Submit Search
Upload
Business Math Chapter 7
•
Download as PPT, PDF
•
8 likes
•
5,859 views
Nazrin Nazdri
Follow
For UniKL Business School Student rare slide
Read less
Read more
Education
Slideshow view
Report
Share
Slideshow view
Report
Share
1 of 27
Download now
Recommended
Business Math Chapter 3
Business Math Chapter 3
Nazrin Nazdri
Business Math Chapter 4
Business Math Chapter 4
Nazrin Nazdri
1. chapter 1 introduction of Finance
1. chapter 1 introduction of Finance
AfiqEfendy Zaen
Business Math Chapter 2
Business Math Chapter 2
Nazrin Nazdri
Business Math Chapter 5
Business Math Chapter 5
Nazrin Nazdri
Simple interest
Simple interest
walter9chambliss
Chap 1 MGT 162
Chap 1 MGT 162
Amirun Khan
Dasar ekonomi baru
Dasar ekonomi baru
munnianwar
Recommended
Business Math Chapter 3
Business Math Chapter 3
Nazrin Nazdri
Business Math Chapter 4
Business Math Chapter 4
Nazrin Nazdri
1. chapter 1 introduction of Finance
1. chapter 1 introduction of Finance
AfiqEfendy Zaen
Business Math Chapter 2
Business Math Chapter 2
Nazrin Nazdri
Business Math Chapter 5
Business Math Chapter 5
Nazrin Nazdri
Simple interest
Simple interest
walter9chambliss
Chap 1 MGT 162
Chap 1 MGT 162
Amirun Khan
Dasar ekonomi baru
Dasar ekonomi baru
munnianwar
Chapter 4(my) copy
Chapter 4(my) copy
Amaie Idarus
Past Year Monetary Eco
Past Year Monetary Eco
Nurul Nasri
Sistem perakaunan perniagaan
Sistem perakaunan perniagaan
Clean Agent Sdn Bhd
Hire Purchase Act (Business Law)
Hire Purchase Act (Business Law)
Politeknik Ungku Omar, Kolej Universiti Insaniah
Ch02
Ch02
Sara Ibrahim
Nota tingkatan 4 prinsip akaun
Nota tingkatan 4 prinsip akaun
smktsj2
Al ijarah
Al ijarah
Lydia Hassan
Akaun Chapter 7
Akaun Chapter 7
WanBK Leo
Presentation Pengurusan Kewangan (KWSP, Perkeso, Insolvensi)
Presentation Pengurusan Kewangan (KWSP, Perkeso, Insolvensi)
Fikriyah Sabarudin
Ch 3 accounting equation & classification
Ch 3 accounting equation & classification
Amaie Idarus
Bank pusat negara
Bank pusat negara
mastura71
Evolusi pemikiran pengurusan
Evolusi pemikiran pengurusan
Asiah Ismail
Islamic accounting presentation
Islamic accounting presentation
an nur
The valuation of long-term securities
The valuation of long-term securities
Zubair Arshad
Makroekonomi - Bab 1
Makroekonomi - Bab 1
Siti Syahirah
Equation and inequalities
Equation and inequalities
Rione Drevale
Analisis peluang perniagaan
Analisis peluang perniagaan
Mohd Fathullah Mohd Aznam
Ekonomi- Dasar belanjawan-fiskal
Ekonomi- Dasar belanjawan-fiskal
Nur Az
2.2 KONTRAK JUALAN BARANG-BARANG
2.2 KONTRAK JUALAN BARANG-BARANG
Ckg Nizam
Pembinaan Pasukan
Pembinaan Pasukan
Ckg Nizam
Business mathematics
Business mathematics
Adeel Iftikhar
Business math
Business math
Nievz MeQoh
More Related Content
What's hot
Chapter 4(my) copy
Chapter 4(my) copy
Amaie Idarus
Past Year Monetary Eco
Past Year Monetary Eco
Nurul Nasri
Sistem perakaunan perniagaan
