Strategic marketing managers have three main responsibilities:
1) Define the vision, mission, goals and objectives of the business unit.
2) Analyze the internal and external environment to identify core competencies and strategic alternatives.
3) Implement, monitor and control the marketing strategy to provide feedback for continuous improvement.
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.
Competitive advantage comes from low costs or differentiation. Companies pursue cost leadership, differentiation, or focus strategies depending on their scope and basis of advantage. Cost leadership aims to have the lowest costs industry-wide while differentiation makes products unique. Focus involves serving a niche market better than competitors through low costs or differentiation. Sustaining advantage requires continuous improvement, learning, and overcoming inertia to adapt strategies.
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.
The document discusses strategic planning at various organizational levels. It explains that corporate strategic plans provide direction for lower levels and address objectives, vision, and growth strategies. Business strategic plans determine how a business unit will compete through its market scope and competitive advantage. Marketing strategic plans focus on selecting target markets and developing marketing mix strategies.
Porter’s Five Forces Model of Competitive AnalysisHitaksha Puthran
The document provides an overview of Porter's Five Forces analysis framework. It describes the five competitive forces as threats of new entry, power of suppliers, power of buyers, threat of substitutes, and competitive rivalry. For each force, it outlines factors that determine the degree of competitive pressure, and provides examples of how each force applies to industries like fast food, automotive manufacturing, and telecommunications. The purpose of Porter's model is to help companies assess the competitive environment of an industry in order to develop effective business strategies.
This document discusses competitor analysis and different market positions companies can take. It defines competitor analysis and describes identifying current and potential competitors. It then explains different industry concepts of competition based on number of sellers, barriers to entry/exit, cost structure, and globalization. The document also outlines four main market positions - market leader, challenger, follower, and nicher - and describes common strategies associated with each role.
The document presents a marketing plan for a new venture. It defines key terms like market plan and marketing plan. It outlines the differences between a business plan and a marketing plan. It discusses the importance of marketing research and understanding the target market. Finally, it outlines the steps involved in preparing an effective marketing plan, including defining goals and objectives, developing marketing strategies, and implementing and monitoring the plan.
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.
Competitive advantage comes from low costs or differentiation. Companies pursue cost leadership, differentiation, or focus strategies depending on their scope and basis of advantage. Cost leadership aims to have the lowest costs industry-wide while differentiation makes products unique. Focus involves serving a niche market better than competitors through low costs or differentiation. Sustaining advantage requires continuous improvement, learning, and overcoming inertia to adapt strategies.
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.
The document discusses strategic planning at various organizational levels. It explains that corporate strategic plans provide direction for lower levels and address objectives, vision, and growth strategies. Business strategic plans determine how a business unit will compete through its market scope and competitive advantage. Marketing strategic plans focus on selecting target markets and developing marketing mix strategies.
Porter’s Five Forces Model of Competitive AnalysisHitaksha Puthran
The document provides an overview of Porter's Five Forces analysis framework. It describes the five competitive forces as threats of new entry, power of suppliers, power of buyers, threat of substitutes, and competitive rivalry. For each force, it outlines factors that determine the degree of competitive pressure, and provides examples of how each force applies to industries like fast food, automotive manufacturing, and telecommunications. The purpose of Porter's model is to help companies assess the competitive environment of an industry in order to develop effective business strategies.
This document discusses competitor analysis and different market positions companies can take. It defines competitor analysis and describes identifying current and potential competitors. It then explains different industry concepts of competition based on number of sellers, barriers to entry/exit, cost structure, and globalization. The document also outlines four main market positions - market leader, challenger, follower, and nicher - and describes common strategies associated with each role.
The document presents a marketing plan for a new venture. It defines key terms like market plan and marketing plan. It outlines the differences between a business plan and a marketing plan. It discusses the importance of marketing research and understanding the target market. Finally, it outlines the steps involved in preparing an effective marketing plan, including defining goals and objectives, developing marketing strategies, and implementing and monitoring the plan.
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.
This document provides an overview of market-driven strategy and its key components. It discusses how becoming market-oriented, determining distinctive capabilities, matching customer value requirements to capabilities, and achieving superior performance are characteristics of a market-driven strategy. It also outlines the steps in developing corporate strategy, including defining the corporate mission, establishing strategic business units, assigning resources, and planning for new or terminating older businesses. Finally, it discusses the challenges of implementing market-driven strategy in today's globalized and technologically advanced business environment.
The document provides an introduction to international marketing, including definitions of key terms, differences between international and domestic marketing, and challenges in international marketing. It discusses the international marketing concept, environmental forces companies must consider, and stages of international marketing involvement ranging from no direct foreign marketing to global marketing. Language barriers, standardization-customization issues, and ethnocentrism are highlighted as major obstacles international marketers face.
Porter's Generic Strategies with examplesdipalij07
This Presentation is containing brief description of generic strategies with examples of companies in detail....
Hope it will be helpful to everybody....
Enjoy...!! :)
This document provides an overview of marketing research, including definitions, processes, methods and applications. It defines marketing research as the systematic process of identifying and solving marketing problems through data collection, analysis and reporting. The key stages are defined as problem identification, research design, data collection, data analysis, and reporting. Common problem-solving research includes segmentation, product, pricing, promotion and distribution research. Other topics covered include careers, selecting research suppliers, and the roles of marketing information systems and decision support systems. Ethics and stakeholders are also discussed.
This document outlines the key components of corporate, business, and marketing strategy. It discusses corporate strategy including defining the scope and purpose of the business. It also discusses business and marketing strategy relationships. The marketing strategy process is outlined including situation analysis, market vision/structure analysis, segmenting markets, and continuous learning. The document provides an outline for a marketing plan including sections on strategic situation summary, market targets and objectives, positioning statements, market mix strategy, coordination with other business functions, sales forecasts and budgets, and contingency plans.
1. The document discusses sales and cost analysis techniques used to measure performance, identify problems, and uncover sales opportunities.
2. It describes how to manage sales control through setting goals, comparing actual performance to targets, and taking corrective action. Common problems include external factors and inadequate information.
3. Various types of sales analysis are outlined, including analysis by region, sales representative, product, customer, and distribution channel to convert raw data into actionable insights.
A marketing audit is a systematic analysis of a company's marketing activities and market penetration. It analyzes the market environment, marketing strategies, and company objectives. A marketing audit comprehensively studies all marketing functions, including marketing environment, strategy, organization, systems, productivity, and functions. It identifies opportunities and weaknesses. The scope of a marketing audit includes internal and external factors like resources, customers, competition, and cultural environment. It allows companies to evaluate their marketing plan and make necessary changes.
Marketing planning involves systematically assessing marketing opportunities and resources, determining marketing objectives, and developing an implementation and control plan. It is an important process that focuses an organization on its future direction and values. Marketing planning helps identify market opportunities and threats, establishes performance standards, facilitates coordination, and encourages innovation. Planning can be classified as short-term tactical plans or long-term strategic plans. The strategic marketing planning process involves defining goals, establishing business units, setting objectives, analyzing the situation, developing strategies, implementing tactics, and monitoring results. SWOT analysis evaluates internal strengths and weaknesses and external opportunities and threats. It is an important part of planning that helps organizations build on strengths and address weaknesses.
ETOP is a technique of strategic analysis and choice which is helpful for the organizations to sustain in competitive environment.
Gluck has developed ETOP technique which involves to divide the environment into different sectors and then analyze the impact of each sector on the organization. Therefore, the strategist can draw a clear picture of different factors providing favorable impact on the organization.
ETOP helps the strategist to prepares profile of the environment by scanning the environment with its threats and opportunities and then formulate the strategy.
ETOP helps organization to identify O-T
It consolidates and strengthens organization’s position
It provides the information to the strategist regarding which sectors have favourable impact on the organization.
It helps organizations to know where it stand with respect to its environment.
It helps in formulating appropriate strategy.
It helps in formulating SWOT analysis
To prepare ETOP it is important to divide the entire organization into different sectors.
Analysing the impact of each sector on the organization.
Subdividing each environmental sector into sub factor.
Impact of each sub factor on organization in the form of a statement.
ETOP analysis provides information about environment threats & opportunities & their impact on strategic opportunities for the company.
The profile contains mainly 3 issues, they are-Forecasting, Verbal - Written information & Management Information System (MIS)
The document discusses marketing strategies and plans at different organizational levels. It covers developing marketing strategies through understanding customer value, strategic planning at the corporate and business unit levels, and creating marketing plans. Specifically:
- Strategic planning involves understanding customer value through activities like value delivery, value chains, and core competencies. It also covers core business processes and the role of the CMO.
- Corporate strategic planning establishes the mission, identifies strategic business units, allocates resources, and assesses growth opportunities through new businesses, downsizing, or terminating older businesses.
- Business unit strategic planning develops goals and strategies for each unit based on opportunities and threats in external and internal analyses.
