The document discusses vision, mission, and environmental scanning. It provides examples of vision statements from several companies. It defines the characteristics and benefits of a clear vision and mission. The document also discusses Porter's Five Forces model of industry analysis regarding rivalry among existing firms, potential new entrants, substitute products, supplier power, and buyer power. It explains how these forces impact competition within an industry.
Learning from other sectors: How did low-cost business models change an industry?
By: Raúl Sánchez, Director, Strategy & Operations, Deloitte, Barcelona, Spain
Learning from other sectors: How did low-cost business models change an industry?
By: Raúl Sánchez, Director, Strategy & Operations, Deloitte, Barcelona, Spain
0904 Plotting Your Course Along The Growth Excellence MatrixAlvin Chua
In this presentation we discuss how to design and implement a growth system and once that is complete we will talk about growth strategies for a recession by introducing and discussing a Frost & Sullivan proprietary tool called the Growth Excellence Matrix, which we sometimes refer to this as GEM.
The Growth Excellence Matrix is our strategic approach to measuring a company’s future growth potential as a function of their strategic excellence and implementation excellence relative to their competitors. In this session, Craig will examine techniques that help identify areas for improvement and opportunities for growth in developing strategies which are realistic and achievable based on both internal as well as external challenges to growth. He will also discuss in detail the key fundamentals driving the future success of leading organisations and provide insights for creating a culture that will foster and ultimately lead to thought leadership, growth and innovation.
Porter's Generic Strategies with examplesdipalij07
This Presentation is containing brief description of generic strategies with examples of companies in detail....
Hope it will be helpful to everybody....
Enjoy...!! :)
Developing Your International Market StrategyStephen Davis
To succeed in global business, companies need to simplify their approach to export operations while unifying their international sales and marketing efforts.
This was a presentation as part of a panel where we disccused: strategy considerations before your first actions; how to approach the daunting task of positioning your business for international sales, marketing and distribution; how brand positioning and direct communications can have a multiplier effect on your success; and how to integrate cultural, language and marketing considerations so they are synergistic with your business strategy and execution plans.
Why efficient Procurement and Production processes are essential.Wayne Harper
In this report I discuss the need for efficient Procurement & Production processes using the Holden & Ford (Australia) motor companies as recent examples that offer insights as to the pro's & con's. It also reviews any Information Technology used which gave either company a particular competitive advantage.
0904 Plotting Your Course Along The Growth Excellence MatrixAlvin Chua
In this presentation we discuss how to design and implement a growth system and once that is complete we will talk about growth strategies for a recession by introducing and discussing a Frost & Sullivan proprietary tool called the Growth Excellence Matrix, which we sometimes refer to this as GEM.
The Growth Excellence Matrix is our strategic approach to measuring a company’s future growth potential as a function of their strategic excellence and implementation excellence relative to their competitors. In this session, Craig will examine techniques that help identify areas for improvement and opportunities for growth in developing strategies which are realistic and achievable based on both internal as well as external challenges to growth. He will also discuss in detail the key fundamentals driving the future success of leading organisations and provide insights for creating a culture that will foster and ultimately lead to thought leadership, growth and innovation.
Porter's Generic Strategies with examplesdipalij07
This Presentation is containing brief description of generic strategies with examples of companies in detail....
Hope it will be helpful to everybody....
Enjoy...!! :)
Developing Your International Market StrategyStephen Davis
To succeed in global business, companies need to simplify their approach to export operations while unifying their international sales and marketing efforts.
This was a presentation as part of a panel where we disccused: strategy considerations before your first actions; how to approach the daunting task of positioning your business for international sales, marketing and distribution; how brand positioning and direct communications can have a multiplier effect on your success; and how to integrate cultural, language and marketing considerations so they are synergistic with your business strategy and execution plans.
Why efficient Procurement and Production processes are essential.Wayne Harper
In this report I discuss the need for efficient Procurement & Production processes using the Holden & Ford (Australia) motor companies as recent examples that offer insights as to the pro's & con's. It also reviews any Information Technology used which gave either company a particular competitive advantage.
Bangalore stock exchange session july 2015Raja Sekharan
Presentation in Bangalore Stock exchange on 26th July 2015 on - "Investing under current market conditions".
