Professional Documents
Culture Documents
Strategic Management:
Concepts & Cases
13th Edition
Fred David
Ch 4 -1
Ch 4 -2
Internal Assessment
Great
strategy.
Sun Tzu
Ch 4 -3
Internal Audit
Ch 4 -4
Internal strengths/weaknesses
External opportunities/threats
Clear statement of mission
Ch 4 -5
Ch 4 -6
competitive advantage
involves taking advantage of
distinctive competencies
Ch 4 -7
gathered from:
Management
Marketing
Finance/accounting
Production/operations
Ch 4 -8
Internal Audit
Involvement in performing an
internal strategic-management audit
provides a vehicle for understanding
the nature and effect of decisions in
other functional business areas of
the firm
Copyright 2011 Pearson
Ch 4 -9
Ch 4 -10
Internal Audit
Managers
Ch 4 -11
Internal Audit
Financial Ratio Analysis
Exemplifies complexity of
relationships among functional areas
of the business
Ch 4 -12
Ch 4 -13
Physical resources
2.
Human resources
3.
Organizational resources
Ch 4 -14
Rare
Hard to imitate
Ch 4 -15
Ch 4 -16
Resistant to change
May represent:
Strength
Weakness
Copyright 2011 Pearson
Ch 4 -17
Legends
Heroes
Symbols
Cultural
Products
Myths
Rites
Rituals
Ch 4 -18
Ch 4 -19
Management
Functions of Management
1.
Planning
2.
Organizing
3.
Motivating
4.
Staffing
5.
Controlling
Copyright 2011 Pearson
Ch 4 -20
Management
Function
Planning
Strategy Formulation
Organizing
Strategy Implementation
Motivating
Strategy Implementation
Staffing
Strategy Implementation
Controlling
Strategy Evaluation
Ch 4 -21
Management
Planning
Ch 4 -22
Management
Developing a mission
Forecasting future events
and trends
Planning
Establishing objectives
Choosing strategies to
pursue
Ch 4 -23
Planning
Synergy
Ch 4 -24
Management
Organizing
Ch 4 -25
Management
Organizing
Ch 4 -26
Management
Motivating
Leadership
Group dynamics
Communication
Organizational change
Copyright 2011 Pearson
Ch 4 -27
Management
Staffing
Personnel management
Ch 4 -28
Management
Staffing
Recruiting
Interviewing
Testing
Selecting
Orienting
Training
Developing
Caring for
Evaluating
Rewarding
Disciplining
Promoting
Transferring
Demoting
Dismissing
Ch 4 -29
Management
Controlling
Ch 4 -30
Management
Controlling
1. Establish performance standards
2. Measure individual and organizational
performance
3. Compare actual performance to
Ch 4 -31
Ch 4 -32
Ch 4 -33
Ch 4 -34
Marketing
Customer Needs or Wants for Products
and Services
1. Defining
2. Anticipating
3. Creating
4. Fulfilling
Copyright 2011 Pearson
Ch 4 -35
Marketing
Marketing Functions
1. Customer analysis
2. Selling products/services
3. Product & service planning
4. Pricing
5. Distribution
6. Marketing research
7. Opportunity analysis
Ch 4 -36
Marketing
Customer surveys
Consumer information
Customer
Analysis
Market positioning
strategies
Customer profiles
Market segmentation
strategies
Copyright 2011 Pearson
Ch 4 -37
Marketing
Selling
Products/Services
Advertising
Sales Promotion
Publicity
Personal Selling
Sales force management
Customer relations
Dealer relations
Ch 4 -38
Ch 4 -39
Marketing
Product/Service
Planning
Test marketing
Brand positioning
Devising warranties
Packaging
Product features/options
Product style
Quality
Deleting old products
Providing for customer
service
Ch 4 -40
Marketing
Pricing
Major Stakeholders
Consumers
Governments
Suppliers
Distributors
Competitors
Ch 4 -41
Marketing
Distribution
Warehousing
Distribution channels
Retail site locations
Sales territories
Inventory levels
Transportation
Wholesaling
Retailing
Ch 4 -42
Marketing
Gather data
Marketing Research
Record data
Analyze data
Ch 4 -43
Marketing
Assessing costs
Cost/Benefit
Analysis
Assessing benefits
Assessing risks
Ch 4 -44
Marketing Audit
1. Are markets segmented effectively?
2. Is the organization positioned well among
competitors?
