INTERNAL ANALYSIS<br />Group – 4<br />Junaid A Siddiqui<br />Shivani Sharma<br />Dattsen Mishra<br />MananBedi<br />KunalS...
Topics to be covered<br />External Analysis Vs Internal Analysis<br />Importance of Internal Analysis<br />
Importance of Internal Analysis<br />
Performance Beyond Profit<br />Financial Performance<br /><ul><li> Sales & Market Share
 Profitability
 Shareholder’s Value</li></li></ul><li>Internet Analysis Performance measurement  Financial performance<br />Financial P...
Financial Performance (ctd…)<br />
Financial Performance<br />Performance Beyond Profit<br /><ul><li> Product Service Quality
 Brand Loyalty
 Brand Association
 Relative cost
 New product Activity
Employee Capability</li></li></ul><li>Internal Analysis<br />Performance Measurement<br />Performance Beyond Profit<br />P...
The Coca-Cola Management System (TCCMS). TCCMS is the integrated quality management program, which holds all of their oper...
Brand loyal consumers are the foundation of an organization
Brand loyalty is always developed post purchase.
Example of brand loyalty can be seen in US where true Apple customers have the brand's logo tattooed onto their bodies.</l...
Internal Analysis<br />Performance Measurement<br />Performance Beyond Profit<br />Brand Association<br /><ul><li>It is an...
Associations are not “reasons-to-buy” but provide acquaintance and differentiation that’s not replicable
Examples :-</li></ul>	Hyatt Hotels :- Luxury<br />	Mercedes Benz :- Sophistication, superior engineering.<br />	Bill Gates...
Promote </li></ul>COST REDUCTION<br />Eg. Apple i-phone, i-pad<br />Change<br /><ul><li>Design
Manufacturing System</li></ul>Eg. Sony Ericson Camera<br />Value  Analysis<br /><ul><li>Emphasize/ Promote
Leave it alone</li></ul>Eg. Nokia N 73 Speakers, Camera<br />Value Analysis<br /><ul><li>De-emphasize
Upgrade</li></ul>Eg. Micromax Mobiles<br />
Internal Analysis<br />Performance Measurement<br />Performance Beyond Profit<br />New Product Activity<br />
Internal Analysis<br />Performance Measurement<br />Performance Beyond Profit<br />Employee Capability and Performance<br />
Past and Current Strategies<br />Strategic Problems<br />Organizational Capabilities <br />Financial Capabilities /Constra...
Determinants of Strategic Options<br />Past and Current Strategies<br />Strategic Problems<br />STRATEGIC CHOICES<br />Org...
PAST AND CURRENT STRATEGIES<br />To understand the bases of past performance, it is important to be able to make an accura...
Determinants of Strategic Options<br />Past and Current Strategies<br />Strategic Problems<br />STRATEGIC CHOICES<br />Org...
STRATEGIC PROBLEMS<br /><ul><li>Differs from a weakness or liability.
Absence of an asset ( such as good location) or competence (eg new product introduction skills).</li></ul>For Example – An...
Determinants of Strategic Options<br />Past and Current Strategies<br />Strategic Problems<br />STRATEGIC CHOICES<br />Org...
ORGANIZATIONAL CAPABILITIES<br />Important source of both strengths and weaknesses are:<br /><ul><li>Structure – E.g.. The...
System – E.g.. McDonald’s
People
Culture</li></li></ul><li>Determinants of Strategic Options<br />Past and Current Strategies<br />Strategic Problems<br />...
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Strategic marketing

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Strategic marketing

  1. 1. INTERNAL ANALYSIS<br />Group – 4<br />Junaid A Siddiqui<br />Shivani Sharma<br />Dattsen Mishra<br />MananBedi<br />KunalShukla<br />AshishGadbail<br />Rohit Singh<br />AkifGhaffar<br />MohitLala<br />
  2. 2. Topics to be covered<br />External Analysis Vs Internal Analysis<br />Importance of Internal Analysis<br />
  3. 3.