- Marketing plans operate at strategic
Sales meetings are gatherings where company representatives discuss products and services with potential buyers. They outline benefits in an effort to make sales. Planning sales meetings involves defining aims, deciding content, selecting a method, executing the plan, and evaluating outcomes. There are several types of sales meetings including national, regional, local, and remote control meetings. Sales contests provide incentives beyond normal compensation to increase sales volume and profits. Contests have objectives like obtaining new customers or pushing slow items. Management should evaluate contests before and after to improve design and impact on employee morale.
Here describe the SWOT Analysis in the Strategic Management. A Complete package that covered all the related areas (such like SWOT advantages, disadvantages, application & Example)
This document discusses strategic marketing and strategic management. It defines strategy as the direction and scope of an organization to achieve long-term advantage through its resources and environment to meet market needs and stakeholder expectations. Strategy exists at the corporate, business unit, and operational levels. The strategic management process involves strategic analysis using tools like PEST analysis and SWOT analysis, strategic choice by evaluating options, and implementation. Strategic marketing addresses questions about an organization's past, present, and future direction in the market.
Strategy implementation refers to the activities within an organization to execute its strategic plan. This involves translating the chosen strategy into organizational actions to achieve strategic goals. Key aspects of strategy implementation include developing organizational structures, control systems, and culture aligned with the strategy. It also involves assigning tasks and roles to employees to maximize efficiency, quality, and customer satisfaction. Successful strategy implementation depends on factors like organizational structure, resource allocation, leadership styles, and procedures. It is important that implementation responsibilities are shifted to divisional and functional managers who were involved in the strategy formulation process.
This document discusses the three levels of strategic management - corporate, business, and operational.
The corporate level focuses on the overall plan for the organization and strategic business units. Strategy at this level involves conceptual decisions. The business level determines how each business unit will compete and allocates resources. Operational level strategies improve internal functions like manufacturing and marketing.
Effective strategic management requires coordination across all three levels to improve profitability.
This document discusses sales territories and how to design them. It defines a sales territory as a geographic area assigned to a salesperson consisting of current and potential customers. There are several reasons for setting up sales territories, such as increasing market coverage and improving salesforce performance. The document outlines the key steps in designing sales territories including selecting a control unit, finding locations and customers, and deciding on basic territories using either a build or breakdown method. It also discusses assigning salespeople to territories, managing territory coverage through routing and scheduling, and time management tools.
The document provides an overview of key marketing concepts including definitions of marketing, needs and wants, products, markets, and the marketing mix. It discusses the marketing concept, relationship marketing, and different marketing strategies like Porter's generic strategies. Various frameworks for analyzing markets and customers are also introduced, such as PEST analysis, VALS system, and Maslow's hierarchy of needs.
Selecting strong channel members who can efficiently distribute products is the most important factor in channel selection. Channel members should be carefully evaluated based on criteria like years in business, profitability, cooperation, reputation, sales force, and growth potential. Manufacturers attract qualified channel members through product incentives like good product lines with sales and profit potential, as well as advertising/promotion and management support. Securing channel members involves specific incentives and building good, trusting relationships focused on mutual benefit.
This document provides an overview of competitor analysis and competitive strategies. It discusses identifying competitors through industry concepts of competition and market share. Key aspects of analyzing competitors are their strategies, objectives, strengths, weaknesses and reaction patterns. The document also outlines designing a competitive intelligence system through collecting, evaluating and disseminating competitor data. Competitive positions like market leaders can pursue strategies of expanding the total market or defending market share. Other strategies discussed include those of market challengers, followers and market niches. The document concludes with balancing customer and competitor orientations.
This document discusses company strategy and marketing. It begins by outlining the objectives of understanding strategic planning, designing business portfolios, and marketing's role. It then provides details on Disney's business model and diversification. The core of the document covers strategic planning, including defining the process, developing mission statements and analyzing current business units. It also discusses tools for portfolio analysis like the BCG matrix and developing strategies for growth, downsizing or new opportunities. Finally, it outlines the key elements of the marketing process, including analyzing opportunities, targeting markets, developing the marketing mix, and managing the effort.
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.
This document provides an overview of market-driven strategy and its key components. It discusses how becoming market-oriented, determining distinctive capabilities, matching customer value requirements to capabilities, and achieving superior performance are characteristics of a market-driven strategy. It also outlines the steps in developing corporate strategy, including defining the corporate mission, establishing strategic business units, assigning resources, and planning for new or terminating older businesses. Finally, it discusses the challenges of implementing market-driven strategy in today's globalized and technologically advanced business environment.
The document provides an introduction to international marketing, including definitions of key terms, differences between international and domestic marketing, and challenges in international marketing. It discusses the international marketing concept, environmental forces companies must consider, and stages of international marketing involvement ranging from no direct foreign marketing to global marketing. Language barriers, standardization-customization issues, and ethnocentrism are highlighted as major obstacles international marketers face.
Porter's Generic Strategies with examplesdipalij07
This Presentation is containing brief description of generic strategies with examples of companies in detail....
Hope it will be helpful to everybody....
Enjoy...!! :)
This document provides an overview of marketing research, including definitions, processes, methods and applications. It defines marketing research as the systematic process of identifying and solving marketing problems through data collection, analysis and reporting. The key stages are defined as problem identification, research design, data collection, data analysis, and reporting. Common problem-solving research includes segmentation, product, pricing, promotion and distribution research. Other topics covered include careers, selecting research suppliers, and the roles of marketing information systems and decision support systems. Ethics and stakeholders are also discussed.
This document outlines the key components of corporate, business, and marketing strategy. It discusses corporate strategy including defining the scope and purpose of the business. It also discusses business and marketing strategy relationships. The marketing strategy process is outlined including situation analysis, market vision/structure analysis, segmenting markets, and continuous learning. The document provides an outline for a marketing plan including sections on strategic situation summary, market targets and objectives, positioning statements, market mix strategy, coordination with other business functions, sales forecasts and budgets, and contingency plans.
1. The document discusses sales and cost analysis techniques used to measure performance, identify problems, and uncover sales opportunities.
2. It describes how to manage sales control through setting goals, comparing actual performance to targets, and taking corrective action. Common problems include external factors and inadequate information.
3. Various types of sales analysis are outlined, including analysis by region, sales representative, product, customer, and distribution channel to convert raw data into actionable insights.
A marketing audit is a systematic analysis of a company's marketing activities and market penetration. It analyzes the market environment, marketing strategies, and company objectives. A marketing audit comprehensively studies all marketing functions, including marketing environment, strategy, organization, systems, productivity, and functions. It identifies opportunities and weaknesses. The scope of a marketing audit includes internal and external factors like resources, customers, competition, and cultural environment. It allows companies to evaluate their marketing plan and make necessary changes.
Marketing planning involves systematically assessing marketing opportunities and resources, determining marketing objectives, and developing an implementation and control plan. It is an important process that focuses an organization on its future direction and values. Marketing planning helps identify market opportunities and threats, establishes performance standards, facilitates coordination, and encourages innovation. Planning can be classified as short-term tactical plans or long-term strategic plans. The strategic marketing planning process involves defining goals, establishing business units, setting objectives, analyzing the situation, developing strategies, implementing tactics, and monitoring results. SWOT analysis evaluates internal strengths and weaknesses and external opportunities and threats. It is an important part of planning that helps organizations build on strengths and address weaknesses.
ETOP is a technique of strategic analysis and choice which is helpful for the organizations to sustain in competitive environment.
Gluck has developed ETOP technique which involves to divide the environment into different sectors and then analyze the impact of each sector on the organization. Therefore, the strategist can draw a clear picture of different factors providing favorable impact on the organization.
ETOP helps the strategist to prepares profile of the environment by scanning the environment with its threats and opportunities and then formulate the strategy.
ETOP helps organization to identify O-T
It consolidates and strengthens organization’s position
It provides the information to the strategist regarding which sectors have favourable impact on the organization.
It helps organizations to know where it stand with respect to its environment.
It helps in formulating appropriate strategy.
It helps in formulating SWOT analysis
To prepare ETOP it is important to divide the entire organization into different sectors.
Analysing the impact of each sector on the organization.
Subdividing each environmental sector into sub factor.
Impact of each sub factor on organization in the form of a statement.
ETOP analysis provides information about environment threats & opportunities & their impact on strategic opportunities for the company.
The profile contains mainly 3 issues, they are-Forecasting, Verbal - Written information & Management Information System (MIS)
The document discusses marketing strategies and plans at different organizational levels. It covers developing marketing strategies through understanding customer value, strategic planning at the corporate and business unit levels, and creating marketing plans. Specifically:
- Strategic planning involves understanding customer value through activities like value delivery, value chains, and core competencies. It also covers core business processes and the role of the CMO.
- Corporate strategic planning establishes the mission, identifies strategic business units, allocates resources, and assesses growth opportunities through new businesses, downsizing, or terminating older businesses.
- Business unit strategic planning develops goals and strategies for each unit based on opportunities and threats in external and internal analyses.
- Marketing plans operate at strategic
Sales meetings are gatherings where company representatives discuss products and services with potential buyers. They outline benefits in an effort to make sales. Planning sales meetings involves defining aims, deciding content, selecting a method, executing the plan, and evaluating outcomes. There are several types of sales meetings including national, regional, local, and remote control meetings. Sales contests provide incentives beyond normal compensation to increase sales volume and profits. Contests have objectives like obtaining new customers or pushing slow items. Management should evaluate contests before and after to improve design and impact on employee morale.
