CHAPTER 4, CRITICAL SUCCESS FACTORS

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CHAPTER 4, CRITICAL SUCCESS FACTORS

• I used to be indecisive, but now I am not so sure

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Figure 4.1, the Planning Model
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Defining Critical Success Factors

• Figure 4.3. Matching the profile to the
  environment.

 
 
 
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Analyzing the Environment, Opportunities and
Challenges (threats)

• The terms defined
• An opportunity is something that if taken, will
  result in something positive for the
  organization.
• A challenge (threat) is quite different. Out of
  the environment, something with a negative
  consequence to your organization is going to
  happen unless you act in some way.

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Remote environment, opportunities and challenges
(threats)

• Figure 4.4. the remote environment for a ski area

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The Industry Environment, Opportunities and
Challenges (threats)

• Figure 4.5, Opportunities And Challenges From
  The Five Forces Applied To The Recreation
  Industry (Ski Area)

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Opportunities And Challenges From The Five Forces
Applied To The Recreation Industry (Ski Area)
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The Local Environment, Opportunities and
Challenges (threats)

• Figure 4.6. Characteristics of the local
  environment.

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Characteristics of the local environment
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The Organizational Profile, Strengths and
Weaknesses

• A strength means you are already equipped to
  handle the situation and you are using state of
  the art procedures.
• A weakness means you dont have the tools to deal
  with the issue.
• Put another way
• A strength is something you have that you need,
• A weakness is something you dont have that you
  need.

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Figure 4.8, Step 3, a partially complete
organizational profile.
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Step 3, a partially complete organizational
profile.
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Stages of Industry Evolution

• Figure 4.9 , Industry life cycle

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Figure 4.10, Critical Success Factors at Each
Stage of Industry Evolution
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Critical Success Factors at Each Stage of
Industry Evolution
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Critical Success Factors at Each Stage of
Industry Evolution
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Defining Organizational Critical Factors

• Figure 4.11, SWOT diagram

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Figure 4.12, SWOT Analysis
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Figure 4.13, the cells of a SWOT diagram
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Cell A Grand Strategy, Re-design practices

• An organization with internal weakness which is
  facing an industry with numerous opportunities
• must focus attention on re-designing how business
  is done so that the opportunities can be
  effectively captured.

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Other Cell A Strategies

• Retrenchment/turn around
• Joint Venture
• Strategic Alliance

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Cell B Grand Strategy, Be aggressive

• An organization with internal strengths which is
  facing an industry with numerous opportunities
• expand operations into new markets, invest in
  growth and reproduce success in other areas.

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Other Cell B Strategies

• Product development
• Market development
• Vertical Integration

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Cell C Grand Strategy, Be Defensive

• An organization with internal weakness which is
  facing an industry with numerous threats
• needs to revaluate whether or not it is advisable
  to stay in business.

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Other Cell C Strategies

• Divestiture
• Liquidation

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Cell D Grand Strategy, Use your strengths in
new places

• An organization with internal strengths which is
  facing an industry with numerous threats
• evaluate whether or not their expertise could be
  transferred to a new, less threatening
  environment.

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Other Cell D Strategies

• Horizontal Integration
• Concentric Diversification

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Summary

• The objective of chapter 4 was to define
  Critical Success Factors. The factors relate to
  an industry and an organizational perspective.
• The Stages of Industry Evolution was introduced
  as a tool to pinpoint the critical success
  factors from an industry point of view.
• The SWOT diagram was introduced as a tool to
  match the industry critical success factors with
  the organizational profile developed in chapter
  3.