Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
it is not a template
but rather tools & concepts collection
References
1. A Competitive Advantage Approach, Concepts & Cases, 15th Edition, ISBN 978-0-13-344479-7 by Fred r. David and Forest r. David,
published by Pearson Education © 2015.
2. Strategic Management and Business Policy: Globalization, Innovation, and Sustainability, 15th Edition, ISBN 978-0-13-452205-0 by
Thomas L. Wheelen, J. David Hunger, Alan N. Hoffman, and Charles E. Bamford, published by Pearson Education © 2018.
3. Principles of Marketing, 15th Edition, ISBN 978-0-13-325541-6 by Philip Kotler and Gary Armstrong, published by Pearson
Education © 2014.
Dr. Amr Youssef - 2018
Environmental scanning
Corporate Governance
1. Board of Directors
2. Top Management
PESTEL
STEEPL
Sociocultural trends
1. Increasing environmental awareness
2. Growing health consciousness
3. Expanding seniors market
4. Impact of millennials
5. Declining mass market
6. Changing pace and location of life
7. Changing household composition
8. Increasing diversity of workforce and markets
Ecological trends Technological breakthroughs
1. Regulatory Risk 1. Portable information devices and electronic networking
2. Supply Chain Risk 2. Alternative energy sources
3. Product and Technology Risk 3. Precision farming
4. Litigation Risk 4. Virtual personal assistants
5. Reputational Risk 5. Genetically altered organisms
6. Physical Risk 6. Smart, mobile robots
Strategic Audit of a Corporation
Task Environment
Rate each force as high, medium, or low. Porter 5 Forces
Threat of
Substitute
Threat of New Entrants Rivalry among Existing Firms Bargaining Power of Buyers Bargaining Power of Suppliers
Products or
Services
1. purchases a large proportion of the seller’s
intense rivalry is related to: product or service 1. The supplier industry is dominated by a
1. Number of competitors 2. has the potential to integrate backward by few companies, but it sells to many
Entry barriers 2. Rate of industry growth producing the product itself 2. Its product or service is unique and/or
1. Economies of scale 3. Product or service characteristics 3. Alternative suppliers are plentiful because
it has built up switching costs
2. Product differentiation 4. Amount of fixed costs the product is standard or undifferentiated
A substitute product is 3. Substitutes are not readily available Relative
3. Capital requirements 5. Capacity 4. Changing suppliers costs very little
a product that appears 4. Suppliers are able to integrate Power of
4. Switching costs 6. Height of exit barriers: exit barriers 5. The purchased product represents a high
to be different but can Other
5. Access to distribution 7. Diversity of rivals percentage of a buyer’s costs, thus providing forward and compete directly with Stakeholde
channels 8. Barriers to entering the market are
satisfy the same need an incentive to shop around for a lower price
as another product. their present customers rs
6. Cost disadvantages low 6. earns low profits and is thus very sensitive to
5. A purchasing industry buys only a
independent of size 9. Consumer demand is falling costs and service differences
7. Government policy 10. Rivals have excess inventory 7. The purchased product is unimportant to the small portion of the supplier group’s
11. Rivals sell similar products/services final quality or price of a buyer’s products or goods and services and is thus
12. Mergers are common in the industry services and thus can be easily substituted unimportant to the supplier
without affecting the final
CSF - KSF
Competitive Profile Matrix Advertising - Product quality
Price competitiveness - Management
CPM Financial position - Customer loyalty
Global expansion - Market share
Organization Structure - Customer Service
Strategic Audit of a Corporation
Industry Benchmark
Strategic Audit of a Corporation
Internal Environment: Strengths and Weaknesses (SWOT) The Resource-based View
information about the firm’s: Production and operations audit checklist
Questions such as the following should be examined:
1. Management 1. Are supplies of raw materials, parts, and subassemblies reliable and
2. Marketing reasonable?
3. Finance and accounting, 2. Are facilities, equipment, machinery, and offices in good condition?
3. Are inventory-control policies and procedures effective?
4. Production and operations 4. Are quality-control policies and procedures effective?
5. R&D 5. Are facilities, resources, and markets strategically located?
6. MIS operations 6. Does the firm have technological competencies?
We aspire to make PepsiCo the world’s (3) premier consumer products company, focused on convenient foods and beverages (2) We seek to produce healthy financial rewards
for investors (5) as we provide opportunities for growth and enrichment to our employees, (9) our business partners and the communities (8) in which we operate. and in
everything we do, we strive to act with honesty, openness, fairness and integrity (6).
