GROUP 1

STRATEGIC MANAGEMENT AND

ENVIRONMENTAL SCANNING
Learning Objectives
At the conclusion of this report, students will
be able to:

1. Recall what is environmental scanning;

2. Determine and interpret the other
environmental scanning tools;
3. Learn how to use Quadrants for Strategic
Decisions;
4. Interpolate a SWOT Analysis.
Recap

ENVIRONMENTAL SCANNING is a
process used by organizations to monitor
their external and internal environments
and help the manager to decide the future
path of the organization.
BRAND POSITIONING
Way back in 1969, a very perceptive
marketer named Jack Trout introduced the
concept of brand positioning to the world.
What’s a firm to do?

How do you compete when

there’s barely room to breathe?
Definition
Brand positioning is the process of setting your
business apart from your competitors in a way that
builds preference for you among your target audience.
Its goal is to associate your firm with an idea or category
in the minds of people who might buy your services.
Definition
Brand positioning is the process of
setting your business apart from your
competitors in a way that builds preference
for you among your target audience. Its goal
is to associate your firm with an idea or
category in the minds of people who might
buy your services.

Example: “Soft drink”

Brand Positioning must be:
•Different

•Visible
Why Brand Positioning Is
Important?
• Positioning can provide a
conceptual template for your
brand, your marketing messages,
the services you offer and even
the way you structure your pricing.
Types of Brand
Positioning
1. Cost-driven positioning. “We offer
everything those other firm do, but we
cost less.”

2. Niche service specialization. You

offer specialized expertise that,
presumably, a generalist would not
have.
Example: Lefty’s: The Left
Hand Store
Types of Brand
Positioning
3. Industry specialization. It is another
form of specialized expertise, and it allows
you to tightly focus your marketing and
evolve your services as your market
changes.

4. Role-focused specialization. “We help

CEOs succeed” is an example of role-
focused positioning — targeting a
particular function in the organization.
Types of Brand
Positioning
5. Quality of service positioning. This is one of
the most common strategies used by professional
services firms, and (with rare exceptions) it is
one of the least effective.

“Nobody’s more committed to quality,”

“we deliver the best service” and similar
messages are so ubiquitous in the
marketplace that they utterly fail to impress
buyers.
The Brand Positioning
Process
Step 1. Start with your overall business
imperatives.

Step 2. Research your target clients and

competitors.

Step 3. Identify your differentiators.

Step 4. Craft your brand positioning

statement.
Brand Position Statement
Forms
CRAFTED PARAGRAPH

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Brand Position Statement
Forms
PROMPTED STATEMENT TEMPLATE
SUMMARY
A positioning strategy is when a company
chooses one or two important key areas to
concentrate on and excels in those areas. A firm's
positioning strategy focuses on how it will compete
in the market. An effective positioning strategy
considers the strengths and weaknesses of the
organization, the needs of the customers and market
and the position of competitors. The purpose of a
positioning strategy is that it allows a company to
spotlight specific areas where they can outshine and
beat their competition.
BOSTON CONSULTING GROUP
(BCG) MATRIX
• is developed by Bruce Henderson of the
Boston Consulting Group in the early
1970’s  According to this technique,
business or products are classified as
low or high performance depending
upon their market growth rate &
relative market share.
BOSTON CONSULTING GROUP
(BCG) MATRIX
• Market share is the percentage of the total
market that is being serviced by your company
measured either in the revenue terms or unit
volume terms.
RMS = Business Unit Sales this year / Leading
Rival Sales this year
The higher your market share, the higher
proportion of the market you control.
BOSTON CONSULTING GROUP
(BCG) MATRIX
• MARKET GROWTH RATE is used as a
measure of a market’s attractiveness.
Individual Sales this year – Individual sales last
year MGR = Individual Sales last year
Markets experiencing high growth are ones
where the total market share available is
expanding & there is plenty of opportunity for
everyone to make money.
1. QUESTION MARKS/PROBLEM
CHILDREN ( HIGH GROWTH, LOW
MARKET SHARE)

2. LOW MARKET SHARESTARS (HIGH

GROWTH, HIGH MARKET SHARE)

3. CASH COWS ( LOW GROWTH, HIGH

MARKET SHARE)

4. DOGS (LOW GROWTH, LOW MARKET

SHARE)
1. QUESTION MARKS/PROBLEM
CHILDREN ( HIGH GROWTH, LOW
MARKET SHARE)

2. LOW MARKET SHARESTARS (HIGH

GROWTH, HIGH MARKET SHARE)

3. CASH COWS ( LOW GROWTH, HIGH

MARKET SHARE)

4. DOGS (LOW GROWTH, LOW MARKET

SHARE)
WHY BCG MATRIX?
To asses:
• Profile of product /business
• Cash demands of products
• The development cycle of product
• Resource allocation & divestment
decisions
BENEFITS
• It helps to quickly & simply screen the
opportunity open to you, & help you think
about how you can make the most of them.
• It is used to identify how corporate cash
resources can best be used to maximize
company’s future growth & profitability.
LIMITATION
• BCG matrix uses only two dimensions
relative market share & market growth rate.
CONCLUSION
Though BCG matrix has its limitation
it is one of the most famous & simple
portfolio planning matrix, used by
large companies having multi-
products.
CORE COMPETENCIES
MODEL
It is in shaping your uniqueness where
the core competencies model can be of
service.
1. UNIQUE

