Cases/Assignments/Etc.

APRIL 21, Class/Cases/Article Section
TOOLS TO HELP ME THROUGHOUT SEMESTER

1. Role of value creation/management
Management and value creation are both extremely important. Value creation reflects performance and is analyzed at the end of the results. Value is perceived differently by different individuals. A recent business buzzword, value creation is important in undertsanding the value of certain aspects within a business. Managers are responsible to try and increase value creation over the areas they supervise.

2. A Strong Business Model
Business models are all theory's on how a business should be run. If a business model had proven less than profitable, then the business model should be adjusted. Business models have changed over the last century as new technology and business concepts emerge. Good business models are more than just a case full of numbers, it's a story line!

3. Effective Strategy
Effective strategy begins with a good business model and is critical for performance within an organization. Differentiating yourself from you competition is essential to success. Many times price, quality, and perceived value have the biggest influence when differentiated yourself from competition.

SWOT ANALYSIS
Strengths-Weaknesses-Opportunities-Threats

PORTERS FIVE FORCES ANALYSIS - developed my Michael Porter in 1979. Five things that tell how competitive (attractive) a market is.

Threat of entry of new competitors: Ease of entry into market. Factors include government regulations, capital requirements, access to distribution, and retaliation of competitors.

Intensity of Rival Competition: How competitive is the market? Competitive edge gained through innovation and technology, online marketing, how much money is spent advertising, and competitive strategy.

Bargaining Power of Customers (outputs): Buyer concentration, degree of dependency, bargaining level, buyer volume, substitutes in market, price sensitivity, and differentiation perceived by customer.

Bargaining Power of Suppliers (inputs): Supplier competition, substitute parts, switching costs. Suppliers can have great sway on markets/companies if their is a heavy reliance on suppliers.

Threat of Substitute Products: Costs, loyalty, perceived value, perceived level of differentiation, quality, and number of substitutes.

Competitive Strength Assessment:

Competitor Array - Determine scope and nature of industry
Who are the competitors?
Who are the customers?
What are the key success factors in industry?
Rank success factors using a weight system (weights must add up to 1)
Rate competitors based on success factors


Profile Competitors: Research the following
Background- location, history
Financials- Cash flows, ratios
Products- products offered, product line, new products, quality
Marketing- market share, customer loyalty, targets
Facilities- capacity, age of plant, efficiency, location
Personnel- How many employed? How strong is management?
Marketing Strategies-Who is the target? How are they positioning themselves?