The document discusses portfolio analysis as a tool for associations to evaluate their programs and services and allocate resources effectively. It provides a 10-step process for conducting portfolio analysis: 1) Identify lines of business, 2) Group lines of business, 3) Compare to mission, 4) Define products/services, 5) Apply evaluation matrix, 6) Determine product fit, 7) Assess ease, 8) Evaluate alternatives, 9) Competitive position, and 10) Determine best course. Programs are evaluated on factors like fit, ease, competition, and position. They are then mapped on a portfolio matrix to identify the optimal strategy as aggressive growth, divestment, building strength, etc. This helps associations focus resources on
The document discusses various corporate level strategies including stability, growth, retrenchment, and combination strategies. It describes stability strategies as maintaining the present course when there is no threat. Growth strategies include expanding market share through internal routes like diversification or external routes like mergers. Retrenchment strategies involve downsizing through divestment, liquidation or turnaround. A combination strategy example provided integrates stability, expansion and retrenchment elements. The document also discusses Porter's generic strategies of cost leadership, differentiation and focus as well as Miles and Snow's prospector, defender and analyzer adaptation models and the product life cycle model.
This document discusses five models for predicting business failure: Beaver's model, Altman's Z score model, Wilcox model, Blum Marc's failing company model, and L.C. Gupta's model. It focuses on explaining Blum Marc's failing company model and L.C. Gupta's model. The failing company model was developed by Marc Blum to assess failure probability using financial data from 115 failed and 115 non-failed companies from 1954-1968. It achieved 94% accuracy for failures within one year and 80% accuracy for failures within two years. L.C. Gupta's study on Indian companies found that earnings before interest, taxes, depreciation and amortization/sales and operating cash
The document discusses the Boston Consulting Group (BCG) Matrix, which classifies business units into four categories based on their relative market share and market growth rate: Question Marks, Stars, Cash Cows, and Dogs. Question Marks have high growth but low market share, requiring high investment. Stars have high growth and market share but also require heavy investment. Cash Cows have low growth but high market share, generating cash with little investment. Dogs have low growth and market share and are cash traps. The BCG Matrix helps assess a product portfolio, cash demands, resource allocation, and divestment decisions.
This document outlines different types of strategic management strategies including integration, intensive, diversification, and defensive strategies. Integration strategies involve expanding operations through vertical or horizontal integration. Intensive strategies focus on improving existing products and markets through market penetration, development, or product development. Diversification strategies involve entering new markets or product lines that are related or unrelated. Defensive strategies are used to protect market share and include joint ventures, divestitures, or liquidations.
Value Chain Analysis using Porter's ModelSheetal Wagh
A value chain consists of primary and support activities that a firm performs to deliver value to customers. Primary activities directly involve creating, selling, and supporting a product or service. Support activities enable the primary activities. Michael Porter popularized the value chain concept in 1985 as a way to analyze how a firm's activities can be improved to increase competitive advantage. Analyzing a firm's value chain involves identifying its activities and sub-activities, and finding ways to enhance value at each step.
This document discusses strategic group mapping, which is a technique used to analyze a firm's competitive position within its industry. It involves identifying the key competitive factors that distinguish strategic groups, plotting representative firms on a two-dimensional map based on these factors, and using a third variable like market share to depict group size. Strategic group mapping helps identify a firm's direct competitors, potential partners, and opportunities to move between groups. While useful for competition analysis, it provides a static view that does not account for industry disruption through innovation.
This document discusses market segmentation, which is the process of dividing a market into distinct groups of consumers based on characteristics like needs, preferences, location, demographics, etc. It defines market segmentation and explains the key criteria for effective segmentation. It also outlines the different levels of segmentation from mass marketing to niche/micro marketing. Finally, it describes three patterns of segmentation - homogeneous preferences where all consumers have similar tastes, diffused preferences where tastes vary widely, and clustered preferences where natural segments emerge. The goal of segmentation is to better target specific groups and develop tailored marketing strategies.
The document discusses various corporate level strategies including stability, growth, retrenchment, and combination strategies. It describes stability strategies as maintaining the present course when there is no threat. Growth strategies include expanding market share through internal routes like diversification or external routes like mergers. Retrenchment strategies involve downsizing through divestment, liquidation or turnaround. A combination strategy example provided integrates stability, expansion and retrenchment elements. The document also discusses Porter's generic strategies of cost leadership, differentiation and focus as well as Miles and Snow's prospector, defender and analyzer adaptation models and the product life cycle model.
This document discusses five models for predicting business failure: Beaver's model, Altman's Z score model, Wilcox model, Blum Marc's failing company model, and L.C. Gupta's model. It focuses on explaining Blum Marc's failing company model and L.C. Gupta's model. The failing company model was developed by Marc Blum to assess failure probability using financial data from 115 failed and 115 non-failed companies from 1954-1968. It achieved 94% accuracy for failures within one year and 80% accuracy for failures within two years. L.C. Gupta's study on Indian companies found that earnings before interest, taxes, depreciation and amortization/sales and operating cash
The document discusses the Boston Consulting Group (BCG) Matrix, which classifies business units into four categories based on their relative market share and market growth rate: Question Marks, Stars, Cash Cows, and Dogs. Question Marks have high growth but low market share, requiring high investment. Stars have high growth and market share but also require heavy investment. Cash Cows have low growth but high market share, generating cash with little investment. Dogs have low growth and market share and are cash traps. The BCG Matrix helps assess a product portfolio, cash demands, resource allocation, and divestment decisions.
This document outlines different types of strategic management strategies including integration, intensive, diversification, and defensive strategies. Integration strategies involve expanding operations through vertical or horizontal integration. Intensive strategies focus on improving existing products and markets through market penetration, development, or product development. Diversification strategies involve entering new markets or product lines that are related or unrelated. Defensive strategies are used to protect market share and include joint ventures, divestitures, or liquidations.
Value Chain Analysis using Porter's ModelSheetal Wagh
A value chain consists of primary and support activities that a firm performs to deliver value to customers. Primary activities directly involve creating, selling, and supporting a product or service. Support activities enable the primary activities. Michael Porter popularized the value chain concept in 1985 as a way to analyze how a firm's activities can be improved to increase competitive advantage. Analyzing a firm's value chain involves identifying its activities and sub-activities, and finding ways to enhance value at each step.
This document discusses strategic group mapping, which is a technique used to analyze a firm's competitive position within its industry. It involves identifying the key competitive factors that distinguish strategic groups, plotting representative firms on a two-dimensional map based on these factors, and using a third variable like market share to depict group size. Strategic group mapping helps identify a firm's direct competitors, potential partners, and opportunities to move between groups. While useful for competition analysis, it provides a static view that does not account for industry disruption through innovation.