  4. 4. Importance of Internal Analysis<br />
  5. 5. Performance Beyond Profit<br />Financial Performance<br /><ul><li> Sales & Market Share
  6. 6. Profitability
  7. 7. Shareholder’s Value</li></li></ul><li>Internet Analysis Performance measurement  Financial performance<br />Financial Performance<br />Customer Base<br />Customer satisfaction<br />Loyal customers<br />Sales<br />Cost<br />Shareholder’s value enhancement<br />
  8. 8. Financial Performance (ctd…)<br />
  9. 9. Financial Performance<br />Performance Beyond Profit<br /><ul><li> Product Service Quality
  10. 10. Brand Loyalty
  11. 11. Brand Association
  12. 12. Relative cost
  13. 13. New product Activity
  14. 14. Employee Capability</li></li></ul><li>Internal Analysis<br />Performance Measurement<br />Performance Beyond Profit<br />Product / Service Quality<br />The collection of features and characteristics of a product that contribute to its ability to meet given requirements.<br />Product quality plays a major role in brand loyalty and brand association<br />Global Product Quality Index rating was 94.5 which was highest<br />Coca Cola Company :-<br /><ul><li>Consistency and reliability are critical to our product quality and to meeting global regulatory requirements and Company standards.
  15. 15. The Coca-Cola Management System (TCCMS). TCCMS is the integrated quality management program, which holds all of their operations system wide to the same standards for production and distribution of our beverages</li></li></ul><li>Internal Analysis<br />Performance Measurement<br />Performance Beyond Profit<br />Brand Loyalty / Customer Satisfaction<br /><ul><li>Relative possibility of customer shifting to another brand in case there is a change in product’s features, price or quality.
  16. 16. Brand loyal consumers are the foundation of an organization
  17. 17. Brand loyalty is always developed post purchase.
  18. 18. Example of brand loyalty can be seen in US where true Apple customers have the brand's logo tattooed onto their bodies.</li></ul>It measures parameters such as quick service, ensuring quality products, continuous improvement, wide distribution network, etc.<br />
  19. 19. Internal Analysis<br />Performance Measurement<br />Performance Beyond Profit<br />Brand Association<br /><ul><li>It is anything which is deep seated in customer’s mind about the brand.
  20. 20. Associations are not “reasons-to-buy” but provide acquaintance and differentiation that’s not replicable
  21. 21. Examples :-</li></ul> Hyatt Hotels :- Luxury<br /> Mercedes Benz :- Sophistication, superior engineering.<br /> Bill Gates and Microsoft etc.<br /><ul><li>Brand should be associated with something positive so that the customers relate your brand to being positive</li></li></ul><li>Internal Analysis<br />Performance Measurement<br />Performance Beyond Profit<br />Relative Cost Vs Relative performance<br />Value Analysis<br /><ul><li>Raise Prices
  22. 22. Promote </li></ul>COST REDUCTION<br />Eg. Apple i-phone, i-pad<br />Change<br /><ul><li>Design
  23. 23. Manufacturing System</li></ul>Eg. Sony Ericson Camera<br />Value Analysis<br /><ul><li>Emphasize/ Promote
  24. 24. Leave it alone</li></ul>Eg. Nokia N 73 Speakers, Camera<br />Value Analysis<br /><ul><li>De-emphasize
  25. 25. Upgrade</li></ul>Eg. Micromax Mobiles<br />
  26. 26. Internal Analysis<br />Performance Measurement<br />Performance Beyond Profit<br />New Product Activity<br />
  27. 27. Internal Analysis<br />Performance Measurement<br />Performance Beyond Profit<br />Employee Capability and Performance<br />
  28. 28. Past and Current Strategies<br />Strategic Problems<br />Organizational Capabilities <br />Financial Capabilities /Constraints <br />Strengths / Weaknesses <br />
  29. 29. Determinants of Strategic Options<br />Past and Current Strategies<br />Strategic Problems<br />STRATEGIC CHOICES<br />Organizational Capabilities <br />Financial Capabilities /Constraints <br />Strengths / Weaknesses <br />
  30. 30. PAST AND CURRENT STRATEGIES<br />To understand the bases of past performance, it is important to be able to make an accurate profit of past and current strategies.<br />
  31. 31. Determinants of Strategic Options<br />Past and Current Strategies<br />Strategic Problems<br />STRATEGIC CHOICES<br />Organizational Capabilities <br />Financial Capabilities /Constraints <br />Strengths / Weaknesses <br />
  32. 32. STRATEGIC PROBLEMS<br /><ul><li>Differs from a weakness or liability.