Here describe the SWOT Analysis in the Strategic Management. A Complete package that covered all the related areas (such like SWOT advantages, disadvantages, application & Example)
This document discusses strategic marketing and strategic management. It defines strategy as the direction and scope of an organization to achieve long-term advantage through its resources and environment to meet market needs and stakeholder expectations. Strategy exists at the corporate, business unit, and operational levels. The strategic management process involves strategic analysis using tools like PEST analysis and SWOT analysis, strategic choice by evaluating options, and implementation. Strategic marketing addresses questions about an organization's past, present, and future direction in the market.
Strategy implementation refers to the activities within an organization to execute its strategic plan. This involves translating the chosen strategy into organizational actions to achieve strategic goals. Key aspects of strategy implementation include developing organizational structures, control systems, and culture aligned with the strategy. It also involves assigning tasks and roles to employees to maximize efficiency, quality, and customer satisfaction. Successful strategy implementation depends on factors like organizational structure, resource allocation, leadership styles, and procedures. It is important that implementation responsibilities are shifted to divisional and functional managers who were involved in the strategy formulation process.
This document discusses the three levels of strategic management - corporate, business, and operational.
The corporate level focuses on the overall plan for the organization and strategic business units. Strategy at this level involves conceptual decisions. The business level determines how each business unit will compete and allocates resources. Operational level strategies improve internal functions like manufacturing and marketing.
Effective strategic management requires coordination across all three levels to improve profitability.
This document discusses sales territories and how to design them. It defines a sales territory as a geographic area assigned to a salesperson consisting of current and potential customers. There are several reasons for setting up sales territories, such as increasing market coverage and improving salesforce performance. The document outlines the key steps in designing sales territories including selecting a control unit, finding locations and customers, and deciding on basic territories using either a build or breakdown method. It also discusses assigning salespeople to territories, managing territory coverage through routing and scheduling, and time management tools.
The document provides an overview of key marketing concepts including definitions of marketing, needs and wants, products, markets, and the marketing mix. It discusses the marketing concept, relationship marketing, and different marketing strategies like Porter's generic strategies. Various frameworks for analyzing markets and customers are also introduced, such as PEST analysis, VALS system, and Maslow's hierarchy of needs.
Selecting strong channel members who can efficiently distribute products is the most important factor in channel selection. Channel members should be carefully evaluated based on criteria like years in business, profitability, cooperation, reputation, sales force, and growth potential. Manufacturers attract qualified channel members through product incentives like good product lines with sales and profit potential, as well as advertising/promotion and management support. Securing channel members involves specific incentives and building good, trusting relationships focused on mutual benefit.
This document provides an overview of competitor analysis and competitive strategies. It discusses identifying competitors through industry concepts of competition and market share. Key aspects of analyzing competitors are their strategies, objectives, strengths, weaknesses and reaction patterns. The document also outlines designing a competitive intelligence system through collecting, evaluating and disseminating competitor data. Competitive positions like market leaders can pursue strategies of expanding the total market or defending market share. Other strategies discussed include those of market challengers, followers and market niches. The document concludes with balancing customer and competitor orientations.
This document discusses company strategy and marketing. It begins by outlining the objectives of understanding strategic planning, designing business portfolios, and marketing's role. It then provides details on Disney's business model and diversification. The core of the document covers strategic planning, including defining the process, developing mission statements and analyzing current business units. It also discusses tools for portfolio analysis like the BCG matrix and developing strategies for growth, downsizing or new opportunities. Finally, it outlines the key elements of the marketing process, including analyzing opportunities, targeting markets, developing the marketing mix, and managing the effort.
Strategic marketing is defined as the management function that seeks to generate profit by organizing a company's resources to determine and satisfy customer needs better than competitors. It emphasizes profits over just sales and identifies target markets. Strategic marketing combines target markets and marketing strategies, strives for sustainable differentiation, and leads strategic planning and new product development. While marketing communications, sales, and customer service are important tactical elements, strategic marketing is the overarching management function.
This document discusses the importance of conducting competitor analysis for SEO purposes. It provides tips for analyzing a competitor's backlinks, page authority, domain authority, keyword relevance, and other online marketing strategies. The key aspects to analyze include the competitors' capabilities, strategies, objectives, and assumptions. Competitor analysis helps determine why some sites outrank others, identify opportunities to improve rankings, and predict the returns of future marketing investments. It is recommended to outsource competitor analysis to a company like Outsource2india that can conduct a thorough quantitative and qualitative analysis.
The document discusses strategic marketing and competitive analysis. It defines corporate and marketing strategy, and explains how marketing plans and programs implement strategies. It then describes several models for strategic marketing analysis, including the Boston Box and GE Matrix. Finally, it outlines the concerns of a competitive analysis, such as identifying competitors and their strengths/weaknesses, objectives, strategies, and likely reactions.
This document discusses competitor analysis and competitive strategies. It defines key terms like competitive advantage and outlines the process for analyzing competitors, including identifying them, assessing their strategies and strengths/weaknesses, and selecting which to attack or avoid. It also covers Porter's basic winning strategies of cost leadership, differentiation, and focus. Finally, it discusses different competitive positions like market leader, challenger, follower, and nicher. The overall purpose is to help understand competitors and develop effective competitive strategies.
Watch this with a 10-15 minute audiotrack at http://vimeo.com/novusprogram/lesson18
The goal of this lesson is to provide tools to determine the strengths and weaknesses of potential competitors in order to compete in various markets. The lesson begins with an overview of the importance of competitor analysis and its primary importance. A framework to analyze various competitors is then introduced. The lesson then uses the framework to analyze the key aspects of a competitor.
The Novus project is a combination of video tutorials designed to be used in conjunction with a free business simulation software program. The Novus Business and IT Program contains 36 business and IT training videos, covering basic finance, accounting, marketing, economics, business strategy, Word, Excel, and PowerPoint. Users will have an opportunity to apply the lessons in the Novus Business Simulator. Over six rounds, the user or teams will have to make decisions on capital purchases, financing, production, financing, and human resources for a microbrewery. This channel has arranged the 36 video lessons into the order in which they are meant to be used with the simulator. To watch this slideshow as a video, please go to our Vimeo page at: https://vimeo.com/novusprogram. To download our free business simulation software, please go to our SourceForge page at: http://sourceforge.net/projects/novus/.
This document discusses various definitions and concepts related to strategy. It begins by defining strategy as a plan of action to achieve goals. It then discusses strategy at different levels of a business, the importance of strategic thinking, analyzing the external environment and competitors, and determining a sustainable competitive advantage through making tradeoffs. Key aspects of strategy include focusing on profitable growth, continual innovation, and defining an organization's strategic position and ensuring fit across activities.
The document discusses the concept of strategy. It defines strategy as a plan of action designed to achieve goals and gain competitive advantage. Effective strategy consists of analyzing the environment, formulating plans, and implementing approaches to attract customers, compete successfully, and achieve objectives. Key elements of strategy include determining direction, scope, sources of advantage, and required resources. Strategic thinking involves outmaneuvering adversaries through cooperation and influencing their actions.
Strategic imperatives of running a successful business in nigeria by S. S. Af...SsAfemikhe Ssac
This document provides strategic imperatives for running a successful business in Nigeria. It discusses the importance of having a clear mission, vision, values and strategy. Key points include having a balanced organization using the McKinsey 7S model. Critical success factors include targeting new clients, improving service delivery and financial performance. The document emphasizes managing for liquidity and financial strength. Keys to survival include carrying out regular SWOT analyses, understanding the environment, and having long-term strategic focus to compete successfully. Threats to failure include lack of capital, poor management, and not keeping proper records.
The document discusses developing a strategic plan. It begins by explaining that strategic planning is the process of developing and maintaining a strategic fit between an organization's goals and capabilities and its changing marketing opportunities. This involves defining a clear mission, setting objectives, designing business strategies, and coordinating functional strategies. Strategic planning sets the stage for other planning activities. The document then discusses analyzing a company's current business portfolio, including identifying strategic business units and assessing their attractiveness. It describes the Boston Consulting Group approach to portfolio analysis, which evaluates business units based on market growth and market share.
The document discusses strategy from several perspectives:
1. Strategy involves positioning an organization competitively in the market and requiring trade-offs.
2. Strategy creates fit among a company's activities to achieve competitive advantage rather than just operational effectiveness.
3. Alternative views of strategy include the implicit strategy model of fitting activities together and the sustainable competitive advantage model of exploiting resources.
Overall, the document examines different views of what constitutes an effective strategy and emphasizes that strategy must involve competitive positioning and fitting activities together to achieve advantage rather than just improving operations.
This document discusses organizational objectives and how they provide direction, motivation, and control for businesses. It defines strategic objectives as longer-term goals like profit maximization, growth, and reputation. Tactical objectives are shorter-term goals that guide daily operations. The document also discusses mission and vision statements, ethical objectives, corporate social responsibility, and how objectives can change over time due to internal and external factors.
