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150 Business Models for powreful powerpoint presentations. Content overview: Break-even, Financing Life Cycle, Economies of Scale, Elasticity, Sales Cycles Market Potential, Portfolio Matrix, Product Model, Four P's, Push/Pull Strategy, Marketing Mix, PDCA Cycle, SWOT, Value Chain, Ansoff Matrix, BCG Matrix, 7-S Modell, Core Competencies, GE Business Screen, Nine Cell Industry Risk/Reward Diagram, Porter's Five Forces, Industry Competition, Generic Strategies, Geobusiness Modell, Porter's Diamond, Matrix Design, PIMS, Leavitt's Diamond, Belbin's Team Roles, Theory X/Y, Maslow's Hierarchy, Herberg's Theory, Cultural Web, Pareto Curve, CIM Concept, Value Drivers/nMore business diagrams to download on http://www.drawpack.com your visual business knowledge

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Slide1 l.jpg

Product

Price

Promotion

Customer Service

Place

People

Processes

Management Models...

150 Slides

Powered by www.drawpack.com. All rights reserved.


Slide2 l.jpg

Key Words...

Break-even – Financing Life Cycle – Economies of Scale – Elasticity – Sales Cycles – Market Potential – Portfolio Matrix – Product Model – Four P’s – Push/Pull Strategy – Marketing Mix – PDCA Cycle – SWOT– Value Chain – Ansoff Matrix – BCG Matrix – 7-S Model – Core Competencies – GE Business Screen – Nine Cell Industry – Risk/Reward Diagram – Porter’s Five Forces – Industry Competition – Generic Strategies – Geobusiness Model – Porter’s Diamond – Matrix Design – PIMS – Leavitt’s Diamond – Belbin’s Team Roles – Theory X/Y – Maslow’s Hierarchy – Herzberg’s Theory – Cultural Web – Pareto Curve – CIM Concept – Value Drivers


Markets and structure of flow l.jpg

Resources

Money

Resources

Resource markets

Money

Taxes,

goods

Services,

money

Services, money

Taxes

Manufacturer markets

Government markets

Consumer markets

Taxes, goods

Services

Services,

money

Taxes,

goods

Money

Money

Middlemen markets

Goods and services

Goods and services

Markets and Structure of Flow


A company s macroenvironment l.jpg

MACROENVIRONMENT

IMMEDIATE INDUSTRY &

COMPETITVE ENVIRONMENT

Technology

Legislation and regulations

Suppliers

Substitute

COMPANY

Rival Firms

Buyers

New Entrants

Population demographics

Social Values and Lifestyles

The Economy at large

A Company‘s Macroenvironment


Break even point l.jpg

Value $

Sales

Profit

Break-even Point

Total

costs

Variable

costs

Fixed

costs

Current sales level

0

0

Units sold

Break-even Point


Break even chart l.jpg

Dollars (in thousands)

Total revenue

1200

Target profit

1000

Total cost

800

600

Sales Volume in Units (in thousands)

Fixed cost

400

200

0

10

20

30

40

50

Break-even Chart


Break even volume l.jpg

Total Revenue

35

30

Total Costs

25

$ Millions

20

15

Fixed Expenses*

10

5

0

50

100

150

200

Break-even Volume

(90,000)

Units Sold (‘000)

Profit

Loss

* Fixed Expenses = Marketing Expenses and Other Direct Expenses

Break-even Volume


Break even regions l.jpg
Break-even Regions

Cash flow

Returned capital

break-even

Cumulative revenue

Cash flow breakeven

$

EVA break-even

Opportunity cost based on

capital risk assumed

P&L break-even


Financing life cycle l.jpg
Financing Life Cycle

Venture

Capitalist

Investment Banks &

Banks

FFF & Angels

Early

Growth

Later

Growth

Seed Capital

& Early Stage

Enterprise

Cash Flow

Enterprise

Financing

Mezzanine

Public

Market

3rd

2nd

Initial

Public

Offering

1st

Time

Valley

of Death

Break-even

point

Emerging Growth


Demand and supply l.jpg

S

D

F

G

E

Price

B

A

S

D

0

Quantity

Demand and Supply


Economies of scale l.jpg

Average cost

LACs*

Output

*Long-run average costs (LACs)

Increasing returns to scale, or economies of scale

Economies of Scale


Elasticity l.jpg

(total inelastic

demand)

e = 0

Price

Price

e = -

8

e < - 1

e = -

8

e = - 1

(total elastic

demand)

e > - 1

Quantity

Quantity

e = 0

P1

Price

(-)

P2

P1

(-)

(+)

Price

P2

(+)

0

0

Quantity

Quantity

Demand is elastic and expenditure increases when price falls from P1 to P2

Demand is inelastic and expenditure increases when price falls from P1 to P2

Elasticity


Inelastic and elastic demand l.jpg

P’2

P2

Price

P’1

P1

Quantity Demanded per Period

(a) Inelastic demand

Quantity Demanded per Period

(b) Elastic demand

Q’1

Q’2

Q1

Q2

Inelastic and Elastic Demand


Sales and profit life cycles l.jpg

Sales

Sales and Profits ($)