Sistem perakaunan perniagaan
Clean Agent Sdn Bhd
Hire Purchase Act (Business Law)
Hire Purchase Act (Business Law)
Politeknik Ungku Omar, Kolej Universiti Insaniah
Ch02
Ch02
Sara Ibrahim
Nota tingkatan 4 prinsip akaun
Nota tingkatan 4 prinsip akaun
smktsj2
Al ijarah
Al ijarah
Lydia Hassan
Akaun Chapter 7
Akaun Chapter 7
WanBK Leo
Presentation Pengurusan Kewangan (KWSP, Perkeso, Insolvensi)
Presentation Pengurusan Kewangan (KWSP, Perkeso, Insolvensi)
Fikriyah Sabarudin
Ch 3 accounting equation & classification
Ch 3 accounting equation & classification
Amaie Idarus
Bank pusat negara
Bank pusat negara
mastura71
Evolusi pemikiran pengurusan
Evolusi pemikiran pengurusan
Asiah Ismail
Islamic accounting presentation
Islamic accounting presentation
an nur
The valuation of long-term securities
The valuation of long-term securities
Zubair Arshad
Makroekonomi - Bab 1
Makroekonomi - Bab 1
Siti Syahirah
Equation and inequalities
Equation and inequalities
Rione Drevale
Analisis peluang perniagaan
Analisis peluang perniagaan
Mohd Fathullah Mohd Aznam
Ekonomi- Dasar belanjawan-fiskal
Ekonomi- Dasar belanjawan-fiskal
Nur Az
2.2 KONTRAK JUALAN BARANG-BARANG
2.2 KONTRAK JUALAN BARANG-BARANG
Ckg Nizam
Pembinaan Pasukan
Pembinaan Pasukan
Ckg Nizam
What's hot
(20)
Chapter 4(my) copy
Chapter 4(my) copy
Past Year Monetary Eco
Past Year Monetary Eco
Sistem perakaunan perniagaan
Sistem perakaunan perniagaan
Hire Purchase Act (Business Law)
Hire Purchase Act (Business Law)
Ch02
Ch02
Nota tingkatan 4 prinsip akaun
Nota tingkatan 4 prinsip akaun
Al ijarah
Al ijarah
Akaun Chapter 7
Akaun Chapter 7
Presentation Pengurusan Kewangan (KWSP, Perkeso, Insolvensi)
Presentation Pengurusan Kewangan (KWSP, Perkeso, Insolvensi)
Ch 3 accounting equation & classification
Ch 3 accounting equation & classification
Bank pusat negara
Bank pusat negara
Evolusi pemikiran pengurusan
Evolusi pemikiran pengurusan
Islamic accounting presentation
Islamic accounting presentation
The valuation of long-term securities
The valuation of long-term securities
Makroekonomi - Bab 1
Makroekonomi - Bab 1
Equation and inequalities
Equation and inequalities
Analisis peluang perniagaan
Analisis peluang perniagaan
Ekonomi- Dasar belanjawan-fiskal
Ekonomi- Dasar belanjawan-fiskal
2.2 KONTRAK JUALAN BARANG-BARANG
2.2 KONTRAK JUALAN BARANG-BARANG
Pembinaan Pasukan
Pembinaan Pasukan
Viewers also liked
Business mathematics
Business mathematics
Adeel Iftikhar
Business math
Business math
Nievz MeQoh
Simple and Compound Interest
Simple and Compound Interest
Himansu S Mahapatra
business mathematics
business mathematics
nicerence
Logical fallacies powerpoint
Logical fallacies powerpoint
Aimee Hoover-Miller
Simple Interest (Business Math)
Simple Interest (Business Math)
Kacang Ayed
Business Math Chapter 6
Business Math Chapter 6
Nazrin Nazdri
Reviewer grade 11 business math 1st quarter
