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Week 1 MES MARKETING AND ENTRERPRISE STRATEGY Susan Simei-Cunningham Week 1 INTERNAL ANALYSIS MES Week 1 MES Learning Outcomes • By the end of this session the student will be able to: • Undertake an internal analysis of an organisation and its marketing processes. Understanding all the factors that could impact upon the success of the strategic plan. Week 1 MES Why an Internal Analysis? • The internal environment affects the probability an organisation has to sustain it’s competitive advantage. • But first, identifying the structure, culture, and unique resources/capabilities + core competencies so that it’s strategies can be implemented is vital.(where are you now?) Week 1 MES Why an Internal Analysis? • All competitive advantages have a limited life; companies like GE, Nokia, Nintendo have continued to innovate to stay ahead. Week 1 MES Situational Analysis • A situational analysis will tell us where we are now. • It involves the systematic collection and evaluation of past and present economical, political, social, and technological data. • It is aimed at ...... Week 1 MES Situational Analysis • (1) identification of internal and external forces that may influence the organization's performance and choice of strategies • (2) assessment of the organization's current and future strengths, weaknesses, opportunities, and strengths. • See also PEST analysis. Week 1 SWOT ANALYSIS MES Week 1 MES What is a SWOT Analysis? • A SWOT analysis is a framework for generating strategic analysis from a situational analysis. • Can be applied at corporate and business unit (SBU) level. • Described by Learned, Edmund P., Christiansen, C. Roland, Andrews, Kenneth, and Guth, William D. ss Policy: Text and Cases 1969. Week 1 MES Strengths and Weaknesses • The Internal Analysis of strengths and weaknesses focuses on internal factors that give an organization certain advantages and disadvantages in meeting the needs of its target market. Week 1 MES Weaknesses • Weaknesses refer to any limitations a company faces in developing or implementing a strategy. • Weaknesses should also be examined from a customer perspective because customers often perceive weaknesses that a company cannot see Week 1 MES Strengths • Strengths refer to core competencies that give the firm an advantage in meeting the needs of its target markets. • Any analysis of company strengths should be market oriented/customer focused because strengths are only meaningful when they assist the firm in meeting customer needs. Week 1 MES What is a SWOT film • http://mystrategicplan.com/resources/topic/s wot-analysis/ Week 1 What is a Core Competency? MES MES Week 1 Image of the relationship between core competencies and core product End User Products 1 2 3 Business 1 4 5 Business 2 6 7 8 9 Business 3 10 Business 4 Core Product 1 Core Product 2 Core Competencies Core Competencies Core Competencies Week 1 MES Exercise on Core Competencies • List the core competencies for at least 4 below; do they meet the criteria? Starbucks Volkswagen Orange Harrods Sony Eriksson Sky Tesco’s Alperton College Samsung Week 1 MES SWOT • This type of analysis is most useful when you have a limited amount of time to address a complex strategic issue Week 1 MES Week 1 Let’s examines Nike’s SWOT MES Week 1 MES Point of analysis…value chain • Value Chain Analysis…helps with SWOT • includes the physical creation of what a company makes & sells; and the activities that take place to make it happen ($$) You can study this at a macro or micro level Think about FedEx or the Internet (where did they create value for us?) Week 1 MES Finally..... • You produce a SWOT profile which is sued as a basis for generating company goals, strategy formulation and implementation Week 1 Limitations of SWOT MES Week 1 Other tools • VRIO MES Week 1 MES Performing a SWOT http://mystrategicplan.com/swot/index.php Week 1 Find definitions for • Outsourcing • Insourcing MES Week 1 MES Outsourcing • What do you think? • When can this be effective? It includes purchasing a value-creating activity from an external supplier. • Think about the concept of ‘superiority’ and how often a firm can meet that (can they?) What is key to making this work – what strengths internally must a company have?