Tool Tips-2

Tool Kit - COM 4PA3 *Tools 1-9/D-E focus on the Company and current methods, Tool 10-15 focus on the current Industry, Tool 22 & 23 are related to the future strategy * ..ALWAYS APPLY ?SO WHAT? S1- Role 1 paragraph Pertinent elements of case What is it about? Who are you? The starting position, involves doing a solid assessment on your current position What are you trying to achieve? What is their vision, mission and values? What are the strategies? Determine the way forward Who is expected to do What and by what Date for Whom and for what Purpose S2- Organizational Performance Clear summary Identify important operating performance metrics such as financial ratios, trends, productivity, profitability, financial position, market performance, ...key performance drivers. See financial statements for historical information. Rank from 0 to 10 (exclude 0, 5, 10) ... you decide the scale (ie. 0 be lowest, 10 highest) Where was the business a couple of years ago...Where is it today...In which direction is it currently moving? Current performance of business VS their competition S3- Organizational Health Clear summary of firms organizational health using rank Bring in supporting evidence from case Consider employee turnover, goodwill, and reputation...Rank from 0-10 (excluding 0,5,10) Typical measures Enthusiasm - management and employees Boundaries - identification with organization? Problem Solving - dealt with or hidden? Learning - repeat the same mistakes? Sustainability - can the pace be sustained?
S4- 2x2 Matrix of Tools S2, S3 Comments regarding longitudinal perspective (i.e. between time1 and time2, also called performance metrics) Identify company using the quadrant placement and an overall analysis Q1 - [Desired State] When Organizational Health is (H, positive) and Organizational Performance is (H, positive)... = Where companies wanna be and maintain Q2 - [Complacent Organization] When Organizational Health is (H, positive) and Organizational Performance is (L, negative) = Self-satisfied organization where people enjoy their work but collectively are performing in adequately in terms of marketing and financial standards Q3 - [Troubled Organization] When Organizational Health is (L, negative) and Organizational Performance is (H, positive) = The business is achieving its operating objectives at the expense of organizational health Q4 - [Crisis] When Organizational Health is (L, negative) and Organizational Performance is (L, negative) = Represents a clear-cut problem situation in which immediate and comprehensive action is necessary S5- Strategy Triangle Generalizes tools S6-S9 Industry key success factors (SMART Goals), is the company's current strategy inimitable &/or sustainable &/or profitable Are there any strategic &/or competitive advantages/differentiation? Do they possess operational effectiveness (do they maximize inputs (people, time, money) to outputs) or none of these ? Don't summarize case in explanation S6- Goals Categorize the goals stated in the case as Hard or Soft and whether they're realistic or not Include green environment as a soft goal Soft Goals- set out targets for the social conduct of the organization Focus on intentions with respect to employee, managers and community Hard Goals- focus on the aims and performance of the business as a classic economic entity whether it be for-profit or not for-profit Always have dates, soft don't S7- 2x2 Matrix on Product/Mkt Market penetration, product development, market development, diversification (Market: Existing/New, Product: Existing/New) Identify opportunities and risks of products/services and market development endeavors
State market (different from target market) Market penetration - with a focus on increasing market share, strategies may include new product uses and more users. Tactics may involve product relaunch; increase brand awareness; cut prices; and obtain better shelf space Product development - consider modifying products; extending lines and new products. Consider new sizes, flavors, packaging, and brands. Related to our R&D and innovation, strategies anticipate trends and customer needs to keep and improve the business competitive advantages. A risk is product cannibalization Market development - consider expansion into new markets (geographies, countries, channels, customer segments, etc.) Diversification (Riskiest) - create or develop new products, lines or product ranges. Product and market development vary in degree of similarity and synergy with the existing products and business experiences that may be associated with mergers and acquisitions (M&A) S8- Value Proposition How does the company compete? PFE - Price (direct vs indirect), features (tangible vs intangible), execution (availability, reliability, intensity), combination, etc. What value does the firm bring that no one else competes with? Link to industry KSFs (key success factors) S9- Core Activities Break the Value Chain into components and identify key elements. Comment on back/forward integration possibilities Are there opportunities to skip a part and focus on core competencies? What businesses/industries should we be operating in? How should we manage these businesses through appropriate M-Form structure, corporate rewards? Is the cost of corporate headquarters less than the value created by having different businesses in one corporation? Understand the business the product market focuses and value propositions of the business Then identify the resources that are treated as corporate property to be shared and transferred among the business Next identify the ways and the degree to which corporate management is engaged in the business level decisions about strategy, operations, and performance Corporate strategy can range from: A pure play - where at least 95% of total corporate revenue comes from 1 business unit To a dominate business unit, where 70% and 95% of revenue comes from a single business unit To unrelated diversification, where less than 70% of revenue comes from a dominant business and there are no common links between businesses
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