Reviewer grade 11 business math 1st quarter
rolando jr. seguro
Business Math Chapter 1
Business Math Chapter 1
Nazrin Nazdri
Viewers also liked
(9)
Business mathematics
Business mathematics
Business math
Business math
Simple and Compound Interest
Simple and Compound Interest
business mathematics
business mathematics
Logical fallacies powerpoint
Logical fallacies powerpoint
Simple Interest (Business Math)
Simple Interest (Business Math)
Business Math Chapter 6
Business Math Chapter 6
Reviewer grade 11 business math 1st quarter
Reviewer grade 11 business math 1st quarter
Business Math Chapter 1
Business Math Chapter 1
Similar to Business Math Chapter 7
Chpt07
Chpt07
Mahadi Hasan Anonto
Chpt07
Chpt07
Mahadi Hasan Anonto
Chpt07
Chpt07
Awais Idrees
Chpt07
Chpt07
Arman Hassani
Management Chpt07
Management Chpt07
Mahadi Hasan Anonto
Merecik
Merecik
Mohd Izrul Abdullah
Capabilities Based Planning
Capabilities Based Planning
Sue Alemann
W3-4 Designing a Competitive Business Model.pdf
W3-4 Designing a Competitive Business Model.pdf
MattChristianAustria1
Chapter 7
Chapter 7
Sitco
CH 7 Pearce Robinson McGrawHill
CH 7 Pearce Robinson McGrawHill
Tanisha Jain
Mb 0052
Mb 0052
Ranjan Pal
International Competitive StrategyChapter 91.docx
International Competitive StrategyChapter 91.docx
normanibarber20063
CH 1 Strategic Leadership.ppt
CH 1 Strategic Leadership.ppt
SaeefM
Strategic Management Chapter 1.ppt on Strategic Leadership
Strategic Management Chapter 1.ppt on Strategic Leadership
AdibaSababaSaeed
The strategic management process(an overview)
The strategic management process(an overview)
jawalala
chapter 3. Designing a Competitive Business Model and Building a Solid Strate...
chapter 3. Designing a Competitive Business Model and Building a Solid Strate...
Abdur Rahman
Im1013 Chapter 7
Im1013 Chapter 7
Chanpohlai
Strat Mgt Part Ii
Strat Mgt Part Ii
Sandeep Rai
Ch007
Ch007
Tauhid_bappy
New product development
New product development
Tushar Shelke
Similar to Business Math Chapter 7
(20)
Chpt07
Chpt07
Chpt07
Chpt07
Chpt07
Chpt07
Chpt07
Chpt07
Management Chpt07
Management Chpt07
Merecik
Merecik
Capabilities Based Planning
Capabilities Based Planning
W3-4 Designing a Competitive Business Model.pdf
W3-4 Designing a Competitive Business Model.pdf
Chapter 7
Chapter 7
CH 7 Pearce Robinson McGrawHill
CH 7 Pearce Robinson McGrawHill
Mb 0052
Mb 0052
International Competitive StrategyChapter 91.docx
International Competitive StrategyChapter 91.docx
CH 1 Strategic Leadership.ppt
CH 1 Strategic Leadership.ppt
Strategic Management Chapter 1.ppt on Strategic Leadership
Strategic Management Chapter 1.ppt on Strategic Leadership
The strategic management process(an overview)
The strategic management process(an overview)
chapter 3. Designing a Competitive Business Model and Building a Solid Strate...
chapter 3. Designing a Competitive Business Model and Building a Solid Strate...
