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Differentiation Current MB
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Quality
Market share
Facttor 1
Factor 4
Attribute4
Weak
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Career Services
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Academics
Assessments siti
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Career Services
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The Goal
Factor 4 Factor 3
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if there is a change in product there is a strong possibility of the production process changing ?
There can be change in raw materials. Maybe with this change the consumers like or hate the product.
The use of the product might change
sbsm4075:
Well I would attack this problem by first questioning the
basic assumptions. Then if all my assumptions hold true
then I would check the external factors and then
internal. If there is a external factor which has led to the
change then is it the external factor only or has it
changed some internal factor too. Same for internal
impacting the external.
on the human factor. I would also re-verify what is my desired state or perfect
g to measure ? state which i am looking for. Is it high sales low cost over
long term or there is some different motives i am
chasing now. Like maybe my aim is to innovate as i am
at different level in the product cycle.
types
cataloges
television
radio
internet
mailing
sites
Billboards
mailers
tele-marketing
schemes
events
merchantdise
My profits have fallen what do I do ?
Frameworks
Which industry ? BCG
What is the data you comparing against ? Product Mix
Internal Factors/ External factors Market Assesment
Internal
To tell that lets run through all items and then What has changed since last data
we get to production or efficiency collection
Run down the Balance sheet and
income statement Run through all subjects
What was last time profit it might
have eaten into this one
Any major long time expense
Operations
Competitor response
Strategic Alternatives
New Markets for new products
new products with existing capabilities
Fight it out
Acquire new capabilities
ease but losses Exit-after milking
Company issues
down so not profitable Change affect client
ems which constiute cost product mix
Rent strategic
Wages shareholder perspective
Utility bill labor flexibilities
Price Increase
Would basically see if it is a price increase caused by some real changes in internals or it’s a virtual change.
In terms of vitual or un real terms would be
How is the cost being calculated such in terms of average cost. Factors affecting price sentivity
Am I just increasing my surplus without any additional change in product intrinsic qualities ?
If not changing intrinsic qualities, have I launched a marketting campaighn or something similar to increase the prod
Factors affecting price sentivity
Product Based
Product differenciation: few factors to differentiate
Product is an input which the buyers use to produce the final good. So there is a tendency to pass on th
Network externalities.
Using one product in conjunction with annother.
Substitutability
Market Factors
Competition - Monopoly, oligopoly
Market growth rate
Total demand in the market
Total production capacity in the market
Collusion
Customer Factors
Buyers expenditure are a large proption of total costs. A reverse example is a health care service where
Other
Regulation
Anti-trust practices
Inflation
fecting price sentivity
Porter Frameworks
whether it is a local or a global market Market Assesment
Get about product info from new Product info sheet Product portfolio analysis
Core competency cash flow with coc
BCG matrix
Concentration in the industry Run through all subjects
Nash equibilirium Strategy
Motivation - attack the competitor in his market Finance- NPV,
Move into a new market Employee- OB, type of people, skills,
Expand ME- Nash,
Acquire new capability FR- Run through balance sheet, Look at ratio
DS- Market data of profitability in other industry, try and run a regre
Situation
What am I doing presently (ex I am a software firm)
complication
Should we enter the new market
Key question
Would entering the market add value
Is entering the market the best alternative
Strategic resons
Competitor in business
Market trend
Competitive Response
e excessive capacity, better service for alredy existing market
My productCompetitor
Cost
Features
positioning
R&D
Suppliers
Design
Dependencies
manufacturing process
Look at ratio
other industry, try and run a regression
First look internally in the orginasation
Data
Expertise
External sources
Data
Expertise
Market surveys
Exchanges and find out about forms
National stats
Industry reports
Consultants
Identify the oppurtunity
Quantify the business benefits
Calculate the payback period
Conclusion and Recommendations
e
Identify the oppurtunity
nd itself is profitable
n market value
turned around
Non interest based and non personal based example vault case study page 84
Check the motive behind the cost reduction
A H A
B Y O See common tasks and see the linkages. Can
C T L
D D X
E E E Essential Benefit/Cost
A
1 2 3 B
4 5 6 common pool C
7 8 9
Optimization
Making it common
Outsourcing
Is it required ?
Major categories
nd see the linkages. Can be reduced to common pool
Payment schedule
positive net worth
Profitability
Check if positive for cost of capital calculation
increase revenues
decrease cost
product mix
Profit marg.
Asset turn over
Fixed asset
Working capital
Creditors days
Debitors days
stock days
ome similar factor see some alternative like leasing? Getting max out of min
with respect to present assets?
the new ones ?