  33. 33. Absence of an asset ( such as good location) or competence (eg new product introduction skills).</li></ul>For Example – An Automobile brand that finds it has a fit and finish deficit w.r.t. competitors requires strategic moves involving product design and production<br />
  34. 34. Determinants of Strategic Options<br />Past and Current Strategies<br />Strategic Problems<br />STRATEGIC CHOICES<br />Organizational Capabilities <br />Financial Capabilities /Constraints <br />Strengths / Weaknesses <br />
  35. 35. ORGANIZATIONAL CAPABILITIES<br />Important source of both strengths and weaknesses are:<br /><ul><li>Structure – E.g.. The flexible structure of 3M is a key to its growth
  36. 36. System – E.g.. McDonald’s
  37. 37. People
  38. 38. Culture</li></li></ul><li>Determinants of Strategic Options<br />Past and Current Strategies<br />Strategic Problems<br />STRATEGIC CHOICES<br />Organizational Capabilities <br />Financial Capabilities /Constraints <br />Strengths / Weaknesses <br />
  39. 39. CONSTRAINTS<br />Questions to be answered?????<br /><ul><li>Whether or not to invest in a business or withdraw cash from it???
  40. 40. Should a firm increases its net investment or decrease it by holding liquid assets or returning cash to debt holders?
  41. 41. E.G. – Enam Securities Pvt Ltd was acquired by Axis bank because they were not making enough profit from past some time.</li></li></ul><li>Determinants of Strategic Options<br />Past and Current Strategies<br />Strategic Problems<br />STRATEGIC CHOICES<br />Organizational Capabilities <br />Financial Capabilities /Constraints <br />Strengths / Weaknesses <br />
  42. 42. ORGANIZATION STRENGTH AND WEAKNESSES<br />Based on its assets and competencies<br />
  43. 43. Where to compete<br />The Customer Value Proposition<br />Assets and Competencies<br />Functional Strategies and programs<br />
  44. 44. Internal Analysis<br />From Analysis to Strategy<br />Where to compete<br />Some leading Examples<br />Some important questions to be asked are:<br />
  45. 45. Internal Analysis<br />From Analysis to Strategy<br />Customer Value Propositions<br />Can involve elements such as providing:<br />
  46. 46. Assets & Competencies<br />Internal Analysis<br />From Analysis to Strategy<br />
  47. 47. Internal Analysis<br />From Analysis to Strategy<br />Functional Strategies & Programs<br />Business strategy driven by a supportive set of Functional Strategies & Programs<br />
  48. 48. Internal Analysis<br />From Analysis to Strategy<br />
  49. 49. Definition and need of Portfolio Analysis<br />BCG Matrix<br />GE Matrix<br />Few strategic implications<br />
  50. 50. Internal Analysis<br />Business Portfolio Analysis<br />Definition of Portfolio Analysis<br />“A company's portfolio is the sum of its business, assets and products. A perfect portfolio analysis is shaped to meet and suit the company's potency and also enable it to exploit the best opportunities available to it.” <br />Analysis of a portfolio involves deciding on the relative importance of available business and investment opportunities.<br />The best portfolio analysis takes into account the locations of the different Strategic Business Units (SBU) present in the portfolio.<br />Need of Business Portfolio Analysis<br />
  51. 51. Internal Analysis<br />Business Portfolio Analysis<br />BCG Matrix<br />Four classification (thus four strategies)<br />Two dimension used:<br /> Market share <br /> Market growth rate<br />
  52. 52. Internal Analysis<br />Business Portfolio Analysis<br />GE/Mc Kinsey Matrix<br />The GE matrix however, attempts to improve upon the BCG matrix by generalizing the axes as "Industry Attractiveness" and "Business Unit Strength" whereas the BCG matrix uses the market growth rate as a proxy for industry attractiveness and relative market share as a proxy for the strength of the business unit.<br />There are nine Quadrants which are numbered and accordingly Strategic implications are like– <br />While the GE business screen represents an improvement over the more simple BCG growth-share matrix, it still presents a somewhat limited view by not considering interactions among the business units and by neglecting to address the core competencies leading to value creation.<br />
  53. 53. Internal Analysis<br />Business Portfolio Analysis<br />GE/ Mc Kinsey Matrix<br />Evaluating Business Unit Strength<br /><ul><li> Organization
  54. 54. Growth
  55. 55. Share by segment
  56. 56. Customer loyalty
  57. 57. Margins
  58. 58. Distribution
  59. 59. Technology skills
  60. 60. Planets
  61. 61. Marketing
  62. 62. Flexibility</li></ul>Industry Attractiveness<br />Business unit Strength<br />Evaluate Industry Attractiveness<br />1) Size 2) Growth 3) Customer satisfaction levels<br />4) Competition 5) Price level 6)Profitability<br />7) Technology 8) Government regulation <br />9) Sensitivity to economic trends<br />
  63. 63. Internal Analysis<br />Business Portfolio Analysis<br />Few strategies <br />

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