Im1013 Chapter 7
Im1013 Chapter 7
Strat Mgt Part Ii
Strat Mgt Part Ii
Ch007
Ch007
New product development
New product development
More from Nazrin Nazdri
7.chapter 3 a writing literature review
7.chapter 3 a writing literature review
Nazrin Nazdri
6.activity 4 problem statement
6.activity 4 problem statement
Nazrin Nazdri
5.chapter 3
5.chapter 3
Nazrin Nazdri
3.activity 2 differentiating between applied research and basic research
3.activity 2 differentiating between applied research and basic research
Nazrin Nazdri
4.activity 3 scientific investigation
4.activity 3 scientific investigation
Nazrin Nazdri
2.activity 1 classifying research areas in business
2.activity 1 classifying research areas in business
Nazrin Nazdri
1.lecture 1 introduction to business research method
1.lecture 1 introduction to business research method
Nazrin Nazdri
0.course outcline
0.course outcline
Nazrin Nazdri
More from Nazrin Nazdri
(8)
7.chapter 3 a writing literature review
7.chapter 3 a writing literature review
6.activity 4 problem statement
6.activity 4 problem statement
5.chapter 3
5.chapter 3
3.activity 2 differentiating between applied research and basic research
3.activity 2 differentiating between applied research and basic research
4.activity 3 scientific investigation
4.activity 3 scientific investigation
2.activity 1 classifying research areas in business
2.activity 1 classifying research areas in business
1.lecture 1 introduction to business research method
1.lecture 1 introduction to business research method
0.course outcline
0.course outcline
Recently uploaded
Arihant handbook biology for class 11 .pdf
Arihant handbook biology for class 11 .pdf
chloefrazer622
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
EduSkills OECD
POINT- BIOCHEMISTRY SEM 2 ENZYMES UNIT 5.pptx
POINT- BIOCHEMISTRY SEM 2 ENZYMES UNIT 5.pptx
Sayali Powar
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Celine George
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptx
heathfieldcps1
microwave assisted reaction. General introduction
microwave assisted reaction. General introduction
Maksud Ahmed
Measures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and Mode
Thiyagu K
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptx
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptx
RoyAbrique
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
VS Mahajan Coaching Centre
mini mental status format.docx
mini mental status format.docx
PoojaSen20
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy Reform
Chameera Dedduwage
_Math 4-Q4 Week 5.pptx Steps in Collecting Data
_Math 4-Q4 Week 5.pptx Steps in Collecting Data
JhengPantaleon
Staff of Color (SOC) Retention Efforts DDSD
Staff of Color (SOC) Retention Efforts DDSD
David Douglas School District
APM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across Sectors
Association for Project Management
Employee wellbeing at the workplace.pptx
Employee wellbeing at the workplace.pptx
NirmalaLoungPoorunde1
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
iammrhaywood
Paris 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activity
GeoBlogs
Sanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdf
sanyamsingh5019
Grant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy Consulting
TechSoup
Model Call Girl in Bikash Puri Delhi reach out to us at 🔝9953056974🔝
Model Call Girl in Bikash Puri Delhi reach out to us at 🔝9953056974🔝
9953056974 Low Rate Call Girls In Saket, Delhi NCR
Recently uploaded
(20)
Arihant handbook biology for class 11 .pdf
Arihant handbook biology for class 11 .pdf
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
POINT- BIOCHEMISTRY SEM 2 ENZYMES UNIT 5.pptx
POINT- BIOCHEMISTRY SEM 2 ENZYMES UNIT 5.pptx
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptx
microwave assisted reaction. General introduction
microwave assisted reaction. General introduction
Measures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and Mode
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptx
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptx
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
mini mental status format.docx
mini mental status format.docx
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy Reform
_Math 4-Q4 Week 5.pptx Steps in Collecting Data
_Math 4-Q4 Week 5.pptx Steps in Collecting Data
Staff of Color (SOC) Retention Efforts DDSD
Staff of Color (SOC) Retention Efforts DDSD
APM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across Sectors
Employee wellbeing at the workplace.pptx
Employee wellbeing at the workplace.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
Paris 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activity
Sanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdf
Grant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy Consulting
Model Call Girl in Bikash Puri Delhi reach out to us at 🔝9953056974🔝
Model Call Girl in Bikash Puri Delhi reach out to us at 🔝9953056974🔝
Business Math Chapter 7
1.
7 7-1 The Manager as a Planner
and Strategist Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
2.
7-2 The Planning Process Planning
is the process used by managers to identify and select goals and courses of action for the organization. The organizational plan that results from the planning process details the goals to be attained. The pattern of decisions managers take to reach these goals is the organization’s strategy. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
3.
7-3 Three Stages of
the Planning Process Figure 7.1 Determining the Organization’s mission and goals (Define the business) Strategy formulation (Analyze current situation & develop strategies) Strategy Implementation (Allocate resources & responsibilities to achieve strategies) Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
4.
7-4 Planning Process Stages Organizational mission:
defined in the mission statement which is a broad declaration of the overriding purpose. The mission statement identifies product, customers and how the firm differs from competitors. Formulating strategy: managers analyze current situation and develop strategies needed to achieve the mission. Implementing strategy: managers must decide how to allocate resources between groups to ensure the strategy is achieved. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
5.