Profit

Introduction

Growth

Maturity

Decline

Time

Sales and Profit Life Cycles


Market potential market volume market share l.jpg

Volume or value

Market potential

Market volume

Market share

Time

Market Potential, Market Volume, Market Share


The product life cycle i l.jpg

Sales over profits

Sales

Profits

Introduction Growth Maturiy Shake-out Decline

Stages over Time

The Product Life Cycle I


The product life cycle ii l.jpg
The Product Life Cycle II

Introduction

Growth

Unit

Sales

Volume

A

B

C

Maturity

Commodity or Decline

Time

Note: A = Moderate Growth, B = Commodity, C = Decline


The life cycle portfolio matrix l.jpg

THE BUSINESS UNIT‘S COMPETITIVE

POSITION

Strong

Average

Weak

Development

A

C

Growth

B

D

Competitive

shakeout

THE INDUSTRY‘S STAGE

IN THE EVOLUTIONARY

LIFE CYCLE

F

E

Maturity

Saturation

G

H

Decline

The Life Cycle Portfolio Matrix


Patterns of strategic change l.jpg

Continuity Incremental Flux Global

Patterns of Strategic Change


The whole product model l.jpg
The Whole Product Model Flux Global

Potential Product

Augmented Product

Expected Product

Generic Product


The product positioning map l.jpg

High quality Flux Global

E

A

High price

Low price

B

C

D

Low quality

The Product-Positioning Map


The four p s of mccarthy i l.jpg

Environment Flux Global

Product

Price

Environment

Environment

Place

Promotion

Environment

The Four P‘s of McCarthy I


The four p s of mccarthy ii l.jpg

High quality Flux Global

Marketing

Mix

Channels

Coverage

Assortments

Locations

Inventory

Transport

Place

Product

Product variety

Quality

Design

Features

Brand name

Packaging

Sizes

Services

Warranties

Returns

Target

Market

Low quality

Promotion

Sales promotion

Advertising

Salesforce

Public relations

Direct marketing

Price

List price

Discounts

Allowances

Payment period

Credit terms

The Four P‘s of McCarthy II


Push versus pull strategy l.jpg

Marketing activities Flux Global

Demand

End users

Manufacturer

Intermediaries

Push Strategy

Demand

Marketing activities

Demand

Demand

End users

Manufacturer

Intermediaries

Pull Strategy

Push versus Pull Strategy


The expanded marketing mix l.jpg

Product Flux Global

Price

Promotion

Customer Service

Place

People

Processes

The Expanded Marketing Mix


The 6 step marketing plan l.jpg

Situation (SWOT) Flux Global

Action plan

1

firm

market

industry

competition

environment

budget allocation

product

promotion

price

distribution

Objectives

Forecasts

Marketing Plan

sales

market share

market expansion

leadership

satisfaction

quantify:

costs

sales

profits

market share

Strategy

Control

segment – target

price / quality

product positioning

differentiation

diversification

organization structure

measurement tools

check frequency

=> Corrective actions

3

2

5

4

6

The 6 – Step Marketing Plan


The pdca cycle l.jpg

Plan Flux Global

Act

Do

Performance

Check

Path of continous improvement

Time

The PDCA Cycle


Enterprise management process l.jpg
Enterprise Management Process Flux Global

Decision

Process

Enterprise

Structure

Mission &

Strategy

Customer

Satisfaction

Value

Improvement

Enterprise

Learning

Benchmarking


Swot analysis diagram l.jpg

Numerous Flux Global

environmental

opportunities

Cell 3:

Supports a turnaround-

oriented strategy

Cell 1:

Supports an

aggressive strategy

Substantial

internal

strengths

Critical

internal

weaknesses

Cell 4:

Supports a

defensive strategy

Cell 2:

