategic position and actions. The frameworks help organizations generate strategies by analyzing their internal strengths and weaknesses as well as external opportunities and threats.
The document discusses portfolio management for new products. It notes that portfolio management has become an important management function due to shorter product lifecycles and increased global competition. It then outlines some pitfalls of poor portfolio management such as projects not being strategically aligned and spending not reflecting business priorities. The importance of effective portfolio management is also discussed in terms of maximizing returns, maintaining competitiveness, and allocating resources efficiently. A typical scoring model for prioritizing projects is presented based on factors like strategic alignment, market attractiveness, and risk versus return. Finally, portfolio analysis methods like the BCG matrix are briefly described.
This document provides an overview of strategic planning and marketing concepts. It discusses various strategic planning frameworks including the BCG matrix, GE/McKinsey multifactor matrix, and Ansoff's growth vector matrix. It also covers topics like corporate, business, and marketing strategy, strategic-planning processes, Porter's five forces model, and approaches to turnaround strategies, restructuring, and entry strategies like acquisitions and joint ventures.
This document provides an overview of strategic planning and marketing concepts. It discusses various strategic planning frameworks including the BCG matrix, GE/McKinsey multifactor matrix, and Ansoff's growth vector matrix. It also covers topics like corporate, business, and marketing strategy, strategic-planning processes, Porter's five forces model, and approaches to turnaround strategy and restructuring.
The document discusses strategic planning and management. It defines strategic planning as setting an overall direction to achieve organizational goals. It also outlines the components of strategic management as deciding and acting on strategies to achieve a competitive advantage. Additionally, it discusses different levels of strategy like corporate, business unit, and functional strategies and tools to implement strategies such as leadership, structure, resources and systems.
The document outlines the steps in the strategic management process which includes conducting external and internal analyses, formulating strategies, implementing strategies, and evaluating results. It also discusses different types of organizational strategies such as corporate level strategies including growth, stability, and renewal strategies. Business level strategies focus on gaining a competitive advantage through cost leadership, differentiation, or focus. The implications of dynamic environments and strategies for applying e-business, innovation, and becoming more customer oriented are also examined.
The document outlines the steps in the strategic management process which includes identifying the organization's mission and objectives, conducting external and internal analyses, formulating strategies, implementing strategies, and evaluating results. It also discusses different types of organizational strategies such as corporate growth, stability, and renewal strategies. Finally, it examines concepts like competitive advantage, Porter's five forces model, and strategies for applying e-business and becoming more customer-oriented.
This document summarizes a presentation on portfolio planning tools. It discusses what portfolio planning is, which involves intelligently spreading risk across investment options to enjoy diversification benefits. It then discusses two portfolio planning tools:
1) Portfolio Planning Tools (PPT), which is a stochastic modeling tool that helps advisors choose suitable asset allocations by comparing risk and return characteristics.
2) The Boston Consulting Group (BCG) Matrix, which is a portfolio planning model that classifies businesses into four categories (Stars, Question Marks, Cash Cows, and Dogs) based on their market growth and relative market share. The document explains how to use and interpret the BCG Matrix.
It concludes by discussing SPACE analysis
The Competitive Intelligence Continuum - Taking Wisconsin to the WorldArik Johnson
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The document discusses competitive intelligence and provides an overview of key concepts and processes. It defines competitive intelligence as a disciplined process of information collection and analysis to support better decision-making. It discusses trends like organizational acculturation and disruptive innovation. The document also outlines traditional competitive intelligence processes like identifying key intelligence topics, primary and secondary research, analysis techniques like SWOT and benchmarking, and how competitive intelligence supports strategic planning.
This document provides an introduction to strategic management. It discusses that strategic management involves formulating and implementing value-creating strategies based on competitive advantage to earn above-average returns and create value for stakeholders. It also outlines the strategic management process of internal and external scanning, strategy formulation and implementation, and strategic outcomes. Key aspects covered include defining the organization's vision and mission, understanding the external and internal environment through SWOT and other analyses, determining strategic alternatives, and implementing strategy through long-term formulation and short-term tactics.
