MATLAB sessions: Laboratory 2
MAT 275 Laboratory 2
Matrix Computations and Programming in MATLAB
In this laboratory session we will learn how to
1. Create and manipulate matrices and vectors.
2. Write simple programs in MATLAB
NOTE: For your lab write-up, follow the instructions of LAB1.
Matrices and Linear Algebra
⋆ Matrices can be constructed in MATLAB in different ways.
For example the 3 × 3 matrix
A =
4 9 2
>> A=[8,1,6;3,5,7;4,9,2]
A =
8 1 6
3 5 7
4 9 2
or
>> A=[8,1,6;
3,5,7;
4,9,2]
A =
8 1 6
3 5 7
4 9 2
or defined as the concatenation of 3 rows
>> row1=[8,1,6]; row2=[3,5,7]; row3=[4,9,2];
A=[row1;row2;row3]
A =
8 1 6
3 5 7
4 9 2
or 3 columns
>> col1=[8;3;4]; col2=[1;5;9]; col3=[6;7;2]; A=[col1,col2,col3]
A =
8 1 6
3 5 7
4 9 2
Note the use of , and ;. Concatenated rows/columns must have
the same length. Larger matrices can
be created from smaller ones in the same way:
c⃝2011 Stefania Tracogna, SoMSS, ASU
MATLAB sessions: Laboratory 2
>> C=[A,A] % Same as C=[A A]
C =
8 1 6 8 1 6
3 5 7 3 5 7
4 9 2 4 9 2
The matrix C has dimension 3 × 6 (“3 by 6”). On the other hand
smaller matrices (submatrices) can
be extracted from any given matrix:
>> A(2,3) % coefficient of A in 2nd row, 3rd column
ans =
7
>> A(1,:) % 1st row of A
ans =
8 1 6
>> A(:,3) % 3rd column of A
ans =
6
7
2
>> A([1,3],[2,3]) % keep coefficients in rows 1 & 3 and
columns 2 & 3
ans =
1 6
9 2
⋆ Some matrices are already predefined in MATLAB:
>> I=eye(3) % the Identity matrix
I =
1 0 0
0 1 0
0 0 1
>> magic(3)
ans =
8 1 6
3 5 7
4 9 2
(what is magic about this matrix?)
⋆ Matrices can be manipulated very easily in MATLAB (unlike
Maple). Here are sample commands
to exercise with:
>> A=magic(3);
>> B=A’ % transpose of A, i.e, rows of B are columns of A
B =
8 3 4
1 5 9
6 7 2
>> A+B % sum of A and B
ans =
16 4 10
4 10 16
10 16 4
>> A*B % standard linear algebra matrix multiplication
ans =
101 71 53
c⃝2011 Stefania Tracogna, SoMSS, ASU
MATLAB sessions: Laboratory 2
71 83 71
53 71 101
>> A.*B % coefficient-wise multiplication
ans =
64 3 24
3 25 63
24 63 4
⋆ One MATLAB command is especially relevant when studying
the solution of linear systems of dif-
ferentials equations: x=Ab determines the solution x = A−1b of
the linear system Ax = b. Here is an
example:
>> A=magic(3);
>> z=[1,2,3]’ % same as z=[1;2;3]
z =
1
2
3
>> b=A*z
b =
28
34
28
>> x = Ab % solve the system Ax = b. Compare with the exact
solution, z, defined above.
x =
1
2
3
>> y =inv(A)*b % solve the system using the inverse: less
efficient and accurate
ans =
1.0000
2.0000
3.0000
Now let’s check for accuracy by evaluating the difference z − x
and z − y. In exact arithmetic they
should both be zero since x, y and z all represent the solution to
the system.
>> z - x % error for backslash command
ans =
0
0
0
>> z - y % error for inverse
ans =
1.0e-015 *
-0.4441
0
-0.8882
Note the multiplicative factor 10−15 in the last computation.
MATLAB performs all operations using
standard IEEE double precision.
Important!: Because of the finite precision of computer
arithmetic and roundoff error, vectors or
matrices that are zero (theoretically) may appear in MATLAB in
exponential form such as 1.0e-15 M
where M is a vector or matrix with entries between −1 and 1.
This means that each component of the
c⃝2011 Stefania Tracogna, SoMSS, ASU
MATLAB sessions: Laboratory 2
answer is less than 10−15 in absolute value, so the vector or
matrix can be treated as zero (numerically)
in comparison to vectors or matrices that are on the order of 1
in size.
EXERCISE 1
Enter the following matrices and vectors in MATLAB
A =
3 6 9
7 8 9
27
= [ 4 3 2 ] , d =
3
(a) Perform the following operations: AB, BA, cB and Ad (use
standard linear algebra multiplica-
tion).
(b) Construct a 3 × 6 matrix C = [A B ] and a 4 × 3 matrix D =
[
B
c
]
.
(c) Use the “backslash” command to solve the system Ax = b.
(d) Replace A(2, 3) with 0.
(e) Extract the 3rd row of the matrix A.
(f) A row or a column of a matrix can be deleted by assigning
the empty vector [] to the row or the
column. For instance A(2,:)=[] deletes the second row of the
matrix A.
Delete the third row of the matrix B.
MATLAB Programming
It is often advantageous to be able to execute a segment of a
code a number of times. A segment of a
code that is executed repeatedly is called a loop.
To understand how loops work, it is important to recognize the
difference between an algebraic
equality and a MATLAB assignment. Consider the following
commands:
>> counter = 2
counter =
2
>> counter = counter +1
counter =
3
The last statement does not say that counter is one more than
itself. When MATLAB encounters the
second statement, it looks up the present value of counter (2),
evaluates the expression counter + 1
(3), and stores the result of the computation in the variable on
the left, here counter. The effect of the
statement is to increment the variable counter by 1, from 3 to 4.
Similarly, consider the commands:
>> v=[1,2,3]
v =
1 2 3
>> v=[v,4]
v =
1 2 3 4
When MATLAB encounters the second statement, it looks up
the present value of v, adds the number 4
as entry of the vector, and stores the result in the variable on
the left, here v. The effect of the statement
is to augment the vector v with the entry 4.
There are two types of loops in MATLAB: for loops and while
loops
c⃝2011 Stefania Tracogna, SoMSS, ASU
MATLAB sessions: Laboratory 2
for loops
When we know exactly how many times to execute the loop, the
for loop is often a good implementation
choice. One form of the command is as follows:
for k=kmin:kmax
<list of commands>
end
The loop index or loop variable is k, and k takes on integer
values from the loop’s initial value, kmin,
through its terminal value, kmax. For each value of k, MATLAB
executes the body of the loop, which
is the list of commands.
Here are a few examples:
• Determine the sum of the squares of integers from 1 to 10: 12
+ 22 + 32 + . . . + 102.
S = 0; % initialize running sum
for k = 1:10
S = S+k^2;
end
S
Because we are not printing intermediate values of S, we
display the final value of S after the loop
by typing S on a line by itself. Try removing the “;” inside the
loop to see how S is incremented
every time we go through the loop.
• Determine the product of the integers from 1 to 10: 1 · 2 · 3 · .
. . · 10.
p = 1; % initialize running product
for k = 2:10
p = p*k;
end
p
⋆ Whenever possible all these construct should be avoided and
built in MATLAB functions used instead
to improve efficiency. In particular lengthy loops introduce a
substantial overhead.
The value of S in the example above can be evaluated with a
single MATLAB statement:
>> S = sum((1:10).^2)
Type help sum to see how the built in sum function works.