This document discusses key aspects of developing an effective brand strategy, including understanding customers, competitors, and the market environment. It emphasizes that a brand needs to be relevant to customers, coherent in its messaging, and encourage two-way participation. The summary outlines the main steps as: (1) understanding customers and the market, (2) segmenting the market based on customer needs, and (3) building a brand vision, identity, promise, and strategy to communicate the brand's value proposition.
This document contains information related to developing mission and vision statements, corporate strategy, competitive strategy, and strategic planning. It includes sample mission and vision statements, discusses the key characteristics and components of effective statements, and outlines some of the main questions that should be considered when developing strategies. The document provides guidance on defining an organization's purpose, goals, values, and direction to help guide decision-making.
The document discusses strategic management and entrepreneurship. It outlines the strategic management process for small businesses, including establishing a vision and mission, assessing strengths and weaknesses, identifying success factors, analyzing competitors, setting goals and objectives, formulating strategies, implementing plans, and establishing controls. The key points are that strategic management provides direction and guides a business, and an entrepreneur should focus on strategic thinking, maintain flexibility, and encourage employee participation when developing a strategic plan.
The article discusses how strategy development must be seen as a revolutionary action within an organization. It lists 10 attributes of such an action, arguing that revolution is needed to secure a position in a changing market. These attributes include having an imaginative vision, subverting the status quo, and empowering employees. The article is relevant to strategic management as it advocates a radical approach to strategy that can identify new market opportunities and drive organizational change.
The document discusses strategic planning concepts like vision, mission, objectives, and goals. It provides definitions and examples of each concept. A vision is a long-term future outlook for an organization, while a mission outlines its current purpose and operations. Objectives and goals are shorter-term aims that support the vision and mission, with objectives being more specific and measurable. Good strategic planning cascades these concepts down through an organization to guide decision-making.
This document is a manifesto on business strategy written by Andrew Pearson. It discusses how companies can stake out a unique and sustainable strategic position to discover more profitable business opportunities. The document is divided into seven parts that cover topics such as strategy formulation, defining a unique strategic position, sustaining competitiveness, and implementing strategies. It emphasizes the importance of continuously innovating, redefining business models, leveraging strategic assets, and involving managers in the creative process of strategy development. The overall message is that companies need dynamic strategies to stay ahead of competition and maintain a competitive advantage through breakthrough opportunities.
Businesses meet stakeholder needs by buying inputs like raw materials and labor to produce outputs like goods and services. They focus on efficiently using resources to generate profit. A business's strategy shows what it wants to achieve and how, including its purpose, goals, and plans to achieve goals through resource allocation. Strategy involves determining long-term goals and adopting methods to achieve them. Culture refers to shared beliefs and values in an organization that influence behaviors. Organizational culture can be vitalized, encouraging innovation, or bureaucratic, emphasizing rules compliance.
This month we chatted with Freek Vermeulen, Associate Professor of Strategy and Entrepreneurship at the London Business School. He writes, consults and speaks across the world on topics such as strategies for growth, strategic innovation and making strategy
happen.
Marketing management introduction - unit i - EMBA - purbanchal universitySinga Lama
Strategic market management involves analyzing a company's situation, assessing opportunities, identifying target markets, setting goals and strategies, and implementing a timeline and budget. The process includes planning, implementation, and control. Planning involves a SWOT analysis, goal setting, and deciding on the marketing mix. Implementation puts the plan into action through programs, schedules, and product availability. Control compares results to goals and benchmarks to evaluate performance and make adjustments. Strategic market management takes a holistic, integrated approach to create superior customer value.
Competitiveness and GlobalizationChapter 1Strategic Manageme.docxmaxinesmith73660
The document discusses business competitiveness and strategy. It begins by defining key strategic terms like strategy, competitive advantage, and above average returns. It then discusses understanding strategy, defining it according to various scholars. Strategy is the pattern of resource allocation that enables firms to maintain or improve performance. The goal of strategy is to create a sustainable competitive advantage leading to above average returns.
The document describes the SCORPIO technique, which is a continuous process that companies use to review their strategies. It involves analyzing several key areas: segmentation and targeting of customer segments; understanding the needs of the customer; organizational processes and culture; customer retention; positioning and branding; the industry or market; and product or service offerings. By considering all these elements, the SCORPIO process helps structure a company's learning and craft an effective marketing strategy tailored to real-time data and customer needs.
Leaders drive innovation by building a strong Creative Ecology through their organisations. And they don't need to be particularly creative or innovative to do so...
The document summarizes key discussions from an executive strategy meeting hosted in Eindhoven, Netherlands. Attendees discussed the essential elements of a successful strategy, including having a clear vision statement, clear company positioning, matching strategy to company culture, leadership commitment, breakthrough-focused strategies, self-developed strategies, building capability for transformation, measurability, and learning through small successes. Innovation's role in strategy was also debated, considering different approaches to innovation based on company culture and the benefits of both creativity and structured processes.
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Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
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LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
2. What should corporations do to survive in the fast
changing environment.
What policies & business practices should be followed
to support changing business environment ?
.“SURVIVAL OF THE FITTEST”.
What should be the responsibilities of marketing
managers to achieve the goals ?
Which is the best alternative among the options
available? ( Evaluation and choice of strategy )
What is the system to monitor & control the
operational issues ?
Benchmark Corporate excellence periodically to
evaluate the position. 2
3. Story of blind men and elephant :
Fifth one
touched the ear Six blind men went to see an elephant .Each
and said it is satisfied himself by feel and observation
like a fan.
Second one felt the
The sixth one tusk and expressed it
caught the as a spear.
swinging tail
and said it is
like a rope.
Third one felt its
squirming trunk and
said it is like a snake.
First one touched the
elephant’s side and Fourth one felt
expressed it as a big wall. around its knee and
3
said it is like a tree.
4. All these men disputed loud and long , each was right in
his view , but they all were wrong .
What is the morale of the story
Managers often act like blind people, they loose
sight of big picture of the business and focus on
short term goal . Strategy formation is our elephant.
Since none of them had the vision of the entire beast
(elephant) , each caught hold of some part or other
and relied on the utter ignorance about the rest.
While you can not get an elephant by just adding all
parts, to comprehend the whole , we need to
understand each part.
4
5. Strategic Management Process.
Strategic management is a process through which
organizations analyze and learn their internal and
external environments , establish strategic direction,
create plans that are intended to help and achieve
the established vision & goals by executing the plans
with an effort to satisfy the stakeholders &
shareholders.
5
6. Sun Tze on Strategy
• “Know your enemy ( Competition ) ,
know yourself,( Corporation ) and
your victory will not be threatened.
Know the terrain,( market ) know the
weather ( market forces ) , and your
victory will be complete.”
6
7. Strategic Planning
…is the managerial process of developing
and maintaining a strategic fit between
the organization's objectives and
resources and its changing market
opportunities.
Org Objectives Strategic Fit Resources
Changing Environment
7
8. Strategic planning in an organization aims to achieve a fit
between the internal resources and capabilities of an
organization and external opportunities and threat in the industry
environment.
According to C.K Prahalad and Gary Hamel, such approach
leads to a mind set in which management focuses too much on
achieving the best fit between internal resources and external
environment and do not focus enough in building new resources
and capabilities to exploit future opportunities in the business.
Therefore the organization which rely on the fit model to strategy
formulation are unlikely to build competitive advantage. This is
more apt in dynamic competitive environment.
Eg Xerox ignored the rise of cannon, Ricoh, etc in photocopier
market.
GM overlooked Toyota ,
Caterpillar ignored komatso. 8
9. Hence strategic approach by the companies to think beyond their
existing resources and capabilities create an obsession and quest
for global leadership within the top management of the company .
This is described as Strategic intent. It is more internally focused
and concerned with building new resources and capabilities .
9
10. Strategic Innovation
Innovation helps to address the demand of new market and or
existing market. This can be explained with Ansoff’s model.
New
product Disruptive
innovation
Evolution Revolution
Exiting
Product
Existing New
Market Market
10
11. Sustaining
Revolutionary or discontinuous
An innovation that creates a new market by allowing
customers to solve a problem in a radically new way.
Evolutionary
An innovation that improves a product in an existing market
in ways that customers are expecting.
Disruptive
An innovation that creates a new (and unexpected) market by
applying a different set of values.
11
14. Innovation versus sustainability: An age old question
Is which is more important Strategy or execution ?
You stick to your knitting You think out side the box.
You exploit what you know You explore what you don’t know.
You meet current customer needs. You anticipate future needs.
You Plan You let things emerge.
You demand accountability You allow freedom and flexibility
You impose process and You avoid process and encourage
Structure . Unstructured interaction.
