Techniques and Analytical Techniques and Analytical Methods and Strategic Methods and Strategic

Analysis PlansAnalysis Plans

• Econometric modelEconometric model• Trend AnalysisTrend Analysis• Regression AnalysisRegression Analysis• The Delphi TechniqueThe Delphi Technique• Bench MarkingBench Marking• SpyingSpying• Expert Opinion MethodExpert Opinion Method

• Sales Force Composite MethodSales Force Composite Method• ExtrapolationExtrapolation• Moving AveragesMoving Averages• Exponential SmoothingExponential Smoothing• SimulationSimulation• Morphological AnalysisMorphological Analysis• Game TheoryGame Theory

• Monte Carlo MethodMonte Carlo Method• Fuzzy LogicFuzzy Logic• Genetic AlgorithmsGenetic Algorithms• QuestQuest

Strategic marketing plansStrategic marketing plans1.1. Product related factors:Product related factors:• Variety Variety • DifferentiationDifferentiation• Product positioningProduct positioning• PackagingPackaging

2. Price related factors:2. Price related factors:• Pricing policiesPricing policies• Pricing methodsPricing methods• Government policiesGovernment policies

3. Place related factors:3. Place related factors:• Logistics Logistics • DistributionDistribution• Market intermediariesMarket intermediaries

4. Promotion related factors:4. Promotion related factors:• Promotion budgetPromotion budget• AdvertisingAdvertising• Public relationsPublic relations• Sales promotionSales promotion

5. System related factors:5. System related factors:• Market intelligenceMarket intelligence• Market information systemMarket information system• Customer relationship managementCustomer relationship management

Typical strengths that build marketing Typical strengths that build marketing capabilitycapability• Wide variety of goodsWide variety of goods• Good quality productsGood quality products• Focused positioningFocused positioning• Price protectionPrice protection• Low pricesLow prices• Differentiated productsDifferentiated products• High profile advertisementHigh profile advertisement• Brand building effortsBrand building efforts• Effective distribution systemEffective distribution system• Strong R&D for new product developmentStrong R&D for new product development

Techniques for analyzing the strength Techniques for analyzing the strength and weakness in marketingand weakness in marketing

• Market share analysisMarket share analysis• Marketing auditMarketing audit• Brand monitoring surveysBrand monitoring surveys• Dealer and consumer panelsDealer and consumer panels• Analysis of profit volume Analysis of profit volume

relationshipsrelationships

• Strategic Advantage Analysis:Strategic Advantage Analysis:1.1. Marketing and DistributionMarketing and Distribution Competitive position and market Competitive position and market

share: Product lineshare: Product line Product life-cycleProduct life-cycle Pricing StrategyPricing Strategy Nature of the marketNature of the market

• Channels of DistributionChannels of Distribution• Brand ImageBrand Image• Market ResearchMarket Research• PackagingPackaging• Marketing PolicyMarketing Policy

Finance and Accounting:Finance and Accounting:• Financial resources and strengthFinancial resources and strength• Capital structure and cost of capitalCapital structure and cost of capital• Relations with ownersRelations with owners• Financial planning and budgetingFinancial planning and budgeting• Accounting System and audit Accounting System and audit

procedureprocedure• Tax planning and tax advantagesTax planning and tax advantages

Strategic Financial Plans:Strategic Financial Plans:1.1. Factors related to sources of fund:Factors related to sources of fund:• Capital structureCapital structure• Reserves and surplusReserves and surplus• Relation ship with bankersRelation ship with bankers• Working capital availabilityWorking capital availability• Financing patternFinancing pattern

2. Factors relating to usage of funds:2. Factors relating to usage of funds:• Fixed assetsFixed assets• Currents assetCurrents asset• Loans and advancesLoans and advances• Rapport with share holdersRapport with share holders• Dividend distributionDividend distribution

3. Factors related to the management 3. Factors related to the management of funds:of funds:

• Tax planning measuresTax planning measures• Cost reduction measuresCost reduction measures• Financial accountingFinancial accounting• Risk/return managementRisk/return management• Budgeting systemBudgeting system

Typical strengths that develop Typical strengths that develop financial capabilityfinancial capability