The document outlines the key aspects of strategic management discussed in Chapter 8, including:
1) The six steps in the strategic management process, which involve analyzing internal/external environments, formulating strategies, and evaluating results.
2) The three major types of corporate strategies - growth, stability, and renewal strategies - and how the BCG matrix is used to analyze a company's portfolio.
3) Porter's five competitive forces model and the three generic competitive strategies of cost leadership, differentiation, and focus.
4) Why strategic flexibility is important in today's dynamic environment and strategies companies use regarding e-business, customers, and innovation.
The document outlines the key aspects of strategic management discussed in Chapter 8, including:
1) The six steps in the strategic management process, which involve analyzing internal/external environments, formulating strategies, and evaluating results.
2) The three major types of corporate strategies - growth, stability, and renewal strategies - and how the BCG matrix is used to analyze a company's portfolio.
3) Porter's five competitive forces model and the three generic competitive strategies of cost leadership, differentiation, and focus.
4) Why strategic flexibility, e-business techniques, customer orientation, and innovation are important in today's strategic environment.
1) The document outlines the key steps in the strategic management process including analyzing the external and internal environment, formulating strategies, implementing strategies, and evaluating results.
2) It describes different types of organizational strategies such as corporate strategies for growth, stability, and renewal as well as business-level strategies around cost leadership, differentiation, and focus.
3) Emerging trends in strategic management are discussed like the need for strategic flexibility, applying e-business techniques, and becoming more customer-oriented and innovative.
Strategic analysis & planning for NGOs englregiosuisse
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This document discusses strategic planning and analysis for non-governmental organizations (NGOs). It provides frameworks and questions to evaluate an NGO's current performance, strategy, and environment to determine if the strategy needs to be updated. The key elements discussed include evaluating strengths/weaknesses, goals, product/market focus, competitive advantages, organizational capabilities, and consistency with the mission and vision. A series of questions are provided to guide assessing various components of the strategy and determining what changes may be needed.
This document provides an overview of key concepts in strategic management including definitions of strategic planning, management control, and operational control. It also discusses mission and vision statements, goal setting, gap analysis, strategic choice, and performance measurement. Multinational strategies and issues are briefly covered along with benchmarking, the product lifecycle, and sources of risk and uncertainty.
The document outlines key components of a business plan, including an executive summary, company description, industry analysis, strategy/business model, marketing and sales plan, production/operations plan, management/organization, financials, and appendix. It then discusses concepts related to developing a strategy, including the value proposition, vision, strategic positioning, strategic management process, and strategic checklists. Finally, it covers business model components like revenue sources, cost drivers, investment size, and critical success factors.
The document discusses various aspects of global strategic management including stages of globalization, factors limiting product universality across cultures, motivations for international competition, and generic international strategies. It compares multi-country strategies, which tailor offerings to local markets, versus global strategies, which offer standardized products worldwide. It also outlines strategic options for competing in foreign markets and lists major trade blocs around the world.
1. The document discusses various growth strategies for a company, including internal organic growth through greater market share, new products/services, new markets/channels, and increased customer retention. It also discusses external growth through alliances and acquisitions in existing and adjacent businesses.
2. It then provides examples of how different companies have expanded their business and profits over time through strategic acquisitions and entering new markets or industries. This allows them to significantly increase revenue and market share.
3. Pursuing organic growth and external growth through strategic acquisitions and alliances allows companies to expand their business and profits in new directions over time.
1) The document discusses the resource-based view of the firm, which argues that a firm's resources and capabilities are the source of its competitive advantage.
2) Core competencies are the activities a firm performs better than competitors and are difficult to imitate, allowing for sustained competitive advantage.