This document discusses market segmentation, which is the process of dividing a market into distinct groups of consumers based on characteristics like needs, preferences, location, demographics, etc. It defines market segmentation and explains the key criteria for effective segmentation. It also outlines the different levels of segmentation from mass marketing to niche/micro marketing. Finally, it describes three patterns of segmentation - homogeneous preferences where all consumers have similar tastes, diffused preferences where tastes vary widely, and clustered preferences where natural segments emerge. The goal of segmentation is to better target specific groups and develop tailored marketing strategies.
Strategic groups are clusters of companies that have similar business models, strategies, and market positions. Analyzing strategic groups helps identify a firm's most direct competitors and competitive advantages, as well as opportunities for growth. Companies within the same strategic group face similar threats and opportunities due to their similar resources and approaches. Examining strategic groups provides executives insight into rivals, alternative strategies for success, and potential opportunities.
The document discusses the GE Nine Cell Matrix, which is a portfolio analysis tool developed by McKinsey & Company for General Electric in the 1970s. It evaluates business units based on their market attractiveness and business strength. Market attractiveness depends on factors like market size, growth rate, and profit margins. Business strength is assessed by metrics such as market share, brand strength, and competitiveness. The matrix plots business units into nine cells that indicate whether a unit should be invested in, maintained, or harvested. It provides a more nuanced analysis than the Boston Consulting Group matrix.
The document discusses various growth strategies that companies can pursue, including internal growth strategies like market penetration, market development, and product development as well as external strategies like mergers & acquisitions, strategic alliances, and joint ventures. It defines key terms, compares different types of mergers and acquisitions, and discusses the benefits and challenges of joint ventures.
A strategic business unit (SBU) is an autonomous division within a larger corporation that is focused on a specific product or market segment. SBUs have their own marketing plans and budgets to drive their individual profitability, while still being accountable to the larger parent company. They allow corporations to be flexible and responsive to changing economic conditions by delegating control over key performance factors to the independent SBU level.
Diversification allows companies to enter new business lines different from current operations. Firms diversify to utilize excess resources, capture synergies, spread risk, and leverage brands. There are four main types of diversification: horizontal involves similar firms; vertical integrates suppliers and customers; concentric pursues synergistic but not identical markets; and conglomerate comprises unrelated industries. Common diversification strategies include acquisition, internal start-ups, joint ventures, and entering new businesses.
Ansoff's Matrix is a classic model of marketing and business strategy that business students can use very effectively in their exams. This revision presentation outlines the key features of the model.
SM Lecture Six : Corporate Strategy and DiversificationStratMgt Advisor
This document provides an overview of strategic management concepts related to strategic choices and corporate strategy. It discusses various strategic options companies can pursue, including market penetration, product development, market development, and diversification. It defines related and unrelated diversification strategies and explains potential advantages and disadvantages. The document also covers corporate strategy and the development of corporate portfolios, including through international expansion and divestment of unrelated businesses. Key frameworks discussed include the Ansoff matrix and evaluating potential for synergy through diversification.
This document provides information about a group presentation on sales budgeting. It discusses key concepts like the meaning of a sales budget, objectives of sales budgeting, factors that influence sales budgets, and the importance and process of preparing a sales budget. The sales budget is the first component of the master budget and estimates future revenue and expenses for the sales department. It depends on sales forecasting and considers various internal and external factors.
The GE matrix is a strategy tool used by multi-business corporations to evaluate the market position and profitability of their business units. It analyzes each unit based on industry attractiveness and competitive strength. Industry attractiveness considers factors like growth, size, and profitability. Competitive strength examines a unit's market share, brand strength, and profitability versus rivals. The matrix helps companies prioritize investments by identifying units in attractive industries with strong competitive positions or those needing improvements.
Merger and Acquisition ppt - SlideShareJanvhi Sahni
International Business Management (IBM) - BBA & MBA NOTES / POWER POINT PRESENTATION.... This ppt will tell you about the merging and takeover companies in India along with various examples. Presented By: Janvhi
The document discusses strategic advantages and disadvantages that firms possess. It notes that while large firms have financial strength, they tend to be less agile than smaller firms. Additionally, no firm excels in all areas of its operations. Strategists should evaluate where a firm's capabilities exceed its competitors. Strengths in key market factors allow firms to launch new products and gain market share. The document outlines five main functional areas for organizations and lists factors related to marketing/distribution and R&D/engineering that can provide strategic advantages.
The document discusses Porter's three generic strategies: cost leadership, differentiation, and focus. It provides details on each strategy, including the strengths companies need to successfully implement each one and risks involved. It gives examples of companies like McDonalds, Apple, Medimix, and PepsiCo that have used cost leadership, differentiation, or focus strategies.
This case study is a great example of how Companies uses Strategic Management as the principle while forming any strategy for their business. It also showed how Apple, Kellogg's & Skoda used strategic management priciples like aims & objectives, planning & organizing, communication, different matrixes (BCG, GE9) to overcome all the hurdles and reach new heights.
The document discusses the Boston Consulting Group (BCG) Matrix, which classifies businesses into four categories based on their relative market share and market growth rate. The four categories are stars, question marks, cash cows, and dogs. Stars have high market share and growth, while cash cows have high share but low growth. Question marks and dogs have low relative market share, with question marks in a high growth market and dogs in a low growth market. The BCG Matrix helps companies assess their product portfolios and allocate resources efficiently.
Professor Michael Porter suggested three general positioning strategies to achieve competitive advantage :
Low Cost Leadership Strategy
Differentiation Strategy
Focus Strategy
The Generic Competitive Strategy (GCS) is a methodology designed to provide companies with a strategic plan to compete .The GCS is useful when a company is looking to gain an advantage over a competitor
The BCG Matrix is a portfolio analysis tool developed by the Boston Consulting Group in the 1970s to help corporations analyze their business units and allocate resources. It divides business units into four categories based on their market growth rate and relative market share: stars, cash cows, question marks, and dogs. Stars are high growth, high share units that require investment; cash cows are low growth, high share units that generate cash; question marks are high growth, low share units that require investment to achieve their potential; and dogs are low growth, low share units that should be divested. The BCG Matrix provides a simple framework to assess business units and allocate capital but has limitations as it only considers two factors and does not account for synerg
The key determinants of working capital requirements for a business include: the size of the business, with larger businesses needing more working capital; the nature of the business, with manufacturing and trading typically requiring more than services; seasonal requirements in some industries; credit terms given to customers and required for suppliers; potential for business growth; and changes in price levels that impact inventory needs. Operational efficiency and working capital cycles also influence how much capital is needed on hand for daily business operations.
