This document discusses various issues related to implementing business strategies across marketing, finance/accounting, research and development (R&D), and management information systems (MIS). It covers topics such as the importance of market segmentation and product positioning in marketing, using financial analysis and budgets for capital acquisition, pursuing innovation through R&D approaches, and utilizing information systems for coordination and cost reduction. The key message is that carefully addressing these functional areas is essential for successfully implementing business strategies.

2. Chapter Outline The Nature of Strategy Implementation Marketing Issues Finance/Accounting Issues

3. Chapter Outline ( cont’d ) Research & Development (R&D) Issues Management Information Systems (MIS) Issues

15. Marketing Mix – Component Factors Service level Warranty Transportation carriers Product line Inventory levels/locations Packaging Publicity Sales territories Brand name Payment terms Sales promotion Outlet location Style Discounts & allowances Personal selling Distribution coverage Features Level Advertising Distribution channels Quality Price Promotion Place Product

16. Marketing Issues Market Segment Basis Psychographic Behavioral Geographic Demographic

18. Marketing Issues Market Segment Basis Psychographic Behavioral Geographic Demographic

20. Marketing Issues Market Segment Basis Psychographic Behavioral Geographic Demographic

22. Marketing Issues Market Segment Basis Psychographic Behavioral Geographic Demographic

25. Marketing Issues Product Positioning Customer Wants Customer Needs

27. Product Positioning Map Low Convenience High Customer Loyalty Low Customer Loyalty High Convenience Firm 1 • • Firm 2 • Firm 3 Rental Car Market Low Customer Loyalty High Convenience Firm 1 • • Firm 2 • Firm 3 Rental Car Market

36. EPS-EBIT Analysis (in $millions) – Heinz Company 2.05 4.12 2.06 4.17 2.04 4.08 EPS 357.5 357.5 350 350 362.5 362.5 # Shares outstanding 733 1473 721 1461 740 1480 EAT 257 517 254 514 260 520 Taxes 26% 990 1990 975 1975 1000 2000 EBT 10 10 25 25 0 0 Interest (5%) $1000 $2000 $1000 $2000 $1000 $2000 EBIT ($982.4 in 2001) Low High Low High Low High Financing Financing Stock Financing

41. Projected Income Statement for Litten Company (in millions) 4.75 4 Retained Earnings 5.00 2 Dividends 9.75 6 Net Income 50% rate 9.75 6 Taxes 19.50 12 EBT 3.00 3 Interest 22.50 15 EBIT 5% of sales 7.50 5 Administrative Expense 10% of sales 15.00 10 Selling Expense 45.00 30 Gross Margin 70% of sales 105.00 70 Cost of Goods Sold 50% increase 150.00 100 Sales Projected Income Statement Remarks Projected Year 2005 Prior Year 2004