3) Resources can be tangible (physical/financial assets) or intangible (human capital, organizational processes, reputation). Capabilities are how the firm combines resources.
4) For resources/capabilities to provide sustained advantage, they must be valuable, rare, costly to imitate, and the firm must be organized to exploit them.
1. The document discusses using a PESTEL analysis to analyze the political, economic, social, technological, environmental, and legal factors affecting a business. It provides examples of factors to consider in each category.
2. It also discusses Porter's five forces model of competitive strategy, which analyzes the competitive environment through the lens of rivalry, potential new entrants, supplier power, buyer power, and substitute products.
3. The document notes some limitations of Porter's model, such as assuming clear industry boundaries and not considering partnerships or how large firms can influence industry structure.
The document discusses several companies and their strategies:
- Reliance Industries started as a textiles manufacturer and integrated backward before diversifying into related and unrelated industries. It will need to further evolve its organizational structure.
- Bharti Telecom focused on the deregulated telecom sector in India and built partnerships before going public. It will continue focusing on telecom and developing its organization.
- Ranbaxy was started as a distributor before developing its own drugs and a focus on international markets. It will continue its globalization process.
The document also discusses corporate foresight models and maturity levels of foresight systems. It provides a quote about companies that make things happen, watch things happen, and wonder what
The document discusses key business concepts like vision, mission, objectives, strategies and critical success factors. It provides definitions and examples of a vision as describing where a company wants to be in the future. The mission defines the overall purpose and goals of a business. Objectives should be specific, measurable, attainable, relevant and timely. Setting critical success factors helps identify the most important areas for a business to focus on in order to be successful against its competitors.
The document discusses strategy execution and the balanced scorecard framework. It provides insights into why 70% of strategic failures are due to poor execution by leadership. The balanced scorecard is presented as a framework that can help organizations translate their strategy into clear objectives and measures across financial, customer, internal process, and learning/growth perspectives. It emphasizes that the balanced scorecard is not just a measurement system but can transform strategic planning and help align the organization to successfully execute its strategy when fully deployed.
This document discusses how industries evolve over time. It begins by defining what constitutes an industry and different conceptions of industries. It then examines factors that influence industry boundaries such as institutions, paradigms used to analyze industries, and examples. The document also discusses different trajectories of industry change including radical, intermediating, creative, and progressive change. It provides definitions of core activities and assets and how they can be threatened. Finally, it discusses assessing industry evolution by defining the industry, determining the nature and trajectory of change, and whether change is architectural.
FIA officials brutally tortured innocent and snatched 200 Bitcoins of worth 4...jamalseoexpert1978
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Farman Ayaz Khattak and Ehtesham Matloob are government officials in CTW Counter terrorism wing Islamabad, in Federal Investigation Agency FIA Headquarters. CTW and FIA kidnapped crypto currency owner from Islamabad and snatched 200 Bitcoins those worth of 4 billion rupees in Pakistan currency. There is not Cryptocurrency Regulations in Pakistan & CTW is official dacoit and stealing digital assets from the innocent crypto holders and making fake cases of terrorism to keep them silent.
