Tools for Strategic Planning and

Evaluation
Dr Rajesh Tripathi
 Cost Dynamics
• Process Engineering Skills
• Resilient Product design
• Sustained access to inexpensive capital
• Close supervision of labour
• Tight cost control
• Incentives based on quantitative target
• Supplier and distributor relationship
 Benefits of low cost dynamics
• Standardized product
• Low price
• Market share
• Entry barrier
 Learning Curve
• Introduced by Hermann Ebbinghaus
• Learning curve states that the more times a
task is performed, the less time will be
required on each subsequent iteration
• It further states that as quantity of item
doubles, cost decreases at predictable rate
 Typical Learning/Experience Curve

unit
cost

total cumulative output

5
BCG Matrix
 Limitation of BCG matrix
• Classification of business as low and high
• Ambiguity regarding Market definition
• Growth rate and relative market share
• To simple
 SWOT Analysis
• Strength
• Weakness
• Threat
• Opportunity