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EFE and CPM by YasirButt1

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projects, thesis, reports, assignments and study notes on various topics in MBA.

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									Vision & Mission



      Shared Vision --
            • Creates commonality of interests
            • Reduce daily monotony
            • Provides opportunity & challenge




Copyright 2007 Prentice Hall                     Ch 2 -1
Mission Statement




    “What is our business?”




Copyright 2007 Prentice Hall   Ch 2 -2
Mission Statements



 •Enduring statement of purpose
 •Distinguishes one firm from another
 •Declares the firm’s reason for being




Copyright 2007 Prentice Hall             Ch 2 -3
Vision & Mission



Profit & vision are necessary to effectively
motivate a workforce




Copyright 2007 Prentice Hall               Ch 2 -4
Importance of Mission

   Benefits from a strong mission


                               Unanimity of Purpose


                                Resource Allocation
            Mission
                               Organizational Climate


                                Focal point for work
                                      structure


Copyright 2007 Prentice Hall                            Ch 2 -5
                         Products
                         Services         Markets
    Customers




                                                    Technology
                               Mission
Employees
                               Elements

                                                     Survival
                                                     Growth
                                                      Profit
    Public
    Image
                    Self-Concept     Philosophy




Copyright 2007 Prentice Hall                                     Ch 2 -6
    “Analysis is the critical starting
    point of strategic thinking.”
                                                       Kenichi Ohmae

                     “Things are always
          different--the art is figuring
                                                                                        “Quote”
                    out which differences
                                                                           Laszlo
                                  matter.”                                 Birinyi
 Copyright 2007 Prentice Hall                                                                    Ch 2 -7
McGraw-Hill/Irwin               Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Competitive Forces
  7 Characteristics of most
  Competitive Firms:


    1. Market share matters
    2. Understand what business you are in
    3. Broke or not, fix it
    4. Innovate or evaporate




Copyright 2007 Prentice Hall                 Ch 2 -8
Competitive Forces
  7 Characteristics of most
  Competitive Firms:


    5. Acquisition is essential to growth
    6. People make a difference
    7. No substitute for quality




Copyright 2007 Prentice Hall                Ch 2 -9
The Global Challenge


   Faced by Pakistani Firms --
        •Gain & maintain exports to other
        nations
        •Defend domestic markets against
        imported goods




Copyright 2007 Prentice Hall                Ch 2 -10
Industry Analysis: The External Factor
Evaluation (EFE) Matrix

 Summarize & Evaluate


    Economic                   Demographic     Governmental

        Social                 Environmental   Technological

      Cultural                    Political    Competitive


Copyright 2007 Prentice Hall                                 Ch 2 -11
Copyright 2007 Prentice Hall   Ch 2 -12
Copyright 2007 Prentice Hall   Ch 2 -13
Industry Analysis EFE


   Total weighted score of 4.0
         • Organization response is outstanding to threats
           and weaknesses




    Total weighted score of 1.0
          • Firm’s strategies not capitalizing on opportunities
            or avoiding threats


Copyright 2007 Prentice Hall                                Ch 2 -14
Industry Analysis: Competitive Profile
Matrix (CPM)


     Identifies firm’s major competitors
     and their strengths & weaknesses
     in relation to a sample firm’s
     strategic positions



Copyright 2007 Prentice Hall               Ch 2 -15
                                Gateway           Apple               Dell
                                        Wt’d            Wt’d             Wt’d
CSF’s                  Wt      Rating
                                        Score
                                                Ratin
                                                 g      Score
                                                                Rating
                                                                         Score

Market share          0.15       3      0.45     2      0.30      4       0.60
Inventory sys         0.08       2      0.16     2      0.16      4       0.32
Fin. position         0.10       2      0.20     3      0.30      3       0.30
Prod. Quality         0.08       3      0.24     4      0.32      3       0.24
Cons. Loyalty         0.02       3      0.06     3      0.06      4       0.08
Sales Distr           0.10       3      0.30     2      0.20      3       0.30
Global Exp.           0.15       3      0.45     2      0.30      4       0.60
Org. Structure        0.05       3      0.15     3      0.15      3       0.15


Copyright 2007 Prentice Hall                                             Ch 2 -16
                                Gateway           Apple               Dell
                                        Wt’d            Wt’d             Wt’d
CSF’s (cont’d)         Wt      Rating
                                        Score
                                                Ratin
                                                 g      Score
                                                                Rating
                                                                         Score

Prod. Capacity        0.04       3      0.12     3      0.12      3       0.12
E-commerce            0.10       3      0.30     3      0.30      3       0.30
Customer Serv 0.10               3      0.30     2      0.20      4       0.40
Price
                      0.02       4      0.08     1      0.02      3       0.06
competitive
Mgt.                  0.01       2      0.02     4      0.04      2       0.02
experience


Total                 1.00              2.83            2.47              3.49

Copyright 2007 Prentice Hall                                             Ch 2 -17
 Key Success Factors
                   Scientific research expertise; Product innovation capability; Expertise
Technology-
                   in a given technology; Capability to use Internet to conduct various
related            business activities
Manufacturing- Low-cost production efficiency; Quality of manufacture; High use of
                   fixed assets; Low-cost plant locations; High labor productivity; Low-
related            cost product design; Flexibility to make a range of products
                   Strong network of wholesale distributors/dealers; Gaining ample
Distribution-
                   space on retailer shelves; Having company-owned retail outlets; Low
related            distribution costs; Fast delivery
                   Fast, accurate technical assistance; Courteous customer service;
Marketing-
                   Accurate filling of orders; Breadth of product line; Merchandising
related            skills; Attractive styling; Customer guarantees; Clever advertising
                   Superior workforce talent; Quality control know-how; Design
Skills-related     expertise; Expertise in a particular technology; Ability to develop
                   innovative products; Ability to get new products to market quickly
Organizational Superior information systems; Ability to respond quickly to shifting
                   market conditions; Superior ability to employ Internet to conduct
capability         business; More experience & managerial know-how
                   Favorable image/reputation with buyers; Overall low-cost; Convenient
Other              locations; Pleasant, courteous employees; Access to financial capital;
                   Patent protection
 Copyright 2007 Prentice Hall                                                    Ch 2 -18

								
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