I share my views on Definition of Rich and how to select Mutual funds and Stocks in Indian markets and when to exit an investment.
Learning Objectives
• Why do you need to define a product strategy for your company?
• What are the benefits of implementing a product planning process?
• What do you need to create successful products consistently?
Description
The creation of successful products is essential for companies that want to grow or maintain a competitive advantage. Many organizations lack a clearly defined and understood product strategy. We will discuss the benefits of adopting the Association of International Product Marketing and Management (AIPMM) Product Management Framework (PMF) to align your business and product strategies with unmet customer needs and market trends to create value for your business using a sustainable approach.
Audience
This presentation is for product managers, marketers, entrepreneurs, innovators, and technology-based business owners that want to expand their knowledge about how to create successful products that customers demand.
For more info, connect with Hector Del Castillo at http:/linkd.in/hdelcastillo.
Introduction
The creation of successful products is essential for companies that want to grow or maintain a competitive advantage. Many organizations lack a clearly defined and understood product strategy. We will discuss the importance of the AIPMM Product Management Framework (PMF) to define and implement a process to conceive, plan and market your company’s products at each stage of their life cycle. We will identify key activities to align business and product strategy with unmet customer needs to create value for your business. We will describe the typical product life cycle from concept to launch and through product retirement. We will also discuss why growing organizations need to implement a formal product management process to support their product strategy.
Key Points:
* Why do you need to define a product strategy for your company?
* What are the benefits of implementing a product planning process?
* What do you need to create successful products consistently?
Connect with me at http:/linkd.in/hdelcastillo for more information regarding AIPMM membership or certification courses in your area.
Let me know how I can help you create and implement a product strategy and product planning process successfully to grow your technology-based business.
Introduction
The creation of successful products is essential for companies that want to grow or maintain a competitive advantage. Many organizations lack a clearly defined and understood product strategy.
We will discuss the importance of the AIPMM Product Management Framework (PMF) to define and implement a process to conceive, plan and market your company’s products at each stage of their life cycle. We will identify key activities to align business and product strategy with unmet customer needs to create value for your business.
We will describe the typical product life cycle from concept to launch and through product retirement. We will also discuss why growing organizations need to implement a formal product management process to support their product strategy.
Objectives
* Why do you need to define the right product strategy?
* What are the benefits of implementing a product planning process?
* What do you need to constantly create insanely great products?
Contact me at http:/linkd.in/hdelcastillo for more information regarding AIPMM membership or certification courses in your area.
Let me know how I can help you accelerate your career, or create and implement a product strategy and product planning process successfully to grow your business.
STAT Part 3: Failure at CTO (anonymized) mindful action without performance o...David Denyer
This article is the third of a five-article series on the Strategic Tensions Model for Organizational Resilience. The Strategic Tensions Assessment Tool (STAT) is an online Organizational Resilience survey. In this series of articles, I will discuss each of the four approaches to Organizational Resilience (preventative control, mindful action, performance optimization, and adaptive innovation).
Introduction
Innovation is a central element of business growth strategy within companies that aim to generate added value for their customers, the company itself, and other stakeholders. While many company executives and business leaders agree that in order for their companies to survive today’s increasingly global marketplace, they must face the unpleasant truth that there may have to be fundamental changes in who they are, what they do, and how they do it. Few executives feel their companies are good at the specific processes and tactics frequently tied to successful innovation, such as generating breakthrough ideas, selecting the right ideas, prototyping, and developing business cases. We will provide insights to help you define and implement a process to drive innovation within your company using a sustainable approach to ignite business growth.
Key Takeaways
1. Discover insights.
• Discover unmet customer needs
• Identify customer segments
• Know your competitive landscape
2. Align strategies with needs.
• Create alignment
• Communicate strategic objectives
3. Mind your company’s culture.
• Focus on shared values
• Eliminate organizational silos
4. Adopt a process.
• Integrate innovation
• Identify key resources
• Define key deliverables
5. Deliver value, success will follow.
• Direct the internal value chain
6. Align your business model
• Use leading productivity tools
• Make your business case
Connect with me for more information regarding AIPMM membership or certification courses in your area.
