Midterm 1 Flashcards
What is the format to approach a case?
OAC ERIC
OVERVIEW ANALYSIS COURSES OF ACTION EVALUATE RECOMMEND IMPLEMENTATION PLAN CONTINGENCY
What information should be in the Overview?
WPS PDT
WHO - who is involved, what is the company, where are they etc…
PRODUCT - What does the company sell, product lines?
STATUS - What is there financial status or status in the marketplace?
PROBLEM - What is the problem, the overarching reason that a decision is needed
DECISION - What is the decision that needs to be made?
TIMELINE - Is there a timeline on the decision
What are the tools that can be used to analyze a case?
SWOT PEST 3 C's PORTERS 5 FORCES SEGMENTATION ANALYSIS ANSOFF MATRIX HHI INDEX and CR4 INDEX BCG MATRIX POSITIONING MAP
What is a SWOT analysis? when would it be used?
Strengths, Weaknesses, Threats, Opportunities/Trends
It would be used to⁶ assess a business in a general way. To identify and highlight key factors that effect it.
What is a PEST analysis? When would it be used?
Political-Legal, Economic, Socio-cultural, Technological
It is an environmental analysis to better asses and understand a marketplace
What is a 3 C’s analysis? What is it used for?
It is used to assess a business, its competitors, and customers
It is used to asses growth factors, opportunities, and entry factors
What are Porters 5 forces? why is this analysis used?
Threat of new entrants, threat of competitors, bargaining power of suppliers, bargaining power of buyers, rivalry among competitors.
It is used to better understand an industry. To understand if new products are profitable.
What is a segmentation analysis? Why is it relevant?
It is an analysis of market segments based on the following factors: Geographic, Psychographic, Demographic, and Product related preferences and desires.
It is used to better understand a marketplace and a target market
What is a brand positioning map? Why is it relevant?
It is a map that illustrates a marketplace and where brands have positioned themselves in the minds of consumers
It is useful to find marketplace gaps and to understand trends
What is the HHI index and the CR4 index? Why are they useful?
They asses the marketplace concentration and competitiveness.
HHI = the market share ^2 summed for all in the market
0 - 1500 = low
1500-2500 = moderate
2500+ high
CR4 is the percentage market share of the 4 largest firms
0-40 = competitive
40-60 = monopolistic conditions
60+ = dominant main firms with fringe elements
What should the outline of courses of action entail?
it should outline in good detail the possible courses of action that a firm can take. It should also explain why or add any other relevant details
What should an evaluation of alternatives entail?
it should use an appropriate method to evaluate the possible courses of action
a matrix or pro and cons list is good
What should the recommendation entail?
It should draw from analysis and evaluation to make recommend a course of action from the possibilities
What should the implementation plan entail?
It should lay out the recommended method of implementation
Porters generic strategies - advantage (cost leader or different) and Market scope (Narrow or Broad)
focus of 4 p’s - Price, Promotion, Place, Product
Promotion could be advertising, digital, contests, sales, events, testimonials,
what should a contingency entail?
A plan should the main plan fail…preferably with a metric for implementation.
