Chapter 5 Flashcards
ES before starting a business
Look at:
Viability of product
Strength of competitors
Size of potential market
Stability of resources
Types of goods
Consumer
Select
Speciality
Industrial
Types of services
Professional
Personal
Auxiliary
Steps in implementing a marketing strategy
Define (vision, mission, aims)
Analyse environments
Consider possible issues
Identify various strategic options
Evaluate and analyse the viability of each strategic option (plan a, b, c)
Plan implementation of chosen strategy
Implement chosen strategy
Monitor and control strategy
Micro environment
Vision statement
Represents the dream of the business
Inspire or reminds stakeholders what is important when dealing with the future
Must be understood ambitious enough to bridge the gap between present and the future
Micro environment
Mission statement
What’s sets the business apart from other businesses
Describes differences, social responsibility, environmental concerns…
Starting point
Helps establish a common goal
Micro environment
Short term goals
What the business would like to achieve in the immediate future
Micro environment
Long term goals
Stay ahead of competitors
Must be measurable ( compare actual performance against set objectives)
Micro environment
Business functions
General management
Financial
HR
Marketing
Production
Purchasing
Administrative
PR
Micro environment
Resource based approach
How your resources can give you an advantage
Valuable
Rare
Unique
Non substitutable
Porters 5 forces model
Level of rivalry in the market
The availability of sub products
The threat of new entrants
The power of suppliers
The power of buyers
The POW of power
The power of competitors
The power of sub products
The power of new entrants
The power of suppliers
The power of consumers
POW of suppliers
Nurture relationship with suppliers
Open communication
Prompt payment
Prioritization
Regular reviews of responsibilities
Trends
Predictable changes but difficult to predict impact
Crisis
Unexpected and unplanned
War, natural disasters, disease…
Decision trees
Compare diff options
Clarify available option
Eliminate possibility of overlooking an important option
Risk management
How risky they want to go
Strategies to help manage risk
Scenario planning
Contingency plans
RISK ASSESSMENT Detailed plan Who's in charge Duties Equipments Escape routes Train workers
Advantages of strategies
Gives direction (aims)
Helps understand long term consequences
Ensures consistency
Differentiates management roles and responsibilities
Anticipates changes in environments
Benefits of environmental scanning
Identify threats before they are imminent
Identifies possible opportunities and gaps in market
Keeps a finger on the pulse of competitors
Allows entrepreneur to make short and long term strategies
Businesses approach to strategies
Informal strategies
Standard strategies
Simple strategies
Complex management strategies
Businesses approach to strategies
Informal strategy
Short term, uncomplicated situations
SMS for a change in plans
Businesses approach to strategies
Standard
Evacuation plans
Procedures for induction
Businesses approach to strategies
Simple strategies
Solutions are Uni dimensional
Sales down - advertise more
Businesses approach to strategies
Complex strategies
Long term implications and need to be implemented with caution
