Professional Documents
Culture Documents
STRATEGIC DIAGNOSIS
SWOT analysis.
Portfolio management.
BCG matrix.
Sallenave matrixes.
GE-McKinsey matrix.
STRATEGIC MANAGEMENT
1.-WHERE AM I NOW?
THE
THE
SWOT
SWOT
ANALYSIS
ANALYSIS
STRENGTHS
WEAKNESSES
OPPORTUNITIES
T HREATS
WHAT IS GOOD/
GOING WELL
WHAT IS BAD/
NEEDS IMPROVEMENT
WHAT OPPORTUNITIES
ARE THERE?
WHAT DANGERS/PROBLEMS
LIE AHEAD?
WEAKNESSES:
-Lack of marketing expertise.
-Undifferentiated products and service (i.e. in
relation to your competitors).
-Location of your company.
-Competitors have superior access to distribution
channels.
-Poor quality of goods or services.
-Damaged reputation.
OPPORTUNITIES:
-Developing market (China, the Internet).
-Mergers, joint ventures or strategic alliances.
-Moving into new attractive market segments.
-A new international market.
-Loosening of regulations .
-Removal of international trade barriers.
-A market that is led by a weak competitor.
THREATS:
-A new competitor in your own home market.
-Price war.
-Competitor has a new, innovative substitute
product or service.
-New regulations.
-Increased trade barriers.
-A potential new taxation on your product or
service.
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CONFRONTATION MATRIX
ANALYSIS
OPPORTUNITIES
THREATS
STRENGTHS
CHALLENGES &
ACTIONS
WEAKNESSES
CONFRONTATION MATRIX
ANALYSIS
OPPORTUNITIES
THREATS
STRENGTHS
Offensive strategy
Reactive strategy
WEAKNESSES
Adjust strategy
Defensive strategy
CONFRONTATION MATRIX.
Example:
OPPORTUNITIES:
O1:Strong demand of a new
product.
O2: Possibility of selling through
large retailers.
THREATS:
T1:Existing products
consumption is declining.
T2:An important competitor
has arisen.
T3:New regulations from the
European Union.
STRENGTHS:
S1:Financial strength.
S2:Loyal and reliable
customer base.
S3:Good factory and
warehouses locations.
OFFENSIVE STRATEGY:
O2, S1, S3: Intense brand
promotion towards large retailers
and end customers.
REACTIVE STRATEGY:
T3, S1: Precise fulfillment of the
new regulations.
T2, S2: Excellence in customer
service.
WEAKNESSES:
W1: Obsolete facilities.
W2: Low staff qualification.
W3: Noncompetitive prices.
ADJUST STRATEGY:
O1, W1: Investment in new
productive facilities for the new
product.
DEFENSIVE STRATEGY:
T2, W1, W3: Investment in new
productive facilities for existing
products.
ANALYSIS
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SWOT ANALYSIS:
The SMART test for actions
All actions should be:
Specific,
Measurable,
Achievable,
Relevant, and
Timed.
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PORTFOLIO MANAGEMENT
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13
14
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TO SUM UP
Cows: steady sources of cash flow.
Dogs: very little cash flow with little prospect of
growth.
Question marks: risks, very negative cash flows.
Stars: goods in expanding markets, but very little cash
flows.
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17
18
19
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THE AIM IS
to keep the cows,
sell the dogs to finance the question marks
and work to turn the stars into cows
before the cows you have turn into dogs.
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EXAMPLES
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BCG MATRIX
BENEFITS:
LIMITATIONS:
-Fashion.
-Luxury cars.
-Jewellery.
-Hotel business.
-Publishing.
-Newspapers.
-Hypermarkets.
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McKinsey-GE matrix
-It is a later and more
advanced form of the
BCG matrix.
-SBUs are portrayed as a
circle.
-The size of the circles
represent the Market Size.
-The size of the pies
represent the Market
Share of the SBU's.
-Arrows represent the
direction and the
movement of the SBU's in
the future.
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McKinsey-GE matrix
TYPICAL EXTERNAL FACTORS
THAT AFFECT MARKET
ATTRACTIVENESS:
- Market size.
Market growth rate.
- Market profitability.
- Pricing trends.
- Competitive intensity / rivalry.
- Overall risk of returns in the industry.
- Entry barriers.
- Opportunity to differentiate products
and services.
- Demand variability.
- Segmentation.
- Distribution structure.
- Technology development
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McKinsey-GE matrix
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McKinsey-GE matrix
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McKinsey-GE matrix
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McKinsey-GE matrix
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Market
Growth
S
O
Rate
10%
H
9
Market
Growth
Rate
10%
31
M
G
R
RMS
1
32
COMPETITIVE STRENGTH
H
MARKET
ATTRACTIVENESS
33
P
R
O
F
I
T
S
(%)
INVESTMENT (%)
34
R
O
35
ROS=ROMxME
2
MARKETING EFFORT
36
37