Project is about "House of Kaviari," and the industry is Caviar Industry. I only want Part.4 "Strategic Performance"
BUSINESS STRATEGY ANALYSIS REQUIRES THE
FOLLOWING:
1. Identify strategic goals. – A firm's strategic
goals drive business strategy and address the key success factors
of the industry. Strategic goals often include the vision or
mission statement for the business. They should also set the
direction and standard for financial and market results against
which actual performance can be measured. The two most common
strategic goals are:
? Competitive and market goals that define market share or market
growth and penetration for the firm's products or services.
? Financial performance in terms of key ratios. (Compare to
competitors)
2. Define business strategy. – The definition of
business strategy includes six areas of analysis. The
product-market focus is the first step. The underlying capabilities
in implementing a product-market strategy include the technologies,
processes and market access that a firm has. These address the
business and its key success factors. Business strategy includes
customer targeting, product lines and positions, technical
capabilities, strategic processes, and market access.
? Describe the customer targeting strategy and its requirements.
Without targeting a specific customer segment, it is impossible to
develop effective products or services that meet specific customer
needs and requirements. Each segment, by definition, has a
different set of requirements. While differences may be minor at
time, they affect the decision of the customer to purchase the
product or service.
? Describe the product line and product positioning strategies for
the market segment. The business unit must decide what it will
offer and how those offerings will be positioned within the
competitive environment. A firm can have one product or a product
line that covers a range of prices with a variety of features. The
price-quality-performance position is a relative determination
compared with competitors' prices, quality levels and features when
comparing your products with alternative products in the
marketplace.
? Identify the technologies required to implement the
product-market strategy. Technologies provide the basic
capabilities needed to develop products or services, as well as the
associated processes used in developing or delivering them to the
marketplace. Technology determines the range of products and speed
with which they can be developed and delivered to the
marketplace.
? Identify the strategic process(es) required to implement the
product-market strategy. The core capabilities of a firm are
embedded in the business processes and functions. Strategic
processes can either improve the product or marketing capabilities
of a firm. These processes and functions are the basis of a firm’s
competitive strengths and weaknesses, and make up the core
competencies of the firm. These skills and capabilities are
described in section C below.
? Identify the market access strategy. The final element of
strategy requires that a firm have access to its market or
customers. Today, the Internet is considered the new channel for
accessing markets. In the 1960s, 1-800 numbers were the new method
of access. At the same time, discount superstores grew their market
share in retail walk-in sales markets.
3. Identify internal capabilities and skills. –
The ability of a firm to implement its strategy is dependent upon
both the functions and business processes that support its
strategy.
Depending on the nature of the organization, its functions and
business process capabilities and skills are central to strategy
implementation. These capabilities can be classified into product
or service creation functions and processes, and product or service
delivery and satisfaction functions and processes. Product-related
functions and processes are dependent upon a firm's R&D and
manufacturing/purchasing capabilities.
? The R&D function generates proprietary technologies that can
be applied to the development and production of new products. In
the electronics industry, access to basic components, like hard
disk drives and floppy disk drives and high precision production
equipment are fundamental to making smaller, lighter, higher
quality products. Each generation of smaller products, like palm
recorders, stimulates market growth for the company that is first
to the market. Each generation of smaller products also reduce
packaging and shipping costs, reduce power consumption, extend
battery life, and are more convenient to carry.
? The time-to-market process is required to integrate new
technology into a firm's products and services. Today, competitive
advantage is often related to the speed with which a firm can
introduce the next generation of technologies into the market
through new product and process developments. Once the product is
developed, production capacity often becomes the limiting factor of
market growth.
? The manufacturing function transforms a set of purchased
components and software into a firm's products. Having acceptable
products available in a timely manner for customers is central to
making sales. The ability to provide the highest quality products
in the most efficient allows companies to gain market share by
offering competitive prices and ready availability. Experience
curve effects from high volumes can lead to lower costs.
? The integrated-supply-chain process coordinates purchasing of
components for assembly, product outsourcing, otherwise making sure
products are available to meet customer order requirements.
Outsourcing and alliances increase a firm's ability to offer a
wider range of products or to introduce new products more rapidly.
Increased flexibility provides competitive advantage in responding
to rapid market changes.
Market-related functions and processes are directed at serving the
customer in the most effective manner possible. Distribution and
marketing activities, including sales and service, are central to
fulfilling customer demands and ensuring customer
satisfaction.
? The distribution function is essential for a firm in gaining
market access. The company that dominates the sales channels for a
given market often controls the market. Market share is related to
product availability, i.e. the number and type of locations that
make the products and services available to your customer target.
The Internet is providing the next generation of distribution and
marketing system.