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LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
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Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.đ¤¯
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Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
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Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
An introduction to the cryptocurrency investment platform Binance Savings.Any kyc Account
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Learn how to use Binance Savings to expand your bitcoin holdings. Discover how to maximize your earnings on one of the most reliable cryptocurrency exchange platforms, as well as how to earn interest on your cryptocurrency holdings and the various savings choices available.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
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The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
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In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Å tancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
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Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
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Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Best practices for project execution and deliveryCLIVE MINCHIN
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A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
Exploring Patterns of Connection with Social Dreaming
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6 org appraisal
1. 1
INTERNAL ANALYSIS:
Organizational Appraisals
Dr.L.Prakash Sai
īŧ Financial Analysis - Ratio Analysis, EVA, ABC
īŧ Value Chain Analysis
īŧ Business Process Analysis
īŧ VRIO framework (Resource Based View)
īŧ Organizational Capability Analysis
Organizational Appraisal:
Methods & Techniques Used
2. 2
Financial Capability
(a) Sources of funds
(b) Usage of funds
(c) Management of funds
Marketing Capability
(a) Product related
(b) Price related
(c) Promotion related
(d) Integrative & Systematic
Information Management
(a) Acquisition & retention of info
(b) Processing & synthesis of info
(c) Retrieval& usage of info
(d) Transmission & dissemination
(e) Integrative, systemic & supportive
Operations Capability
(a) Production system
(b) Operation & Control system
(c) R&D system
Personnel Capability
(a) Personnel system
(b) Organization/employee characteristics
(c) Industrial Relations
General Management
(a) General Management Systems
(b) External Relations
(c) Organization climate
Organizational Capability Profile (OCP)
Capability Factor Values:
Weakness(-5), Normal (0), Strength (+5)
Strategic Advantage Profile (SAP)
Capability Factor Competitive Strength/Weakness
Finance ī˛ High cost of capital, reserves & surplus unsatisfactory
Marketing īŗ Fierce competition, company position secure at present
Operations īą Plant & m/c; captive sources of parts & components
Personnel īŗ Management & staff on par with competition
General īą Highly experienced top management - proactive stance
Management
[Example of a Bicycle Company]
3. 3
Strategy: the plan devised to maintain and build competitive advantage
over the competition.
Structure: the way the organization is structured and who reports to
whom.
Systems: the daily activities and procedures that staff members engage in
to get the job done.
McKinseyâs 7S Framework
Style: the style of leadership adopted.
Staff: the employees and their general capabilities.
Skills: the actual skills and competencies of the
employees working for the company.
Shared Values: (called "superordinate goalsâ) the
core values evidenced in the corporate culture
and the general work ethic.
McKinseyâs 7S Framework
Structure
Shared
Values
Strategy
Skills
System
Style
Staff
To diagnose causes of
organizational problems
& formulate programs
4. 4
Generating Alternative Strategies
From SWOT
īą SWOT analysis is a tool for helping assess the
current situation for the firm.
īą However, we need to be able to combine the
information in the SWOT analysis in a meaningful
way to generate alternative strategies that we
might pursue.
īą The TOWS matrix is a tool designed to match
external opportunities and threats with our
internal strengths and weaknesses
SWOT Analysis
Opportunities
1.
2.
3.
Strengths
1.
2.
3.
Threats
1.
2.
3.
Weaknesses
1.
2.
3.
Internal
Environment
External
Environment
5. 5
Strengths
īAdvantages of proposition?
īCapabilities?
īCompetitive advantages?
īUSP's (unique selling points)?
īResources, Assets, People?
īExperience, knowledge, data?
īFinancial reserves, likely returns?
īMarketing â reach/distribution/awareness?
īInnovative aspects?
īLocation and geographical?
īPrice, value, quality?
īAccreditations, qualifications, certifications?
īProcesses, systems, IT, communications?
īCultural, attitudinal, behavioural?
īManagement cover, succession?
īPhilosophy and values?
ī Disadvantages of proposition?
ī Gaps in capabilities?
ī Lack of competitive strength?
ī Reputation, presence and reach?
ī Financials?
ī Own known vulnerabilities?
ī Timescales, deadlines and pressures?
ī Cashflow, start-up cash-drain?
ī Continuity, supply chain robustness?
ī Effects on core activities, distraction?
ī Reliability of data, plan predictability?
ī Morale, commitment, leadership?
ī Accreditations, etc.?
ī Processes and systems, etc?
ī Management cover, succession?
Weaknesses
Opportunities
ī Market developments?
ī Competitors' vulnerabilities?
ī Industry or lifestyle trends?
ī Technology development & innovation?
ī Global influences?
ī New markets, vertical, horizontal?
ī Niche target markets?
ī Geographical, export, import?
ī New USP's?