Supports an

diversification strategy

Major

environmental

threats

SWOT Analysis Diagram


Swot analysis i l.jpg

Weaknesses Flux Global

Strengths

Opportunities

Threats

SWOT Analysis I


Swot analysis ii l.jpg

STRENGTHS / WEAKNESSES Flux Global

Firm, Organization

OPPORTUNITIES / THREATS

Environment, Market, Industry

  • Market share

  • Key account share

  • Growth rate

  • Supply diversity

  • Influence

  • On market

  • Purchasing / selling deadline

  • New products cycles

  • Negotiation power

  • - firm suppliers

  • - customers

  • Market size

  • Key account size

  • Annual growth rate

  • Market diversity

  • Price sensitivity

  • Seasonality

  • Cycles

  • Negotiation power

  • - suppliers

  • - consumers

MARKET

COMPETITION

  • Firm competitivity

  • - Product, service

  • - Profitability, H.R., …

  • Segments invested in

  • Firm’s integration level

  • High-tech vulnerability

  • Competitor types

  • Concentration level

  • Intrants / extrants

  • Market share evolution

  • Vertical / horizontal integration

  • Technology substitution

SWOT Analysis II


Swot analysis iii l.jpg

STRENGTHS / WEAKNESSES Flux Global

Firm, Organization

OPPORTUNITIES / THREATS

Environment, Market, Industry

  • Firm margins

  • Economies of scale

  • Barriers

  • Production capacity level

  • Global benefits

  • Economies of scale

  • Barriers

  • Production capacity level

FINANCE / BUSINESS

  • Adaptability to change

  • Expertise / Know-How

  • Patent ownership

  • Production technology

  • Maturity / volatility

  • Complexity

  • Differentiation

  • Patents and copyrights

  • Production technology

TECHNOLOGY

SOCIO - POLITICAL

  • Reactivity / Flexibility level

  • Adaptability

  • Agressiveness

  • Working relationships

  • Attitudes / Social trends

  • Laws and regulations

  • Pressure groups

  • Trade union activities

SWOT Analysis III


The generic value chain i l.jpg

Support activities Flux Global

Firm infrastructure

Human resource management

Technology development

Procurement

Margin

Inbound

logistics

Operations

Outbound

logistics

Marketing

and sales

Service

Margin

Primary activities

The Generic Value Chain I


The generic value chain ii l.jpg

FIRM INFRASTRUCTURE Flux Global

HUMAN RESOURCES MANAGEMENT

TECHNOLOGY DEVELOPMENT

PROCUREMENT

MARGIN

INBOUND

LOGISTICS

MARKETING

& SALES

OUTBOUND

LOGISTICS

OPERATIONS

SERVICE

Marketing

Management

Sales Force

Operations

Technical

Literature

Sales Force

Administration

Advertising

Promotion

The Generic Value Chain II


The generic value chain iii l.jpg

Firm infrastructure Flux Global

Human resources management

Margin

Technology development

Procurement

Margin

Inbound logistics

Outbound logistics

Marketing and sales

Service

Operations

Primary Activities

The Generic Value Chain III


The ansoff matrix i l.jpg

Current Products Flux Global

New Products

Market

penetration

Product

development

Current

Markets

Market

development

New

Markets

Diversification

The Ansoff Matrix I


The ansoff matrix ii l.jpg

PRODUCTS AND/OR SERVICES Flux Global

Existing

New

New

product

development

Market

penetration

Existing

MARKETS

Market

development

Diversification

New

The Ansoff Matrix II


The customer growth matrix l.jpg

PRODUCTS AND/OR SERVICES Flux Global

Existing

New

Customer

loyalty

Customer

extension

Existing

CUSTOMERS

Customer

acquisition

Customer

diversification

New

The Customer Growth Matrix


Product market diversification l.jpg

Broad Flux Global

Moderate

Product Diversification

Narrow

Market Diversification

Narrow

Moderate

Broad

Product-Market Diversification


Bcg s growth share matrix i l.jpg

RELATIVE MARKET SHARE Flux Global

High

Low

Question

Mark

Star

High

MARKET

GROWTH

RATE

Cash

Cow

Dog

Low

BCG’s Growth-Share Matrix I


Bcg s growth share matrix ii l.jpg

RELATIVE MARKET SHARE Flux Global

High

Low

Question Mark

Star

A

High

Divest

E

B

D

MARKET

GROWTH

RATE

F

C

Low

G

Divest

Dog

Cash Cows

Targeted

future position

in the corporate

portfolio

Present position

in the corporate

portfolio

BCG’s Growth-Share Matrix II


Bcg s growth share matrix iii l.jpg

RELATIVE MARKET SHARE Flux Global

High

1.0x

Low

0.1x

10x

Star businesses

Question marks

Low

MARKET

GROWTH

RATE

10%

Cash generating

businesses

Dog businesses

High

BCG’s Growth-Share Matrix III


Bcg s growth share matrix iv l.jpg

Stars Flux Global

Question Marks

22%

20%

18%

4

1

16%

Market Growth Rate

3

Dogs

14%

Cash Cows

2

12%

5

10%

8%

6

6%

7

4%

Relative Market Share

8

2%

10 x

1 x

0.1 x

BCG‘s Growth-Share Matrix IV


The new bcg matrix l.jpg

Small Flux Global

Large

Fragmented

Specialization

Many

NUMBER OF APPROACHES TO ACHIEVE ADVANTAGE

Stalemate

Volume

Few

SIZE OF ADVANTAGES

The New BCG Matrix


Underlying relationship between roi and market share in the new bcg matrix l.jpg

SIZE OF THE ADVANTAGE Flux Global

Small

Large

Volume

Stalemate

ROI

ROI

Few

Market share

Market share

NUMBER OF WAYS

TO ACHIEVE

COMPETITVE

ADVANTAGE

Specialization

Fragmented

ROI

ROI

Many

Market share

Market share

Underlying Relationship Between ROI and Market Share in the New BCG Matrix


Mckinsey s seven s s framework l.jpg

Structure Flux Global

Systems

Strategy

Superordinate

Goals

Skills

Style

Staff

McKinsey‘s Seven ‚S‘s Framework


Disruption and the new 7 s s l.jpg

VISION PLANNING Flux Global

  • Vision for Disruption

  • Identifying and creating

  • opportunities for

  • temporary advantage

  • through understanding

  • Stakeholder Satisfaction

  • Strategic Soothsaying

  • directed at identifying new ways to serve

  • existing customers better or new

  • customers that no one else

  • serves now.

  • Capability for Disruption

  • Sustaining for momentum by

  • developing flexible capacities for

  • Speed

  • Surprise

  • that can be applied across

  • many actions to build a series

  • of temporary advantages

  • Tactics for Disruption

  • Seizing the initiative to gain

  • advantage by

  • Shifting the Rules

  • Signaling

  • Simultaneous and

  • Sequential Strategic

  • Thrusts

  • with actions that shape, mold, or

  • influence the direction or nature of

  • the competitors‘ responses.

