Critical success factors

Factors or activities required for ensuring the success of a company or an organization. A. External factors 1. Social, Cultural, Demographic, and Environmental Factors...
- Aging population - Percentage or one race to other races - Per-capita income - Number and type of special interest groups - Widening gap between rich & poor - Number of marriages and/or divorces - Ethnic or racial minorities - Education - Trends in housing, shopping, careers, business - Number of births and/or deaths - Immigration & emigration rates

2. Economic Factors...
-- Growth of the economy - Level of savings, investments, and capital spending - Inflation - Foreign exchange rates - Stock market trends - Level of disposable income - Import and export factors and barriers - Product life cycle (see the Product life cycle page) - Government spending - Industry properties - Economies of scale - Barriers to market entry - Product differentiation - Level of competitiveness (see the Michael Porter's Five Forces model)

3. Political, Government, Business Trends & Legal Factors... - Globalization trends

- Government regulations and policies - Worldwide trend toward similar consumption patterns - Internet and communication technologies (e-commerce) - Protection of rights (patents, trademarks, antitrust legislation) - Level of government subsidies - International trade regulations - Taxation - Terrorism - Elections and political situation home and abroad

Competitive Profile Matrix (Competitor analysis)

Assessment of the strengths and weaknesses of current and potential competitors.

Background o location of offices, plants, and online presences o history - key personalities, dates, events, and trends o ownership, corporate governance, and organizational structure Financials o P-E ratios, dividend policy, and profitability o various financial ratios, liquidity, and cash flow o Profit growth profile; method of growth (organic or acquisitive) Products o products offered, depth and breadth of product line, and product portfolio balance o new products developed, new product success rate, and R&D strengths o brands, strength of brand portfolio, brand loyalty and brand awareness o patents and licenses o quality control conformance o reverse engineering Marketing o segments served, market shares, customer base, growth rate, and customer loyalty o promotional mix, promotional budgets, advertising themes, ad agency used, sales force success rate, online promotional strategy o distribution channels used (direct & indirect), exclusivity agreements, alliances, and geographical coverage o pricing, discounts, and allowances Facilities o plant capacity, capacity utilization rate, age of plant, plant efficiency, capital investment o location, shipping logistics, and product mix by plant Personnel o number of employees, key employees, and skill sets o strength of management, and management style o compensation, benefits, and employee morale & retention rates Corporate and marketing strategies o objectives, mission statement, growth plans, acquisitions, and divestitures

Internal factors Management Audit Checklist

Strategic-management concepts Objectives and goals measurable and well communicated Managers at all hierarchical levels plan effectively. Authority delegation. Organizations structure. Job descriptions and specifications clear. Employee morale high. Employee turnover and absenteeism. Organizational reward and control mechanisms.

Marketing Audit
Markets segmented. Positioned among competitors. Market share been increasing/decrease. Geographical coverage. Distribution channels reliability and cost effectiveness. Effective sales force. Market research. Product quality. Customer service. Products/services priced. Promotion, advertising, and publicity strategy CRM

Finance/Accounting Audit.
Financial ratio analysis. Raise needed short-term capital. Raise needed long-term capital through debt and/or equity. Sufficient working capital. Capital budgeting procedures. Dividend payout policies. Relations with its investors and stockholders. Financial managers experienced and well trained.

Production/Operations Audit
Suppliers reliability and efficiency. Facilities, equipment, machinery, and offices condition. Inventory-control policies and procedures effectiveness. Quality-control policies and procedures effectiveness. Facilities, resources, and markets strategically. technological competencies

Research and Development Audit

R&D facilities. Use of third party R&D firms. Organizations R&D personnel qualifications. R&D resources. Rider efficient effectiveness. Use of update technology

Management Information Systems Audit

Use the information system to make decisions. Is there a chief information officer or director of information systems position in the firm? Data update. Do managers from all functional areas of the firm contribute input to the information system? Information system scurries. Are strategists of the firm familiar with the information systems of rival firms? Is the information system user-friendly? Users of the information system understand the competitive advantages of informations. Computer training workshops for users? System being improved and updated