Let me know how I can help you create and implement a product strategy and product planning process successfully to grow your technology-based business.
Hector Del Castillo, AIPMM
linkd.in/hdelcastillo
Introduction
A recent study of experienced product managers from different companies and industries showed that there are common challenges impacting their effectiveness and productivity. This discussion will help you understand key tips to differentiate yourself and accelerate you career. It will help you understand how to position yourself to find a new opportunity or get promoted. We will identify how you can increase your skills to enhance your worth. We will also discuss ways to define and sharpen your value proposition. This discussion is for those of you who want to accelerate your career, obtain a promotion, or find your next job opportunity.
Objectives
• Understand how to answer the question: Why should I hire or promote you over others?
• What's your value proposition as a product manager or marketing manager?
• What can you do to accelerate your career in product management or product marketing?
Description
This discussion will help you understand key tips to differentiate yourself and accelerate you career. Learn how to convince a prospective employer why they should hire you or why they should promote you over others. We will identify how you can enhance your worth by increasing your transferable skills. We will also discuss ways to identify your unique selling propositions.
Connect with me at http:/linkd.in/hdelcastillo for more information regarding AIPMM membership or certification courses in your area.
Let me know how I can help you create and implement a product strategy and product planning process successfully to grow your technology-based business.
Introduction
A recent study of experienced product managers from different companies and industries showed that there are common challenges impacting their effectiveness and productivity. This discussion will help you understand key tips to differentiate yourself and accelerate you career. It will help you understand how to position yourself to find a new opportunity or get promoted. We will identify how you can increase your skills to enhance your worth. We will also discuss ways to define and sharpen your value proposition. This discussion is for those of you who want to accelerate your career, obtain a promotion, or find your next job opportunity.
Key Takeaways
1. Organize your search.
2. Expand your professional network.
3. Stand out from the crowd.
4. Market early, market often.
5. Deliver value, success will follow.
7. Expand your knowledge.
8. Find a great workplace.
Connect with me for more information regarding AIPMM membership or training courses in your area.
Let me know how I can help you create and implement a product strategy and product planning process successfully to grow your technology-based business.
Hector Del Castillo, AIPMM
linkd.in/hdelcastillo
GoSolo Workshop 2: Evaluating your IdeaBECO Capital
This session provides an overview of a framework called the 7 domains of attractive opportunities (developed by Professor John Mullins of London Business School). We define the framework and provide real life examples. The go
Lavacon 2012: Building Profitability into your ProcessEmmelyn Wang
Technical content is a commodity that leads the post-capitalistic society. Technical Writers must think of themselves as Knowledge Brokers and communicate the value they provide which includes increased revenue and improved customer retention. Christopher Ward (WebWorks Software) and Emmelyn Wang (STC Austin / Hoover's Software) provide real world examples of business strategies and the procedures that can align. This presentation will help you build business cases for your company to invest in Technical Communication/Publications as a revenue generator.
Lavacon 2012: Building Profitability into your ProcessEmmelyn Wang
Technical content is a commodity that leads the post-capitalistic society. Technical Writers must think of themselves as Knowledge Brokers and communicate the value they provide which includes increased revenue and improved customer retention. Christopher Ward (WebWorks Software) and Emmelyn Wang (STC Austin / Hoover's Software) provide real world examples of business strategies and the procedures that can align. This presentation will help you build business cases for your company to invest in Technical Communication/Publications as a revenue generator.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
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.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
1. 3/17/2012
Module II
Mission and business definition
Vision
What the firm strives to achieve in the long run?
What do we want to become?
Critically important to the firm’s success
Shared Vision:
o Creates commonality of interests
o Reduce daily monotony
o Provides opportunity & challenge
Offer a sense of direction @
msnimt_s4/MII_krp 2
1
2. 3/17/2012
Vision Statements
To be a globally respected corporation that provides best-of-breed business
solutions, leveraging technology, delivered by best-in-class people- Infosys
To make a contribution to the world by making tools for
the mind that advance humankind – Apple
To be the world leader in transportation products and related services - GM
Our vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitment to build
shareholder value by making PepsiCo a truly sustainable company - Pepsico
Our vision is to expand our locations both domestic and overseas by being
the largest and most profitable airline company to achieve both short and
long-haul carriers efficiently and with low cost. Also to be an airline carrier
that has the most productive workforce to guarantee the best flight possible
for each and every passenger. – South West Airline
msnimt_s4/MII_krp 3
Mission *
What is our business?
