External Internal Anlysis
* External and Internal Analysis and Competitive Advantage
In this lecture, we focus * Company’s present strategy * Internal strength and weakness and external opportunity and threat * Five generic competitive strategy * Competitive advantage and strategy for Diversification * External and Internal Analysis and Competitive Advantage
Considerations for Present Strategy: * Cost (low cost?) * Quality (superior quality?) * Customer based (broad or narrow segment) * Product-distribution (logistic, inventory strategy)
Performance can be evaluated by * Growth of sales * Acquiring new and retaining existing customers * Profit margin * Trends on return on investment (ROI) * Efficiency in production cost, defects rate, inventory, distribution, supply chain management * Image and reputation * External and Internal Analysis and Competitive Advantage
Basis of developing strategy
SWOT analysis is based on the principle that * Strategy making efforts aim at producing a good fit between company’s resource capability (balance of resource strength and weakness) and its external situation (market opportunities and threats to profitability and market standing) * Strategy Formulation * Managers analyze the current situation to develop strategies achieving the mission. * SWOT analysis: a planning to identify: * Organizational Strengths and Weaknesses. * Strengths: manufacturing ability, marketing skills. * Weaknesses: high labor turnover, weak financials. * Environmental Opportunities and Threats. * Opportunities: new markets. * Threats: economic recession, competitors * External Analysis * Analyzing the dynamics of the industry in which an organization competes to help identify: * Opportunities: conditions in the environment that a company can take advantage to become more profitable * Threats: conditions in the environment that endanger the
In this lecture, we focus * Company’s present strategy * Internal strength and weakness and external opportunity and threat * Five generic competitive strategy * Competitive advantage and strategy for Diversification * External and Internal Analysis and Competitive Advantage
Considerations for Present Strategy: * Cost (low cost?) * Quality (superior quality?) * Customer based (broad or narrow segment) * Product-distribution (logistic, inventory strategy)
Performance can be evaluated by * Growth of sales * Acquiring new and retaining existing customers * Profit margin * Trends on return on investment (ROI) * Efficiency in production cost, defects rate, inventory, distribution, supply chain management * Image and reputation * External and Internal Analysis and Competitive Advantage
Basis of developing strategy
SWOT analysis is based on the principle that * Strategy making efforts aim at producing a good fit between company’s resource capability (balance of resource strength and weakness) and its external situation (market opportunities and threats to profitability and market standing) * Strategy Formulation * Managers analyze the current situation to develop strategies achieving the mission. * SWOT analysis: a planning to identify: * Organizational Strengths and Weaknesses. * Strengths: manufacturing ability, marketing skills. * Weaknesses: high labor turnover, weak financials. * Environmental Opportunities and Threats. * Opportunities: new markets. * Threats: economic recession, competitors * External Analysis * Analyzing the dynamics of the industry in which an organization competes to help identify: * Opportunities: conditions in the environment that a company can take advantage to become more profitable * Threats: conditions in the environment that endanger the