Market

Disruption

RESOURCE PLANNING

PUNCH-COUNTERPUNCH PLANNING

Disruption and the New 7-S’s


Core competencies i l.jpg

Banner Flux Global

Brand

Business

Units

Core

Products

(Platforms)

Core

Competencies

Core Competencies I


Core competencies ii l.jpg
Core Competencies II Flux Global

Processes

Core

Competencies

Technologies

Capabilities


Core competencies iii l.jpg
Core Competencies III Flux Global

Low Company View High

Competency 1

Competency 5

Competency 4

Low Market View High

Competency 6

Competency 2

Competency 3


The general electric business screen l.jpg

COMPETITIVE POSITION Flux Global

Weak

Strong

Average

Low

INDUSTRY

ATTRACITVENESS

Medium

High

The General Electric Business Screen


Attractiveness competitive position strategies l.jpg

COMPETITIVE POSITION Flux Global

Strong

Average

Weak

  • Evaluate

  • potential for

  • leadership via

  • Segmentation

  • Identify

  • weaknesses

  • Build strengths

  • Specialize

  • Seek niches

  • Consider acquisitions

  • Grow

  • Seek dominance

  • Maximize

  • investment

High

  • Identify growth segments

  • Invest strongly

  • Maintain position elsewhere

  • Identify growth segments

  • Specialize

  • Invest selectively

INDUSTRY

ATTRACTIVENESS

  • Specialize

  • Seek niches

  • Consider exit

Medium

  • Trust leader‘s statesmanship

  • Sic on competitor‘s cash generators

  • Time exit and divest

  • Maintain overall position

  • Seek cash flow

  • Invest at maintenance levels

  • Prune lines

  • Minimize investment

  • Position to divest

Low

Attractiveness/Competitive Position Strategies


Company position industry attractiveness screen l.jpg

Industry attractiveness Flux Global

High

Medium

Low

BUILD

BUILD

HOLD

High

Business unit strengths

HARVEST

HOLD

BUILD

Medium

HARVEST

HARVEST

HOLD

Low

Company Position/IndustryAttractiveness Screen


A representative nine cell industry attractiveness competitive strength matrix l.jpg

COMPETITIVE STRENGTHS/BUSINESS POSITION Flux Global

Strong

Average

Weak

High

Business F

Business A

LONG-TERM

INDUSTRY

ATTRACTIVENESS

Medium

Business B

Business C

High priority for investment

Low

Medium priority for investment

Business E

Business D

Low priority for investment

A Representative Nine-Cell Industry Attractiveness-Competitive Strength Matrix


Ge mckinsey multifactor portfolio matrix l.jpg

INDUSTRY ATTRACTIVENESS Flux Global

Manage Selectively for Earnings

Invest

Invest

Manage Selectively for Earnings

Harvest or Divest

Invest

BUSINESS STRENGTH

Manage Selectively for Earnings

Harvest or Divest

Harvest or Divest

GE / McKinsey Multifactor Portfolio Matrix


Portfolio positions and defensive strategic market plans l.jpg

Very Attractive Flux Global

Protect

Protect

Protect or Harvest

Protect or Focus

Protect or Focus

Market Attractiveness

Harvest or Divest

Harvest or Divest

Protect or Harvest

Very Unattractive

Very Weak

Very Strong

Competitive Advantage

Portfolio Positions andDefensive Strategic Market Plans


Market attractiveness portfolio classification and strategies l.jpg

BUSINESS STRENGHT Flux Global

Invest / grow

Medium

Weak

Strong

5.00

Joints

Selectivity / earnings

High

MARKET ATTRACTIVENESS

Aerospace Fittings

Hydraulic Pumps

Harvest / divest

3.67

Clutches

Fuel Pumps

Medium

Flexible Diaphragms

2.33

Relief Valves

Low

(a) Classification

1.00

3.67

2.33

5.00

1.00

Market Attractiveness – Portfolio Classification and Strategies


The risk reward diagrams l.jpg
The Risk-Reward Diagrams Flux Global

High

RISK

Low

High

REWARD (NPV)