The document provides an overview of a course on mergers and acquisitions. It discusses reasons for undertaking mergers and acquisitions, including pursuing growth, defensive strategies, and financial opportunities. Key motives for mergers and acquisitions include cost cutting, positioning for future opportunities, filling gaps in competencies, and broader market access. The document defines various types of mergers and acquisitions and the roles of stakeholders in M&A transactions such as bidding companies, target companies, investment banks, and legal advisors.
The document discusses grand strategies that provide overall direction for strategic actions of firms operating in multiple industries or business areas. It outlines four main grand strategy alternatives: stability, growth, combination, and retrenchment. Stability involves remaining the same size or growing slowly, while growth can involve internal expansion or external diversification. Combination uses different strategies for different units, and retrenchment shrinks or sells off businesses. The document also presents a grand strategy matrix based on market growth and competitive position, outlining suitable strategies for each quadrant, such as market penetration, product development, or divestiture. It further defines various strategies like forward integration, divestiture, liquidation, and conglomerate diversification.
Nonprofits have traditionally operated without competitive pressures but now face increased competition for limited funding. The MacMillan Matrix is a tool for nonprofits to assess their programs' fit, attractiveness, alternative coverage, and competitive position to determine if changes are needed. It helps organizations consider if they are the best provider, if competition benefits clients, and if they should collaborate. Programs are placed in one of nine cells indicating the organization's strategic approach. This allows nonprofits to optimize their program portfolio and resource allocation to fulfill their mission effectively.
This document discusses operational risks related to marketing and sales. It covers factors like compensation plans, sales management practices, motivation of salespeople, and adapting to different stages of the product lifecycle. External factors like competitors' compensation and analyzing salespeople's potential are also addressed. Capabilities for achieving competitive advantage are explored, like understanding the value chain, value network, and using tools like benchmarking and SWOT analysis.
Strategic groups are clusters of companies that have similar business models, strategies, and market positions. Analyzing strategic groups helps identify a firm's most direct competitors and competitive advantages, as well as opportunities for growth. Companies within the same strategic group face similar threats and opportunities due to their similar resources and approaches. Examining strategic groups provides executives insight into rivals, alternative strategies for success, and potential opportunities.
The document discusses the GE Nine Cell Matrix, which is a portfolio analysis tool developed by McKinsey & Company for General Electric in the 1970s. It evaluates business units based on their market attractiveness and business strength. Market attractiveness depends on factors like market size, growth rate, and profit margins. Business strength is assessed by metrics such as market share, brand strength, and competitiveness. The matrix plots business units into nine cells that indicate whether a unit should be invested in, maintained, or harvested. It provides a more nuanced analysis than the Boston Consulting Group matrix.
The document discusses various growth strategies that companies can pursue, including internal growth strategies like market penetration, market development, and product development as well as external strategies like mergers & acquisitions, strategic alliances, and joint ventures. It defines key terms, compares different types of mergers and acquisitions, and discusses the benefits and challenges of joint ventures.
A strategic business unit (SBU) is an autonomous division within a larger corporation that is focused on a specific product or market segment. SBUs have their own marketing plans and budgets to drive their individual profitability, while still being accountable to the larger parent company. They allow corporations to be flexible and responsive to changing economic conditions by delegating control over key performance factors to the independent SBU level.
Diversification allows companies to enter new business lines different from current operations. Firms diversify to utilize excess resources, capture synergies, spread risk, and leverage brands. There are four main types of diversification: horizontal involves similar firms; vertical integrates suppliers and customers; concentric pursues synergistic but not identical markets; and conglomerate comprises unrelated industries. Common diversification strategies include acquisition, internal start-ups, joint ventures, and entering new businesses.
Ansoff's Matrix is a classic model of marketing and business strategy that business students can use very effectively in their exams. This revision presentation outlines the key features of the model.
SM Lecture Six : Corporate Strategy and DiversificationStratMgt Advisor
This document provides an overview of strategic management concepts related to strategic choices and corporate strategy. It discusses various strategic options companies can pursue, including market penetration, product development, market development, and diversification. It defines related and unrelated diversification strategies and explains potential advantages and disadvantages. The document also covers corporate strategy and the development of corporate portfolios, including through international expansion and divestment of unrelated businesses. Key frameworks discussed include the Ansoff matrix and evaluating potential for synergy through diversification.
This document provides information about a group presentation on sales budgeting. It discusses key concepts like the meaning of a sales budget, objectives of sales budgeting, factors that influence sales budgets, and the importance and process of preparing a sales budget. The sales budget is the first component of the master budget and estimates future revenue and expenses for the sales department. It depends on sales forecasting and considers various internal and external factors.
The GE matrix is a strategy tool used by multi-business corporations to evaluate the market position and profitability of their business units. It analyzes each unit based on industry attractiveness and competitive strength. Industry attractiveness considers factors like growth, size, and profitability. Competitive strength examines a unit's market share, brand strength, and profitability versus rivals. The matrix helps companies prioritize investments by identifying units in attractive industries with strong competitive positions or those needing improvements.
Merger and Acquisition ppt - SlideShareJanvhi Sahni
International Business Management (IBM) - BBA & MBA NOTES / POWER POINT PRESENTATION.... This ppt will tell you about the merging and takeover companies in India along with various examples. Presented By: Janvhi
The document discusses strategic advantages and disadvantages that firms possess. It notes that while large firms have financial strength, they tend to be less agile than smaller firms. Additionally, no firm excels in all areas of its operations. Strategists should evaluate where a firm's capabilities exceed its competitors. Strengths in key market factors allow firms to launch new products and gain market share. The document outlines five main functional areas for organizations and lists factors related to marketing/distribution and R&D/engineering that can provide strategic advantages.
The document discusses Porter's three generic strategies: cost leadership, differentiation, and focus. It provides details on each strategy, including the strengths companies need to successfully implement each one and risks involved. It gives examples of companies like McDonalds, Apple, Medimix, and PepsiCo that have used cost leadership, differentiation, or focus strategies.
This case study is a great example of how Companies uses Strategic Management as the principle while forming any strategy for their business. It also showed how Apple, Kellogg's & Skoda used strategic management priciples like aims & objectives, planning & organizing, communication, different matrixes (BCG, GE9) to overcome all the hurdles and reach new heights.
The document discusses the Boston Consulting Group (BCG) Matrix, which classifies businesses into four categories based on their relative market share and market growth rate. The four categories are stars, question marks, cash cows, and dogs. Stars have high market share and growth, while cash cows have high share but low growth. Question marks and dogs have low relative market share, with question marks in a high growth market and dogs in a low growth market. The BCG Matrix helps companies assess their product portfolios and allocate resources efficiently.