(Author comment: Statement lacks three components: Customers, Technology, and Self-Concept)
We are loyal to Royal Caribbean and Celebrity and strive for continuous improvement in everything we do. We always provide service with a friendly greeting and a smile
(7). We anticipate the needs of our customers and make all efforts to exceed our customers’ expectations (1). We take ownership of any problem that is brought to our
attention. We engage in conduct that enhances our corporate reputation and employee morale (9). We are committed to act in the highest ethical manner and respect the rights
and dignity of others. (6).
(Author comment: Statement lacks five components: Products/Services, Markets, Technology, Concern for Survival/Growth/Profits, Concern for Public Image)
Dell’s mission is to be the most successful computer company (2) in the world (3) at delivering the best customer experience in markets we serve (1). in doing so, Dell will
meet customer expectations of highest quality; leading technology (4); competitive pricing; individual and company accountability (6); best-in-class service and support (7);
flexible customization capability (7); superior corporate citizenship (8); financial stability (5).
(Author comment: Statement lacks only one component: Concern for Employees)
Procter & Gamble will provide branded products and services of superior quality and value (7) that improve the lives of the world’s (3) consumers. as a result, consumers (1)
will reward us with industry leadership in sales, profit (5), and value creation, allowing our people (9), our shareholders, and the communities (8) in which we live and work to
prosper.
(Author comment: Statement lacks three components: Products/Services, Technology, and Philosophy)
at L’Oreal, we believe that lasting business success is built upon ethical (6) standards which guide growth and on a genuine sense of responsibility to our employees (9), our
consumers, our environment and to the communities in which we operate (8).
(Author comment: Statement lacks six components: Customers, Products/Services, Markets, Technology, Concern for Survival/Growth/Profits, Concern for Public Image)
Goals & Objectives (SMART)
Some of the areas in which a corporation might establish its goals and objectives are:
1. Profitability (net profits)
2. Efficiency (low costs, etc.)
3. Growth (increase in total assets, sales, etc.)
4. Shareholder wealth (dividends plus stock price appreciation)
5. Utilization of resources (Return on Equity (ROE) or Return on Investment (ROI))
6. Reputation (being considered a “top” firm)
7. Contributions to employees (employment security, wages, diversity)
8. Contributions to society (taxes paid, participation in charities, providing a needed product or service)
9. Market leadership (market share)
10. Technological leadership (innovations, creativity)
11. Survival (avoiding bankruptcy)
12. Personal needs of top management (using the firm for personal purposes, such as providing jobs for relatives)
Hierarchy of strategy
a grouping of strategy types by level in the organization. Hierarchy of strategy is a nesting of one strategy within another so
that they complement and support one another.
a stimulus for a change in strategy = triggering event
1. New CEO
2. External intervention
3. Threat of a change in ownership
4. Performance gap
5. Strategic inflection point
Mintzberg’s Modes of Strategic Decision Making
Entrepreneurial mode:
Strategy is made by one powerful individual.
The focus is on opportunities; problems are secondary.
Strategy is guided by the founder’s own vision of direction and is exemplified by large, bold decisions.
The dominant goal is growth of the corporation.
Amazon.com, is an example
5- Combination
1- Integration
a type 1 or type 2 cost leadership strategy can be a type 3 differentiation strategy can be especially effective
especially effective under the following conditions: under the following conditions:
1. When price competition among rival sellers is 1. When there are many ways to differentiate the product
especially vigorous. or service and many buyers perceive these differences
2. When the products of rival sellers are essentially as having value.
identical and supplies are readily available from 2. When buyer needs and uses are diverse.
any of several eager sellers. 3. When few rival firms are following a similar
3. When there are few ways to achieve product differentiation approach.
differentiation that have value to buyers. 4. When technological change is fast paced and
4. When most buyers use the product in the same competition revolves around rapidly evolving product
ways. features.
5. When buyers incur low costs in switching their
purchases from one seller to another.
6. When buyers are large and have significant
power to bargain down prices.
