Week 4 - CSF & Internal Analysis

Question 1

What are Critical Success Factors (CSFs)

Answer 1

CSFs are essentially to answer the question, what does it take to succeed in the industry?
They are
- Usually only in a few core areas
- Where the company already has capabilities in this area
- Can be measured by KPIs and SMART goals

Example CSF
Soft Drink Industry CSFs - Coke
- High distribution (Strength)
- Avert consumer attention to health concerns (Strength)

Question 2

What are the 5 steps to determine CSFs

Answer 2

1. Review external analysis and identify CSFs
2. Prioritise each CSF by ranking significance
3. Explain each CSF based on market/industry research
4. Rank competitors based on CSF scale
5. Compare CSF performance with internal S&W
6. Determine which CSF is a strength or weakness to the firm

Question 3

What is Internal Analysis and why is it important to marketers?

Answer 3

Marketers conduct internal analysis to assess a company’s strengths and weaknesses, ensuring informed decision-making and optimal utilisation of resources in alignment with external market opportunities and threats.

• How can we match CSFs
• What internal resources are available to us?

Question 4

What are the 3 key areas of an effective Internal Analysis?

Answer 4

1. Resources
   - Inputs from a firm’s production process
   - Tangible Resources and Intangible Resources
2. Capabilities
   - Ability to deploy resources that are well integrated
   - Emerge over time and enable firm to exploit and sustain advantage
3. Core Competencies
   - Resources + Capabilities that serve as competitive advantage
   - Distinguishes the firm competitively
   - Ideal Factors: Rare, costly to imitate, non-sustainable

Question 5

What are organisational capabilities and why is it key to understand? Furthermore list the 5 ways to analyse non-marketing capabilities and 2 ways to analyse marketing capabilities

Answer 5

Marketers need to understand organisational capabilities to ensure that marketing strategies align with the company’s strengths, resources, and capacity to deliver on promises.

Non-Marketing Capabilities
1. Performance Analysis - Overall tangible and intangible strengths and weaknesses of internal operations
2. McKinsey 7s Model - Organisational Effectiveness
3. Porter’s Value Chain - Value Creation
4. Activity System - Unique Combinations
5. BCG Model - Resource forecasting and allocation

Marketing Capabilities
1. Performance Analysis
2. Marketing Management

Question 6

Describe Performance Analysis and how it assists marketers understand non-marketing capabilities

Answer 6

Performance Analysis - Overall tangible and intangible strengths
Tangible
- Financials
- Operations
Intangible
- Management and leadership
- Human Resource

Question 7

Describe McKinsey 7s Model and how it assists marketers understand non-marketing capabilities

Answer 7

McKinsey 7s Model - Organisational Effectiveness
Looks like a interconnected demonic hexagon consisting of

3 Hard S’
- Strategy
- Structure
- Systems

3 Soft S’
- Skills
- Style
- Staff

With the central item being
- Shared Values

Draw Diagram Out

Steps to use
Step 1. Identify the areas that are not effectively aligned.
Step 2. Determine the optimal organization design.
Step 3. Decide where and what changes should be made.
Step 4. Make the necessary changes.
Step 5. Continuously review the 7s

Question 7

Describe Porters Value Chain Model and how it assists marketers understand non-marketing capabilities

Answer 7

Purpose: understanding where unique advantages (in terms of superior consumer value or cost advantages) are realised in the firm
How to use it: fill in each relevant section and decide where the most value is added, where the company has unique competitive advantage

Draw Diagram Out

Question 8

Describe Activity Systems and how it assists marketers understand non-marketing capabilities

Answer 8

Activity Systems Are
- Unique combination of things that only the company would do
- It’s a non-linear process of matching internal actions that form unique capabilities

Draw Diagram Out

Question 8

Describe BCG Model and how it assists marketers understand non-marketing capabilities

Answer 8

The BCG Portfolio Matrix, developed by the Boston Consulting Group, is a tool used by companies to categorize their business units or products into four quadrants based on market growth rate and market share.

Its primary purpose is to help companies allocate resources and make strategic decisions based on the potential growth and profitability of their products or business units.

Draw Diagram Out

Market Growth Rate H, Market Share H - Stars (INVEST)
Market Growth Rate L, Market Share H - Cash Cows (MILK)
Market Growth Rate H, Market Share L - Question Marks (ANALYSE)
Market Growth Rate L, Market Share L - Dogs (DIVEST)

Question 8

What is a Problem and Opportunity Statement and what are the steps in developing one?

Answer 8

• Helps summarise information and draw conclusions on a firm’s situation

Steps to develop
1. Identifying Opportunities
- Org Capabilities - In relation to CSFs
- Others - Non-Critical
- Future - Forecasted
2. Identifying Problems
- Problem that must be addressed
3. Strategic Implications of the Os and Ps

Question 9

Describe Performance Analysis and how it assists marketers understand marketing capabilities

Answer 9

Marketing strategies
– Are the marketing mix (4Ps) strategies aligned with the overall positioning?
– Relate back to competitive advantage or differentiation

Marketing performance
– Are we achieving results? (Sales, market share, profits, customer satisfaction, etc.)
– Compare to competitor or benchmarks where possible

Question 10

Describe Marketing Management and how it assists marketers understand marketing capabilities

Answer 10

Are we marketing the organisation correctly?
- Marketing organisation
- Marketing Intelligence
- Marketing Planning
- Marketing Control