Professor Michael Porter suggested three general positioning strategies to achieve competitive advantage :
Low Cost Leadership Strategy
Differentiation Strategy
Focus Strategy
The Generic Competitive Strategy (GCS) is a methodology designed to provide companies with a strategic plan to compete .The GCS is useful when a company is looking to gain an advantage over a competitor
The BCG Matrix is a portfolio analysis tool developed by the Boston Consulting Group in the 1970s to help corporations analyze their business units and allocate resources. It divides business units into four categories based on their market growth rate and relative market share: stars, cash cows, question marks, and dogs. Stars are high growth, high share units that require investment; cash cows are low growth, high share units that generate cash; question marks are high growth, low share units that require investment to achieve their potential; and dogs are low growth, low share units that should be divested. The BCG Matrix provides a simple framework to assess business units and allocate capital but has limitations as it only considers two factors and does not account for synerg
The key determinants of working capital requirements for a business include: the size of the business, with larger businesses needing more working capital; the nature of the business, with manufacturing and trading typically requiring more than services; seasonal requirements in some industries; credit terms given to customers and required for suppliers; potential for business growth; and changes in price levels that impact inventory needs. Operational efficiency and working capital cycles also influence how much capital is needed on hand for daily business operations.
The document provides an overview of a course on mergers and acquisitions. It discusses reasons for undertaking mergers and acquisitions, including pursuing growth, defensive strategies, and financial opportunities. Key motives for mergers and acquisitions include cost cutting, positioning for future opportunities, filling gaps in competencies, and broader market access. The document defines various types of mergers and acquisitions and the roles of stakeholders in M&A transactions such as bidding companies, target companies, investment banks, and legal advisors.
The document discusses grand strategies that provide overall direction for strategic actions of firms operating in multiple industries or business areas. It outlines four main grand strategy alternatives: stability, growth, combination, and retrenchment. Stability involves remaining the same size or growing slowly, while growth can involve internal expansion or external diversification. Combination uses different strategies for different units, and retrenchment shrinks or sells off businesses. The document also presents a grand strategy matrix based on market growth and competitive position, outlining suitable strategies for each quadrant, such as market penetration, product development, or divestiture. It further defines various strategies like forward integration, divestiture, liquidation, and conglomerate diversification.
Nonprofits have traditionally operated without competitive pressures but now face increased competition for limited funding. The MacMillan Matrix is a tool for nonprofits to assess their programs' fit, attractiveness, alternative coverage, and competitive position to determine if changes are needed. It helps organizations consider if they are the best provider, if competition benefits clients, and if they should collaborate. Programs are placed in one of nine cells indicating the organization's strategic approach. This allows nonprofits to optimize their program portfolio and resource allocation to fulfill their mission effectively.
This document discusses operational risks related to marketing and sales. It covers factors like compensation plans, sales management practices, motivation of salespeople, and adapting to different stages of the product lifecycle. External factors like competitors' compensation and analyzing salespeople's potential are also addressed. Capabilities for achieving competitive advantage are explored, like understanding the value chain, value network, and using tools like benchmarking and SWOT analysis.
The document discusses various concepts in strategic management including strategy evaluation, the Boston Consulting Group matrix, contingency planning, and debates around strategic management as an art or science. It provides details on Porter's five forces analysis and outlines characteristics of an effective strategic evaluation system. The summary is as follows:
[1] The document discusses key concepts in strategic management such as strategy evaluation, the Boston Consulting Group matrix, contingency planning, and debates around strategic management as an art or science.
[2] It outlines Porter's five forces analysis framework and characteristics of an effective strategic evaluation system including ensuring the system fairly portrays situations and is not too cumbersome.
[3] The document also explores debates around strategic management as
The document discusses operations strategy and its role in supporting business strategy. It covers key topics such as:
1. Developing an operations strategy involves determining competitive priorities like cost, quality, time, and flexibility based on the business strategy.
2. Translating the competitive priorities into production requirements involves decisions around structure (facilities, technology, flows) and infrastructure (planning and control systems).
3. Measuring productivity is important for evaluating performance and continuous improvement. Productivity metrics should be interpreted in the proper context.
The company that I have selected is Target CorporationProjecti.docxmehek4
The company that I have selected is Target Corporation
Projections. Based on what you know about the organization’s financial health and performance, forecast its future performance. In particular, you should:
A. Project the organization’s likely consolidated financial performance for each of the next three years. Support your analysis with an appendix spreadsheet showing actual results for the most recent year, along with your projections and assumptions. Remember, your supervisor is interested in fresh perspectives, so you should not just replicate existing financial statements, but should add other relevant calculations or disaggregations to help inform decisions.
B. Modify your projections for the coming year to show a best- and worst-case scenario, based on the potential success factors and risks you identified. As with your initial projections, support your analysis with an appendix spreadsheet, specifying your assumptions and including relevant calculations and disaggregations beyond those in existing financial reports.
C. Discuss how your assumptions, forecasting methodology, and information gaps affect your projections. Why are your projections appropriate? For example, are they consistent with the organization’s mission and priorities? Aggressive but achievable? How would changing your assumptions change your projections?
Value Chain Analysis
Organizational Management
Name
Date
Introduction
A value chain is defined, according to the online business dictionary, as the “ability to
ascertain how much and at which state value is added to its goods and/or services, and how it can
be increased to enhance the product differentiation (competitive advantage).” [1]. All companies,
in order to succeed, must determine their business objectives, and what separates them from their
competitors. In addition, there are many examples of value chains depending upon the
organizational objective. Performance Food Group (PFG), the company where I’m currently
contracting states that they are “committed to innovation and quality, to extraordinary customer
service and helping associates realize the best in themselves” [2]. PFG is a private-owned
business, and does not have a strategic governance model. There are no organizational
objectives or strategic initiatives. However, the company does want to move into a public state,
but it must bring its’ infrastructure to standard where it can compete. Many people have not
heard of Performance Food Group including myself, however, they are one of the Nation’s
largest foodservice distributors, and are responsible for ensuring that vending machines,
concession stands, restaurants, big box stores, and theaters are stocked with products from the
various vendors that do business with those entities’. Performance Food Group is broken out
into three (3) divisions, and they are Performance Foodservice, Roma Food and Vistar. PFG
prides themselves ...
