Professional Documents
Culture Documents
�17 الزتونة
�17 الزتونة
Political stability,
Government regulations & deregulations.
Changes in tax laws.
Level of government subsidies
Country to other countries relationships
Trading policies& Import-export regulations
Political conditions in foreign countries
Facilities for the entrance for new foreign investment,
Size of government budgets
The relations with other countries
Economic forces
Wages level
price elasticity of demand
Social, Cultural, Demographic, and Environmental forces:
Technological forces
Competitors
The structure, bases and intensity of competition.
The existing major competitors and any competitive advantage.
The major strengths and relative position of each competitor.
The objectives, strategies and the level of profitability of each
competitors.
The market share level.
"الهم اشرح لى صدرى و يسر لى امرى و أحل العقدة من لسانى يفقه قولى"
:Internal Audit -3
The main aim from this analysis is to end up with: (Strengths and
Weaknesses)
Management -
Marketing-
I want to know how the firm is doing its marketing functions (its
customer segments, distribution of its products, its position, brand,
………pricing, promotion
Financial analysis-
Here I am doing ratio analysis for maximum 2 years and compare
them to evaluate the company's financial performance also I can
compare them to the industry average if I have it. Very important
to note that we will calculate the most important rations that
will help us selecting strategies which I believe are the following
:ratios
1) Liquidity Ratios:
They measure the short term debt paying ability.
Total Debt To Total Assets Ratio = total debt (liabilities) / total assets =
(…%) the creditors have supplied (…%) of the firms total financing.
4) Profitability Ratios:
Show the combined effect of liquidity, asset management & debt
Profit Margin on Sales Ratio = Net Income / Net Sales (cash & credit)
Price / earnings ratio = market price per share / earnings per share
(EPS) = (..Time). If the market price per share is > 12-15 time EPS, this
.is over valued stock If it’s < 12-15 time EPS, this is under valued stock
R&D-
MIS -
weaknesses concerning R&D and MIS and use them in our SWOT
.analysis
HERE I have to be able to take strategic choices and select from the
following types of strategies:
Vertical Integration Strategies (Gain Control Over: Distributors, Suppliers,
and Competitors)
Guidelines
Defensive Strategies
1- Retrenchment: (Regrouping , Cost & asset reduction to reverse declining sales &
profit)
Guidelines
Guidelines
1- Joint Venture/Partnering -
Managers who must collaborate daily; not involved in developing the venture
Benefits the company not the customers
Not supported equally by both partners
May begin to compete with one of the partners
Guidelines
Potential Advantages
Less expensive
Allows firm to focus on core business
Enables firm to provide better services
ADVANTAGES
Centralized control of operations
Promotes in-depth functional expertise
Enhances operating efficiency where tasks are routine
DISADVANTAGES
Functional coordination problems
Inter-functional rivalry
Overspecialization and narrow viewpoints
""الهم اشرح لى صدرى و يسر لى امرى و أحل العقدة من لسانى يفقه قولى
DIVISIONAL STRUCTURE:
It occurs especially when the organization is managing diverse product line or when the
organization is expanding to cover wider geographical areas
ADVANTAGES:
Decentralized decision making
Each business is organized around products
Puts profit/loss accountability on manager
Facilitates rapid response to environmental changes
Allows efficient management of a large number of units
DISADVANTAGES
May lead to costly duplication of functions
Inter-divisional rivalry
Corporate managers may lose in-depth understanding
""الهم اشرح لى صدرى و يسر لى امرى و أحل العقدة من لسانى يفقه قولى
MATRIX STRUCTURE
The matrix structure (some times called the matrix organization) it combines the functional
and divisional structure. It is designed to gain the advantage and minimize the disadvantages
of the functional and divisional structures.
The matrix is formed by using permanent cross functional teams to integrate functional
expertise in support of a clear divisional focus on project, product or program.
The matrix structure in the multinational organizations offers a flexibility to deal with the
regional differences as well as the multi products, programs or regional needs.
The matrix structure is the common solution for the organizations that pursues the growth
strategies in a dynamic and complex environment
Functional & product form are combined simultaneously at the same level.
Employee have 2 superior, functional superior & horizontal product manager
WHEN TO USE?
Scarce resources
Ideas need to be cross fertilized across projects
External environment is very complex and changeable
3. Mature matrix: A true dual authority structure, functional & product structure
are permanent
Human resources:
b. Succession Planning: the preparation of the company succession plan will enable the
organization to stand any future challenges.
c. Career Path and development: the preparation of the career path for the employees
will help the stability and minimize the turnover of the employees.
e. Training and development: on-the- job” training, Off-the-Job training and Provide
career planning assistance for employees.
f. Incentive system will ensure the motivation of the employees to better performance
(linking incentive to production)
g. Compensation Policies and protection: What employees get in exchange for their
contribution to the organization maintains, retain productive workforce, achieve the
org. objectives.
R&D
So…….
B-Positioning:
Positioning
Begin by the differentiating the company’s marketing offer that will deliver more
value than the competitors thus gaining competitive advantage
1. Choose a broad poisoning for the product
Become best at one of the three value disciplines. (Operational Excellence –
Product Leadership and Customer Intimancy)
Achieve an adequate performance level in the other two disciplines.
Keep improving one’s superior position in the chosen discipline so as not to
lose out to a competitor.
Keep becoming more adequate in the other two disciplines, since
competitors keep raising customers’ expectations about what is adequate.
2. Choose a specific poisoning for the product
Best quality
Best performance
Most reliable
Most durable
Safest
Fastest
Best value for the money
Least expensive
Most prestigious
Best designed or styled
Easiest to use
Most convenient
3. Choose a value poisoning for the product
More for More
More for the Same
The Same for Less
Less for Much Less
More for Less
Saving cost
Minimize risk in introducing new products
Disadvantage:
Brand dilution
consumer confusion
Cannibalization on original product
""الهم اشرح لى صدرى و يسر لى امرى و أحل العقدة من لسانى يفقه قولى
consumer confusion about the brand image and may loose its positioning
may harm consumer attitude toward other product under the same brand
2. Market skimming: initial prices are set high and gradually reduced to capture
greet number of market segments
Used when:
Mass distribution
Rigorous credit control policy
Special offers
Discount to trigger immediate sales and prompt payment
E-Promotion strategies
1. Advertising
Used when:
2. Sales promotion
Used when:
3. Public relation
Used when:
4. Personal selling
Used when:
Making sales
Building customer relations preference, conviction and solicit action
Build up buyers
""الهم اشرح لى صدرى و يسر لى امرى و أحل العقدة من لسانى يفقه قولى
F-Distribution strategies
1. Identify major alternatives channels
Number of intermediary:
Exclusive distribution
selective distribution
intensive distribution
Channels cost
Sales output
Product complexity
3. Selecting channels
Based on:
Years on business
Growth record
Financial strength
Service reputation
Inventory management
Manufacture focused
Time based market focused
GOOD LUCK