Low


Contrasting characteristics of upstream and downstream companies l.jpg

Supply stages in a manufaturing industry (supply chain) Flux Global

Raw Primary Product Consumer

materials manufacturer Fabricator producer marketer Retail

Consumer

Supply flow

UPSTREAM

ORGANIZATIONS

Centre of gravity

of a manufacturing

industry

DOWNSTREAM

ORGANIZATIONS

Contrasting characteristics of upstream and downstream companies

Upstream

Commodity

Standardize

Maximize end users

Low-cost producers

Sales push

Line-driven organization

Process innovation

Capital budget

Capital-intensive

Technological know-how

Supply and trading/manufacturing and engineering

Downstream

Proprietary

Customize

Target end users

High margins

Marketing pull

Line/staff

Product innovation

R & D/advertising budget

People-intensive

Marketing skills

Product development/marketing

Contrasting Characteristics of Upstream and Downstream Companies


Porter s five forces i l.jpg

Potential Entrants Flux Global

Threat new entrants

Industry

competitors

Rivalry among

existing firms

Bargaining

power of

suppliers

Bargaining

power of

buyers

Buyers

Suppliers

Threat of substitute products

Substitutes

Porter‘s Five Forces I


Porter s five forces ii l.jpg

Firms in other Flux Global

industries

offering

Substitute

Products

Suppliers of

raw materials,

parts,

components or

other resource

inputs

RIVALRY

AMONG

COMPETING

SELLERS

Buyers

Potential

New Entrants

Porter‘s Five Forces II


Forces driving industry competition l.jpg

Potential Entrants Flux Global

Threat of

new entrants

Industry

competitors

Rivalry among

existing firms

Bargaining power

of suppliers

Bargaining power

of buyers

Suppliers

Buyers

Threat of

substitute products

or services

Substitutes

Forces Driving Industry Competition


Barriers and profitability l.jpg

EXIT BARRIERS Flux Global

Low

High

PROFITS=LOW

RETURNS=STABLE

PROFITS=LOW

RETURNS=RISKY

Low

ENTRY

BARRIERS

PROFITS=HIGH

RETURNS=STABLE

PROFITS=HIGH

RETURNS=RISKY

High

Barriers and Profitability


Four routes to strategic advantage l.jpg

Business/Product Offered Flux Global

Old/Existing New/Creative

KFS

Intensify funtional

differentiation

Aggressive

initiatives

Ask „why-why‘s“

Compete

(wisely)

Route 1

Route 3

Relative superiority

Exploit competitor‘s

weakness

Strategic degrees of

Freedom

Maximize user

benefit

Avoid

head-on

competition

Route 2

Route 4

Four Routes to Strategic Advantage


The generic strategies i l.jpg

D Flux Globalifferentiation Cost Leadership

Focus

The Generic Strategies I


The generic strategies ii l.jpg

COMPETITIVE ADVANTAGE Flux Global

Lower Cost

Differentiation

Broad

Target

Differentiation

Cost Leadership

COMPETITIVE

SCOPE

Narrow

Target

Differentiation Focus

Cost Focus

The Generic Strategies II


Five modified competitive strategies l.jpg

TYPE OF COMPETITVE Flux Global

ADVANTAGE BEING PURSUED

Lower Cost

Differentiation

Overall

Low-Cost

Leadership

Strategy

A Broad

Cross-Section

of Buyers

Broad

Differentiation

Strategy

Best-Cost

Provider

Strategy

MARKET

TARGET

A Narrow

Buyer-Segment

(or Market Niche)

Focused

Differentiation

Strategy

Focused

Low-Cost

Strategy

Five Modified Competitive Strategies


Sweeney s generic strategies l.jpg

Strategic change involves enhancing Flux Global

The operation‘s structure

  • Marketer

  • Emphasizes

  • Quality

  • Dependability

  • Range

  • Innovator

  • Emphasizes

  • Quality

  • Product/service

  • Performance

  • Speed

  • New product/service

  • Development

Enhanced

Strategic change involves enhancing

the operation‘s infrastructure

Customer service criteria

  • Caretaker

  • Emphasizes

  • Price/ cost

  • Dependability

  • Quality

  • Innovator

  • Emphasizes

  • Quality

  • Product/service

  • Performance

  • Flexibility

  • Speed

Basic

Traditional

Enhanced

Sweeney‘s Generic Strategies


Geobusiness model l.jpg

CONTROL VARIABLES Flux Global

MOTIVATION VARIABLES

CONDITIONING

VARIABLES

Geobusiness Model


Porter s diamond l.jpg

FIRM STRATEGY, Flux Global

STRUCTURE AND

RIVALRY

FACTOR

CONDITIONS

DEMAND

CONDITIONS

RELATED AND

SUPPORTING

INDUSTRIES

Porter‘s Diamond


Resource allocation at corporate level l.jpg

PERCEIVED NEED FOR CHANGE Flux Global

Low

High

Imposed

priorities

„Formula“

Low

EXTENT OF CENTRAL DIRECTION

Free

bargaining

Open

competition

High

Resource Allocation at Corporate Level


Pims competitive strategy paradigm l.jpg

Market structure Strategy and tactics Performance

  • Market

  • differentiation

  • Market growth rate

  • Entry conditions

  • Unionization

  • Capital intensity

  • Purchase amount

  • Pricing

  • R & D spending

  • New product

  • introduction

  • Change in relative

  • quality and variety

  • of products/services

  • Marketing expenses

  • Distribution

  • channels

  • Relative vertical

  • integration

  • Workforce

  • productivity

  • Profitability (ROS,

  • ROI, etc.)

  • Growth

  • Cash flow

  • Value enhancement

  • Stock (share) price

Competitive position

  • Relative perceived

  • quality

  • Relative market

  • share

  • Relative capital

  • intensity

  • Relative cost

PIMS Competitive Strategy Paradigm


International strategy options l.jpg

High Strategy and tactics Performance

Joint

venture

Foreign

subsidiary

Foreign

branch

Foreign

branch

Joint

venture

PRODUCT

DIVERSITY

Licensing/

Joint

venture

Licensing/

Export

Low

Low

High

MARKET COMPLEXITY

International Strategy Options


The wheel of competitive strategy l.jpg

Product Line Strategy and tactics Performance

Target Market

Finance

and Control

Marketing

GOALS

Objectives for

profitability,

growth, market

share, social

responsiveness

etc.

