Professional Documents
Culture Documents
Strategic Management:
Concepts & Cases
13th Edition
Fred David
Internal strengths/weaknesses
External opportunities/threats
Clear statement of mission
Distinctive Competencies:
Distinctive Competencies:
Exemplifies complexity of
relationships among functional areas
of the business
Organizational Culture
Pattern of behavior developed by an
organization as it learns to cope with its
problem of external adaptation and
internal integration . . . is considered valid
and taught to new members as the correct
way to perceive, think, and feel
Organizational Culture
Resistant to change
May represent:
Strength
Weakness
Values
Legends Beliefs
Heroes
Cultural Rites
Products
Symbols Rituals
Myths
1. Customer analysis
2. Selling products/services
4. Pricing
5. Distribution
6. Marketing research
7. Opportunity analysis
Customer surveys
Consumer information
Market positioning
Customer
strategies
Analysis
Customer profiles
Market segmentation
strategies
3. Dividend decision
Liquidity Ratios
Ratios
Current ratio
Quick (or acid test) ratio
Ratios
Leverage Ratios
Debt-to-total assets
Debt-to-equity
Long-term debt-to-equity
Times-interest-earned
Ratios
Activity Ratios
Inventory turnover
Fixed assets turnover
Total assets turnover
Accounts receivable turnover
Average collection period
Effectiveness shown by
returns on sales and
investment
Effectiveness shown by
returns on sales &
investment
Firm’s ability to
maintain economic
position
Ratios
Growth Ratios
Sales
Net Income
Earnings per share
Dividends per share
Production/Operations Functions
Process
Capacity
Inventory
Workforce
Quality
••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, andand
offices
offices in
in good
good condition?
condition?
••Are
Are inventory-control
inventory-control policies
policies and
and
procedures
procedures effective?
effective?
••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?
••Are
Are the
the R&D
R&D facilities
facilities adequate?
adequate?
••IfIf R&D
R&D is
is outsourced,
outsourced, is is itit cost-effective?
cost-effective?
••Are
Are the
the R&D
R&D personnel
personnel wellwell qualified?
qualified?
••Are
Are R&D
R&D resources
resources allocated
allocated effectively?
effectively?
••Are
Are MIS
MIS and
and computer
computer systems
systems
adequate?
adequate?
••Is
Is communication
communication between
between R&DR&D and
and
other
other organizational
organizational units
units effective?
effective?
••Are
Are present
present products
products technologically
technologically
competitive?
competitive?
Purpose
Improve performance of an
enterprise by improving the quality
of managerial decisions