Similarly the product p can be evaluated using
>> p = prod(1:10)
Type help prod to see how the built in prod function works.
EXERCISE 2
Recall that a geometric sum is a sum of the form a + ar + ar2 +
ar3 + . . ..
(a) Write a function file that accepts the values of r, a and n as
arguments and uses a for loop to
return the sum of the first n terms of the geometric series. Test
your function for a = 3, r = 1/2
and n = 10.
(b) Write a function file that accepts the values of r, a and n as
arguments and uses the built in
command sum to find the sum of the first n terms of the
geometric series. Test your function for
a = 3, r = 1/2 and n = 10.
Hint: Start by defining the vector e=0:n-1 and then evaluate the
vector R = r.^e. It should be
easy to figure out how to find the sum from there.
c⃝2011 Stefania Tracogna, SoMSS, ASU
MATLAB sessions: Laboratory 2
EXERCISE 3
The counter in a for or while loop can be given explicit
increment: for i =m:k:n to advance the
counter i by k each time. In this problem we will evaluate the
product of the first 10 odd numbers
1 · 3 · 5 · . . . · 19 in two ways:
(a) Write a script file that evaluates the product of the first 10
odd numbers using a for loop.
(b) Evaluate the product of the first 10 odd numbers using a
single MATLAB command. Use the
MATLAB command prod.
while loop
The while loop repeats a sequence of commands as long as some
condition is met. The basic structure
of a while loop is the following:
while <condition>
<list of commands>
end
Here are some examples:
• Determine the sum of the inverses of squares of integers from
1 until the inverse of the integer
square is less than 10−10: 1
12
+ 1
22
+ . . . + 1
k2
while 1
k2
≥ 10−10.
S = 0; % initialize running sum
k = 1; % initialize current integer
incr = 1; % initialize test value
while incr>=1e-10
S = S+incr;
k = k+1;
incr = 1/k^2;
end
What is the value of S returned by this script? Compare to
∞∑
k=1
1
k2
=
π2
6
.
• Create a row vector y that contains all the factorials below
2000: y = [ 1!, 2!, 3!, . . . k! ] while
k! < 2000.
y = []; % initialize the vector y to the empty vector
k = 1; % initialize the counter
value = 1; % initialize the test value to be added to the vector y
while value < 2000
y = [y, value]; % augment the vector y
k = k+1; % update the counter
value = factorial(k); % evaluate the next test value
end
y
EXERCISE 4
Write a script file that creates a row vector v containing all the
powers of 2 below 1000. The output
vector should have the form: v = [ 2, 4, 8, 16 . . . ]. Use a while
loop.
c⃝2011 Stefania Tracogna, SoMSS, ASU
MATLAB sessions: Laboratory 2
if statement
The basic structure of an if statement is the following:
if condition
<list of commands>
elseif condition
<list of commands>
:
else
<list of commands>
end
Here is an example:
• Evaluate
y =
x3 + 2, x ≤ 1
1
x − 2
, x > 1
for a given (but unknown) scalar x and, if x = 2, display “y is
undefined at x = 2”.
function y=f(x)
if x==2
disp(’y is undefined at x = 2’)
elseif x <= 1
y=x^3+2;
else
y=1/(x-2);
end
end
We can test the file by evaluating it at different values of x.
Below we evaluate the function at
x = −1, x = 2 and x = 4.
>> f(-1)
ans =
1
>> f(2)
y is undefined at x = 2
>> f(4)
ans =
0.5000
EXERCISE 5
Write a function file that creates the following piecewise
function:
f(x) =
x2 + 1, x ≤ 3
ex, 3 < x ≤ 5
x
x − 10
, x > 5
Assume x is a scalar. The function file should contain an if
statement to distinguish between the
different cases. The function should also display “the function
is undefined at x = 10” if the
input is x = 10. Test your function by evaluating f(1), f(4), f(7)
and f(10).
c⃝2011 Stefania Tracogna, SoMSS, ASU
Running head: EXECUTIVE MEMO
1
EXECUTIVE MEMO
5
u03a1: Strategic Fit of the Firm Assessment
Demetrius Price
MBA6024
Organizational Strategy
9656 Barlow Road
Fort Belvoir, VA 22060
Telephone: 910-987-2621
Email: [email protected]
Instructor: Dr. Vincent DeFazio
Date: 13 September 2015
Date: 13 September, 2015
To: Terri Bell, Vice President of Strategy
From: Demetrius R. Price
CC: Vincent DeFazio, DM
Subject: Procter & Gamble Strategic Fit Assessment
Executive Summary
P&G is an international company that has been in existence for
a very long time. It is the largest producer of household goods
and prides itself of having consumers from over 180 countries.
The organization’s competitive advantage is differentiation. It
is able to make unique products that can be told apart from
those of its competitors. The company does this by branding. In
addition, it is also innovative since it has created a lot of
products. It also has good employees who work round the clock
to ensure that the customers are satisfied. The firm’s corporate
structure and the employees all work together for the success of
the company.
Business Strategy
Procter and Gamble use differentiation as one of their
competitive advantage strategies. The firm uses the tangible
kind of differentiation. The products that they manufacture are
differentiated from those of their competitors. The company
packages their products in attractive material. Moreover, it also
ensure that all their products are packaged according to size and
many colors are used in the packaging material. The firm also
deals in a wide range of variety of consumer goods. This form
of diversifications also plays a major role in providing a
competitive advantage. In addition, the organization has been in
existence for so long and consumers have trusted them with
production of quality products. This has also provided the
company with a competitive edge. The business is an
international organization that operates round the globe. It is
innovative and manufactures products that consumers need in
their houses. Their products are of high quality and this makes
consumers to keep coming back for more. Furthermore, the firm
charges fair prices. These prices generate adequate revenue for
the firm and makes consumers happy.
Strategic Fit with the Goals and Values of the Firm
P&G has been in operation for a very long term. The company
has goals that give rise to new ones once the previous objectives
have been achieved. The organization aims at ensuring that they
provide quality products and services that will be enhance the
lives of consumers for a long time (Admin, 2014). This is done
by ensuring that they are innovative and that their products suit
the needs of customers. They firm’s intention is to design
products that delight customers (Staff, 2014). Moreover, the
company also aim at conserving the environment and making
the world a better place. It plans on using renewable energy in
the plants and renewable and recyclable materials in packaging
(Staff, 2014). The company is founded on the value of doing the
right thing. This can be evidenced from the way they treat their
employees with respect (Staff, 2014). The firm also offers
competitive wages to its employees. In addition it also offers
excellent financial stewardship to its shareholders (Staff, 2014).
There is ample distribution of profits in the organization. The
needs of the employees and those of shareholders are balanced
because the firm avoids conflict of interest. It does not
prioritize the needs of either one of them. This ensures that
business goes on smoothly.
Strategic Fit with the Resources and Capabilities of the Firm
P&G is a firm whose competitive advantage is Differentiation.
The firm has various ways that they differentiate their products
so as to make them unique. The organization also attempts to
take advantage of innovation and efficiency. The company is
ingenious and invents new products now and then. It relies on
two forms of innovation, both brand innovation and business
innovation. As a result, the firm’s customers have a wide range
of products and services to choose from. In addition, it also
endeavors to make use of its international status in order to
satisfy its customers who are in over 180 countries (Admin,
2014). The firm invests in highly trained employees who are
innovative and ready to work under minimal supervision. It also
invests in huger plants that have high tech machines that are
used in the manufacture of the products. Moreover, the firm
ensures that they keep their employees happy by offering them
competitive salaries and treating them with respect. For this
reason, the employees work hard to maintain the organization’s
image and treat customer’s in the right way. P&G has investors
who fund the activities of the company. These are the
shareholders. The funds are used in the proper way and the firm
ensures that it generate revenue and maximizes on profits. In
turn, the shareholders get a piece of the pie when they are given
dividends.