Definition of

how the

business is

going to

compete

Sales

R & D

Distribution

Purchasing

Labor

Manufacturing

The Wheel of Competitive Strategy


Generic competitive strategies l.jpg

Return on Strategy and tactics Performance

Investment

Market Share

Generic Competitive Strategies


The strategic triangle i l.jpg

Multiple market segments Strategy and tactics Performance

Customers

Target segments

Value

Value

Corporation

Competitors

Cost

Product/service

differentiation

The Strategic Triangle I


The strategic triangle ii l.jpg

Customers Strategy and tactics Performance

Needs seeking benefits

at acceptable prices

Value

Value

Assets and utilization

Assets and utilization

Cost differentials

Company

Competitor

The Strategic Triangle II


Trilogy strategy culture structure l.jpg

Strategy Strategy and tactics Performance

Environment

Environment

Structure

Culture

Environment

Environment

Trilogy Strategy - Culture - Structure


Optimum degree of formal organization l.jpg

Organizational Strategy and tactics Performance

effectiveness

Degree of formal organization

Optimum Degree of Formal Organization


The flow of formal authority l.jpg
The Flow of Formal Authority Strategy and tactics Performance


Functional divisional multidivisional structures l.jpg

CEO Strategy and tactics Performance

CEO

Controlling

R&D

Logistics

Manufacturing

Sales

Finance

Cement

Concrete

Chemicals

CEO

CEO

Europe

North America

Asia

Europe

North America

Asia

Motor

Motor

Motor

Cement

Marine

Marine

Marine

Concrete

Fire

Fire

Chemicals

Functional, Divisional, Multidivisional Structures


A matrix design l.jpg

FUNCTIONAL DEPARTMENTALIZATION Strategy and tactics Performance

Marketing

Department

Research and

Development

Department

Purchasing

Department

Production

Department

Manager

Manager

Manager

Manager

PROJECT DEPARTMENTALIZATION

Alpha

Project

Project

Leader

E

E

E

E

Beta

Project

Project

Leader

E

E

E

E

Gamma

Project

Project

Leader

E

E

E

E

A Matrix Design


Models of virtuality l.jpg

The Virtual Face Strategy and tactics Performance

Star-alliance Model

Co-alliance Model

Value-alliance Model

Models of Virtuality


Leavitt s diamond the interaction of social forces in an organization l.jpg

Task Strategy and tactics Performance

Structure

People

Technology

Leavitt‘s Diamond: The Interaction of Social Forces in an Organization


Action centred leadership l.jpg

TASK Strategy and tactics Performance

NEEDS

INDIVIDUAL

NEEDS

GROUP

NEEDS

Action-centred Leadership


Belbin s team roles l.jpg

TEAM Strategy and tactics Performance

Shaper

Company Worker

Plant

Chairman

Finisher

Monitor-Evaluator

Team Worker

Resource-Investigator

Belbin‘s Team Roles


Group development l.jpg

Stage V Strategy and tactics Performance

Adjourning

Stage IV

Performing

Group effectiveness

Stage III

Norming

Stage II

Storming

Stage I

Forming

Time

Group Development


Theory x and theory y l.jpg

Theory X Strategy and tactics Performance

Vicious circle of theory X

following

confirms

no responsability,

no Initiative

strong rules

and control

leads to

leads to

passive work

attitude

Theory Y

following

strenghten

no responsability,

no Initiative

strong rules

and control

leads to

allow

Strenghten effect of Theory Y

passive work

attitude

Theory X and Theory Y


Maslow s hierarchy of human needs i l.jpg

Self-Actualization Needs Strategy and tactics Performance

(self-development and realization)

Esteem Needs

(self-esteem, recognition, status)

Social Needs

(sense of belonging, love)

Safety Needs

(security, protection)

Physiological Needs

(hunger, thirst)

Maslow‘s Hierarchy of Human Needs I


Maslow s hierarchy of human needs ii l.jpg

GENERAL EXAMPLES Strategy and tactics Performance

ORGANIZATIONAL EXAMPLES

Achievement

Challenging Job

Self-

Actualization

Needs

Status

Job Title

Esteem Needs

Friends in

Work Group

Friendship

Belongingness Needs

Stability

Pension Plan

Security Needs

Shelter

Base Salary

Physiological Needs

Maslow‘s Hierarchy of Human Needs II


Herzberg s motivator hygiene theory l.jpg

HYGIENE FACTORS MOTIVATORS

  • SALARY

  • ADMINISTRATION

  • SUPEVISION

  • COMPANY POLICY

  • STATUS

  • WORKING

  • CONDITIONS

  • ACHIEVEMENT

  • RECOGNITION

  • RESPONSIBILITY

  • ADVANCEMENT

  • NATURE OF WORK

Herzberg‘s Motivator-Hygiene Theory


Parallels among need theories of motivation l.jpg

Herzberg‘s MOTIVATORS

Two-Factor Theory

Maslow‘s

Hierarchy of Needs

Alderfer‘s

ERG Theory

Other

Key Needs

Achievement

Work Itself

Responsibility

Advancement and Growth

Self-Actualization

Needs

Growth

Needs

Need for

Achievement

Motivation

Factors

Need for

Power

Recognition

Self-Esteem

Esteem Needs

Respect of Others

Need for

Affiliation

Relatedness

Needs

Supervision

Interpersonal Relations

Belongingness Needs

Security

Company Policies

Interpersonal Security

Security Needs

Physical Security

Hygiene

Factors

Existence

Needs

Pay

Working Conditions

Physiological

Needs

Parallels Among Need Theories of Motivation


Managerial grid l.jpg

Concern for people MOTIVATORS

Country Club Management (1,9)

Production is incidental

to lack of conflict and

„good fellowship“

Team management (9,9)

Production is from

integration of task

and human requirements

Dampened Pendulum (5,5)

(Middle of the road.)