14
15. The Role of Marketing Strategy
in business
Corporate
Vision Strategy:
•Corporate Operating
•Business Plans
•Functional
Execution
& control
Market
feedback
15
16. According to Hofer and Schendel,
organizations develop strategies at three
structural levels:
• Corporate level—(corporate marketing)
• SBU level — (Strategic Marketing)
• Product/Market level—(Functional
Marketing)
16
17. Strategic Marketing
(Marketing at the SBU Level)
• Strategic Marketing requires
–Detailed understanding of market needs,
–Proactive use of competitive intelligence at
the corporate as well as SBU’s levels
• Strategic Marketing
–Focuses on what the firm do best at the
SBU level
–To secure and maintain a sustainable
competitive advantage
17
19. SINGAPORE AIRLINES is engaged in air
transportation and related businesses. It
operates world-wide as the flag carrier of the
Republic of Singapore, aiming to provide
services of the highest quality at competitive
prices for customers to earn the mind share
of its customers and profit for the company
19
20. Examples of Corporate Mission
MARRIOTT’S Mission Statement:
We are committed to being the best lodging
and food service company in the world, by
treating employees in ways that create
extraordinary customer service and
shareholder value
20
21. Strategic marketing begins starts with defining the vision
for the company.
Vision is some thing a company wishes to become or
aspire to be.
It defines the frame work for the organization taking in to
account the core ideology and envisioned future.
•Core ideology is the unchanging part of the organization,
it is like a character .
•Envisioned future is the goal to be reached .
CORE VALUES
CORE
IDEOLOGY CORE PURPOSE
VISION
AUDACIOUS GOALS
ENVISIONED
FUTURE VIVID DESCRIPTION
21
22. Core values are deeply held thought which an
organization would not change irrespective of change in
industry environment or management fads.
Social responsibility, Integrity, Innovation, Customer
excellence etc.
Core purpose : It is the idealistic reason for being. The
purpose sets the direction in which organization
proceeds.
Audacious goal : what an organization would like to
achieve , a tough and an extra ordinary commitment and
effort of the management .
Vivid description is putting the goal in to words that
invoke an action . ( Putting a measurable system )
22
23. Corporate Culture
“ Corporate Culture" is people's ability to collaborate with
humour and energy to to align themselves with the vision of
the firm & create smart strategy on-the-hoof.
Margaret Wheatley said that strategy concept has to move
from strategic planning to strategic thinking. A better
strategic thinking comes when people are adept at thinking
collaboratively. They think better when not being constantly
whipped into line by a hefty strategy document produced by
a clever elite.
They think better when each member of the organization
feels the Sense of Ownership
Responsibility
Accountability towards the assigned task in line with the
goal. ( SHARED VISION )
23
24. McKinsey 7-S Framework for building corporate level
Strategy .
STRUCTURE
STRATEGY SYSTEMS
SHARED
VALUES
SKILLS STYLE
STAFF
24
26. Frame Work of Marketing Strategy
A successful marketing strategy requires customer orientation and
competitor focus called market orientation 26
27. Strategy Formulation
Mission
Goal
Objective
External BPEST Internal
Analysis analysis Analysis
Corporate level strategy
Business Unit level
Functional Level
Evaluate business performance ,
Governance & ethics
27
28. Key Elements of Marketing Strategy
Formulation
• The strategic 3 Cs
– Customers, Competitors & the Corporation
• Environment analysis -- PEST
• Strategic Marketing Decisions
– Where to compete
– How to compete
– When to compete
28
29. A Viable Marketing Strategy
• Must have a clearly defined market
• Must have a good match between
corporate strengths and market needs
• Must have significant positive
differentiation in the key success
factors of the business
29
30. Marketing strategy of a firm is for :
Fast Growth
Fast growth is the result of strategies designed to expand
the market size and earnings quickly, in terms of monetary
value rather than quantity.
Fast Innovation
Fast innovation involves setting extremely high innovation
goals and securing a competitive edge, over what our
competitors can do.
30
31. GROWTH STRATEGY OF AN ORGANIZATION CAN BE :
ORGANIC GROWTH OR INORGANIC GROWTH
Organic growth strategies are business development techniques
that grow a company via increased output and larger sales
volume. Organic growth is growth that comes from a company's
existing businesses. Organic growth strategies are built on
four main pillars: revenue, headcount, PR, and quality.
Inorganic growth strategy : As part of business strategy ,
management decide whether the firm should grow naturally
(commonly called organic growth) or in the form of going
outwards to acquire or merge with other businesses .
. This is called inorganic growth which normally takes the form
of Mergers and Acquisitions (M&A) exercise.
31
33. While M&A is the easiest way to grow, it is a risky proposition as it
could either be a success or disaster. While the market values
growth, there is a hierarchy in quality of growth drivers.
Organic growth is preferred over inorganic growth as the latter
comes at a higher cost and is more risky.
Companies go in for M&A activity to boost sagging growth in top
line. Typically, growth is slow in maturing markets with intense
competition. In such a scenario, companies can either boost growth
through product innovation or differentiation.
Alternatively, they can acquire a high growth company with good
fundamentals in a fast growing market.
33
34. In the early 21st century, the beer industry experienced aggressive
consolidation due to a series of mergers and acquisitions between
the big breweries. To strengthen its position in the fast
consolidating industry, South African Breweries (SAB) acquired
Miller brewing company, thereby forming the world's second
largest beer company- SABMiller. Instead of establishing its own
brands, SAB had a history of acquiring companies and
transforming them according to its own model. With the formation
of SABMiller, the competition in the US heated up between itself
and Anheuser-Busch, which controlled more than half of the US
beer market. The battle intensified when Anheuser-Busch entered
the Chinese market, where SABMiller already had a presence.
34
35. Cisco systems, which is a well know brand in the networking
and communications space, is on a major expansion spree with
its recent acquisition of Starent Networks. The $2.9 billion deal
aims to leverage Starent’s mobile infrastructure capability by
enabling Cisco to provide a strong architecture for rich, quality
multimedia experiences to mobile subscribers.
Starent has an extended expertise in delivering high quality
content such as video, mobile TV and gaming to mobile
subscribers. With the rapid explosion of content downloads from
mobile phones, especially video transfer, mobile data traffic has
seen an exponential growth in recent times.
35
36. Accelerating organic growth – The first step to accelerate organic
growth is securing the customer relationships for effective retention
strategies.
Understanding the factors most important to your customers, what
drives their loyalty, and what areas deserve the most focus.
Develop account managers and sales departments to develop a
coordinated strategy to build and grow your company the most
intelligent way – through the eyes of your customers.
36
37. GE 9 cell matrix or business screen matrix.
M
a Organization’s business strength
r
k H M L
e
t H
gy
y
eg
at t e
ra
st
st r
A d
Go
t M ol gy
e /h at
e
t r
r ct iv o
st
le G
a Se N
o
c
t L
i Market Attractiveness : Size, growth, Margin , Regulation
v Fewer competition etc
e Business strength : Skill, financial soundness, technology
n
e
edge , Distribution , Brand , large
37
customer base , R&D, prod Qlty etc.
s
38. Michael Porter’s 5 force model to study the barriers to entry
In a market .
38
40. Entry mode strategies in new Market .
Entry Mode Choice Advantage
Exporting Ability to realize on economy of scale
Licensing Low development costs & risk
Franchising Low development cost & brand visibility
JV Access to local partner & leverage on their
Competitive advantage
Wholly owned
Subsidiaries. Protection of technology , global strategic
coordination , leverage on location &
experience curve.
40
45. •For Outsourcing to be an effective strategy :
•Evaluate organizational Cultural compatibility between the
partners.
•Technological and managerial skills which complement the
principle partner’s line of business
•Principle’s control over quality
•An agreement to ensure that there will be no infringement of
copyright , IPR etc.
•Evaluate if the local partner has potential to turn out to be
principle’s competitor in near future .
45
46. Reason for New Product Failures
Overestimating market size
Poor marketing research
Design problems
Excessive development costs
Incorrectly positioned, priced, or advertised
Competitive reaction
46
47. New Product Development Strategy
Original products
Acquisition
Product improvements
Product modifications
New brands through the firm’s own
R&D efforts.
47
53. Consumer decision making process.
Buying motives.
Benefits desired
Product Consumer Purpose
Gives meaning
attributes Perception In consumer
To the product
To associate
Product choices
Brands
preference = ∑ P.A + CP
Buy
53
54. Pricing strategy
• We need to set price when we have a new
product, or when we enter a new market
with an existing product.
• How?
– Need to decide what position you want your
product to be in.
54
55. Pricing Strategies
A Sound Strategy Pays for Itself . Sound pricing strategy creates a
more competitive position within your industry and has the potential
to increase profitability across product lines. While it may be
tempting to implement tactics that yield short-term gains, a well-
crafted pricing strategy will help to deliver sustainable profitability
over the long haul.
Pricing strategy addresses 4 key drivers of pricing strategy
excellence:
55
57. Transaction management : Manages immediate pricing issues for all
products and services that impact list prices, discount grids,
allowances, rebates, and resulting net prices.
Value Perception: Perceived value metric and competitive
environment analysis determine how your products and service
measure up with customers in order to determine base prices.
Organization: Work in partnership with clients to transfer pricing
management knowledge, establish best pricing practices and
processes, instill a pricing culture focused on driving profits, and
install tools to control and manage price .