Organizational structure and Management systems
Procter and Gamble’s corporate governance is made up of the
management, shareholders, and a board of governance. The
employees are the next in line and they are responsible for
making the firm operational. P&G is a team based organization
where they all work together towards a common goal which is
ensuring customer satisfaction and generation of revenue. Both
the stakeholders and shareholders are considered in the success
of the business. The employees also share in the profits. The
organization allows the employees to have a share in the profits.
This move was meant to motivate them to generate revenue.
Segregation of duties is a one of the primary activities of the
company. Each employee given instructions and they know the
role they have to play. There are written policies and procedures
that are followed by everyone. Communications is transparent
and to the necessary individuals.
Preliminary Findings and Conclusions
P&G relies heavily on differentiation in order to make unique
laundry and personal care products for the target market.
Branding and making exclusive products to suit customer taste
and needs is what keeps the firm afloat. Furthermore, the firm
has managed to sell its products through some of the largest
chain stores such as Walmart. However, the company is losing
its market share and experiencing dwindling profits because of
competition from similar businesses.
References
Admin, P. a. (2014). Proctor and Gamble Corporation.
Retrieved from Proctor and Gamble Corporation Website:
http://www.pg.com/en_US/index.shtml
Manktelow, J. (1996-2015). Mind Tools Corporation. Retrieved
from Mind Tools Corporation Website:
https://www.mindtools.com/pages/article/newSTR_66.htm
Staff, P. a. (2014). Proctor and Gamble Corporation. Retrieved
from Proctor and Gamble Corporation Website:
http://www.pg.com/en_US/sustainability/social_responsibility/i
ndex.shtml
Running head: EXECUTIVE MEMO
1
EXECUTIVE MEMO
5
u01a1: Strategic Frame Assessment
Demetrius Price
MBA6024
Organizational Strategy
9656 Barlow Road
Fort Belvoir, VA 22060
Telephone: 910-987-2621
Email: [email protected]
Instructor: Dr. Vincent DeFazio
Date: 31 August 2015
Date: 31 August, 2015
To: Terri Bell, Vice President of Strategy
From: Demetrius R. Price
CC: Vincent DeFazio, DM
Subject: Procter & Gamble Strategic Frame Assessment
Executive Summary
This is a Strategic Frame of the Procter & Gamble
Company (P&G), which is the largest supplier of the personal
and household products. P&G is one of the world's largest
consumer goods companies. It markets branded products in
beauty, health, fabric, home, baby, family, and personal care
categories. The company operates in the Americas, Europe, the
Middle East and Africa (EMEA) and Asia. The company
structure was initially based on the geographical regions, but
was changed in 2005 to be based on products. The P&G
company structure has been a source of friction for the company
since the structure evolved in 1924 into a structure in which all
the products had specific production, marketing, and sales
departments. The major change of the organization structure
was introduced in P&G in 1989 by creating of a global product
structure for each of its company structure (Dodgson, Gann &
Salter, 2006). The changes in the company structure have been
moving towards integration. It is the first of four deliverables
that comprise the Comprehensive Organizational Strategic
Assessment for P&G.
P&G Business Model
The target market for P&G is the household consumers.
P&G’s core products include laundry and personal care
products. The strategy used by P&G to make money is selling
its products through supermarket chains like Wal-Mart. P&G
engages in the provision of branded consumer packaged goods
to its consumers around the world. Its products are sold
primarily through mass merchandisers, grocery stores,
membership club stores, drug stores, high frequency stores, and
neighborhood stores which serve many consumers in developing
markets. The company revenue comes by selling products to the
consumers. When it’s comes to profitability, the company core
brands are losing market share and hence the company has
experienced a reduction of profitability (Leavy, 2013).
Proctor and Gamble Strategy and Direction
P&G growth and competitive edge in the early years up to
1982 had been achieved through diversification and innovation
of its products portfolio. The company introduced products like
synthetic detergents, disposable diapers, and fluoride tooth
paste that provided a competitive advantage in the market.
However, the last groups of new products included the launch of
Always. It has been noted that P&G’s diversified corporate
strategies resulted in lack of coordination in launching new
products (Leavy, 2013). For example, the company launched
pampers in Germany in 1973, France in 1978 and United
Kingdom in 1981 and hence giving its competitors in the
international market to launch imitative products before P&G.
Competitive Advantage (Business Strategy)
P&G employs the strategies of differentiation by
operating globally; it encounters wide difference in products
across different products markets and regional differences.
Consequently, attempts by P&G to take advantage of efficiency
and innovation through integration of global border across
borders has left substantial differences in its operations. Very
few of P&G’s products were globally standardized. The
differentiation strategy enabled it to produce skin care products,
cosmetics, and foods according to the customer’s preferences in
the different geographical regions (Conger & Nadler, 2012).
Procter and Gamble Corporate Strategy
The company corporate strategy changed in 2005, due to
the introduction of the seven Global business units that were
given worldwide responsibility of product development and
marketing. Conger & Nadler, (2012) note that P&G developed a
vertical scope through a process of standardization of the
manufacturing process, simplifying of brands and developing
efficient marketing. More than 300 brands were identified to be
closed down. P&G also shifted its primary organization
structure from the geographical regions to business division to
reduce bureaucracy.
Preliminary Findings and Conclusions
The P&G corporate strategy was initially based on the
diversification. The company therefore differentiated its
packaging according to product size, marketing, and sales, and
employed a variety of distribution channels. Despite the wave
of globalization and the standardization of the goods,
multinational companies like P&G increasingly developed
products and strategies that focus on regionally based products
to develop their business in emerging markets like Eastern
Europe, South East Asia and Greater China. These findings and
conclusions will likely be modified as we develop the
assessments between the strategy and the firm, and the strategy
and the industry environment.
References
Conger, J. A., & Nadler, D. A., (2012). Strategy and
Governance, when CEOs step up to fail. MIT Sloan
Management Review, 45(3).
Dodgson, M., Gann, D., & Salter, A. (2006). The role of
technology in the shift towards open innovation: the case of
Procter & Gamble. R&D Management, 36(3), 333-346.
Leavy, B. (2013). Where to play and how to win–strategy
fundamentals the Procter & Gamble way. Strategy &
Leadership, 41(5), 7-16.
Porter’s 5-Forces Model
Threat of Competition: HIGH: P&G’s market environment is
highly competitive, with global, regional, and local competitors.
In many of the markets and industry segments in which P&G
sells its products, P&G competes against other branded products
as well as retailers’ private-label brands. There are many
different options for consumer products. Although the options
are abundant, the threat is still more moderate because of
thebrand equity in most products.
Threat of New Entrants: LOW-MODERATE: It is a low
probability for a new entrant to become as big and as well
capitalized as P&G. Due to the vast range of Procter and
Gamble products, it is very hard for a new company to come
and participate. No new entrant can compete with the company
without heavy amount of capital and complete marketing
strategy based on comprehensive research.
Threat of Substitutes: LOW-MODERATE: The threat of
substitutes is moderate and not high because most of the
products that P&G sells are necessities. There is no substitute
for laundry detergent besides different types of laundry
detergent. The only true substitute is to not wash your clothes
or wash them without laundry detergent. That is why the threat
of substitutes is low to moderate.