Push for production but

don‘t go „all out“. Give some

but not all all: „be fair but firm“

1 2 3 4 5 6 7 8 9

Impoverished Management (1,1)

Effective production is

unobtainable becaus people are

lazy, apathetic and indifferent.

Sound and mature relationships

are difficult to achieve because,

(human nature being what it is)

conflict is inevitable

Task Management (9,1)

Men are a commodity

just as machines.

A manager‘s responsibility

is to plan, direct and

control the work of those

subordinate to him

1 2 3 4 5 6 7 8 9

Concern for production

Managerial Grid


Situational leadership l.jpg

LEADER BEHAVIOUR MOTIVATORS

Share ideas

and facilitate

in decision-

making

Explain

decisions

and provide

opportunity

for

clarification

PARTICIPATING

SELLING

S3 S2

(Supportive Behaviour)

RELATIONSHIP BEHAVIOUR

TELLING

DELEGATING

Provide

specific

instructions

and closely

supervise

performance

Turn over

responsibility for

decisions and

implementation

S4 S1

TASK BEHAVIOUR

(Guidance)

(LOW)

(HIGH)

FOLLOWER READINESS

MODERATE

HIGH

LOW

R4

Able and Willing

or Confident

R3

Able but Unwilling

or Insecure

R2

Unable but Willing

or Confident

R1

Unable and Unwilling

or Insecure

FOLLOWER DIRECTED

LEADER DIRECTED

Situational Leadership


Cultural web l.jpg

Stories MOTIVATORS

Rituals and

routines

Symbols

THE

PARADIGM

Control

systems

Power

structures

Organizational

structures

Cultural Web


Dynamics of paradigm change l.jpg

The paradigm MOTIVATORS

Development of

strategy

Implementation

Corporate

Performance

if unsatisfactory

Step 1

Tighter

controls

Step 2

Reconstruct or

develop new

strategy

Step 3

Abandon paradigm

and adopt new one

Dynamics of Paradigm Change


Four organizational cultures l.jpg

Role Culture MOTIVATORS

Power Culture

Task Culture

Person Culture

Four Organizational Cultures


Integrated model of strategic management l.jpg

Vision, values, MOTIVATORS

and expectations

  • Strategy

  • formulation

  • Alternatives

  • Evaluation

  • and choice

Policies and

procedures

Mission

Goals,

objectives

  • Situation analysis

  • Enviromental

  • opportunities/

  • threats

  • Organizational

  • resources and

  • competences

Strategy

implementation

and planning

Strategic control

Why? What? How? Guidelines

Integrated Model of Strategic Management


M o s t l.jpg

Mission MOTIVATORS

WHAT an organization is seeking to do

Objectives

Strategy

HOW an organization will achieve it

Tactics

M-O-S-T


Network analysis pert cpa l.jpg

5 MOTIVATORS

6

7

8

C

2

2

4

G

4

A

5

12

12

0

0

6

D

1

1

B

4

E

5

H

3

4

4

3

F

5

KEY:

9

9

5

Activity

Critical path

Event

Earliest event time

Latest event time

Event number

Network Analysis, PERT, CPA


The five phases of growth l.jpg

collaboration MOTIVATORS

Large

coordination

"?"

delegation

red tape

SIZE OF

ORGANIZATION

direction

control

creativity

autonomy

evolution: stages of

growth

revolution: stages of

crisis

leadership

Small

Young

Mature

AGE OF ORGANIZATION

The Five Phases of Growth


The chasm l.jpg
The Chasm MOTIVATORS

The

Chasm

The

Mainstream

Market

The Early

Market

Technology

Enthusiasts

Skeptics

Visionaries

Pragmatists

Conservatives


Inventory profile l.jpg

Steady and MOTIVATORS

predictable

demand (D)

Slope = demand rate

Order

quantity

Q

Average inventory = Q / 2

Inventory

level

Q / D

Time

Instantaneous deliveries at rate of D / Q per period

Inventory Profile


Economic order quantity l.jpg

Total costs MOTIVATORS

Costs

Holding costs

Order costs

Economic order

quantity (EOQ)