ī Tactics: e.g., surprise, major contracts?
ī Business and product development?
ī Information and research?
ī Partnerships, agencies, distribution?
ī Volumes, production, economies?
ī Seasonal, weather, fashion influences?
ī Political effects?
ī Legislative effects?
ī Environmental effects?
ī IT developments?
ī Competitor intentions - various?
ī Market demand?
ī New technologies, services, ideas?
ī Vital contracts and partners?
ī Sustaining internal capabilities?
ī Obstacles faced?
ī Insurmountable weaknesses?
ī Loss of key staff?
ī Sustainable financial backing?
ī Economy - home, abroad?
ī Seasonality, weather effects?
Threats
6. 6
TOWS Matrix
īą Technique used in strategy formulation
for combining
â External analysis
âĸ Opportunities
âĸ Threats
â Internal analysis
âĸ Strengths
âĸ Weaknesses
TOWS Matrix
Threats:
1.
2.
3.
Opportunities:
1.
2.
3.
ST Strategies
Take advantage of
Strengths to
avoid Threats
SO Strategies
Use Strengths to
take advantage
of Opportunities
Strengths:
1.
2.
3.
WT Strategies
Defensive strategies
to minimize
weaknesses and
avoid threats
WO Strategies
Use Opportunities to
overcome
Weaknesses
Weaknesses:
1.
2.
3.
From
External Analysis
From Internal Analysis
8. 8
SPACE Matrix
[Strategic Position & Action Evaluation Matrix]
ī§Aggressive
ī§Conservative
ī§Defensive
ī§Competitive
Two Internal Dimensions
ī§Financial Strength (FS)
ī§Competitive Advantage (CA)
Two External Dimensions
ī§Environmental Stability (ES)
ī§Industry Strength (IS)
Strategic Posture ī°
Dimension ī˛
Aggressive Competitive Conservative Defensive
ENVIRONMENT Stable Unstable Stable Unstable
INDUSTRY Attractive Attractive Unattractive Unattractive
COMPETITIVENESS Strong Strong Weak Weak
FINANCIAL
STRENGTH
High Weak High Weak
APPROPRIATE
STRATEGIES
âĸGrowth- possibly
by acquisition
âĸCapitalize on
opportunities
âĸInnovative to
sustain comp. adv.
âĸ Cost reduction;
Productivity
improvement;
Raising more
capital to follow
opportunities
and strengthen
competiveness
âĸ Possible merge
with a less
competitive but
cash-rich
organization.
âĸ Cost reduction
and
product/service
rationalization
âĸInvest in search
for new
products,
services and
competitive
opportunities
âĸRationalization
âĸDivestment as
appropriate
Strategic Postures
9. 9
Internal Strategic
Position
External Strategic
Position
Internal Strategic
Position
External Strategic
Position
Financial Strength
(FS)
Environmental
Stability (ES)
Competitive
Advantage (CA)
Industry Strength
(IS)
īą Return on
investment
īą Leverage
īą Liquidity
īą Working capital
īą Cash flow
īą Technological
changes
īą Rate of inflation
īą Demand
variability
īą Price range of
competing
products
īą Barriers to entry
īą Competitive
pressure
īą Price elasticity of
demand
īą Ease of exit from
market
īą Risk involved in
business
īą Market share
īą Product quality
īą Product life cycle
īą Customer loyalty
īą Competitionâs
capacity
utilization
īą Technological
know-how
īą Control over
suppliers &
distributors
īą Growth potential
īą Profit potential
īą Financial stability
īą Technological
know-how
īą Resource
utilization
īą Ease of entry into
market
īą Productivity,
capacity
utilization
SPACE Factors
Steps to Developing a SPACE Matrix
1. Select a set of variables to define FS, CA, ES, & IS
2. Assign a numerical value:
ī§ From +1 to +6 to each FS & IS dimension
ī§ From -1 to -6 to each ES & CA dimension
3. Compute an average score for each FS, CA, ES, & IS
4. Plot the average score on the appropriate axis
5. Add the two scores on the x-axis and plot the point. Add the two
scores on the y-axis and plot the point. Plot the intersection of the
new xy point
6. Draw a directional vector from the origin through the new
intersection point.