Power of Suppliers: LOW: Procter & Gamble does not seem to
have any reliance on specific suppliers and P&G forms joint
ventures and partnerships for new products. The sheer size of
P&G also helps it deal with suppliers in delivering the product
because companies want to work with P&G.
Power of Buyers: MODERATE: There are two tiers of buyers,
the retailers and the end consumer. The retailers have more
power in dealing with P&G because they have large contracts
for many stores (Wal-Mart stores, Albertsons). Although they
have the decision on choosing substitutes or the competition,
the success of P&G’s brands and the brand loyalty they have
created thus far have shown that the consumers enjoy its
products.
the strategic fit of the Industry Environment (OUTLINE AND
HINTS) 2014
Assignment Description and Instructions
Write a detailed report of your analytical findings and strategic
issues from your analysis of the industry environment. Explain
that this analysis focuses on the strategic elements of industry
environment and concerns or opportunities of how the strategic
elements fit with the strategy as reported in the Strategic Frame
Assessment previously delivered to the VP..
· Conduct a competitive analysis of the firm, using the theories
and models of strategic analysis. Are their vital PEST (Political,
Environmental, Social, Technological) factors shaping the
industry conditions? Which competitive forces (Porter's 5-
Forces Model) on the firm are most intense?
· Analyze the strategic position and direction of the
firm. Evaluate its corporate strategy. In which market segments
does the firm participate? What are the buyer's purchase criteria
and basis of competition (Key Success Factors) for the market
segment? Should the firm reposition its resources and
capabilities (change its product scope, vertical scope, or
geographical scope) in anticipation of changes in industry
structural factors or competitive forces?
· Articulate concerns or opportunities about the firm's strategic
fit with its competition, suppliers, and customers.
· Evaluate the degree to which the organizational structure and
management systems enable the execution of the corporate
strategy. Consider the organization of functional capabilities
and value chain capabilities of the firm. Assuming the firm
employs a diversification or vertical integration strategy, could
costs be reduced or revenue be increased by economizing the
scale of diversification? Could costs be reduced or revenue be
increased by downsizing or outsourcing activities in the vertical
scope of the firm?
· Submit your report in a business format, noting submission
requirements below.
Conduct a competitive analysis of the firm, using resource
based theory or value chain model.
23%
Does not conduct a competitive analysis of the firm, using the
resource-based theory or value chain model.
Competitive analysis of the firm insufficiently utilizes the
resource-based theory or value chain model.
Conducts a competitive analysis of the firm, using the resource-
based theory or value chain model.
Conducts a competitive analysis and synthesizes significant
findings relative to the key resources, capabilities, and specific
value chain activities.
Analyze the strategic position and direction of the firm.
22%
Does not analyze the strategic position and direction of the
firm.
Describes, but does not analyze the strategic position and
direction of the firm.
Analyzes the strategic position and direction of the firm.
Analyzes the strategic position and direction of the firm relative
to the strategic elements of the industry environment.
Evaluate how the firm's organizational structure and
management systems support execution of the firm's strategy.
23%
Does not evaluate how the firm's organizational structure and
management systems support execution of the firm's strategy.
Describes, but does not analyze, how organizational structure
and management systems support execution of the firm's
strategy.
Evaluates how the firm's organizational structure and
management systems support execution of the firm's strategy.
Relates organizational design theory to organizational structure
and management systems that enable the execution of the
corporate strategy.
Analyze concerns or opportunities about the firm’s strategic fit
with its competition, suppliers, and customers.
22%
Does not analyze concerns or opportunities about the firm's
strategic fit with its competition, suppliers, and customers.
Describes, but does not explain, concerns or opportunities about
the firm's strategic fit with its competition, suppliers, and
customers.
Analyzes concerns or opportunities about the firm's strategic fit
with its competition, suppliers, and customers.
Assesses impact of industry environment issues on the strategic
position or direction of the firm.
Communicate in a manner that is professional and consistent
with expectations for members of the business professions.
10%
Does not communicate in a manner that is professional and
consistent with expectations for members of the business
professions.
Inconsistently communicates in a manner that is professional
and consistent with expectations for members of the business
professions.
Communicates in a manner that is professional and consistent
with expectations for members of the business professions.
Communicates in an exemplary manner that is professional and
consistent with expectations for members of the business
professions.
---------------------------------------------------------------------------
-------------------------------------------------------------
Date, To, From, Subject (address to T. Bell, VP, cc me, include
name of firm in subject)
Executive Summary
· Addresses modifications to the Strategic Frame, especially the
corporate strategy, as a result of having conducted an in-depth
analysis of the fit of firm’s strategy with its industry
environment.
· Analyzes the firm’s competition and strategic position in the
industry; identifies concerns and opportunities relative to the
competition, customers, and suppliers.
· Assesses the firms strategic position and direction
· Evaluates the degree to which the firm’s structure and
management systems enable the execution of the firms business
and corporate (if applicable) strategy to affect the firm’s
strategic position.
· Summarizes in a preliminary report on the firm and its
external industry environment, issues about how strategies
business and corporate strategies are applied to product lines
and customer market segments, as identified in the Strategic
Frame report.
Business and Corporate (if applicable) Strategy
· Confirm the firm’s business strategy as reported in the firm-
strategy strategic fit.
· Identify and define the firm’s generic corporate strategy, and
the product scope, and the extent of its involvement in the value
chain. HINT: even if your firm does not have a corporate
strategy, identify the value chain activities in which it in
involved. Keep this in mind when you identify the competitors.
· Summarize how the corporate strategy (as defined here) is
different or validates the strategy as defined in the Strategic
Frame.
Competitive Analysis
· Research the industry and identify the PEST factors and
conclude which conditions are impacting the vitality of the
industry, and your specific project firm.
· Analyze the industry using (Porter's 5-Forces Model) and
conclude which forces are the most intense, pose the greatest
threat, to your project firm.
· HINT: As you assess the threat of rivals (cite your research),
do a deep dive into who the ‘real’ competition is, and note who
they are and what segment they are competing in. Review
‘choosing the appropriate level of analysis” (p. 81), keeping in
mind that ‘substitutability’ is key to defining industry or market
segment boundaries. Apply the 5 stages of segment analysis to
your firm, noting the second to last stage where you identify the
Key Success Factors (see figure 2.6).
The Strategic Position of the Firm
· Position your project firm among the competitors you
identified in the ‘rivals’ force analysis. HINT: one approach is a
nominal ranking based on the 1) the key success factor, the
degree to which the industry competitors meet customer demand
and 2) the degree to which the industry competitors can meet
the most intense industry forces 3) the degree to which industry
competitors are in the best position to fend off the weakest
forces. A simple table will suffice to support your analysis.
· Identify concerns or opportunities about the fit between the
firm’s strategy and the direction it is going among its industry
competitors. Should the firm reposition its resources and
capabilities (change its product scope, vertical scope, or
geographical scope) in anticipation of changes in industry
structural factors or competitive forces?
Strategic Execution: Organizational Structure & Management
Systems
· Review the firm’s organizational structure and management
systems from the Firm-Strategy Fit analysis.
· Consider the organization of functional and value chain
capabilities and the management systems that support them. Do
they ‘fit’ the current corporate strategy, or should the firm
establish another or modified corporate strategy to better
strategically position the firm?
· Assuming the firm employs a diversification or vertical
integration strategy, could costs be reduced or revenue be
increased by economizing the scale of diversification? Could
costs be reduced or revenue be increased by downsizing or
outsourcing activities in the vertical scope of the firm? Cast
your response to these questions as concerns or opportunities.