Sheet1StakeholderInterest or ConcernClassRole in EA Process (Key .docxbjohn46
Sheet1StakeholderInterest or ConcernClass/Role in EA Process (Key Player, Keep Satisfied, Keep Informed, Minimal Effort)Reason for ClassificationProgram Executive Sponsor (Example)This stakeholder is interested in on-time, on-budget delivery of the CSI system to realize expected benefits for the DMV and its customers.Keep InformedThis stakeholder is interested in overall bottom line results vs. the specific content of the EA.Head, Dept. of Motor VehiclesChief Financial OfficerProgram Management OfficeLine Managers for Service Delivery AreasCredentialing and Tax Processing Specialists Customer Service SpecialistSecurity OfficerCIOApplication Software DeveloperIT Operations Manager
Sheet2
Sheet3
Porter’s Competitive Strategies
Cooperative Strategies
Cooperative strategy refers to a planning strategy in which two or more firms work together in order to achieve a common objective. Several companies apply cooperative strategies to increase their profits through cooperation with other companies that stop being competitors.
Extracted from www.Wikipedia.com
Strategic Alliances
#1 Joint Venture
A joint venture is established when the parent companies establish a new child company. For example, Company A and Company B (parent companies) can form a joint venture by creating Company C (child company).
#2 Equity Strategic Alliance
An equity strategic alliance is created when one company purchases a certain equity percentage of the other company. If Company A purchases 40% of the equity in Company B, an equity strategic alliance would be formed.
#3 Non-equity Strategic Alliance
A non-equity strategic alliance is created when two or more companies sign a contractual relationship to pool their resources and capabilities together.
www.corporatefinanceinstiture.com
Joint Ventures
BMW and Toyota co-operate on research into hydrogen fuel cells, vehicle electrification and ultra- lightweight materials
https://www.tutor2u.net/economics/reference/joint-ventures
Joint Ventures
Google and NASA developing Google Earth
Equity Strategic Alliance
A great example is Panasonic. In 2009, Panasonic entered into an agreement to supply Tesla Motors with lithium-ion battery cells to use in its cars. In 2010 Panasonic invested $30 million in Tesla to support the growth of the electric car industry. Over the years, this alliance has grown. In 2017, Panasonic announced it and Tesla would start making batteries at a factory outside of Reno, Nevada.
https://groundfloorpartners.com/could-your-business-benefit-from-a-strategic-alliance/
Non-equity Strategic Alliance
https://groundfloorpartners.com/could-your-business-benefit-from-a-strategic-alliance/
One example is the partnership between Starbucks and Kroger: Starbucks has kiosks in many Kroger supermarkets. Starbucks pays Kroger for space, and Kroger customers have the opportunity to sit down and relax with a coffee while shopping. Both parties benefit nicely.
Core Competencies
A core competenc.
This document discusses strategic thinking and developing action plans. It provides guidance on analyzing employee engagement survey results to select priority issues, ensuring actions are linked to business strategy and measurable. An example tracking spreadsheet is outlined for monitoring progress of actions. The document also discusses treating customers fairly principles and analyzing the internal and external environment using tools like PEST, Porter's five forces, value chain analysis and the intelligence cycle to inform strategic planning. Famous strategic thinkers like Steve Jobs and Oprah Winfrey are mentioned.
Application portfolio management (APM) is a framework for managing an organization's software applications. APM provides visibility into all applications, their costs, usage, and business value. This allows managers to make informed decisions about which applications to keep, update, retire, or replace in order to optimize value. Key benefits of APM include cost savings, license optimization, and ensuring applications effectively support business needs. APM is implemented through inventorying all applications, collecting metrics on their performance, and regularly evaluating the portfolio to improve its content and capabilities over time.
Strategic Purpose
Business Level Strategy
Corporate Level and International Strategy
Strategy Direction and Methods of Developments
Organizing for Strategy Success
Enabling Strategy Success
Managing Strategic Change
Understanding Strategy Development
Key Learning Points
BUS 499, Week 4 Business-Level Strategy, Competitive Rivalry, and.docxcurwenmichaela
BUS 499, Week 4: Business-Level Strategy, Competitive Rivalry, and Competitive Dynamics
Slide #
Topic
Narration
1
Introduction
Welcome to Senior Seminar in Business Administration.
In this lesson, we will discuss Business-Level Strategy, Competitive Rivalry, and Competitive Dynamics.
Next slide.
2
Objectives
Upon completion of this lesson, you will be able to:
Identify various levels and types of strategy in a firm.
Next slide.
3
Supporting Topics
In order to achieve this objective, the following supporting topics will be covered:
Customers: their relationship with business-level strategies;
The purpose of a business-level strategy;
Types of business-level strategies;
A model of competitive rivalry;
Competitor analysis;
Drivers of competitive actions and responses;
Competitive rivalry;
Likelihood of attack;
Likelihood of response; and
Competitive dynamics.
Next slide.
4
Customer Relationships
Strategic competitiveness results only when the firm is able to satisfy a group of customers by using its competitive advantages as the basis for competing in individual product markets. A key reason firms must satisfy customers with their business-level strategy is that returns earned from relationships with customers are the lifeblood of all organizations. The most successful companies try to find new ways to satisfy current customers and/or meet the needs of new customers.
The firm’s relationships with its customers are strengthened when it delivers superior value to them. Strong interactive relationships with customers often provide the foundation for the firm’s efforts to profitably serve customers’ unique needs.
The reach dimension of relationships with customers is concerned with the firm’s access and connection to customers. Richness is concerned with the depth and detail of the two-way flow of information between the firm and the customer. Affiliation is concerned with facilitating useful interactions with customers.
Deciding who the target customer is that the firm intends to serve with its business-level strategy is an important decision. Companies divide customers into groups based on differences in the customers’ needs to make this decision. Dividing customers into groups based on their needs is called market segmentation, which is a process that clusters people with similar needs into individual and identifiable groups.
Next slide.
5
Customer Relationships, continued
After the firm decides who it will serve, it must identify the targeted customer group’s needs that its good or services can satisfy. Successful firms learn how to deliver to customers what they want and when they want it. In a general sense, needs are related to a product’s benefits and features. Having close and frequent interactions with both current and potential customers helps firms identify those individuals’ and groups’ current and future needs.
As explained in previous lessons, core competencies are resources and capabilities that serve as a source of.
The document discusses various aspects of planning including purposes of planning, types of plans, factors affecting planning, and contingency planning. It also discusses strategic management including different levels of strategy, the strategic management process, and frameworks for corporate and business level strategies like the BCG matrix, Miles and Snow's adaptive strategies, and Porter's competitive strategies.
This document provides an overview of strategic management. It defines strategic management as a process that includes analyzing the external and internal environment, formulating strategies to match strengths/weaknesses with opportunities/threats, implementing strategies, and measuring success through strategic control. The five steps of the strategic management process are discussed in detail. The document also discusses different perspectives on strategic management, including the scientific and artistic views, and the influences of industrial organization theory, resource-based theory, and contingency theory.