57
59. Price-Quality Strategies
• Philip Kotler’s 9 price-quality strategies
Price
High medium Low
High Quality High Super
Premium
Value Value
Over Mid Good
Medium
Charging Value Value
False
Rip-off Economy
Economy
Low Quality
59
61. New-Product Pricing Strategies
1. Skimming pricing
– Charging a high price initially and reducing the
price over time
– Commonly used when introducing new &
innovative products .
2. Penetration pricing
– Charging a low price when entering the market
to capture market share
– Used when competitors are closing in with
similar or better products 61
62. 3. Intermediate pricing
– Pricing somewhere in between the skimming
strategy and the penetration strategy
62
64. Pricing Process
1. Set Pricing Objectives (see next slide)
2. Analyze demand
3. Draw conclusions from competitive
intelligence
4. Select pricing strategy appropriate to
the political, social, legal and
economical environment
5. Determine specific prices
64
65. Possible Pricing Objectives
• Profit objectives e.g.
– Targeted profit return
• Volume objectives e.g.
– Dollar or unit sales growth
– Market share growth
• Other objectives e.g.
– Match competitors’ price
– Non-price competition
65
66. Demand Analysis
• Measure the impact of price change on total
revenue
• Predicts unit sales volume and total
revenue for various price levels
• Different customers have different price
sensitivities and needs
66
67. Impact of Cost on Pricing
Strategy
• Fixed and variable costs
– Full-Cost Pricing
• Markup pricing, break-even pricing and rate-of-
return pricing
– Variable-cost pricing
• 3 types of relationships
– Ratio of fixed costs to variable costs
– Economies of scales
– Cost structure
67
68. Impact of Ethics on Pricing
• How should you price if your product is a
life-saving drug?
• What are the ethical considerations?
– Customers have no choice
– Need to pay for the research
– When cheaper options doesn’t work
– Competition decides
68
69. Information Needed for Price Change
• Customers’ ability & willingness to buy;
customer lifestyle; benefits sought;
characteristics of the product e.g.
– When the kopi tiams, local coffee shops in
Singapore tried to raise the price of a cup of coffee
by 10 cents in March 1994, the grass-root reaction
was stormy
– When Starbucks Coffee and Spinelli’s raised their
prices in the beginning of 1998 by a hefty 20%,
nobody raised an eyelit 69
70. • Need to know everything about the
competitors
– How would competitors react to our price
change? (see following slide)
– In obtaining competitors’ information,
remember the value of the information
70
71. Pricing Strategies for Established Products
Three strategic alternatives:
• Maintain the price if you are the leader e.g.
– In 1999, Shell in Singapore maintained its price when other
petrol companies engaged in a price war until towards the
end of the engagement
• Reduce the price e.g.
– SIA regularly reduce its airfare in anticipation of the
developing market situations
• Increase the price
– during inflation, or if demand is expected to increase or if
you wish to harvest e.g. in Indonesia 71
72. Price-Flexibility Strategy
• One-price policy—setting one fixed
price for all markets
• Flexible-price policy—setting different
prices in different markets based on:
– Geographic Location,
– Time of delivery, or
– The complexity of the product
72
73. How much flexibility in price?
• Depends on the Demand-Cost gap and the
influence of competition, social, legal and
ethical considerations
• Example: Life-saving drugs
73
74. Product-Line Pricing
• When pricing products in different lines,
must take cross-elasticities of demand
across the set of products into
consideration
• The idea is to maximize the profits of the
entire organization rather than that of a
single product or a single line
74
75. Leasing Strategy
• Leasing is more common for industrial
goods e.g.
– Singapore Airlines sold many of their
aircraft and lease them back for their
operations
• There is a growing trend toward leasing
consumer goods as well
– e.g. Leasing of office equipment
75
76. Reactions to Price Change
• Customers are more sensitive to price
changes if the products cost a lot and/or
are bought frequently
• Competitors may see each of your price
change as a fresh challenge and react
according to its self-interest at the time.
Need to estimate each close competitor’s
likely reaction
76
77. Responding to Competitors’
Price Change
• If competitors lower price for homogenous
products
– Try augmenting the product
– If it doesn’t work or if it is not likely to work,
then meet the price cut head-on
77
78. Responding to Competitors’
Price Change (cont’d)
• If competitors raise price
– In a homogeneous market, follow if you think the
whole market is likely to follow
– In a non-homogeneous market, evaluate
• The reason for the competitor price change
• If the price increase is temporary
• The effect on your market share & profit
• The likely response(s) from the other competitors
78
79. When a Market Leader is Being
Attacked on Price
Options available:
• Maintain price
• Raise perceived quality
• Match competitors’ price
• Increase price and improve quality
79
80. Impact of Discounting on Brand
Equity
• Why discount?
• Problems emerging with discounts
• The value equation (V=Q/P)
80
81. Price War
Price wars are frequent in industries where
• Cost differentiation opportunities exists
• Capital is intensive and products are
homogeneous
Examples: Airfares, ISP, Petrol, & Loans e.g.
– The Home Loan price war in Singapore in Sept
2000 involving OUB, UOB, DBS among others
81
82. Yield Management
• What is it?
• Yield management goals
• Industries that benefited from yield
management
• Common variables
82
85. Core Capabilities
Product Leadership
Refers to the ability to develop creative, premium products
through specialized new technologies.
Market Leadership
Refers to the ability to achieve the "LG brand is No. 1" goal
backed by its formidable market presence worldwide.
People Leadership
Refers to talented people who perform excellently by
internalizing and practicing innovations.
85
86. LG strives to enhance the customer’s life (and lifestyle) with our
intelligent features, intuitive functionality, and exceptional
performance. (Positioning Statement)
Choosing LG is a form of self-expression and self-satisfaction.
Our customer will take pride in owning and take comfort in
knowing he/she made a smart, more informed decision.
Brand Platform The LG brand is composed of four basic elements:
86
87. Management Level responsible for strategic
management in an Organization
LEVEL-I
Corporate Management
Chmn, B.o.Dir
LEVEL-2
S BU Management
CEO, COO, CFO, CMO
LEVEL -3
Operating Management . Line &
Functional managers
87
88. Level Responsibilities
Corporate Management Set Vision, Goal & Direction for the
organization .
Chart long range plans . Review the
strategies w.r.t Goal & suggest
course of correction if any.
Strategic Business Unit Make strategies for SBU in line with
Management the corporate goal . Drive strategies to
achieve the desired performance at
business unit level.
Operating Management Execute the plans at all functional
level to achieve the target set by the
SBU .
88
89. Summary : Objective of Strategic Management
Process in an Organization.
Achieve Goal Congruence . Harmonize corporate goals , Vision
across the diversifies corporation of business enterprise.
Ensure Smooth communication & coordination between all business
function of the corporation for successful implementation of
business strategy
Evaluate business strategy , take corrective action plan, formulate
contingency plan in tune with the market condition.
Influence change management in the organization .
Enhance profit consciousness among the employees.
89
90. Generic issues in BPEST analysis in external environment.
Business Political Economic Social Technological
Life Cycle of
Legislation Inflation skill Development
Industry Labor Law Interest rate consumer in IT
Company law Currency confidence Industrial
Competition Taxation fluctuation Consumerism application
type Government’s GDP
priority Terms of trade
Income levels
employment
levels
90
91. McKinsey 7-S Framework to create organizational
Structure conducive for growth .
STRUCTURE
STRATEGY SYSTEMS
SHARED
VALUES
SKILLS STYLE
STAFF
91
92. Internal analysis for building Competitive advantage : Michael
Porter’s value chain model
S Organizational infrastructure
u
HRM
p
p Technology initiative
o v
Procurement a
r
t l
Inbound operation Mktg & Service & u
logistics Sales support e
Out
bound
logistics
Primary Activities 92
93. Generic building blocks of competitive advantage
Quality
Process
CA through
Superior Customer
LOW COST &
efficiency Responsiveness
Differentiation
Innovation
93
94. Long range corporate planning strategy
Growth & expansion strategy
1.Hive off
2.Out source
3.Contract
Expansion Diversification Divestment Manufac-
Strategy Strategy Strategy turing
4 Liquidation
1.New market/Existing Related Un Related
Product
2.New Product/Existing Forward, Backward, Concentric Conglomerate
market M&A
3.Existing market /Existing J.V
product 32
94
95. Entry mode strategies in new Market .
Entry Mode Choice Advantage
Exporting Ability to realize on economy of scale
Licensing Low development costs & risk
Franchising Low development cost & brand visibility
JV Access to local partner & leverage on their
Competitive advantage
Wholly owned
Subsidiaries. Protection of technology , global strategic
coordination , leverage on location &
experience curve.
95
96. •For Outsourcing to be an effective strategy :
•Evaluate organizational Cultural compatibility between the
partners.
•Technological and managerial skills which complement the
principle partner’s line of business
•Principle’s control over quality
•An agreement to ensure that there will be no infringement of
copyright , IPR etc.
•Evaluate if the local partner has potential to turn out to be
principle’s competitor in near future .
96
97. Corporate Level Growth Strategies.
The corporate level strategy identifies the business in
which an organization should participate , create value
, expand or contract by mergers, acquisition & spin-off
to maximize the long term profitability & growth.