• Access to financial resourceAccess to financial resource• High rate of credit worthinessHigh rate of credit worthiness• Availability of low cost capital Availability of low cost capital

compared to competitorscompared to competitors• Favorable tax provisions given by Favorable tax provisions given by

governmentgovernment• High level of shareholders confidenceHigh level of shareholders confidence• Cordial relationship with bankersCordial relationship with bankers

Techniques adopted for analyzing the Techniques adopted for analyzing the strength and weakness in finance strength and weakness in finance areaarea

• Liquidity ratioLiquidity ratio• Profitability ratioProfitability ratio• Leverage ratioLeverage ratio• Cash flow analysisCash flow analysis• Payback and IRR analysisPayback and IRR analysis• Breakeven analysisBreakeven analysis• Earning to sales andEarning to sales and• Earning per shareEarning per share

Production and operations Production and operations managementmanagement

• Cost of operationsCost of operations• Capacity utilizationCapacity utilization• Production facilitiesProduction facilities• Cost and availability of materials and Cost and availability of materials and

componentscomponents• Plant locationPlant location• Purchasing and inventory controlPurchasing and inventory control

Strategic operations issuesStrategic operations issues1.1. Factors related to production Factors related to production

system:system:• LocationLocation• LayoutLayout• Work systemWork system• CapacityCapacity• Extent of automationExtent of automation• Vertical integrationVertical integration

2. Factors related to operations and 2. Factors related to operations and control systems:control systems:

• Aggregated production planningAggregated production planning• Material supplyMaterial supply• Capacity utilizationCapacity utilization• Quality controlQuality control• Maintenance systemsMaintenance systems

3. Factors related to R&D systems:3. Factors related to R&D systems:• PatentsPatents• Technology collaborationTechnology collaboration• Technology transferTechnology transfer• Technology agreementsTechnology agreements• FacilitiesFacilities

Techniques used for assessing strengths Techniques used for assessing strengths and weakness of operations and weakness of operations managementmanagement

• Capacity utilization analysisCapacity utilization analysis• Inventory analysisInventory analysis• Cost of production analysisCost of production analysis• Analysis of patents generatedAnalysis of patents generated• New products commercialization recordNew products commercialization record• Comparison of investments made in Comparison of investments made in

new product launchnew product launch

Typical strengths that build operations Typical strengths that build operations capabilitycapability

• High capacity utilizationHigh capacity utilization• Suitable plant locationSuitable plant location• Good inventory control system like Good inventory control system like

JITJIT• High profile scientistHigh profile scientist• Technical collaboration with world-Technical collaboration with world-

class R&D firmsclass R&D firms

Human Resources and Organizational Human Resources and Organizational Factors:Factors:

• Organization ClimateOrganization Climate• Employee performance recordEmployee performance record• Personnel policies and practicesPersonnel policies and practices• Managerial (leadership) styleManagerial (leadership) style• Union-Management relationsUnion-Management relations• Corporate ImageCorporate Image

Strategic human resource issuesStrategic human resource issues1.1. Factors related to personnel Factors related to personnel

systems:systems:• Manpower planning systemManpower planning system• Selection and development systemSelection and development system• Compensation andCompensation and• Appraisal systemAppraisal system

2. Factors related to employee 2. Factors related to employee characteristics:characteristics:

• Quality and skill of managementQuality and skill of management• Image of organization as employerImage of organization as employer• Working conditionsWorking conditions• leadershipleadership

3. Factors related to industrial 3. Factors related to industrial relations:relations:

• Union-management relationshipUnion-management relationship• Health, welfare, safety, stress, Health, welfare, safety, stress,

disciplinediscipline• Collective bargainingCollective bargaining

Typical strengths that support human Typical strengths that support human resource and capabilitiesresource and capabilities

• Efficient personnel systemsEfficient personnel systems• Be a model employerBe a model employer• High level of moraleHigh level of morale• Satisfied workforceSatisfied workforce• Statutory working conditionsStatutory working conditions• Need based training programsNeed based training programs• AbsenteeismAbsenteeism• Cordial work environmentCordial work environment• Motivated workforceMotivated workforce