Strategic control involves tracking and adjusting a strategy during implementation by monitoring for problems or changes. It requires asking questions to determine if the company is on the right track and assumptions remain valid. There are several types of strategic control including premise control, special alert control, implementation control, strategic surveillance, and strategic audits. Premise control checks strategy premises, while special alert control rapidly reassesses strategy due to unforeseen events. Implementation control monitors strategy progression. Strategic surveillance observes internal and external factors, and strategic audits review strategies for weaknesses.
This document discusses how social syndication can help organizations expand their social selling reach. It explains that the process of buying and selling has changed, with people now proactively searching online for products rather than waiting for sales calls. This has given social syndication an important role in helping companies promote through social networks. The rest of the document provides solutions for overcoming common challenges in managing social syndication and channel partnerships, such as having structured programs aligned with different partner types and priorities, and celebrating partner successes.
The document discusses various strategic management concepts including:
- A strategic vision describes an organization's achievable future state over 3-10 years, while the mission defines its unique purpose and operations. Goals are specific financial and non-financial objectives over 3-5 years.
- Short-term objectives commonly focus on production metrics like monthly output, while long-term objectives address competitive positioning and returns. Balanced scorecards track strategy execution through financial and non-financial measures.
- Strategic capabilities and competencies provide competitive advantages if they are rare, valuable, and difficult to imitate. A resource-based view also examines how internal resources configure to outperform rivals.
Why value propositions matter? How to create a true value proposition for B2B businesses? Implementation ready toolkit to design a superior value propositions
This document summarizes internal analysis techniques for assessing a business's strategic options. It discusses analyzing financial performance, beyond just profits, to evaluate past strategies and identify strengths and weaknesses. A self-analysis involves assessing sales, costs, structure, management style and more. Key measures include customer satisfaction, product quality, brand associations, costs, new products, and manager capabilities. Models like the BCG matrix and GE Business Screen evaluate strategic business units based on industry growth and market share. The analysis aims to determine where to invest, selectively invest, or harvest/divest.
Unit 1 Module 1 - Overview of LASAsOverview of LASAsT.docxwillcoxjanay
Unit 1: Module 1 - Overview of LASAs
Overview of LASAs
The strategy audit is a comprehensive analysis of the company’s business strategy and operating performance, and culminates in a series of recommendations for improving your company’s performance based on the findings and conclusions of your analysis. It involves assessing the actual direction of a business and comparing that course to the direction required to succeed in a changing environment. A company's actual direction is the sum of what it does and does not do, how well the organization is internally aligned to support the strategy, and how viable the strategy is when compared to external market, competitor, and financial realities. These two categories—the internal assessment and the external or environmental assessment—make up the major elements of a strategy audit.
Throughout this capstone course, you will work on a strategy audit for a selected organization. This will provide a summative learning experience that allows you to demonstrate your understanding of most of the MBA program learning outcomes and concepts in the various courses within the program. You will write this report as though you are a consultant to your selected company and are addressing the executive officers of this company. In each module, you will collect and analyze data in producing your report, but your final product will be condensed and focus on presenting your analysis findings and conclusions. You will submit two parts of a course project related to the strategy audit. You will submit these two parts in Modules 3 and 5.
Here is a list of tasks you will complete for your course project.
M1: Assignment 3—Market Position Analysis: You will assess the product portfolio of your selected organization by analyzing its value proposition, market position, and competitive advantage. You will identify the business unit of your company and the product(s) and service(s) you will focus on in this report. To gain a better understanding of these factors you will conduct at least one interview with a mid-level or senior manager.
M2: Assignment 2—External Environmental Scan: You will conduct a comprehensive external environment scan of your business unit along with a five forces analysis. Your analysis will incorporate any key customer-related factors and trends. You will use this information for a strengths, weaknesses, opportunities, and threats (SWOT) analysis in Module 4.
M3: Assignment 2—LASA 1: Preliminary Strategy Audit: This is where you submit the first part of your course project assignment. You will develop a preliminary strategy audit, in which you will include an analysis of the company’s value proposition, market position, competitive advantage, and an external environmental scan/five forces analysis. You will also identify the 5–7 most important strategic issues facing the organization or business unit and include a preliminary set of recommended tactics for improving your company’s strategic align ...
- Associations are facing pressures like increased competition and members scrutinizing the value of membership, demanding tangible returns. To survive, associations must promote their value to potential customers in addition to just providing behind-the-scenes support to members.
- With technology allowing people to connect more easily online, associations need new strategies to attract and retain members. This includes determining a clear value proposition and branding that appeals to potential customers in competitive markets.
- Successful strategies include competitive positioning by emphasizing quality and service over financial resources, using sub-brands to target niches while keeping the core association brand, and short-term campaign strategies tied to issues like new legislation. External help can provide objective expertise in developing these new communication
Similar to Portfolio analysis-matrix-explanation-and-questionnaire (20)
1. PORTFOLIO ANALYSIS:
SEPARATING WINNERS FROM LOSERS
IN THE ASSOCIATION WORK PLAN
Once an association has adopted a strategic plan, the next step is to convert the goals and
objectives in that plan to a work plan and budget. But how can this be done? Every association
program or service has a constituency and a claim on resources. How then to weigh the
allocation of scarce resources to ensure that the objectives of the plan are attained and member
needs are served? Portfolio analysis has been devised to help associations bridge the gap between
strategy formulation and strategy implementation. In other words, it helps you make the hard
choices of where to put your money. It is the creation of Dr. Ian MacMillan of the University of
Pennsylvania’s Wharton School and the basis for The Forbes Group’s model.
What Portfolio Analysis Is
Portfolio analysis is a systematic way to analyze the products and services that make up an
association's business portfolio. All associations (except the simplest and the smallest) are
involved in more than one business. Some of these include publishing, meetings and conventions,
education and training, government representation, research, standards setting, public relations,
etc. Each of these is one of the association's strategic business units (SBUs). Each business
consists of a portfolio of products and services. For example, an association's publishing business
might include a professional journal, a lay magazine, specialized newsletters geared to different
member segments, CDs, a website, social networking sites, etc.
Portfolio analysis helps you decide which of these products and services should be emphasized
and which should be phased out, based on objective criteria. Portfolio analysis consists of
subjecting each of the association's products and services through a progression of finer screens.
During a time of cutbacks and scarce resources, it is essential to screen out programs and services
that are not essential to most members. Those that appeal to a more limited segment can be
funded by those desiring the product or service rather than by dues.
Advantages and Disadvantages of Portfolio Analysis
Portfolio analysis offers the following advantages:
1. It encourages management to evaluate each of the organization's businesses individually and
to set objectives and allocate resources for each.
2. It stimulates the use of externally oriented data to supplement management's intuitive
judgment.
3. It raises the issue of cash flow availability for use in expansion and growth.
Portfolio analysis does, however, have some limitations.
