No Slide Titlerelevant to reviewing
the current situation
relevant to the business unit or program within
the whole value chain including SWOT analysis
The steps in the Model
Vision - the vision statement considers the scope,
essence and growth direction of the business;
it provides identity and a way to consider
different growth directions
towards the accomplishment of the vision
THE MODEL
Strategy - business or management strategy defines
how the objectives for the business are to be attained; broad conception of how the company’s strengths are to be deployed to achieve objectives
Action Plans - provide implementation details
and controls
Control & Follow Up - monitoring the progress
towards stated objectives
Business focus: packaging of liquid products
Segmentation:
4.bin
THE MODEL
Data Collection
After decision of business focus and segmentation, next step phase is to collect information about category and/or segments, across the whole Value Chain:
The information collected should be relevant to the chosen business segment and it should paint a clear picture of the segment
Only include information which is instrumental in either shaping decisions
Data Collection
Analysis - Interpretation of the data collected
Facts do not speak for themselves - they need to be interpreted, i.e., it is essentially a reconstruction of the past and a description of the present.
Analysis is the process by which we begin to focus down on important homogeneous data and information, and establish priorities.
The role of these analyses is to identify existing or emerging opportunities, threats, trends, strategic questions and, ultimately, strategic options.
Analysis & SWOT
THE MODEL
Analysis - Key Business Drivers & Barriers
A knowledge of Supplier, Customer, Retailer and Consumer motivations as well as Company (Internal) variables can provide insight into the relevant business drivers and barriers. A key driver is an essential factor for positive development of a segment, while a barrier is constraining that development.
From the data gathered. You will now identify and prioritise:
All the business variables (both quantitative and qualitative) which constitute drivers (or barriers) to the pursuit of business objectives, across all elements of the Value Chain.
Each selected market segment and each part of the Value Chain will have a unique set of key drivers (or barriers).
Analysis & SWOT
THE MODEL
Value Chain
Example
Suppliers
Consumer
Society
Channel
(end)
]]]]]]]List1
Size
Competition
.
Another important output of the Market Analysis is the identification of the Key Success Factors (KSF) for each strategic segment and part of value chain.
KSF = the set of assets and skills that are needed to be successful (and perhaps even to survive);
A skill is something a business unit does exceptionally well, (e.g., manufacturing or
promotion) which has strategic importance to that business.
An asset is a resource,( e.g., brand name or wider customer base) that is strong relative to competitors.
For each strategic segment and part of value chain, establish KSF critical now and which will be most critical in the future.
Analysis & SWOT
THE MODEL
Value Chain
Strong consumer marketing skills
THE MODEL
SWOT Analysis
The company’s strengths and weaknesses need to be identified. These, plus a thorough understanding of competitors and the market will allow you to identify opportunities and threats.
SWOT stands for:
Weaknesses- restricts what a company can do
Opportunities- where the company’s strengths can be leveraged
Threats- situations that can hinder a company’s ability to address the issue
Analysis & SWOT
THE MODEL
The vision should state what we want to accomplish long term considering our core competencies and values.
The Vision statement can address questions such as:
what business are we in?
what is the scope of our business?
what is the essence of our business?
what growth direction are we pursuing?
Vision
Vision
Objectives
Within each business segment, long term and short term objectives need to be set.
1. Objectives reflect expectations, in terms of performance
measures. Specify the objectives as follows:
A. Qualitative
B. Quantitative/Business
2. They should be specific, measurable, achievable and realistic (SMART) with a
Time frame comparing current to future performance
Year 1
Year N
3. Objectives should be operational - from them you have to choose a rationally grounded set of strategies and actions to achieve them
4. Objectives should be compatible - every single objective should contribute to long term objective and vision.
Objectives
Strategies
Strategy describes how resources are to be deployed to achieve success, i.e., to reach the objectives. Answer the question: “How will success be achieved?”
Identify and list the strategies that will accomplish each of your objectives. They may be both short and long-term
Example:
Objective a) reach volumes sales of 1 bio packs by year 2003;
Strategies a) Priority to installations
b) Focus on key customers
c) Develop category and key customers by adding value through the whole value chain
Strategies
Resources
To each action plan corresponds a set of resources which enable its respective execution. Those resources belong to several different categories, such as:
Financial
Manpower
Time
THE MODEL
Control & Measurement
The end result of the whole planning process specifies what needs to be accomplished in what time. It is an instrument of measurement and control.
Objectives from the planning process are:
a) To provide a structured way to assess the strategic performance of each business and company;
b) To provide timely and continuos response to any questions or issues emerging from a dynamic environment, i.e., help the business sense and adapt to change;
c) To determine development priorities;
d) Benchmarking, i.e., comparing the performance of a business component with others, either internally or externally
Control and Measurement
1.1 Check-List for Data Collection
Below you will find a check list covering general information relevant to business planning
Social environment -Consumer movement; lifestyles; changing values and beliefs;
Economic environment -forecasts on state of economy; levels of income; growth rate
Legal environment -import controls; legislation; price controls;
Retailers -structure, development characteristics, pricing
Consumer -product knowledge and usage; shopping habits; preferences; choice criteria; influences; decision process; purchasing power
Competition -market shares, size and number of competitors; relative costs; strategies; innovativeness; erosion of patent/proprietary knowledge;
Company -trends, competitive thrust; growth path; market share(s); innovativeness; cost trends; marketing trends; trends in net sales, net income and net cash flow; capacity use
Appendix 1
Data Collection
THE MODEL
Proven efficient and reliable packaging systems
Size flexible filling machines
Appendix 2
Development of new pasteurised dairy products
Introduce aseptic packaging
High cost compared to conventional packaging
Threats
Plastic bottle entrance (both pasteurised + UHT)
Low cost UHT conventional pack entrance
Cheap plastic cups for liquid dairy products
THE MODEL
Example
Strengths
Strong local support organisation delivering „ More than package“
Total line responsibility
Concentration process in place towards larger and more efficient dairies
Development of .... as WM standard
Development of new UHT dairy products
Weaknesses
High price of material compared to competition
No size/shape flexibility
Threats
Low cost UHT conventional pack entrance
Plastic bottle entrance (both
Objective
Description