11. 11
Corporate Strategy
Business Portfolio Analysis
Market Growth rate of the industry:
Expressed in % increase in sales
Relative market share of a firm:
Market share in industry / market share of the largest other competitor
Assumptions:
īļ Other things being equal - growing market is attractive
īļ Market leader influences the average costs
BCG (Boston Consulting Group) Matrix
12. 12
High
Low
High
Low
Market
Growth Rate
Relative Market
Share
BCG (Boston Consulting Group) Matrix
[10%]
< 1> 1
> 1 indicates market leader
BCG Matrix: Question Marks
(Problem Children: Low Market Share / High Market Growth)
īą Investment:
ī heavy initial capacity expenditures and high R&D
costs
īą Earnings: negative to low
īą Cash-flow: negative (net cash user)
īą Strategy Implications:
ī if possible to dominate segment, go after share.
ī If not, redefine the business or withdraw.
13. 13
BCG Matrix: Stars
(High Market Share / High Market Growth)
īą Investment:
ī continue to invest for capacity expansion
īą Earnings: low to high earnings
īą Cash-flow: negative (net cash user)
īą Strategy Implications:
ī continue to increase market share - even at the
expense of short-term earnings
Petrochemicals
Telecom
BCG Matrix: Cash Cows
(High Market Share / Low Market Growth)
īą Investment
ī capacity maintenance
īą Earnings: high
īą Cash-flow: positive (net cash contributor)
īą Strategy Implications:
ī maintain market share and cost leadership until
further investment becomes marginal
14. 14
BCG Matrix: Dogs
(Low Market Share / Low Market Growth)
īą Investment:
ī gradually reduce capacity
īą Earnings: high to low
īą Cash-flow:
ī positive (net cash contributor) if deliberately
reducing capacity
īą Strategy Implications:
ī plan an orderly withdrawal to maximize
cash flow
Indian Cotton Textiles
Anchoring
Systems
Powder Actuated
Tools
Cable Tray
Systems
Electric Power
Tools
Concrete Lifting
Systems
Low
High
Low
Market
Growth Rate
Relative Market
Share
BCG Matrix: Example of a Fastener Supplier
Note that the Anchoring
System SBU is forecasted
to move to a new position
High
15. 15
GE Portfolio Matrix
īŧ Originally developed by GEâs planners drawing on McKinseyâs
approaches
īŧ Market attractiveness is based on as many relevant factors as are
appropriate in a given context
īŧ Business-position assessment also made on a many factors
ī§SBU needs to be rated on each factor
Industry Attractiveness:
Market size & growth rate, industry profit margin, competitive intensity, pricing
practices, opportunities / threats
[Scale 1 â 5: âVery unattractiveâ to âVery attractiveâ]
Companyâs Business Strengths or Competitive Position:
Market share, technological position, profitability, size, strengths & weakness,
management calibre
[Scale 1-5: âVery weakâ to âVery strongâ]
Industry Attractiveness
High
High
Medium
Medium
Low
Low
Invest / Grow
Select / Earn
Harvest / Divest
Protect
Position
Invest to
Build
Build
selectively
Build
selectively
Selectively
manage for
earnings
Limited
expansion or
harvest
Protect &
refocus Divest
Manage for
earnings
GE
Portfolio
Matrix
16. 16
Industry Attractiveness
High
High
Medium
Medium
Low
Low
GE
Portfolio
Matrix
Invest / Grow
Select / Earn
Harvest / Divest
Quadrant IV
1. Concentric diversification
2. Horizontal diversification
3. Conglomerate diversification
4. Joint ventures
Quadrant III
1. Retrenchment
2. Concentric diversification
3. Horizontal diversification
4. Conglomerate diversification
5. Liquidation
Quadrant I
1. Market development
2. Market penetration
3. Product development
4. Forward integration
5. Backward integration