? The market-to-collection process is used to obtain customers and
deliver products. The Internet is changing the role of sales from
face-to-face communication to phone or computer communications. It
is expected that many intermediary roles (such as distributors and
agents) will change to that of infomediary. As product quality and
durability improve, service becomes less important, and new
channels can be developed.
? The marketing function provides the customer with information and
education about a firm's products and services. Product information
and education is often needed to let customers know about product
capabilities. Advertising is the part of marketing that helps pull
the customer into the market-to-collection process by creating
recognition and image for the brand's products and services. It
helps pull the customer into the store and create brand image. Coca
Cola, with the largest advertising budget, spends less money per
bottle of soft drink sales than any other competitor. That gives
them competitive advantage.
? The customer-service and satisfaction process is critical to
sustain a company's brand loyalty. It is much less expensive to
keep an existing customer than to acquire a new customer. Once a
customer relationship is established, it is important that
appropriate customer service activities are established to maintain
the relationship, and solve problems that might hurt the
relationship. When after sales service is required, customers need
a company contact. 1-800 numbers and the Internet are rapidly
providing direct purchase opportunities and technical support
capabilities. Dell Computers, for example, guarantees 48 hour
repairs of their products (often next day service). Xerox provides
7-day, 24-hour repair service to their large system
customers.
4. Strategic performance. – Performance is an
outcome of strategy. The success with which a firm's business
strategy effectively addresses its industry's key success factors
will determine its strategic performance. Strategic performance is
measured in terms of both financial and market success. Financial
performance is essential for continued business operations.
Financial capabilities are critical in supporting functional
strategies and making required infrastructure investments. For
example, a company with adequate funding can expand or invest, or
can provide customer financing.
? Market share demonstrates a firm's ability to create and hold
customers, which determines the long term success of a firm. The
freshness of product lines and market positioning affect a firm's
ability to attract customers ahead of their competition.
? Business Strategy Evaluation & Recommendations Strategic
analysis is based on assessing the effectiveness and efficiency
with which a firm's business strategy meets the requirements of its
competitive marketplace. After defining the industry and business
strategy, we can seek ways to improve the firm's strategic
performance. This is done by applying the traditional SWOT analysis
to the firm's strategy, and then determining the critical issues
that need to be addressed. After ranking critical issues in order
of importance, recommendations for action can be made.
5. Evaluate business strategy. –The business
strategy definition provides the basis for its evaluation. This
process assesses issues that are both internal and external to the
firm.
? Internal assessments are based on the firm's functional and
process capabilities and financial resources. The internal
assessment leads to an understanding of the firm's strengths and
weaknesses.
? External assessments are based on the key success factor that
have been identified. The external assessment leads to an
understanding of the opportunities and threats facing the firm.
This assessment is often referred to as a SWOT analysis.
6. Identify critical issues and priorities. – The
SWOT analysis will lead to an understanding of the critical issues
that face a firm in maintaining or improving its competitive and
financial performance. The combination of strengths, weaknesses,
opportunities, and threats must be ranked by priorities so that
action can be planned in a manageable way. Since managers have
limited time and resources, it is important that actions be taken
in order of importance.
7. Make recommendations. – Finally,
recommendations must address the critical issues for management
actions in the short and long term. We are seeking to improve the
effective
Caviar business is extremely niche but highly profitable owing to the higher margins that can be drawn on the basis of the highly help consumer perception and encashing the wide demand supply gap. The House of Cavier has many strengths in the industry overall owing to its first mover advantage and a strong presence of brand as a global product line holder.
The financials have been faring well owing to the bottom line driven results and a strong focus on the customer satisfaction and suataining the quality standards over the years. The company has evolved and adapted to the changing times and has grown exponentially with the changes in the industry standards. Use of cutting edge technology and tools to deliver high quality product is just one of the many examples.
The challenges for the industry may be the limited supply of the raw material and the tough conditions in whoch the same is being extracted currently. More enancements and improvements at the upstream end of the supply chain are critical and essential to be ensured in the long run.
Project is about "House of Kaviari," and the industry is Caviar Industry. I only want Part.4...
Project is about "House of Kaviari," and the industry is Caviar Industry. I only want Part.6 "Identify Critical Issues and Priorities" BUSINESS STRATEGY ANALYSIS REQUIRES THE FOLLOWING: 1. Identify strategic goals. – A firm's strategic goals drive business strategy and address the key success factors of the industry. Strategic goals often include the vision or mission statement for the business. They should also set the direction and standard for financial and market results against which actual performance can be measured....
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can anyone please answer the questions? it's about Management Decisions class. Thank you so much!! can anyone please answer the questions? it's about Management Decisions class. Thank you so much!! is a business strategy whereby firms attempt to gain a competitive advantage 41) by increasing the perceived value of their products or services relative to the perceived value of other firms' products or services A) Product differentiation B) Related diversification C) Cost leadership D) Best-cost provider 42) By increasing the...
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