2. IMPORTANT

3. STRATEGICALLY WELL
Examples of Core
Competencies
• Apple’s core competencies are its user-
centered design along with its integrated
software and hardware ecosystem. The
design is so strong that it is practically
impossible for competitors to create
laptops that can sell for a similarly high
price.
VALUE CHAIN ANALYSIS
• The idea of a value chain was first
suggested by Michael Porter (1985) to
depict how customer value
accumulates along a chain of activities
that lead to an end product or service.
Porter describes the value chain as the
internal processes or an activity a
company performs to design, produce,
market, deliver and support its
product.
Two types of activities:
1. Primary Activities
• Inbound logistics: Material handling
and warehousing.
• Operations: Transforming inputs into
the final product.
• Outbound logistics: Order processing
and distribution.
• Marketing and sales: Communication,
pricing and channel management
• Service: Installation, repair and parts.
Two types of activities:
2. Support activities
● Procurement: Purchasing of raw materials,
supplies and other consumable items as well as assets.
● Technology development: Know-how, procedures
and technological inputs needed in every value chain
activity.
● Human resource management: Selection,
promotion and placement, appraisal, rewards management
development and labour or employee relations.
● Firm infrastructure: General management,
planning, finance, accounting, legal, government affairs
and quality management.
How VCA is Used
 Activity Analysis: Identify the activities
you undertake to deliver your product or
service;
 Value Analysis: Think through what you
would do to add the greatest value for your
customer; and
 Evaluation and Planning: Evaluate
whether it is worth making changes, and then
plan for action.
Limitations of Value
Chain Analysis:
1. Difficulty in implementation and
interpretation
2. Problem of Traditional
Accounting system
3. Difficulty in decision making
QUADRANTS FOR
STRATEGIC DECISIONS
• They consist of two axis,
representing a set of conflicting
interests or aspects, forming a table
with four cells. The labels of the
axis and the cells depends on the
purpose of the quadrant analysis.
SWOT Analysis
• A SWOT analysis is a compilation of your
company's strengths, weaknesses,
opportunities and threats.
• The primary objective of a SWOT analysis
is to help organizations develop a full
awareness of all the factors involved in
making a business decision.
Questions that can help
inspire your analysis
Strengths
• Strengths are internal, positive attributes of your
company. These are things that are within your
control.
• What business processes are successful?
• What assets do you have in your team, such as
knowledge, education, network, skills, and
reputation?
• What physical assets do you have, such as
customers, equipment, technology, cash, and patents?
• What competitive advantages do you have over your
competition?
Questions that can help
inspire your analysis
Weaknesses
• Weaknesses are negative factors that detract from
your strengths. These are things that you might
need to improve on to be competitive.
• Are there things that your business needs to be
competitive?
• What business processes need improvement?
• Are there tangible assets that your company needs,
such as money or equipment?
• Are there gaps on your team?
• Is your location ideal for your success?
Questions that can help
inspire your analysis
Opportunities
• Opportunities are external factors in your business
environment that are likely to contribute to your
success.
• Is your market growing and are there trends that will
encourage people to buy more of what you are selling?
• Are there upcoming events that your company may be
able to take advantage of to grow the business?
• Are there upcoming changes to regulations that might
impact your company positively?
• If your business is up and running, do customers think
highly of you?
Questions that can help
inspire your analysis
Opportunities
• Opportunities are external factors in your business
environment that are likely to contribute to your
success.
• Is your market growing and are there trends that will
encourage people to buy more of what you are selling?
• Are there upcoming events that your company may be
able to take advantage of to grow the business?
• Are there upcoming changes to regulations that might
impact your company positively?
• If your business is up and running, do customers think
highly of you?
Questions that can help
inspire your analysis
Threats
• Threats are external factors that you have no control over.
You may want to consider putting in place contingency
plans for dealing them if they occur.
• Do you have potential competitors who may enter your
market?
• Will suppliers always be able to supply the raw materials
you need at the prices you need?
• Could future developments in technology change how you
do business?
• Is consumer behavior changing in a way that could
negatively impact your business?
• Are there market trends that could become a threat?
Example of
a SWOT
analysis
 What to do next?
• Investigate investors. UPer Crust Pies might
investigate its options for obtaining capital.
• Uper Crust Pies: Potential strategies for growth
• Create a marketing plan. Because UPer Crust Pies
wants to execute a specific marketing strategy—
targeting working families by emphasizing that their
dinner option is both healthy and convenient—the
company should develop a marketing plan.
• Plan a grand opening. A key piece of that marketing
plan will be the store’s grand opening, and the
promotional strategies necessary to get UPer Crust
Pies’ target market in the door.
THANK YOU . . .