7-5 Figure 7.2 Levels of
Planning Goal Setting Strategy Formulation Strategy Implementation Irwin/McGraw-Hill Corporatelevel Plan Corporate mission & goals Corporatelevel strategy Design of Corporate Structure Control Businesslevel Plan Divisional goals Businesslevel strategy Design of Business-unit Structure Control Functional level Plan Functional goals Functionallevel strategy Design of Functional Structure Control ©The McGraw-Hill Companies, Inc., 2000
6.
7-6 Figure 7.3 Planning at
General Electric Corporate Corporate Level Level Business Business Level Level Functional Functional Level Level CEO Corporate Office GE Aircraft GE Lighting GE Motors Manufacturing Marketing Irwin/McGraw-Hill GE Plastics NBC Accounting R&D ©The McGraw-Hill Companies, Inc., 2000
7.
7-7 Planning Levels Corporate-level: decisions by
top managers. Considers on which businesses or markets to be in. Provides a framework for all other planning. Business-level: details divisional long-term goals and structure. Identifies how this business meets corporate goals. Shows how the business will compete in market. Functional-level: actions taken by managers in departments of manufacturing, marketing, etc. These plans state exactly how business-level strategies are accomplished. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
8.
7-8 Characteristics of Plans Time horizon:
refers to how far in the future the plan applies. Long-term plans are usually 5 years or more. Intermediate-term plans are 1 to 5 years. Corporate and business level plans specify long and intermediate term. Short-term plans are less than 1 year. Functional plans focus on short to intermediate term. Most firms have a rolling planning cycle to amend plans constantly. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
9.
7-9 Types of Plans Standing plans:
for programmed decisions. Managers develop policies, rules, and standard operating procedures (SOP). Policies are general guides to action. Rules are a specific guide to action. Single-use plans: developed for a one-time, nonprogrammed issue. Usually consist of programs and projects. Programs: integrated plans achieving specific goals. Project: specific action plans to complete programs. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
10.
7-10 Who Plans? Corporate managers. level planning
is done by top Also approve business and functional level plans. Top managers should seek input on corporate level issues from all management levels. Business and functional planning is done by divisional and functional managers. Both management levels should also seek information from other levels. Responsibility for specific planning may lie at a given level, but all managers should be involved. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
11.
7-11 Why Planning is
Important Planning determines where the organization is now and where it will be in the future. Good planning provides: Participation: all managers are involved in setting future goals. Sense of direction & purpose: Planning sets goals and strategies for all managers. Coordination: Plans provide all parts of the firm with understanding about how their systems fit with the whole. Control: Plans specify who is in charge of accomplishing a goal. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
12.
7-12 Scenario Planning Scenario Planning: generates
several forecasts of different future conditions and analyzes how to effectively respond to them. Planning seeks to prepare for the future, but the future is unknown. By generating multiple possible “futures” we can see how our plans might work in each. Allows the firm to prepare for possible surprises. Scenario planning is a learning tool to improve planning results. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
13.
7-13 Determining Mission and
Goals This is the first step of the planning process and is accomplished by: A. Define the business: seeks to identify our customer and the needs we can and should satisfy. This also pinpoints competitors. B. Establishing major goals: states who will compete in the business. Should stretch the organization to new heights. Goals must also be realistic and have a time period in which they are achieved. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
14.
7-14 Figure 7.4 Mission Statements Company Mission
Statement Compaq Compaq, along with our partners, will deliver compelling products and services of the highest quality that will transform computing into an intuitive experience that extends human capability on all planes -communication, education, work, and play. AT&T Irwin/McGraw-Hill We are dedicated to being the world’s best at bringing people together -- giving them easy access to each other and to the information and services they want and need -- anytime, anywhere. ©The McGraw-Hill Companies, Inc., 2000
15.
7-15 Strategy Formulation Managers analyze the
current situation to develop strategies achieving the mission. SWOT analysis: a planning to identify: Organizational Strengths and Weaknesses. Strengths: manufacturing ability, marketing skills. Weaknesses: high labor turnover, weak financials. Environmental Opportunities and Threats. Opportunities: new markets. Threats: economic recession, competitors Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
16.