Preliminary Findings and Conclusions
· Analyze concerns or opportunities about the firm’s strategic
fit with its competition, suppliers, and customers; the strategic
position, and the execution of the strategy to better position the
firm.
· Summarize the issues that are most closely aligned to the
products or customer market segments. The products or
customer segments should be the ones identified in the Business
Model of the Strategic Frame (u01a1).
· Identify which issues are most important or critical, and
explain why. Important issues related to weakness of
capabilities are ones that threatens the competitive advantage
and/or strategic position.

MATLAB sessions Laboratory 2MAT 275 Laboratory 2Matrix .docx

  • 1.
    MATLAB sessions: Laboratory2 MAT 275 Laboratory 2 Matrix Computations and Programming in MATLAB In this laboratory session we will learn how to 1. Create and manipulate matrices and vectors. 2. Write simple programs in MATLAB NOTE: For your lab write-up, follow the instructions of LAB1. Matrices and Linear Algebra ⋆ Matrices can be constructed in MATLAB in different ways. For example the 3 × 3 matrix A = 4 9 2 >> A=[8,1,6;3,5,7;4,9,2] A = 8 1 6
  • 2.
    3 5 7 49 2 or >> A=[8,1,6; 3,5,7; 4,9,2] A = 8 1 6 3 5 7 4 9 2 or defined as the concatenation of 3 rows >> row1=[8,1,6]; row2=[3,5,7]; row3=[4,9,2]; A=[row1;row2;row3] A = 8 1 6 3 5 7 4 9 2 or 3 columns
  • 3.
    >> col1=[8;3;4]; col2=[1;5;9];col3=[6;7;2]; A=[col1,col2,col3] A = 8 1 6 3 5 7 4 9 2 Note the use of , and ;. Concatenated rows/columns must have the same length. Larger matrices can be created from smaller ones in the same way: c⃝2011 Stefania Tracogna, SoMSS, ASU MATLAB sessions: Laboratory 2 >> C=[A,A] % Same as C=[A A] C = 8 1 6 8 1 6 3 5 7 3 5 7 4 9 2 4 9 2 The matrix C has dimension 3 × 6 (“3 by 6”). On the other hand smaller matrices (submatrices) can be extracted from any given matrix: >> A(2,3) % coefficient of A in 2nd row, 3rd column
  • 4.
    ans = 7 >> A(1,:)% 1st row of A ans = 8 1 6 >> A(:,3) % 3rd column of A ans = 6 7 2 >> A([1,3],[2,3]) % keep coefficients in rows 1 & 3 and columns 2 & 3 ans = 1 6 9 2 ⋆ Some matrices are already predefined in MATLAB: >> I=eye(3) % the Identity matrix I = 1 0 0
  • 5.
    0 1 0 00 1 >> magic(3) ans = 8 1 6 3 5 7 4 9 2 (what is magic about this matrix?) ⋆ Matrices can be manipulated very easily in MATLAB (unlike Maple). Here are sample commands to exercise with: >> A=magic(3); >> B=A’ % transpose of A, i.e, rows of B are columns of A B = 8 3 4 1 5 9 6 7 2 >> A+B % sum of A and B ans =
  • 6.
    16 4 10 410 16 10 16 4 >> A*B % standard linear algebra matrix multiplication ans = 101 71 53 c⃝2011 Stefania Tracogna, SoMSS, ASU MATLAB sessions: Laboratory 2 71 83 71 53 71 101 >> A.*B % coefficient-wise multiplication ans = 64 3 24 3 25 63 24 63 4 ⋆ One MATLAB command is especially relevant when studying the solution of linear systems of dif- ferentials equations: x=Ab determines the solution x = A−1b of the linear system Ax = b. Here is an
  • 7.
    example: >> A=magic(3); >> z=[1,2,3]’% same as z=[1;2;3] z = 1 2 3 >> b=A*z b = 28 34 28 >> x = Ab % solve the system Ax = b. Compare with the exact solution, z, defined above. x = 1 2 3 >> y =inv(A)*b % solve the system using the inverse: less
  • 8.
    efficient and accurate ans= 1.0000 2.0000 3.0000 Now let’s check for accuracy by evaluating the difference z − x and z − y. In exact arithmetic they should both be zero since x, y and z all represent the solution to the system. >> z - x % error for backslash command ans = 0 0 0 >> z - y % error for inverse ans = 1.0e-015 * -0.4441 0 -0.8882
  • 9.
    Note the multiplicativefactor 10−15 in the last computation. MATLAB performs all operations using standard IEEE double precision. Important!: Because of the finite precision of computer arithmetic and roundoff error, vectors or matrices that are zero (theoretically) may appear in MATLAB in exponential form such as 1.0e-15 M where M is a vector or matrix with entries between −1 and 1. This means that each component of the c⃝2011 Stefania Tracogna, SoMSS, ASU MATLAB sessions: Laboratory 2 answer is less than 10−15 in absolute value, so the vector or matrix can be treated as zero (numerically) in comparison to vectors or matrices that are on the order of 1 in size. EXERCISE 1 Enter the following matrices and vectors in MATLAB A = 3 6 9
  • 10.
    7 8 9 27 =[ 4 3 2 ] , d = 3 (a) Perform the following operations: AB, BA, cB and Ad (use standard linear algebra multiplica- tion). (b) Construct a 3 × 6 matrix C = [A B ] and a 4 × 3 matrix D = [ B c ] .
  • 11.
    (c) Use the“backslash” command to solve the system Ax = b. (d) Replace A(2, 3) with 0. (e) Extract the 3rd row of the matrix A. (f) A row or a column of a matrix can be deleted by assigning the empty vector [] to the row or the column. For instance A(2,:)=[] deletes the second row of the matrix A. Delete the third row of the matrix B. MATLAB Programming It is often advantageous to be able to execute a segment of a code a number of times. A segment of a code that is executed repeatedly is called a loop. To understand how loops work, it is important to recognize the difference between an algebraic equality and a MATLAB assignment. Consider the following commands: >> counter = 2 counter = 2 >> counter = counter +1 counter = 3
  • 12.
    The last statementdoes not say that counter is one more than itself. When MATLAB encounters the second statement, it looks up the present value of counter (2), evaluates the expression counter + 1 (3), and stores the result of the computation in the variable on the left, here counter. The effect of the statement is to increment the variable counter by 1, from 3 to 4. Similarly, consider the commands: >> v=[1,2,3] v = 1 2 3 >> v=[v,4] v = 1 2 3 4 When MATLAB encounters the second statement, it looks up the present value of v, adds the number 4 as entry of the vector, and stores the result in the variable on the left, here v. The effect of the statement is to augment the vector v with the entry 4. There are two types of loops in MATLAB: for loops and while loops c⃝2011 Stefania Tracogna, SoMSS, ASU MATLAB sessions: Laboratory 2
  • 13.
    for loops When weknow exactly how many times to execute the loop, the for loop is often a good implementation choice. One form of the command is as follows: for k=kmin:kmax <list of commands> end The loop index or loop variable is k, and k takes on integer values from the loop’s initial value, kmin, through its terminal value, kmax. For each value of k, MATLAB executes the body of the loop, which is the list of commands. Here are a few examples: • Determine the sum of the squares of integers from 1 to 10: 12 + 22 + 32 + . . . + 102. S = 0; % initialize running sum for k = 1:10 S = S+k^2; end S Because we are not printing intermediate values of S, we display the final value of S after the loop
  • 14.