1. It is not easy to define product/market segments.
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2. 2. It provides an illusion of scientific rigor when some subjective judgments are involved.
Considering both its advantages and disadvantages, portfolio analysis should be regarded as a
disciplined and organized way of thinking about asset allocation. It is only a subjective tool,
however, and is not a substitute for the ultimate professional judgment of the responsible
decision-makers.
Step 1: Identify Lines of Business
The first step in portfolio analysis is to identify the lines of businesses (SBUs) that make up the
association's portfolio. The guideline to keep in mind is this: if we were a corporation instead of a
professional society, which groups of programs would be logical candidates to be grouped
together as independent businesses?
Step 2: Group Lines of Business
There are three lines of businesses an association typically engages in. The first is core businesses
that are of vital importance to your broad membership. These are the businesses that directly
support the objectives in the strategic plan and have a priority claim on resources.
The second line of business is support functions that make it possible to deliver the core business
benefits to members. Examples of support functions are administrative, accounting, legal,
governance support, etc. These do not have a priority claim on resources. Rather, the objective
is to minimize the cost of these functions and transfer resources to support the core business.
The third line of business is money-makers that provide low-priority member benefits but are the
source of revenues that support the association’s core businesses. Ideally, the association’s core
businesses should be self-supporting and perhaps even contribute to reserves. Often, this is not
the case and activities must be subsidized with other income. Money-makers provide this income.
Examples of money-makers are rental car discounts, affinity cards, insurance programs.
Step 3: Compare Core Businesses with Mission Statement
Once you have separated out your core businesses, compare them with the association's mission
statement. To pass this screen, a business must directly support the goals that are defined in the
mission statement. Support should be direct and not peripheral. If a line of business does not
support the strategic plan, it should be discontinued or phased out and its resources transferred to
support the association's other core businesses.
Step 4: Define Products and Services in Each Line of Business
Once lines of business have been tested for relevance to the mission statement, the next step is to
subdivide those that are relevant into their component products and services. For example, the
publishing business would be subdivided into each of its products. Each product or service would
then be compared to the Program Evaluation Matrix.
Step 5: Apply the Program Evaluation Matrix
The Program Evaluation Matrix is a graphic device that simplifies the process of analyzing all the
products and services in the association's portfolio of products and services. In running its
programs through the Program Evaluation Matrix, the association makes several assumptions.
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3. Assumptions
1. Since the need for resources is competitive, the association must view the problem of
securing resources in a competitive context.
2. It is preferable to provide good service to a focused market than to provide mediocre or
poor service to too large a market.
3. It is pragmatic to surrender mediocre programs to better competitors and wrest away
promising programs from weaker competitors.
Evaluating Program Characteristics
The Program Evaluation Matrix helps an association determine the answers to the following
questions about each product or service in its portfolio:
1. Is it a good fit with our other programs?
2. Is it easy to implement?
3. Is there poor alternative coverage in the marketplace?
4. Is our competitive position strong?
For a program to survive the competition for the association's resources, there should be a
positive response to all these questions. No program is in a strong position unless it is
superior to all programs in that category. If it is not, it should be classified as being in a weak
position.
The effect of these generic strategies is to serve the client base with a small number of strong,
excellent providers rather than with a larger number of fragmented providers competing for
limited dollars.
Step 6: Determine Product Fit
Using the Program Evaluation Matrix, the first step is to determine whether the product or service
under review fits the association's mission and priorities. The screens for good product fit are:
1. Congruence with mission and purpose of the association.
2. Focus on core concerns that are of vital interest to the association's members/customers.
Step 7: Determine Ease of Funding and Implementation (Is this an easy business?)
The criteria for determining whether a program or service has the prospect of relatively easy
funding and implementation are:
1. High appeal to groups capable of providing current and future support.
2. Stable source of funding.
3. Market demand from a large, concentrated, growing client base.
4. Appeals to volunteer leadership.
5. Measurable, reportable program results.
Step 8: Determine Availability of Alternative Coverage
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4. This is the first step in a competitive analysis. Even nonprofits operate in a competitive
environment, which has a strong impact on the ability to successfully deliver member products
and services. Alternative coverage means is anyone else offering similar programs. Programs
should be classified according to two alternatives:
1. Low coverage: If there are few comparable programs offered elsewhere.
2. High coverage: If many similar programs are offered elsewhere.
Step 9: Assess Competitive Position of Product or Service
The following criteria should be considered in determining whether an association product or
service is in a strong competitive position. Competition is not limited to other nonprofits. For-
profit companies can and do compete directly with the association in the delivery of many
products and services. Publications are a good example of this. Criteria for a strong competitive
position are:
1. Dominant market share or strong prospects for achieving market dominance.
2. Better quality/value/service than competitors.
3. Superior ability to produce and market this program.
4. Cost-effective program delivery.
5. Strong match between the program and the future needs of members/customers.
Step 10: Determine Program Fit
Ideally, the association will have two types of programs:
1. Well-fitting, easy programs where the association has a strong position and competes
aggressively for a dominant position.
2. Well-fitting, difficult programs with low coverage that the association has the unique,
strong capability to provide to important stakeholders.
Applying these steps will reveal the association's current portfolio situation. The ideal would be
to have a portfolio that has primarily winners, and contains enough winners and profit producers
to finance the growth of potential winners. In reality, however, there will probably be a few
question marks and even perhaps a small loser. Then, of course, there are those untouchable
programs that, although marginal or even losers, are considered to be of fundamental importance
to members and must be subsidized.
Summing Up
Portfolio analysis is an important aid in the association's quest to identify its specific competitive
role. This role should be so well suited to the association's external and internal environments
that other associations are unlikely to challenge or dislodge it. The association then has a
distinctive competence that enables it to take advantage of specific environmental opportunities.
To accomplish this, the association must be on the constant lookout for strategic windows or
market opportunities.
In today’s competitive world, successful associations will have three characteristics in common,
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5. and portfolio analysis will have an important role to play in helping associations achieve them.
• They will innovate as a way of life.
• They will compete on value in meeting member needs, not on price.
• They will achieve leadership in related niche markets.
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6. PROGRAM EVALUATION WORKSHEET
Line of Business_______________________________________
Product or Service______________________________________
Analysis by_________________________ Date______________
Instructions: Evaluate the program or service on a scale of 1 to 5, with 1 being least favorable
and 5 being most favorable. Then add your ratings in each section, average them, and write the
numerical score at the end of the section. Then check which description best fits your analysis.
Give a high score if the average was 5. Give everything else a low score. Example: if you rate
Question 1 as 5 and 3 respectively, this would result in an average score of 4. You would then
check "poor fit."
