PPT 1-1

1

• Chapter 6 - Internal Analysis
• Aims to provide a detailed understanding of the
  organization in terms of four aspects
• Financial performance (sales, market share
  profit)
• Other performance dimensions
• customer satisfaction/loyalty
• product quality
• brand association
• relative cost
• new product activity
• manager/employee capability and performance
• Strengths weaknesses
• Opportunities threats

2
For Discussion In performance analysis, what
measures would you consider important? Please
take McDonald and Chevrolet as examples.
3

• Chapter 4 Market/submarket Analysis
• Aims to determine the attractiveness, structure
  dynamics of a market (submarket) to current
  potential participants
• Dimensions
• Emerging submarkets
• Size Growth
• Profitability
• Cost structure
• Distribution systems
• Trends Developments
• Key success factors
• Risks in high-growth markets (competitors, market
  changes firm limitations)

4
For Discussion Case Fast food industry
McDonalds 1. What are the emerging submarkets
in the fast food industry? 2. What comes to your
mind when you mention the name McDonalds? 3.
What are the alternative responses available to
McDonalds, assuming that it wants to stay
relevant to customers interested in healthier
eating?
5

• Chapter 5 Environmental Analysis Strategic
  Uncertainty
• Aims to identify evaluate trends events in
  the environment surrounding the market
• Dimensions
• Technology Trends
• Government / Economic Trends
• Consumer Trends (cultural trends, green movement
• demographic trends)
• Impact Analysis assess the impact immediacy
  of the trend events
• Scenario Analysis explore different assumptions
  about the future

6

• For Discussion
• Case Fax Machine
• What did the fax machine replace, if anything?
• What will replace (or has replace) the fax
  machine?
• When will the fax machine disappear?

7

• For Discussion
• Case Airline Industry
• Focusing on the airline industry, develop a list
  of strategic uncertainties and possible strategic
  actions.

8
For Discussion What measures would you consider
important? It should depend on the strategy
the firm. For a particular company, the overall
measures might be similar but the detailed ones
will be different. Quality is key for both
companies but the way you determine quality will
be very different. McDonald is about
consistency, cleanliness, fast service, and
personal while Chevrolet is about reliability,
styling etc.
9

• For Discussion Fast food industry McDonalds
• The trends are towards low fat, low carbohydrate,
  and fresh vegetables.
• Typically responses will be around fast food,
  quick service, non-healthy food, etc.
• McDonalds could
• Change the offering French fries with less
  bad fat, Taco Bell has fresco style they omit
  or replace additives (like mayonnaise) that
  contain substantial amounts of fat.
• Create a branded offering like Wendys
  Sensational Salads. They will need a real home
  run to make a difference and that is hard to do
  especially given the credibility problem.
• Do a co-brand in order to get credibility like
  McDonalds salad with Newmans own salad dressing
• Start a new concept with a new name McDonalds
  own Baja Fresh
• Do nothing there are enough people who are
  loyal to the high fat, fried foods who will
  support their business.

10
For Discussion Fax Machine Fax machine
replaced snail mail, priority mail and in some
cases UPS. The fax is being replaced by email
and the Internet. It will be replaced when a
faster, cheaper, and safer method to transmit
documents in developed. The internet is almost
there. Also there are some laggard adopters of
fax machines who may never switch to email or the
Internet. The fax machine is still a useful tool
for transmitting hard copy or hand written
documents that are not in electronic format and
if the customer does not own a scanner.
11

• For Discussion Airline Industry
• Some strategic uncertainties may include
• If the price of gasoline goes up significantly or
  significantly down when will the impact be on the
  demand for travel?
• Will some alternative replace airline travel as
  we know it today (teleconferencing, telesales
  meetings, etc.)?
• If some unexpected tragic event should happen to
  dissuade customers from choosing air travel as a
  means of transportation, what will replace it?