3. Has the firms market share been
increasing?
4. Are the distribution channels reliable &
cost effective?
5. Is the sales force effective?
Ch 4 -45
Marketing Audit
6. Does the firm conduct market research?
7. Are product quality & customer service
good?
8. Are the firms products and services
priced appropriately?
9. Does the firm have effective promotion,
Ch 4 -46
Marketing Audit
budgeting effective?
11. Do the firms marketing managers have
as compared to rivals?
Copyright 2011 Pearson
Ch 4 -47
Finance/Accounting
budgeting)
2. Financing decision
3. Dividend decision
Ch 4 -48
Ratios
Current ratio
Quick (or acid test) ratio
Ch 4 -49
Leverage Ratios
Ratios
Debt-to-total assets
Debt-to-equity
Long-term debt-to-equity
Times-interest-earned
Ch 4 -50
Ratios
Inventory turnover
Fixed assets turnover
Total assets turnover
Accounts receivable turnover
Average collection period
Ch 4 -51
Ratios
Gross profit margin
Operating profit margin
Net profit margin
Return on total assets (ROA)
Ch 4 -52
Ratios
Return on stockholders
equity (ROE)
Earnings per share
Price-earnings ratio
Ch 4 -53
Ratios
Sales
Net Income
Earnings per share
Dividends per share
Ch 4 -54
Growth Ratios
Ratio
Sales
Annual percentage
growth in
Total sales
Net Income
Profits
EPS
Ch 4 -55
Ch 4 -56
Ch 4 -57
Ch 4 -58
Ch 4 -59
Finance/Accounting Audit
1.
2.
3.
4.
5.
Ch 4 -60
Finance/Accounting Audit
6.
7.
8.
9.
Ch 4 -61
Production/Operations
Production/Operations Functions
Process
Capacity
Inventory
Workforce
Quality
Copyright 2011 Pearson
Ch 4 -62
Ch 4 -63
Production/Operations Audit
Are
Are suppliers
suppliers of
of materials,
materials, parts,
parts, etc.
etc.
reliable
reliable and
and reasonable?
reasonable?
Are
Are facilities,
facilities, equipment,
equipment, machinery,
machinery,and
and
offices
offices in
in good
good condition?
condition?
Are
Are inventory-control
inventory-control policies
policies and
and
procedures
procedures effective?
effective?
Ch 4 -64
Production/Operations Audit
Are
Are quality-control
quality-control policies
policies && procedures
procedures
effective?
effective?
Are
Are facilities,
facilities, resources,
resources, and
and markets
markets
strategically
strategically located?
located?
Does
Does the
the firm
firm have
have technological
technological
competencies?
competencies?
Ch 4 -65
Ch 4 -66
Budgeting relative to
competitors
How many successful
new products are
needed
Copyright 2011 Pearson
Ch 4 -67
Ch 4 -68
Ch 4 -69
Improve performance of an
enterprise by improving the quality
of managerial decisions
Ch 4 -70
Ch 4 -71
Ch 4 -72
Ch 4 -73
Core competencies
Distinctive competencies
Benchmarking
Ch 4 -74
Value
Value
Chain
Chain
Activities
Activities
Are
Are
Identified
Identified
and
and
Assessed
Assessed
Core
Core
Competencies
Competencies
Arise
AriseininSome
Some
Activities
Activities
Some
SomeCore
Core
Competencies
Competencies
Evolve
Evolveinto
into
Distinctive
Distinctive
Competencies
Competencies
Some
Some
Distinctive
Distinctive
Competencies
Competencies
Yield
Yield
Sustained
Sustained
Competitive
Competitive
Advantages
Advantages
Ch 4 -75
Ch 4 -76
Ch 4 -77