1. GOOD PROGRAM FIT: Does the program fit our mission?
a. Does this program carry out the mission, goals and objectives of the
association's strategic plan?
1 2 3 4 5
b. Is the program sharply focused on core concerns that are vital to a significant
segment of the members/customers?
1 2 3 4 5
NUMERICAL SCORE for #1:______ GOOD FIT POOR FIT
2. EASY BUSINESS: Is this program an "easy business" for the association?
a. High appeal to those whose financial support is essential to the continuing
success of the program?
1 2 3 4 5
b.Is financial support stable for the foreseeable future?
1 2 3 4 5
c. Does this program appeal to the volunteer leadership?
1 2 3 4 5
d. Is there a market demand from a large, concentrated customer base?
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7. 1 2 3 4 5
e. Are there measurable, reportable program results?
1 2 3 4 5
SCORE for #2:______ EASY BUSINESS DIFFICULT BUSINESS
3. ALTERNATIVE COVERAGE
a. High Alternative Coverage: Do others offer many similar programs?
b. Low Alternative Coverage: Do others offer few comparable programs?
Many Programs Few Programs
1 2 3 4 5
LOW ALTERNATIVE COVERAGE (Few programs)
HIGH ALTERNATIVE COVERAGE (Many programs)
COMPETITIVE POSITION: Is our program strongly positioned against
competition?
a. Dominant market share or strong prospects for achieving market dominance
1 2 3 4 5
b.Better quality/value/service than competitors
1 2 3 4 5
c. Superior ability to produce and market this program
1 2 3 4 5
d. Cost-effective program delivery
1 2 3 4 5
e. Strong match between the program and the future needs of
members/customers
1 2 3 4 5
SCORE for #4:______ STRONG COMPETITIVE POSITION
WEAK COMPETITIVE POSITION
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8. APPLYING THE PROGRAM EVALUATION MATRIX
The next step is to apply each of the scores against the Program Evaluation Matrix. When you
have completed this exercise, use the checklist below to classify this program or service. Then
assign it to its proper place on the matrix.
Aggressive Competition (Cell I)
Aggressive Growth (Cell II)
Aggressive Divestment (Cell III)
Build Strength or Get Out (Cell IV)
Build Up Best Competitor (Cell V)
"Soul of the Association" (Cell VI)
Orderly Divestment (Cell VII)
"Foreign Aid" or Joint Venture (Cell VIII)
Aggressive Divestment (Cell IX)
Orderly Divestment (Cell X)
EXPLANATION OF THE PROGRAM EVALUATION MATRIX CHART
Using the numerical ratings from your Program Evaluation Worksheet, find out which cell fits
each program or service you have analyzed.
The top row of the Matrix indicates whether the program is an easy business or a difficult
business. It is further subdivided according to whether you rated it as having high alternative
coverage or low alternative coverage.
The left vertical row of the Matrix indicates whether the program is a good fit or a poor fit for
the association. This is further subdivided according to whether the association's program is in a
strong competitive position or a weak competitive position.
The juncture of the horizontal and vertical axes will advise you of the best course to follow in
your assessment of the product or service under review. Each cell on the Matrix is made up of
the following components from your Program Evaluation Worksheet:
CELL I: Aggressive Competition - Association has a dominant market position and has the
prospect to compete successfully.
Good fit
Easy business
High alternative coverage
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9. Strong position
CELL II: Aggressive Growth - Association has a clear field and should move rapidly to take full
advantage of its opportunities.
Good fit
Easy business
Low alternative coverage
Strong position
CELL III: Aggressive Divestment - Lots of competition and a weak market position signal rapid
exit and redeployment of assets to something more productive.
Good fit
Easy business
High alternative coverage
Weak position
CELL IV: Build Strength or Get Out - The association has a weak competitive position but
there isn't anyone out there much better, so either get better and dominate the niche or redeploy
assets.
Good fit
Easy business
Low alternative coverage
Weak position
CELL V: Build Up Best Competitor - It's a difficult business with lots of competition; strike a
deal with the best competitor and get out.
Good fit
Difficult business
High alternative coverage
Strong position
CELL VI: The Soul of the Association - It's a difficult business but essential to the members.
The association does it well and no one else can do it, so find funds to subsidize it and keep going
even though it makes little economic sense.
Good fit
Difficult business
Low alternative coverage
Strong position
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10. CELL VII: Orderly Divestment - If you're in a difficult business and a weak competitive position
with high alternative coverage, it's time to plan a graceful withdrawal.
Good fit
Difficult business
High alternative coverage
Weak position
CELL VIII: "Foreign Aid" or Joint Venture - If it is a difficult business, with low alternative
coverage and you are in a weak competitive position -- but it is a good fit for the association,
consider a joint venture with another organization, or getting an outside funding source to
support it.
Good fit
Difficult business
Low alternative coverage
Weak position
CELLS IX. & X: - Aggressive/orderly divestment: It doesn't matter whether it's an easy business
if it doesn't fit the association's mission: get out and use the resources on something that supports
the mission.
Poor fit
Easy or difficult business
Cells I and II are clearly winners and are candidates for priority resource allocation.
Cell VI and VIII programs should be made self-supporting where possible so they do not divert
resources from potential winners in Cells I and II.
Cell IV programs should be retained or discontinued according to whether performance improves
enough to move to Cell I or II.
Cells III, V, VII, IX and X are potential sources of revenue for higher-priority programs.
Resources should be transferred from these cells to other cells as rapidly as possible.
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11. PROGRAM EVALUATION MATRIX*
A Strategy Matrix for Selecting Programs in Nonprofit Organizations
EASY "BUSINESS" DIFFICULT "BUSINESS"
HIGH
ALTERNATIVE
COVERAGE
LOW
ALTERNATIVE
COVERAGE
HIGH
ALTERNATIVE
COVERAGE
LOW
ALTERNATIVE
COVERAGE
GOOD FIT
STRONG
COMPETITIVE
POSITION
I.
AGGRESSIVE
COMPETITION
II.
AGGRESSIVE
GROWTH
V.
BUILD UP
THE BEST
COMPETITION
VI.
"SOUL OF
THE
ASSOCIATION"
WEAK
COMPETITIVE
POSITION
III.
AGGRESSIVE
DIVESTMENT
IV.
BUILD
STRENGTH OR
GET OUT
VII.
ORDERLY
DIVESTMENT
VIII.
"FOREIGN AID"
OR JOINT
VENTURE
POOR FIT
IX.
AGGRESSIVE DIVESTMENT
X.
ORDERLY DIVESTMENT
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12. The Forbes Group ▪ 5806 Sandy Pointe Drive, Sarasota, FL 34233 ▪ 703/691-2440 ▪ www.forbesgroup.com
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