7-16 Planning & Strategy
Formulation Figure 7.5 SWOT analysis identifies strengths & weaknesses inside the firm and opportunities & threats in the environment. Corporate-level strategy develop a plan of action maximizing long-run value Business-level strategy a plan of action to take advantage of opportunities and minimize threats Functional-level strategy a plan of action improving department’s ability to create value Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
17.
7-17 The Five Forces
Model Potential Potential for Entry for Entry Power of Power of Buyer Buyer Rivalry Among Organizations Power of Power of Supplier Supplier Substitute Substitute Products Products Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
18.
7-18 The Five Forces 1.
Level of Rivalry in an industry: how intense is the current competition with competitors? Increased competition results in lower profits. 2. Potential for entry: how easy is it for new firms to enter the industry? Easy entry leads to lower prices and profits. 3. Power of Suppliers: If there are only a few suppliers of important items, supply costs rise. 4. Power of Buyers: If there are only a few, large buyers, they can bargain down prices. 5. Substitutes: More available substitutes tend to drive down prices and profits. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
19.
7-19 Corporate-Level Strategies Concentrate in single
business: McDonalds focuses in the fast food business. Can become very strong, but can be risky. Diversification: Organization moves into new businesses and services. Related diversification: firm diversifies in similar areas to build upon existing divisions. Synergy: two divisions work together to obtain more than the sum of each separately. Unrelated diversification: buy business in new areas. Build a portfolio of unrelated firms to reduce risk or trouble in one industry. Very hard to manage. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
20.
7-20 International Strategy To what extent
do we customize products and marketing for different national conditions? Global strategy: a single, standard product and marketing approach is used in all countries. Standardization provides for lower cost. Ignore national differences that others can address. Mulitdomestic strategy: products and marketing are customized for each country of operation. Customization provides for higher costs. Embraces national differences and depends on them for success. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
21.
7-21 Vertical Integration When the firm
is doing well, managers can add more value by producing its own inputs or distributing its products. Backward vertical integration: the firm produces its own inputs. McDonalds grows its own potatoes. Can lower the cost of supplies. Backward vertical integration: the firm distributes its outputs or products. McDonalds owns the final restaurant. Firm can lower costs and ensure final quality. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
22.
7-22 Figure 7.6 Vertical Value
Chain Raw Raw Materials Materials Intermediate Intermediate Manufacturing Manufacturing Assembly Assembly Distribution Distribution Backward Irwin/McGraw-Hill Customer Forward ©The McGraw-Hill Companies, Inc., 2000
23.
7-23 Business-level Strategies Number of market
segments Table 7.2 Many Low-Cost Differentiation Few Focused Low-Cost Focused Differentiated Low Cost Differentiation Strategy Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
24.
7-24 Business Strategies Low-cost: gain
a competitive advantage by driving down organizational costs. Managers manufacture at lower cost, reduce waste. Lower costs than competition mean lower prices. Differentiation: gain a competitive advantage by making your products different from competitors. Differentiation must be valued by the customer. Successful differentiation allows you to charge more for a product. Stuck in the middle: It is difficult to simultaneously become differentiated and low cost. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
25.
7-25 Business Strategies Firms also choose
to serve the entire market or focus on a few segments. Focused low-cost: try to serve one segment of the market but be the lowest cost in that segment. Cott Company seeks to achieve this in large retail chains. Focused differentiated: Firm again seeks to focus on one market segment but is the most differentiated in that segment. BMW provides a good example. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
26.
7-26 Functional-level Strategies Seeks to have
each department add value to a good or service. Marketing, service, production all add value to a good or service. Value is added in two ways: 1. lower the operational costs of providing the value in products. 2. add new value to the product by differentiating. Functional strategies must fit with business level strategies. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
27.
7-27 Goals for successful
functional strategies: 1. Attain superior efficiency: the measure of outputs for a given unit of input. 2. Attain superior quality: products that reliably do the job they were designed for. 3. Attain superior innovation: new, novel features about the product or process. 4. Attain superior responsiveness to customers: Know the customer needs and fill them. Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Download now