Reason for being in business
The foundation for priorities, plans and work assignments
Declare the organisational attitude and magnitude of customer
orientation
•Enduring statement of purpose
•Distinguishes one firm from another
•Declares the firm’s reason for being
Also referred to as:
• Creed statement
• Statement of purpose
• Statement of philosophy
• Statement of business principles
Major reason is to attract customers who give
meaning to an organisation (utility statements)#
msnimt_s4/MII_krp
4
2
3. 3/17/2012
Products
Services Markets
Customers
Technology
Mission
Employees
Elements
Survival
Growth
Profit
Public
Image
Self-Concept Philosophy
msnimt_s4/MII_krp 5
Characteristics of Mission Statement
1. Broad in Scope: than mere pecuniary, percentage, ratios…
2. Less than 250 words in length
3. Inspiring
4. Identify the utility of a firm’s products
5. Reveal that the firm is socially responsible
6. Reveal that the firm is environmentally responsible
7. Presence of nine elements of mission
8. Reconciliatory Clear Business
9. Enduring Vision
Comprehensive
msnimt_s4/MII_krp
Mission Statement
6
3
4. 3/17/2012
Mission Statements
To achieve our objectives in an environment of fairness, honesty, and courtesy
towards our clients, employees, vendors and society – Infosys
"We aspire to be the most admired and valuable company in the world. Our
goal is to enrich our customers' personal lives and to make their businesses
more successful by bringing to market exciting and useful communications
services, building shareowner value in the process.“- AT & T
Exxon Mobil Corporation is committed to being the world's premier petroleum
and petrochemical company. To that end, we must continuously achieve
superior financial and operating results while adhering to the highest standards
of business conduct. These unwavering expectations provide the foundation for
our commitments to those with whom we interact – Exxon mobil
To be a Committed Corporate Citizen, alive towards its Corporate Social
Responsibility – BHEL
Apple is committed to bringing the best personal computing experience to
students, educators, creative professionals and consumers around the world
through its innovative hardware, software and Internet offerings- Apple.
msnimt_s4/MII_krp 7
Benefits of having clear Vision & Mission
1. Achieve clarity of purpose among all managers and employees
2. Provide a basis for all other strategic planning activities
3. Provide sense of direction
4. Provide focal point for all stake holders of the firm
5. Resolve divergent views among managers
6. Promote a sense of shared expectations among all managers
and employees
7. Project a sense of worth and intent to all stakeholders
8. Project an organised, motivated organisation worthy of support
9. Achieve higher organisational performance
10.Achieve synergy among all managers and employees
Refer: David, F R (2011). Strategic Management, 13th edn, pp. 43 – 53
msnimt_s4/MII_krp 8
4
5. 3/17/2012
Environmental Scanning:
Refer: Wheelen , Hunger & Rangarajan (2004): Strategic Management and Business Policy , 9 edn,
pp. 50- 57
David, F R (2011). Strategic Management, 13th edn, pp. 63 – 73
Analysing industry & competition
(Porter’s Five Force Model)
Corporation is most concerned with the
intensity of competition within its industry
Intensity of competition fuels drive & advancement
Five Force model is the most powerful model for industry
analysis
The collective impact of five force is very crucial
The profitability is based on the leverage of the comparative
strength of the five forces
msnimt_s4/MII_krp 9
1. Rivalry among Existing Firms #
Most powerful of the five forces
Focus on competitive advantage of strategies
o Number of competitors
o Rate of industry growth
o Product or service characteristics
o Amount of fixed costs
o Capacity
o Exit barriers
o Diversity of rivals @
msnimt_s4/MII_krp 10
5
6. 3/17/2012
2. Potential Entry of new competitors
Easy entry increases intensity of competition
Barriers to entry can be in different forms
o Economies of scale
o Product differentiation
o Capital requirements
o Switching costs
o Access to distribution channels
o Cost disadvantages
o Government policy
But strategies required to cope up with potential entry
Counter policies required capitalising strengths & weaknesses
msnimt_s4/MII_krp 11
3. Potential development of Substitute products
Close competition is a reality
Fix a price ceiling
May wipe out the pattern of use in near total
(eye glass Vs. contact lenses Vs. laser eye surgery, sugar Vs. artificial
sweeteners, Internet Vs. news papers, 24 hr cable tv Vs. cinema)
Maintaining current market share and market penetration crucial
4. Bargaining Power of Suppliers
Affects the intensity of competition
Switching raw material is extremely costly affair
Reasonable prices, improved quality, just-in-time deliveries,
reduced inventory cost will be beneficial to both
Backward integration will gain control of suppliers
Outsourcing is a popular strategy at present
Forging strategic partnership with suppliers is viable
msnimt_s4/MII_krp 12
6
7. 3/17/2012
5. Bargaining power of Buyers
When large volume is bought, more bargaining capacity, more
intensity of competition.