7. When industry newcomers use introductory low
prices to attract buyers and build a customer
base.
a low-cost (type 4) or best-value (type 5) focus strategy can be especially attractive under
the following conditions:
1. When the target market niche is large, profitable, and growing.
2. When industry leaders do not consider the niche to be crucial to their own success.
3. When industry leaders consider it too costly or difficult to meet the specialized needs of the target market niche while taking care of their
mainstream customers.
4. When the industry has many different niches and segments, thereby allowing a focuser to pick a competitively attractive niche suited to its
own resources.
5. When few, if any, other rivals are attempting to specialize in the same target segment.
Comprehensive Marketing Strategy Evaluation Framework
Comprehensive Marketing Strategy Evaluation Framework
Comprehensive Human Resource Strategy Evaluation Framework
Human resource management is one of the most important key success factors in organization, and its improvement will greatly improve the organization
performance
A. Human Resource Objectives C. Human Resource Policies and Programs
The human resource objective reflects the intention of the • Preparation and selection: Review of the employees' job description, job specification and job performance standard to
senior management (strategy) with a balance to the related match the change of the organization.
topics such as HR functions, society, governing rules, etc. • Succession Planning: the preparation of the company succession plan will enable the organization to stand any future
There are four major HRM objectives: challenges.
1. Organizational objectives: to achieve the required • Career Path and development: the preparation of the career path for the employees will help the stability and minimize
organization effectiveness and objectives and ensure that the turnover of the employees.
the organization always has people with the right abilities • Recruitment: designing a good recruitment process (Selection, interviews) with a high level of orientation to ensure the
available to do the right work compatibility of the new recruited employees with the existing culture to achieve organizational objectives.
2. Functional Objectives: maintain the department’s • Training and development: on-the- job” training, Off-the-Job training and Provide career planning
contribution at a level appropriate to the org. needs
assistance for employees.
3. Societal Objective: respond ethically and socially to
the challenges of the environment while minimizing the • Incentive system will ensure the motivation of the employees to better performance (linking incentive to
negative impact of such demands on the organizations production)
4. Personal objectives: to assist retain and motivate the • Compensation Policies and protection: What employees get in exchange for their contribution to the
employees for achieving their personal goals and guide organization”, maintain, retain productive workforce, achieve the org. objectives
them to better achievement (most important) • Testing: Will ensure the qualification of the candidates and their fit in the organization culture.
• Managing workforce diversity (if the organization is going internationally)
B. Human Resource Strategy • Enhance employee participation: in implementing our strategy, all employees from different
The human resource Strategy addresses the issue of organizational levels must make a meaningful contribution in decision-making. this will increase
whether to recruit a low skill, low paid, high turnover employee's involvement and enhance their working life balance.
employees or higher a high skill, high paid, low turnover • Enhance employee organizational commitment: by increasing job involvement, which results in lower
employees. levels of absenteeism and turnover.
The organization policy to go international must be a • Implementing employee recognition programs: starting with personal attention and ending with
highly paid high skill, low turnover employees to improve
appreciation for a job well done.
creativity of the employees and the turnover must be kept
at its minimum levels. • Develop effective staffing plans supporting the organizational strategies by allowing to fill job openings
proactively (in terms of number and the quality of the workforce for the short and long term) VIP in case
of international operations. (if the company is multinational)
Egypt – Business Culture (Page: 87)
Egyptians prefer to do business with those they know and respect, so expect to spend time cultivating a personal
relationship before business is conducted. Who you know is more important than what you know in Egypt, so network
and cultivate a number of contracts.
Hierarchy and rank are important. Unlike in Germany, Egyptian business people do have an open-door policy, even when
they are in a meeting, so you may experience frequent interruptions as others wander into the room and start a different
discussion. it is best that you not try to bring the topic back to the original discussion until the new person leaves.
Business meetings generally start after prolonged inquiries about health, family, and such.
Egyptians must know and like you to conduct business. Personal relationships are necessary for long-term business. the
highest-ranking person makes decisions, after obtaining group consensus. Decisions are reached after great deliberation.
in Egypt, business moves at a slow pace and society is extremely bureaucratic—even in the post-Hosni Mubarak era.
Egyptians respect age and experience and engage in a fair amount of haggling. they are tough negotiators and do not like
confrontation or having to say no.