6. Horizontal integration
7. Concentric diversification
Quadrant II
1. Market development
2. Market penetration
3. Product development
4. Horizontal integration
5. Divestiture
6. Liquidation
RAPID MARKET GROWTH
SLOW MARKET GROWTH
WEAK
COMPETITIVE
POSITION
STRONG
COMPETITIVE
POSITION
Grand Strategy Matrix
17. 17
Quadrant IV
1. Strong competitive position
2. Slow-growth industry
3. Diversification to more
promising growth areas
Quadrant III
1. Compete in slow-growth
industries
2. Weak competitive position
3. Drastic changes quickly
4. Cost & asset reduction
(retrenchment)
Quadrant I
1. Excellent strategic position
2. Concentration on current
markets/products
3. Take risks aggressively
when necessary
Quadrant II
1. Evaluate present approach
2. How to improve
competitiveness
3. Rapid market growth
requires intensive strategy
RAPID MARKET GROWTH
SLOW MARKET GROWTH
WEAK
COMPETITIVE
POSITION
STRONG
COMPETITIVE
POSITION
Grand Strategy Matrix
Key Internal Factors
īŧ Management
īŧ Marketing
īŧ Finance/Accounting
īŧ Production/Operations
īŧ Research and Development
īŧ Computer Information
Systems
Strategy 3Strategy 2Strategy 1WeightKey External Factors
īŧ Economy
īŧ Political/Legal/Governmental
īŧ Social/Cultural/Demographic/
Environmental
īŧ Technological
īŧ Competitive
Strategic Alternatives
Quantitative Strategic Planning Matrix (QSPM)
18. 18
PIMS Program
(Profit Impact of Market Strategy)
PIMS holds 6 areas of info on each biz:
1. characteristics of the biz environment
2. competitive position of the business
3. structure of the production process
4. how the budget is allocated
5. strategic movement
6. operating results.
īą The PIMS project was started by Sidney Schoeffler with GE in the 1960s
īą Administered by the Strategic Planning Institute since 1975
ī§ Uses multi dimensional cross-
sectional regression studies of
profitability of over 3000 businesses.
ī§ Provides industry characteristics,
average profitability, and compares it
with performance of the company
concerned.
The key strategic factors
influencing business performance
Market Environment
Marketing/Sales
Customer Concentration
Customer Purchase Amount
Industry Concentration
Capital and Operating Structure
Investment / Sales
Investment / Value Added
Gross Book Value of P&E / Total Investment
Operating Effectiveness
Receivables / Investment
Capacity Utilization
Value Added / Sales
Stage of Lifecycle
New Products/Sales
R & D/Sales
Real Market Growth
Competitive Position
Market Share
Relative Market Share
Relative Quality
Relative Price
19. 19
PIMS: Strategic Benchmarks
The experience of PIMS businesses, situationally comparable
to a business under study, is used to establish strategy and
performance benchmarks.
www.pimsonline.com includes:
īą Profitability (Return on Sales, and ROI)
īą Change in market share
īą Marketing budget (Sales force, Advertising, Promotion
and Other Marketing Expenses)
īą Market attractiveness / competitive strength
PIMSONLINE.COM
20. 20
Corporate Governance Issues
1. No more than 2 directors current or former company executives
2. No directors do business with the company
3. Audit, compensation, and nominating committees made up
of outside directors
4. Each director attends at least 75% of all meetings
5. Audit committee meets at least four times a year
6. CEO is not also the Chairperson of the Board
7. Shareholders have considerable power and information to
choose & replace directors
8. Stock options are considered a corporate expense
9. No interlocking directorships
Business Weekâs âprinciples of good governanceâ