The more the bargaining power, the more will be efforts to build
customer loyalty
Most important force affecting competitive advantage
Condition of bargaining capacity:
o If customers can inexpensively switch to competing brands
o If they are particularly important to sellers
o If sellers are struggling in the face of falling consumer demand
o If customers are aware of sellers’ costs and prices
o If they have discretion on buying the products @
Refer: David, F R (2011). Strategic Management, 13th edn, pp. 74 - 78
Wheelen , Hunger & Rangarajan (2004): Strategic Management
and Business Policy , 9 edn, pp. 57 - 61
msnimt_s4/MII_krp 13
Industry Analysis: External Factor Evaluation (EFE) Matrix
Used for the assessment of current business condition
Allows strategist to summarize and evaluate external forces and
competitive information (five force elements)
A good tool to visualize and prioritize the opportunities and
threats
Steps to develop EFX matrix
1. List all key external factors as specific as possible (uses ratios, %,
comparative numbers wherever possible to give specificity)
• Be quantitative to the extent possible
2. Assign to each factor a weight that ranges from 0 (not
important) to 1 (very important)
• The weight indicates the relative importance of that factor to
being successful in the firm’s industry
• The sum of weights assigned to factors must equal 1.0
msnimt_s4/MII_krp 14
7
8. 3/17/2012
3. Assign a rating between 1 and 4 to each key external factors to
indicate how effectively the firm’s current strategies respond to
the factor
• 4 = the response is superior; 3 = the response is above average; 2 = the
response is average; 1 = the response is poor
(weights are industry specific and ratings are company specific)
4. Multiply each factor’s weight by its rating to determine a
weighted score
5. Sum the weighted scores for each variable to determine the
total weighted score for the organisation
Sum of the weighted score ranges from 1.0 to 4.0, regardless of the number
of external factors @
4.0 indicates that the firm is responding in an outstanding way to existing
opportunities and threats to the industry, 1.0 being very poor & 2.5 average
The firm’s strategies are effective to take advantage of existing Opportunities
and minimize the potential adverse effects of Threats
Refer: David, F R (2011). Strategic Management, 13th edn, pp. 80 - 81
msnimt_s4/MII_krp 15
The Competitive Profile Matrix (CPM)
Identifies firm’s major competitors and its particular Ss & Ws in
terms of sample firms’ strategic position
The critical success factors in a CPM include both internal (S&W)
and external (O&T)
The steps to develop:
1. Identify critical success factors, but need not be grouped
2. Assign weights to each factor ranging from 0 to 1 (more weights to O &
S and less weight to T & W)
3. Assign rating between 1 and 4 (4 = major strength; 3 = minor strength;
2 = major weakness; 1 = minor weakness)
4. Multiply each factor’s weight with rating to obtain score for each
success factor
5. The sum of the weighted score is the weighted score of the company
The total weighted score for the competitors can be compared to
the sample firm to aid internal strategic information
msnimt_s4/MII_krp 16
8
9. 3/17/2012
msnimt_s4/MII_krp 17
Refer: David, F R (2011). Strategic Management, 13th edn, pp. 81 - 82
msnimt_s4/MII_krp 18
9