Three corporate level growth strategies are :
•Horizontal growth strategy :
•Vertical Growth Strategy
•Out source strategy
97
98. Corporate level growth strategies :
1.Horizontal integration. The process of acquiring or
merging with industry competitors in an effort to
achieve competitive advantage which come with large
scale & scope.
Eg World COM acquired 60 companies between 1983 to
2001
Chrysler merged with Diamler Benz
Pfizer acquired Warner lambert
2 .Vertical integration is a process of expanding the
operation backward into an industry which produces
inputs for the company or forward into an industry to
market its products.
IBM , Reliance Raymond etc.
98
99. Strategic out-sourcing :: : This involves separating
some of the value creating activities within the
business & allowing them performed by independent
entity or spinning off the part of that function of the
organization as an independent entity.
99
100. Strategic Management process at SBU level in an
organization.
Reward & recognize ( Satisfied)
Business vision Evaluation
Strategic Budget & Responsibility
& goal of
plan Resources. Centers
performance
Alternative
plan/ Budget Corrective Action
revision ( Unsatisfied)
Contingency
plan
(Feedback)
100
103. The objective of defense position or fortress strategy is to
strengthen the strongly held position to build an impregnable
fortress capable of repelling attacks by current or future
competitors.
The marketing actions used are :
Retain customer & build CLV by improving customer satisfaction
& loyalty.
Actions are: Increase quality control process at all level. TPM , Six
sigma Lean manufacturing process , etc.
Continue product innovation & modification to increase customer
benefit.
103
104. Focus on market communication to simulate selective demand ,
stress product superiority & build TCO.
Build key accounts , customer referrals.
Train internal employees , partners, channel members , build
learning & sharing culture ( knowledge management initiative)
Build/expand distribution channel , subcontract , outsource the
activities which are not of competitive strength of the organization
Leverage on technologies for building strength.
Reduce attractiveness of switching : create /build brands, brand
extensions at every price point . Fill the product gaps.
104
105. Flanker strategy:
Protect against loss of specific segment of customers by developing a
second line of products /Brand which takes care of the weakness of
the original product offering in terms of price point, compact
features. etc. More often used in the mass segment for price
conscious customer to deliver the similar benefit of owning a
reputed brand with more critical features.
A strategy for creating a second line of customers who are different
from the early adopters & wanting to associate /experiment the
brand .
The underlining purpose of the strategy is to close the product gaps
through which the competitors can enter in the market.
( unorganized sector , regional player etc)
105
106. Confrontation strategy Protect against he loss of share in the
current market or customer base by meeting or beating a head to
head competitive offering .
Improve ability to win new customers who will other wise attract
to competition offing .
Develop or modify the product to match superior competitor’s
offering. Lower prices & or heavy promotional efforts . Create a
price war & force the competition to to follow it.
Market expansion strategy: Increase ability to attract new
customers by developing new product offering . Build product line
extension, for variety of new applications.
Contract or strategic withdrawal . Increase ability to attract new
customers in select high growth segment & with draw from
smaller non strategic ( markets , profit ) . Build segment focus.
106
107. Follower’s growth strategy.
Frontal attack strategy : Leapfrog strategy , Flank strategy ,
Encirclement strategy , Guerrilla attack strategy.
Frontal attack strategy : The challenger builds cost advantage
through internal efficiency & creates a differentiation good enough
to attract the leaders,s existing & potential customer base. The
strategy works well only when the consumer do not have strong
brand preference for the leader’s product.
Leapfrog strategy: Challenger differentiates its position, on
distribution, price, low cost product etc leveraging on technology,
tie ups. More often technology is used as a driver to differentiate
itself. Vistacon’s strategy on “Acuve” contact lens, to displace
Bausch & Lomb.
107
108. Flank attack strategy: When the leaders brand does not satisfy the
full need of the segment , which is more fragmented . The strategy
is all about re-defining the market. Small car , bike market etc.
Encirclement strategy: Targeting several untapped/
underdeveloped market segment simultaneously , The strategy is
to surround the leader’s brand with variety of offering aimed at
several peripheral segments.The strategy works well when the
market is fragmented on the basis of multiple applications, &
different geographic locations.
Guerilla Attack strategy: A challenger makes sporadic un
predictable moves in the market to upset the going strategy of the
leader. These strategies can be either a artificial price drop.
Short term sales promotion campaign, offensive strategies leading
to lawsuits. Etc. The aim of the strategy is to slow down the
leader’s expansion strategies by diverting its resources &
108
attention.
109. Investment center Decisions
ROI = PBIT
Invested Capital
ROCE = PAT + Post tax interest on Loan term Loan
Capital Employed
CE=(Shareholder’s capital+ Reserves+ Long term Liabilities)
109
110. ROI Problems
• Feed the Dogs ( Over Investment )
• Starve the Stars ( Under Investment )
High
STAR PROBLEM
CHILD
Relative
Market
Growth CASH COW DOG
Low
High Market Share Low
110
111. EVA Basic Premise
Managers are obliged to create value for their investors
Investors invest money in a company because they expect returns
There is a minimum level of profitability expected from investors,
called capital charge
Capital charge is the average equity return on equity markets;
investors can achieve this return easily with diversified, long-term
equity market investment
Thus creating less return (in the long run) than the capital charge is
economically not acceptable (especially from shareholders
perspective)
Investors can also take their money away from the firm since they
have other investment alternatives
111
112. EVA is the gain or loss that remains after assessing a charge
for the cost of all types of capital employed.
What an accountant calls profits in an income statement , it
includes a charge for the debt capital employed which is
commonly referred to as interest expense. However, an
income statement does not include a charge for the equity
capital that was employed during the accounting period.
Therefore, EVA goes beyond conventional
accounting standards by including a provision for
the cost of equity capital. The cost of equity needs to
be factored into business investment decisions in
order to enhance shareholder value.
112
113. •Although EVA is couched in financial analysis, its primary
purpose is to shape management behavior.
•EVA can be used as a performance measure to evaluate an
overall company, a division within a company, a location
within a division, or an individual manager.
•By setting goals, EVA can become a motivational tool at
various levels of management.
•EVA can also be used in downsizing decisions.
113
114. EVA and Corporate Culture
Paying managers for performance is a backward-looking practice,
but the capital markets assign value on a forward-looking basis.
Therefore, companies that pay for past performance may be
unwittingly paying their managers to undermine value creation.
When EVA-related performance measurement process is
implemented throughout your company, all affected employees need
to understand the goal, as well as how their actions contribute to
meeting it.
In this respect, the EVA’s popularity parallels the 1980s “total
quality management” trend. Like quality, value is every employee’s
responsibility. To this end, management and employee training
programs are a crucial component of any EVA plan.
114
115. What is Needed to Calculate Company’s Economic
Value Added (EVA)?
Only following the information is needed for a
calculation of a company’s EVA:
•Company’s Income Statement
•Company’s Balance Sheet
115
116. Illustration: Income Statement ( P/L statement )
Net Sales 2,600.00
Cost of Goods Sold 1,400.00
SG&A Expenses 400.00
Depreciation 150.00
Other Operating
Expenses - 100.00
Operating income 550.00
Interest : 200.00
Income Before Tax 350.00
Income Tax (40%) 140.00
Net Profit After Taxes 210.00
116
117. Illustration: Balance Sheet
Current Assets Current Liabilities
Cash 50.00 Accounts Payable 100.00
Non
Receivable 370.00 Accrued Expenses 250.00 Interest
Inventory 235.00 Short-Term Debt 300.00 Bearing
Liabilities
Other Current
Assets 145.00
Total current Assets 800.00 Total Current Liabilities 650.00
Fixed Assets Long-Term Liabilities
Long-Term Debt 760.00
Land 650.00 Total Long-Term Liabilities 760.00
Equipment 410.00 Capital (Common Equity)
Other Long
Term Assets 490.00 Capital Stock 300.00
Total Fixed Assets 1,550.00 Retained Earnings 430.00
YTD Profit/Loss 210.00
Total Equity Capital 940.00
TOTAL ASSETS 2,350.00 TOTAL LIABILITIES 2,350.00
117
118. CCRDebt = [Debt/(Debt+Equity)](1-t) Where t represents the
company’s tax rate.
+
CCREquity = Equity/(Debt+Equity)
Capital Cost Rate (CCR) will be :
Assume owners expect 13 % return* for using their money
because less are not attractive to them, therefore, company
has 940/2350 =40% (or 0.4) of equity with a cost of 13%.
Company has also 60% debt and assume that it has to pay
8% interest for it. So the average capital costs would be:
CCR ** = Average Equity proportion * Equity cost +
Average Debt proportion * Debt cost = 40% * 13% + 60% *
8% = 0.4 * 13% + 0.6 * 8% = 10%
118
119. ** Note: if tax savings from interests are included (as they
should if), then CCR would be:
CCR = 40% * 13% + 60% * 8% *(1- tax rate) =
0.4 * 13% + 0.6 * 8% * (1 - 0.4) = 8.08 % (Using 40 % tax
rate)
Companies paying high taxes and having high
debts may have to consider tax savings effects, by
adding the tax savings component later in the
capital cost rate (CCR)
119
120. Identify Company’s Capital (C)
Company’s Capital (C) are
Total Liabilities less Non-Interest Bearing Liabilities:
Total Liabilities 2,350.00
less
Accounts Payable 100.00 [ No interest cost incurred on these
Accrued Expenses 250.00 Liabilities. ]
----------------------------------
Capital : 2,000.00
120
121. EVA = NOPAT - C * CCR
= 210.00 - 2,000.00 * 0.10
= 10.00
Note: this is the EVA calculation for one year.