    by typing Son a line by itself. Try removing the “;” inside the loop to see how S is incremented every time we go through the loop. • Determine the product of the integers from 1 to 10: 1 · 2 · 3 · . . . · 10. p = 1; % initialize running product for k = 2:10 p = p*k; end p ⋆ Whenever possible all these construct should be avoided and built in MATLAB functions used instead to improve efficiency. In particular lengthy loops introduce a substantial overhead. The value of S in the example above can be evaluated with a single MATLAB statement: >> S = sum((1:10).^2) Type help sum to see how the built in sum function works. Similarly the product p can be evaluated using >> p = prod(1:10) Type help prod to see how the built in prod function works. EXERCISE 2 Recall that a geometric sum is a sum of the form a + ar + ar2 +
  • 15.
    ar3 + .. .. (a) Write a function file that accepts the values of r, a and n as arguments and uses a for loop to return the sum of the first n terms of the geometric series. Test your function for a = 3, r = 1/2 and n = 10. (b) Write a function file that accepts the values of r, a and n as arguments and uses the built in command sum to find the sum of the first n terms of the geometric series. Test your function for a = 3, r = 1/2 and n = 10. Hint: Start by defining the vector e=0:n-1 and then evaluate the vector R = r.^e. It should be easy to figure out how to find the sum from there. c⃝2011 Stefania Tracogna, SoMSS, ASU MATLAB sessions: Laboratory 2 EXERCISE 3 The counter in a for or while loop can be given explicit increment: for i =m:k:n to advance the counter i by k each time. In this problem we will evaluate the product of the first 10 odd numbers 1 · 3 · 5 · . . . · 19 in two ways: (a) Write a script file that evaluates the product of the first 10 odd numbers using a for loop. (b) Evaluate the product of the first 10 odd numbers using a single MATLAB command. Use the MATLAB command prod.
  • 16.
    while loop The whileloop repeats a sequence of commands as long as some condition is met. The basic structure of a while loop is the following: while <condition> <list of commands> end Here are some examples: • Determine the sum of the inverses of squares of integers from 1 until the inverse of the integer square is less than 10−10: 1 12 + 1 22 + . . . + 1 k2 while 1 k2 ≥ 10−10. S = 0; % initialize running sum k = 1; % initialize current integer incr = 1; % initialize test value
  • 17.
    while incr>=1e-10 S =S+incr; k = k+1; incr = 1/k^2; end What is the value of S returned by this script? Compare to ∞∑ k=1 1 k2 = π2 6 . • Create a row vector y that contains all the factorials below 2000: y = [ 1!, 2!, 3!, . . . k! ] while k! < 2000. y = []; % initialize the vector y to the empty vector k = 1; % initialize the counter value = 1; % initialize the test value to be added to the vector y while value < 2000
  • 18.
    y = [y,value]; % augment the vector y k = k+1; % update the counter value = factorial(k); % evaluate the next test value end y EXERCISE 4 Write a script file that creates a row vector v containing all the powers of 2 below 1000. The output vector should have the form: v = [ 2, 4, 8, 16 . . . ]. Use a while loop. c⃝2011 Stefania Tracogna, SoMSS, ASU MATLAB sessions: Laboratory 2 if statement The basic structure of an if statement is the following: if condition <list of commands> elseif condition <list of commands> :
  • 19.
    else <list of commands> end Hereis an example: • Evaluate y = x3 + 2, x ≤ 1 1 x − 2 , x > 1 for a given (but unknown) scalar x and, if x = 2, display “y is undefined at x = 2”. function y=f(x) if x==2 disp(’y is undefined at x = 2’) elseif x <= 1 y=x^3+2; else
  • 20.
    y=1/(x-2); end end We can testthe file by evaluating it at different values of x. Below we evaluate the function at x = −1, x = 2 and x = 4. >> f(-1) ans = 1 >> f(2) y is undefined at x = 2 >> f(4) ans = 0.5000 EXERCISE 5 Write a function file that creates the following piecewise function: f(x) =
  • 21.
    x2 + 1,x ≤ 3 ex, 3 < x ≤ 5 x x − 10 , x > 5 Assume x is a scalar. The function file should contain an if statement to distinguish between the different cases. The function should also display “the function is undefined at x = 10” if the input is x = 10. Test your function by evaluating f(1), f(4), f(7) and f(10). c⃝2011 Stefania Tracogna, SoMSS, ASU Running head: EXECUTIVE MEMO 1 EXECUTIVE MEMO 5 u03a1: Strategic Fit of the Firm Assessment Demetrius Price MBA6024 Organizational Strategy
  • 22.
    9656 Barlow Road FortBelvoir, VA 22060 Telephone: 910-987-2621 Email: [email protected] Instructor: Dr. Vincent DeFazio Date: 13 September 2015 Date: 13 September, 2015 To: Terri Bell, Vice President of Strategy From: Demetrius R. Price CC: Vincent DeFazio, DM Subject: Procter & Gamble Strategic Fit Assessment Executive Summary P&G is an international company that has been in existence for a very long time. It is the largest producer of household goods and prides itself of having consumers from over 180 countries. The organization’s competitive advantage is differentiation. It is able to make unique products that can be told apart from those of its competitors. The company does this by branding. In addition, it is also innovative since it has created a lot of products. It also has good employees who work round the clock to ensure that the customers are satisfied. The firm’s corporate structure and the employees all work together for the success of the company. Business Strategy Procter and Gamble use differentiation as one of their competitive advantage strategies. The firm uses the tangible
  • 23.
    kind of differentiation.The products that they manufacture are differentiated from those of their competitors. The company packages their products in attractive material. Moreover, it also ensure that all their products are packaged according to size and many colors are used in the packaging material. The firm also deals in a wide range of variety of consumer goods. This form of diversifications also plays a major role in providing a competitive advantage. In addition, the organization has been in existence for so long and consumers have trusted them with production of quality products. This has also provided the company with a competitive edge. The business is an international organization that operates round the globe. It is innovative and manufactures products that consumers need in their houses. Their products are of high quality and this makes consumers to keep coming back for more. Furthermore, the firm charges fair prices. These prices generate adequate revenue for the firm and makes consumers happy. Strategic Fit with the Goals and Values of the Firm P&G has been in operation for a very long term. The company has goals that give rise to new ones once the previous objectives have been achieved. The organization aims at ensuring that they provide quality products and services that will be enhance the lives of consumers for a long time (Admin, 2014). This is done by ensuring that they are innovative and that their products suit the needs of customers. They firm’s intention is to design products that delight customers (Staff, 2014). Moreover, the company also aim at conserving the environment and making the world a better place. It plans on using renewable energy in the plants and renewable and recyclable materials in packaging (Staff, 2014). The company is founded on the value of doing the right thing. This can be evidenced from the way they treat their employees with respect (Staff, 2014). The firm also offers competitive wages to its employees. In addition it also offers excellent financial stewardship to its shareholders (Staff, 2014). There is ample distribution of profits in the organization. The needs of the employees and those of shareholders are balanced
  • 24.
