Model details Flashcards
(45 cards)
PESTEL
Use: External/Industry analysis of macro environment. Discuss factors:
P - Political
E - Economic
S - Social
T - Technological
E - Ecological
L - Legal
Porter’s 5 forces
Industry specific:
Bargaining power: Supplier & Customer
Threat of new entrants
Threat of substitutes
Competitive rivalry -
9Ms
Internal resource audit
- Men & WOmen
- Money
- Machinery
- Materials/Suppliers
- Markets
- Management
- Methods
- Make-up
- Management information systems
Resources & Competencies
Threshold resources - Basic needed by all firms in market
Unique resources - give firms sustainable competitive advantage
Threshold competencies - Activities and processes involved in using and linking the firm’s necessary resources to stay in business
Core competencies - Critical activities and processes to meet CFS’s and achieve a sustainable competitive advantage
Kays 3 sources
Subdivide core competencies into the following
Competitive Architecture
Reputation
Innovative ability
Kays - COmpetitive architecture
Network of relationships within and around a business that help create core competencies - take time to build
Internal - relationships with employees
External - Suppliers, customers and other intermediaries
Network - Collaborating businesses and organisations
Kays - Reputation
The reason why customers come back, investors invest and employees apply for jobs
Kays - Innovative ability
The ability to develop new products and services and maintain a competitive advantage
Porter’s value chain
Primary activitIes
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
Support activities
- Procurement
- HR
- Tech development
- Firm infrastructure
& MARGIN
Risk Classification
Strategic - objectives
Operational - day to day
Hazard - disasters
Financial - gearing, credit, liquidity etc
Compliance - Laws and regulations
Risk management
Reduce Avoid
Accept Transfer
TARA
Frequency (X) Impact (Y)
Porter’s generic strategies
cost leader
Differentiation
Niche - could be either
Bowman’s Clock
Starting at low:low going clockwise
Price(X) Value (Y)
1 No frills
2 Low Price
3 Hybrid
4 Differentiation
5 Focused differentiation (High High)
6-8 DOOMED
BCG Matrix
Relative market share >0.5
- Star - high growth
- Cash cow - low growth
Relative market share >0.5
- Question mark - high growth
- Dog - low growth
BCG strategies
Star - Expenditure to maintain position
Cash cow - harvest low capex
Question mark - build market share
Dog - Divest/shutdown unless gateway product
Product life cycle
Introduction
Growth/Shakeout
Maturity
Decline
Market segmentation
Sub units in the market
Attractiveness of a segment depends on it being
Measurable - (forcasting)
Accessible
Stable
Substantial
Defensible
Brand positioning
Economy, cowboy, premium, bargain
Market Research
Desk vs Field
4/7 P’s
Marketing Mix - set of controllable marketing variables
First 4
- Product
- Place
- Promotion
- Price
Service industry
- People
- Processes
- Physical evidence (evidence of service e.g. documentation or trinkets)
Kotler’s 3 C’s
Principles of pricing
COST - need to be covered
CUSTOMER - willing to pay
COMPETITORS - benchmark
Benchmarking
Internal
Competitive
Activity/Best in class
Generic
Lewin’s 3 steps/iceburg
UNFREEZE - existing behavior
MOVE - making the change
REFREEZE - Consolidate and reinforce
Gemini 4 Rs
REFRAME - what do we stand for?
RESTRUCTURE - change the structure
REVITALISE - find a good fit with environment
RENEWAL - Ensure support for change
