Lecture 16: General Strategy Frameworks

Question 1

What is the PEST Macro Trends Analysis?

Answer 1

A PEST Macro trends analysis looks at the:

• Political Forces that effect a company’s ability to be profitable and successful
• Economic Forces look at the economic aspects that can effect the operability and profitability of the company, things like interest rates, stable financial markets, inflation, unemployment
• Social Forces look at the demographic and cultural aspects of a market that allows them to better position marketing mixes as they will understand what customers value, and are looking for. (Religion, ethical beliefs, political beliefs, demographics)
• Technological Forces looks at how technological advancements can impact how a company delivers their product or service (avaiblity of internet, Life cycle of current technology)

Question 2

What is the PESTEL Trends Analysis?

Answer 2

The PESTEL Trends Analysis:
- Political, Economic, Social, Technological

Environmental Forces

Legislative Forces

Question 3

What are Porter’s 3 Generic Strategies?

Answer 3

Porter’s 3 Generic Strategies are:

Low Cost
- Offering Basic, low cost products for a low price (Walmart, Ali Baba)
- Value Proposition: Operational excellence

Differentiation
- Focuses on a differentiated value proposition (Tesla,
- Value Proposition: Product Leadership

Focus
- Targeting a niche/narrow target segment rather than broader market (Whole Foods, Trader Joes)
- Value Proposition: Customer intimacy

Question 4

What does David Aaker’s Effective global Brand management look like?

Answer 4

David Acker’s Effective global brand management is made up of:
1) Global Brand Planning process
2) Assign responsibility to create cross country synergies
3) Systems to create brand-building brilliance
4) Share insights and best practices across countries

Question 5

What does David Aacker’s Global Brand building System look like?

Answer 5

1) Strategic Analysis
- Customers
- Competition
- Brand

2) Brand Strategy
- Brand identity
- Segmentation

3) Brand-Building Programs
- Brand Position
- Action Plans (channels, advertising, sponsorship)

4) Goals and Measurement
- Sales/Profit Goals
- Brand equity goals
- Measurement plan