    because the firmavoids conflict of interest. It does not prioritize the needs of either one of them. This ensures that business goes on smoothly. Strategic Fit with the Resources and Capabilities of the Firm P&G is a firm whose competitive advantage is Differentiation. The firm has various ways that they differentiate their products so as to make them unique. The organization also attempts to take advantage of innovation and efficiency. The company is ingenious and invents new products now and then. It relies on two forms of innovation, both brand innovation and business innovation. As a result, the firm’s customers have a wide range of products and services to choose from. In addition, it also endeavors to make use of its international status in order to satisfy its customers who are in over 180 countries (Admin, 2014). The firm invests in highly trained employees who are innovative and ready to work under minimal supervision. It also invests in huger plants that have high tech machines that are used in the manufacture of the products. Moreover, the firm ensures that they keep their employees happy by offering them competitive salaries and treating them with respect. For this reason, the employees work hard to maintain the organization’s image and treat customer’s in the right way. P&G has investors who fund the activities of the company. These are the shareholders. The funds are used in the proper way and the firm ensures that it generate revenue and maximizes on profits. In turn, the shareholders get a piece of the pie when they are given dividends. Organizational structure and Management systems Procter and Gamble’s corporate governance is made up of the management, shareholders, and a board of governance. The employees are the next in line and they are responsible for making the firm operational. P&G is a team based organization where they all work together towards a common goal which is ensuring customer satisfaction and generation of revenue. Both the stakeholders and shareholders are considered in the success of the business. The employees also share in the profits. The
  • 25.
    organization allows theemployees to have a share in the profits. This move was meant to motivate them to generate revenue. Segregation of duties is a one of the primary activities of the company. Each employee given instructions and they know the role they have to play. There are written policies and procedures that are followed by everyone. Communications is transparent and to the necessary individuals. Preliminary Findings and Conclusions P&G relies heavily on differentiation in order to make unique laundry and personal care products for the target market. Branding and making exclusive products to suit customer taste and needs is what keeps the firm afloat. Furthermore, the firm has managed to sell its products through some of the largest chain stores such as Walmart. However, the company is losing its market share and experiencing dwindling profits because of competition from similar businesses. References Admin, P. a. (2014). Proctor and Gamble Corporation. Retrieved from Proctor and Gamble Corporation Website: http://www.pg.com/en_US/index.shtml Manktelow, J. (1996-2015). Mind Tools Corporation. Retrieved
  • 26.
    from Mind ToolsCorporation Website: https://www.mindtools.com/pages/article/newSTR_66.htm Staff, P. a. (2014). Proctor and Gamble Corporation. Retrieved from Proctor and Gamble Corporation Website: http://www.pg.com/en_US/sustainability/social_responsibility/i ndex.shtml Running head: EXECUTIVE MEMO 1 EXECUTIVE MEMO 5 u01a1: Strategic Frame Assessment Demetrius Price MBA6024 Organizational Strategy 9656 Barlow Road Fort Belvoir, VA 22060 Telephone: 910-987-2621 Email: [email protected]
  • 27.
    Instructor: Dr. VincentDeFazio Date: 31 August 2015 Date: 31 August, 2015 To: Terri Bell, Vice President of Strategy From: Demetrius R. Price CC: Vincent DeFazio, DM Subject: Procter & Gamble Strategic Frame Assessment Executive Summary This is a Strategic Frame of the Procter & Gamble Company (P&G), which is the largest supplier of the personal and household products. P&G is one of the world's largest consumer goods companies. It markets branded products in beauty, health, fabric, home, baby, family, and personal care categories. The company operates in the Americas, Europe, the Middle East and Africa (EMEA) and Asia. The company structure was initially based on the geographical regions, but was changed in 2005 to be based on products. The P&G company structure has been a source of friction for the company since the structure evolved in 1924 into a structure in which all the products had specific production, marketing, and sales departments. The major change of the organization structure was introduced in P&G in 1989 by creating of a global product structure for each of its company structure (Dodgson, Gann & Salter, 2006). The changes in the company structure have been moving towards integration. It is the first of four deliverables
  • 28.
    that comprise theComprehensive Organizational Strategic Assessment for P&G. P&G Business Model The target market for P&G is the household consumers. P&G’s core products include laundry and personal care products. The strategy used by P&G to make money is selling its products through supermarket chains like Wal-Mart. P&G engages in the provision of branded consumer packaged goods to its consumers around the world. Its products are sold primarily through mass merchandisers, grocery stores, membership club stores, drug stores, high frequency stores, and neighborhood stores which serve many consumers in developing markets. The company revenue comes by selling products to the consumers. When it’s comes to profitability, the company core brands are losing market share and hence the company has experienced a reduction of profitability (Leavy, 2013). Proctor and Gamble Strategy and Direction P&G growth and competitive edge in the early years up to 1982 had been achieved through diversification and innovation of its products portfolio. The company introduced products like synthetic detergents, disposable diapers, and fluoride tooth paste that provided a competitive advantage in the market. However, the last groups of new products included the launch of Always. It has been noted that P&G’s diversified corporate strategies resulted in lack of coordination in launching new products (Leavy, 2013). For example, the company launched pampers in Germany in 1973, France in 1978 and United Kingdom in 1981 and hence giving its competitors in the international market to launch imitative products before P&G. Competitive Advantage (Business Strategy) P&G employs the strategies of differentiation by operating globally; it encounters wide difference in products across different products markets and regional differences. Consequently, attempts by P&G to take advantage of efficiency and innovation through integration of global border across borders has left substantial differences in its operations. Very
  • 29.
    few of P&G’sproducts were globally standardized. The differentiation strategy enabled it to produce skin care products, cosmetics, and foods according to the customer’s preferences in the different geographical regions (Conger & Nadler, 2012). Procter and Gamble Corporate Strategy The company corporate strategy changed in 2005, due to the introduction of the seven Global business units that were given worldwide responsibility of product development and marketing. Conger & Nadler, (2012) note that P&G developed a vertical scope through a process of standardization of the manufacturing process, simplifying of brands and developing efficient marketing. More than 300 brands were identified to be closed down. P&G also shifted its primary organization structure from the geographical regions to business division to reduce bureaucracy. Preliminary Findings and Conclusions The P&G corporate strategy was initially based on the diversification. The company therefore differentiated its packaging according to product size, marketing, and sales, and employed a variety of distribution channels. Despite the wave of globalization and the standardization of the goods, multinational companies like P&G increasingly developed products and strategies that focus on regionally based products to develop their business in emerging markets like Eastern Europe, South East Asia and Greater China. These findings and conclusions will likely be modified as we develop the assessments between the strategy and the firm, and the strategy and the industry environment. References Conger, J. A., & Nadler, D. A., (2012). Strategy and Governance, when CEOs step up to fail. MIT Sloan Management Review, 45(3). Dodgson, M., Gann, D., & Salter, A. (2006). The role of technology in the shift towards open innovation: the case of Procter & Gamble. R&D Management, 36(3), 333-346.
  • 30.
    Leavy, B. (2013).Where to play and how to win–strategy fundamentals the Procter & Gamble way. Strategy & Leadership, 41(5), 7-16. Porter’s 5-Forces Model Threat of Competition: HIGH: P&G’s market environment is highly competitive, with global, regional, and local competitors. In many of the markets and industry segments in which P&G sells its products, P&G competes against other branded products as well as retailers’ private-label brands. There are many different options for consumer products. Although the options are abundant, the threat is still more moderate because of thebrand equity in most products. Threat of New Entrants: LOW-MODERATE: It is a low probability for a new entrant to become as big and as well capitalized as P&G. Due to the vast range of Procter and Gamble products, it is very hard for a new company to come and participate. No new entrant can compete with the company without heavy amount of capital and complete marketing strategy based on comprehensive research. Threat of Substitutes: LOW-MODERATE: The threat of substitutes is moderate and not high because most of the products that P&G sells are necessities. There is no substitute for laundry detergent besides different types of laundry detergent. The only true substitute is to not wash your clothes or wash them without laundry detergent. That is why the threat of substitutes is low to moderate. Power of Suppliers: LOW: Procter & Gamble does not seem to have any reliance on specific suppliers and P&G forms joint ventures and partnerships for new products. The sheer size of P&G also helps it deal with suppliers in delivering the product
  • 31.
