SPD4251_BPS_-_Lecture_8_SV

SPD4251_BPS_-_Lecture_8_SV - PEED – Bachelor of Arts in...

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Unformatted text preview: PEED – Bachelor of Arts in Business (General Mgt/Finance/IB) Subject Lecturer: Macy Wong Meeting 8 SPD4251 Business Policy and Strategy 2 A. Today’s Class Meeting ¡ Drawing Internal and External Analysis Together \ SWOT and Key Issues ¡ Recap on Competitive Advantages and Core Competences ¡ Critical Success Factors (CSFs) 3 SWOT and Key Issues 4 Performance Indicators ¡ Trends in sales and earnings growth ¡ Trends in the company’s stock price ¡ The company’s overall financial strength ¡ The rate at which new customers are acquired ¡ Image and reputation with customers ¡ Evidence of improvement in internal processes such as defect rate, order fulfillment, and days of inventory 5 The Company’s Strengths, Weaknesses, Opportunities and Threats ¡ S W O T represents the first letter in \ S trengths \ W eaknesses \ O pportunities \ T hreats ¡ For a company’s strategy to be well-conceived, it must be \ Matched to its resource strengths and weaknesses \ Aimed at capturing its best market opportunities and defending against external threats to its well-being 6 Identifying Resource Strengths and Competitive Capabilities ¡ Common types of resource strengths include \ Skills or specialized expertise in a competitively important capability \ Valuable physical assets \ Valuable human assets or intellectual capital \ Valuable organizational assets \ Valuable intangible assets \ Competitively valuable alliances or cooperative ventures 7 Identifying Resource Weaknesses and Competitive Deficiencies ¡ A weakness is something a firm lacks, does poorly, or a condition placing it at a disadvantage in the marketplace ¡ Resource weaknesses relate to \ Inferior or unproven skills, expertise, or intellectual capital \ Deficiencies in competitively important physical, organizational, or intangible assets \ Missing or competitive inferior capabilities in key areas 8 Identifying a Company’s Market Opportunities ¡ Opportunities most relevant to a company are those offering \ Good match with its financial and organizational resource capabilities \ Best prospects for growth and profitability \ Most potential for competitive advantage 9 Identifying External Threats to Profitability and Competitiveness ¡ Entry of lower-cost foreign competitors ¡ Burdensome regulations ¡ Rise in interest rates ¡ Potential of a hostile takeover ¡ Unfavorable demographic shifts ¡ Adverse shifts in foreign exchange rates 10 Summary SWOT Consists of (after Filtering ): \ Main opportunities and threats \ Main strengths and weaknesses ¡ Think strategically , identify the Main SWOTs ¡ Derived from earlier analyses ¡ A summary not an analysis ¡ Helps to identify key strategic issues 11 SWOT Problems ¡ Simple to use so can be used “sloppily” so...
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SPD4251_BPS_-_Lecture_8_SV - PEED – Bachelor of Arts in...

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