If a company calculates & reports EVA in its quarterly report
,then it’s capital costs will be :
Q1 Capital costs for 3 months: 3/12 * 10% * 2,000 = 50
Capital costs for 4 months: 4/12 * 10% * 2,000 = 67
Q2 Capital costs for 6 months: 6/12 * 10% * 2,000 = 100
Q3 Capital costs for 9 months: 9/12 * 10% * 2,000 = 150
EVA for Q1, Q2 , Q3, Q4
160 143 110 60
121
122. Growth market strategies for Market leaders.
It is a strategic objective a market leader to maintain its leading
relative market share in the face of increasing competition. The
marketing strategies followed to maintain leading share position
are :
1Fortress or defense position strategy.
2Flanker strategy
3Confrontation strategy
4Market expansion or Mobile strategy
5 Contraction or strategic withdrawal strategy.
An organization will deploy these strategies singly or in
combination to maintain it s leading position.
122
124. . Missionstatement of Boeing : “People working
together as a global enterprise for aerospace
leadership by 2016.”
GE : Be No.1 or No2 in all the businesses it
venture into.
Microsoft: Empower people through great
software any time , any place & in any device.
124
125. Secrets of success of business corporation.
Dell computer is one of the most extraordinary success story in
business . Michael Dell started in 1984 , became the highest
performer & largest producer of computer’s system .The
company is quoted as the best example for logistic & supply chain
system. How did Dell register persistently high profitability?
South West Airlines has long been a high performer in U.S airline
industry , known for low fares ( 30% below its rivals) low cost
structures & superior profitability.
Cisco Systems started in 1984 as a networking product
company ,went public in 1990 with annual sales of $ 70 Mn, &
evolved as $19 bn organization having no debt & ROI of 22 % by
1999.
The success of these organization lies in strategically planned, executed
& monitored business with strong leadership quality which exhibited
willingness to change with environment. 125
126. Strategic Planing & Control in an organization.
Corporate
level
planing
Control Strategic
Business
Unit level
planing
Operational Control
level
planing &
Control
126
127. Measure financial & non financial performance of activities .
Identify the functions deviating from the organizational goal &
objective.Take corrective action .
( Financial : Top line revenue , Bottom line profit , ROI , EVA , PAT
ROCE Working capital, Budget , Debt control , NPA etc)
Non Financial : Customer satisfaction , Employee satisfaction &
retention, Productivity & efficiency of the employee , Technology
& processes . Market share maximization. Business integrity &
commitment . ( Corporate Governance ) Supplier integration
Conducting Management Audit : Employee (People) audit , process
audit , Financial audit, Infrastructure audit , Supplier audit
127
132. Competitive strategy in a declining industry .
Leadership through Process, quality etc.
Niche strategy through differentiated level of product & service
Harvest strategy by optimizing the cash flow
Divest strategy by selling off the business
The choice of the strategy depends upon intensity of the competition
& the firm’s ability to address it.
132
133. Corporate performance :
Why divide business in to responsibility centers.
Is performance affected by governance & business ethics.
What made the collapse of Enron ,a principal player in the
natural gas pipe line operator in 90’s
The causes of poor performance.
Lack of ownership & responsibility at various management
levels .
High cost structure
lack of integrity & Business ethics.
Improper mechanism for measuring the business
performance.
Poor organizational culture
133
134. Economic Value Added.
Why EVA ?
Performance measures like ROI, ROCE , ROE ,EPS Net profit ,
operating profit evaluate the performance of the business .
They lack proper bench mark for comparison . Shareholders
require minimum rate of return on their investment depending
on the risk in the investment. Their wealth is measured in terms
of capital appreciation reflected in the market value of shares &
dividends . Management’s ability to meet the expectation of the
share holders are reflected in terms of the share value.
EVA helps to focus the share holder’s return & mould the
managers of the organization to work like a owners of their
business.
134
135. Concept of EVA : Started by US financial advisory ; Stern Stewart
& Co.Called Economic Income. Subsequently called EVA.
An organization creates hare holder’s value only if it generates
return in excess of the cost of capital.
Net profit > the cost of capital
Hence EVA = NOPAT -( Total Capital Employed X average cost of
Capital)
= Excess of return over CoC
If the EVA is negative , it implies that the organization is destroying
the shareholder’s wealth , even though organization reports positive
& growing EPS, or ROCE. .
ROI verses EVA : 1. EVA measures the real profitability . It
indicates the shareholder’s wealth for the risk they take in investing
the capital in the organization. 135
136. 2.EVA encourages growth in new products, new equipment , market,
quality measures etc
3.Builds sensitivity towards the resource mobilization , allocation &
investment decision.
4.It measures the effective productivity of all factors of production.
Increasing EVA :
1. Increase NOPAT with the same amount of capital
2. Reduce the capital employed without affecting the earning.
( Discard the unproductive assets)
3. Investing in the projects , products etc where the earning is more
than the CoC .
EVA & Managerial performance
1.Builds the competitive spirit among the managers to create value
for the share holders , by focusing how capital is being used to create
higher cash in flow. 136
137. 2. Develops the overall competency of the organization to earn
higher
return operating in a similar risk seeking business environment.
3. Makes the mangers to care about the assets & income & helps
them to assess properly the trade off between the two.
4. It helps the managers to focus on the value creating activities
rather than wasting time & energy with accounting principles.
5 EVA linked Incentive : There is no upper limit of incentive for
performing managers who helps to increase the EVA . It creates
tremendous peer pressure.
137
138. Who is using EVA in Indian corporate sector
TCS
TATA Motors
TISCO
ICICI bank
Eureka Forbes
Godrej group( GCPL, Godrej Properties , Godgej Sara Lee , Godrej
Agrovet Godrej Food )
NIIT
Insights : Godrej recorded an EVA improvement of 35 Cr (FY01-02)
Sales grew 24%, Profit grew 71%
The EVA target set by the organization was not only met but
exceeded . ED & President
EVA has no only helped the Godrej Group reward richly
outstanding performance but also build entrepreneurial spirit.
138
139. Implementing EVA in an organization
4 Step process :Known as 4 M approach
1 Measurement
2 Management system
3. Motivation
4. Mindset
139
140. Evaluation & Management Control
Management audit Process.
Strategic
People Process Financial Infrastructure
plan
audit audit audit audit
Work audit
Compensation Policy environment BSC
competency Quality process
performance IT process (ERP)
productivity CSI
B/M Supplier rating
LTQ
Operation audit versus & management audit
140
141. Performance measures are split in four categories
I Financial Factors Soundness of the organization to
share holders
II Customer Factors Quality , Speed effectiveness, efficiency
with which the organization
deliver the customer satisfaction
III Internal Business Internal business process support the
organization or Process not ?
IV learning & Growth Continuos improvement & building
capability to sustain change & achieve
competitive dominance
141
142. BSC Frame work
Financial
perspective
Strategic Internal business
Customer & process
goals &
perspective perspective
objectives
Learning &
growth
142
Editor's Notes
A-Mei, the Taiwanese pop diva sang the Taiwanese anthem at President Chen Shui-bian’s May inauguaration (2000) and raise a political storm. China withdrew her Sprite soft drink ads from TV, newspapers and billboards across the country, almost jeopardising her contract with Coca-cola. Spokesman for Coca-cola was quoted as saying that the company was informed of the withdrawal a day before A-Mei even performed at the inauguration. Puyuma pop star, A-Mei, in a recent Sprite commercial, dances and sings in the old colonial powers quarter of Shanghai. She sings a chorus of "give me true feeling" in Mandarin to promote the product of an American multinational corporation. This ad and her music videos are screened on Hong Kong's TVB, MTV, and on channels of Rupert Murdoch's Star TV Group. Bit 2 In an August 1999 article "China's crazy about A-Mei" by New York Times News Service reporter Seth Faison, A-Mei is described as being "Taiwanese" and No. 1 in China. Feth describes A-Mei's sell out concerts in Beijing as "overpowering any consideration of the current battle over" Taiwan's sovereignty. This is in reference to the latest spat between Taiwan and the PRC due to President Lee's "state to state" relations comments. Bit 3 The shifting images of A-Mei (Chinese name Chuang Hui-mei) are quite market responsive. She has been called a "pop diva", Taiwan's Mariah Carey and other related labels. She is a superstar by regional commercial criteria, her 5 CDs released thus far having sold millions of copies along with concert videos and VCDs. Her brand of cultural products has become well known throughout East Asia. She has large advertising contracts with Fuji Film and Sprite. In general, she's done well commercially.