    because companies wantto work with P&G. Power of Buyers: MODERATE: There are two tiers of buyers, the retailers and the end consumer. The retailers have more power in dealing with P&G because they have large contracts for many stores (Wal-Mart stores, Albertsons). Although they have the decision on choosing substitutes or the competition, the success of P&G’s brands and the brand loyalty they have created thus far have shown that the consumers enjoy its products. the strategic fit of the Industry Environment (OUTLINE AND HINTS) 2014 Assignment Description and Instructions Write a detailed report of your analytical findings and strategic issues from your analysis of the industry environment. Explain that this analysis focuses on the strategic elements of industry environment and concerns or opportunities of how the strategic elements fit with the strategy as reported in the Strategic Frame Assessment previously delivered to the VP.. · Conduct a competitive analysis of the firm, using the theories and models of strategic analysis. Are their vital PEST (Political, Environmental, Social, Technological) factors shaping the industry conditions? Which competitive forces (Porter's 5- Forces Model) on the firm are most intense? · Analyze the strategic position and direction of the firm. Evaluate its corporate strategy. In which market segments does the firm participate? What are the buyer's purchase criteria and basis of competition (Key Success Factors) for the market segment? Should the firm reposition its resources and capabilities (change its product scope, vertical scope, or geographical scope) in anticipation of changes in industry structural factors or competitive forces? · Articulate concerns or opportunities about the firm's strategic
  • 32.
    fit with itscompetition, suppliers, and customers. · Evaluate the degree to which the organizational structure and management systems enable the execution of the corporate strategy. Consider the organization of functional capabilities and value chain capabilities of the firm. Assuming the firm employs a diversification or vertical integration strategy, could costs be reduced or revenue be increased by economizing the scale of diversification? Could costs be reduced or revenue be increased by downsizing or outsourcing activities in the vertical scope of the firm? · Submit your report in a business format, noting submission requirements below. Conduct a competitive analysis of the firm, using resource based theory or value chain model. 23% Does not conduct a competitive analysis of the firm, using the resource-based theory or value chain model. Competitive analysis of the firm insufficiently utilizes the resource-based theory or value chain model. Conducts a competitive analysis of the firm, using the resource- based theory or value chain model. Conducts a competitive analysis and synthesizes significant findings relative to the key resources, capabilities, and specific value chain activities. Analyze the strategic position and direction of the firm. 22% Does not analyze the strategic position and direction of the firm. Describes, but does not analyze the strategic position and direction of the firm. Analyzes the strategic position and direction of the firm. Analyzes the strategic position and direction of the firm relative to the strategic elements of the industry environment. Evaluate how the firm's organizational structure and management systems support execution of the firm's strategy. 23%
  • 33.
    Does not evaluatehow the firm's organizational structure and management systems support execution of the firm's strategy. Describes, but does not analyze, how organizational structure and management systems support execution of the firm's strategy. Evaluates how the firm's organizational structure and management systems support execution of the firm's strategy. Relates organizational design theory to organizational structure and management systems that enable the execution of the corporate strategy. Analyze concerns or opportunities about the firm’s strategic fit with its competition, suppliers, and customers. 22% Does not analyze concerns or opportunities about the firm's strategic fit with its competition, suppliers, and customers. Describes, but does not explain, concerns or opportunities about the firm's strategic fit with its competition, suppliers, and customers. Analyzes concerns or opportunities about the firm's strategic fit with its competition, suppliers, and customers. Assesses impact of industry environment issues on the strategic position or direction of the firm. Communicate in a manner that is professional and consistent with expectations for members of the business professions. 10% Does not communicate in a manner that is professional and consistent with expectations for members of the business professions. Inconsistently communicates in a manner that is professional and consistent with expectations for members of the business professions. Communicates in a manner that is professional and consistent with expectations for members of the business professions. Communicates in an exemplary manner that is professional and consistent with expectations for members of the business professions.
  • 34.
    --------------------------------------------------------------------------- ------------------------------------------------------------- Date, To, From,Subject (address to T. Bell, VP, cc me, include name of firm in subject) Executive Summary · Addresses modifications to the Strategic Frame, especially the corporate strategy, as a result of having conducted an in-depth analysis of the fit of firm’s strategy with its industry environment. · Analyzes the firm’s competition and strategic position in the industry; identifies concerns and opportunities relative to the competition, customers, and suppliers. · Assesses the firms strategic position and direction · Evaluates the degree to which the firm’s structure and management systems enable the execution of the firms business and corporate (if applicable) strategy to affect the firm’s strategic position. · Summarizes in a preliminary report on the firm and its external industry environment, issues about how strategies business and corporate strategies are applied to product lines and customer market segments, as identified in the Strategic Frame report. Business and Corporate (if applicable) Strategy · Confirm the firm’s business strategy as reported in the firm- strategy strategic fit. · Identify and define the firm’s generic corporate strategy, and the product scope, and the extent of its involvement in the value chain. HINT: even if your firm does not have a corporate strategy, identify the value chain activities in which it in involved. Keep this in mind when you identify the competitors. · Summarize how the corporate strategy (as defined here) is different or validates the strategy as defined in the Strategic Frame. Competitive Analysis
  • 35.
    · Research theindustry and identify the PEST factors and conclude which conditions are impacting the vitality of the industry, and your specific project firm. · Analyze the industry using (Porter's 5-Forces Model) and conclude which forces are the most intense, pose the greatest threat, to your project firm. · HINT: As you assess the threat of rivals (cite your research), do a deep dive into who the ‘real’ competition is, and note who they are and what segment they are competing in. Review ‘choosing the appropriate level of analysis” (p. 81), keeping in mind that ‘substitutability’ is key to defining industry or market segment boundaries. Apply the 5 stages of segment analysis to your firm, noting the second to last stage where you identify the Key Success Factors (see figure 2.6). The Strategic Position of the Firm · Position your project firm among the competitors you identified in the ‘rivals’ force analysis. HINT: one approach is a nominal ranking based on the 1) the key success factor, the degree to which the industry competitors meet customer demand and 2) the degree to which the industry competitors can meet the most intense industry forces 3) the degree to which industry competitors are in the best position to fend off the weakest forces. A simple table will suffice to support your analysis. · Identify concerns or opportunities about the fit between the firm’s strategy and the direction it is going among its industry competitors. Should the firm reposition its resources and capabilities (change its product scope, vertical scope, or geographical scope) in anticipation of changes in industry structural factors or competitive forces? Strategic Execution: Organizational Structure & Management Systems · Review the firm’s organizational structure and management systems from the Firm-Strategy Fit analysis.
  • 36.
    · Consider theorganization of functional and value chain capabilities and the management systems that support them. Do they ‘fit’ the current corporate strategy, or should the firm establish another or modified corporate strategy to better strategically position the firm? · Assuming the firm employs a diversification or vertical integration strategy, could costs be reduced or revenue be increased by economizing the scale of diversification? Could costs be reduced or revenue be increased by downsizing or outsourcing activities in the vertical scope of the firm? Cast your response to these questions as concerns or opportunities. Preliminary Findings and Conclusions · Analyze concerns or opportunities about the firm’s strategic fit with its competition, suppliers, and customers; the strategic position, and the execution of the strategy to better position the firm. · Summarize the issues that are most closely aligned to the products or customer market segments. The products or customer segments should be the ones identified in the Business Model of the Strategic Frame (u01a1). · Identify which issues are most important or critical, and explain why. Important issues related to weakness of capabilities are ones that threatens the competitive advantage and/or strategic position.