Date post: | 13-Dec-2015 |
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Marketconditions
Marketingstrategy
Marketingtactics
Marketassessment
Marketperformance
Manufacturingconditions
Manufacturingstrategy
Manufacturingtactics
Manufacturingassessment
Manufacturingperformance
Human resourceconditions
Human resourcestrategy
Human resourcetactics
Human resourceassessment
Human resourceperformance
Financialconditions
Financialstrategy
Financialtactics
Financialassessment
Financialperformance
ENVIRONMENTAL ANALYSIS
BusinessStrategy
FEEDBACK
BusinessPerformance
Assessment of Business Conditions
BUSI
NES
S LE
VEL
FUN
CTIO
NAL
LEV
EL
STRATEGY
Marketobjectives
Manufacturingobjectives
Human resourceobjectives
Financialobjectives
Check financial performance
Check customer reaction to brands, prices, and advertising
Check production operations
Check out competition• strategic direction• tactics• market’s response
As needed, adjuststrategy // brand designs and prices // advertisingsales management // production plan
Check financesFeed decisions into Marketplace Live simulator
Brand judgment (0 to 100)
Price judgment (0 to 100)
Ad judgment (0 to 100)
100 indicates complete satisfaction. 70 would be a good brand and ad rating until new technology is available in Quarter 4.
Price ratings should be near 100.
Give the customer what they want and do so better than the competition.
Hot
ColdLess More
Hot
ColdLess More
Hot
ColdLess More
Hot
ColdLess More
Hot
ColdLess More
Hot
ColdLess More
Revise brand designs or create new ones // Revise ad copyAdjust prices // Hire more sales people or deploy differently
Add or take away elements to find the sweet spot in the customer’s response function.
Brand and ad designs // Prices and sale prioritiesSales strategy // Sales staffing // Ad placements
Demand by brand by segment Human resources // Manufacturing
• Reverse engineer the strategy of each competitor• Determine who is a threat and who is not• Determine strengths and weakness of competition• Emulate good decisions• Predict direction of competitive moves • Adjust strategy and tactics in reaction to competitor strengths
and weaknesses and in anticipation of future moves.
Firm profitability // Brand profitability Return on investment // Asset management // Etc.
• Discover which brands, markets, and business functions are making the greatest and weakest contribution to the bottom line.
• Deploy resources to correct weaknesses and take advantage of strong performers.
High productionLower unit production costs
Risk of too much inventoryUses up large volumes of cash
Risk of brand obsolescence (wrong product in warehouse)
Low productionLow cash requirements
Higher per unit production costs
Risk of too little inventoryStock outs // Lost revenue // Customer ill will (unhappy
customers)
The Balanced Scorecard
It is too easy to get caught up in market share and short-term profits.
Long-term viability requires that managers also deliver customer satisfaction and invest in the future.
The balanced scorecard measures both the long- and short-term.The best managers will be good in all areas measured.
Financial performance x Market performance x Marketing effectiveness x Investments in the firm’s future x
Creation of wealth x Asset management x Manufacturing productivity x Financial risk x HR management
The Management of Strategy – Learn From:
Your customersYour competitionYour operational informationYour employeesYour financial information
to skillfully adjust your strategy and tactics
Using the tools of managementaccounting reports (financial statements)industry financial benchmarks (industry
financial ratios)human resource reportsmarket feedback profitability analysis (activity based costing)