Order quantity

Economic Order Quantity


Pareto curve for abc products l.jpg

Cumulative % of total value MOTIVATORS

Class A

items

Class B

items

Class C

items

% of total number of items

Pareto Curve for ABC-Products


Cim concept l.jpg

CIM MOTIVATORS

PPS

CAD/CAM

Production Programm Planning

CAD

C

A

D

Quantity Planning

CAP

Time and Capacity Planning

Place Order

CAM

Control Order

CIM-Concept


The business process re engineering approach l.jpg

Micro operations MOTIVATORS

Function 1

Function 2

Function 3

Function 4

Customer needs

Business processes

Customer needs fulfilled

Activity 1

Activity 2

Activity 3

Activity 4

Customer needs

Micro operations

Business processes

Customer needs fulfilled

The Business Process Re-engineering Approach


Total quality management l.jpg

Inspection

  • Quality systems

  • Quality costing

  • Problem solving

  • Quality planning

Quality control

  • Statistical methods

  • Process performance

  • Quality standards

Quality assurance

Total quality management

  • Error detection

  • Rectification

Total Quality Management


Supply chain management l.jpg

Second-tier MOTIVATORS

suppliers

First-tier

suppliers

First-tier

customers

Second-tier

customers

The

Operation

Supply side

Demand side

Purchasing and supply

management

Physical distribution

management

Logistics

Materials management

Supply chain management

Supply Chain Management


Internal rate of return irr l.jpg

Main methods of capital expenditure appraisal MOTIVATORS

Return on Investment ROI

Pay Back

Discounted Cash Flow (DCF)

Net Present Value (NPV)

Internal Rate of Return (IRR)

Internal Rate of Return (IRR)


Net present value npv l.jpg

Main methods of capital expenditure appraisal MOTIVATORS

Discounted CashFlow (DCF)

Return on Investment (ROI)

Pay Back

Internal Rate of Return (IRR)

Net Present Value (NPV)

Net Present Value (NPV)


Variance analysis l.jpg

Profit Variance MOTIVATORS

Total Cost Variance

Total Sales Variance

Materials

Labour

Variable

Fixed

Sales

Sales

Price

Variance

Overhead

Overhead

Volume

Price

Variance

Variance

Variance

Variance

Variance

Materials

Usage

Variance

Wage

Rate

Variance

Labour

Efficiency

Variance

Materials

Price

Variance

Variance Analysis


The link between the balance sheets and the income statement l.jpg

Balance Sheet MOTIVATORS

December 31, 2001

Income Statement

Year 2002

Balance Sheet

December 31, 2002

Assets

$170

Liabilities

$100

Revenues

$480

Expenses

$469.8

Assets

$190

Liabilities

$113

Owner‘s equity

$70

Owner‘s equity

$77

Net Profit

$10.2

Retained earnings

$7

Dividends

$3.2

The Link Between the Balance Sheets and the Income Statement


Working capital l.jpg

Simple cycle of operations MOTIVATORS

Cash

Raw materials

inventory

Receivables

Finished goods

inventory

Working Capital


Financial strategy framework l.jpg
Financial Strategy Framework MOTIVATORS

Due dilligence process

Investor Investment strategy

Alternative Investments

Time to close deal

Risk/Reward Space

Financial Strategy

Opportunity

Debt

Entrepreneurial concerns

Sources and Deal

Structure

Time to out of cash

Equity

Future alternatives

Other

Burn Rate

Financial

Requirements

Business Strategy

Operating

Requirements

Working Capital

Market Strategy

Technological Strategy

Asset Requirement


Investor perceived risk return space l.jpg
Investor Perceived Risk-Return Space MOTIVATORS

Angels

High

FFF

VCs

Entrepreneur

PERCEIVED

RETURN

Moderate

Realistic

Investors

Banks

Low

Low

Moderate

High

PERCEIVED RISK


Du pont scheme l.jpg

Return on equity MOTIVATORS

Earnings after tax

Owner‘s equity

ROE =

Financial leverage multiplier

Tax effects

Return on invested capital

Earnings before interest and tax

Invested capital

ROIC =

Operating profit margin

Capital turnover

Financial structure ratio

Financial cost ratio

Tax effect ratio

Earnings before interest and tax

Sales

Sales

Invested capital

Invested capital

Owner‘s equity

Earnings before tax

Earnings before interest and tax

Earnings after tax

Earnings before tax

Sales

Invested capital

Owner‘s equity

Cost of debt

Tax rate

Operating costs

Cash

Working Capital

requirement

Fixed assets

Du Pont Scheme


The drivers of value creation l.jpg

EBIT MOTIVATORS

Sales

Operating margin =

EBIT

Invested capital

(pretax ROIC)

Sales

Invested capital

Capital turnover =

Expected aftertax

ROIC

Tax effect = (1 – Taxe rate)

Return spread

(ROIC – WACC)

Percent of

debt financing

Market Value Added (MVA)

If the present value of the future stream of

expected return spreads is positive, MVA is

positive and the higher the growth, the more

value created.

If the present value of the future stream of

expected return spreads is negative, MVA is

negative and the higher the growth, the more

value destroyed.

Aftertax cost of debt

Weighted average

cost of capital

WACC

Estimated cost of equity

Percent of

equity financing

Economic, political, and

social environments

Market structure

Sustainability

of growth

Competitive advantages and

core competencies

The Drivers of Value Creation


Business design process l.jpg

Economics MOTIVATORS

What are

the key

assumptions

About

customers

and

economics?

What‘s

important to

customers?

How can

profit be

made?

What

dimensions

matter the

most?

What are my

choices

now? In the

future?

Changing

Customer

Priorities

Technology

Which

ones

are best?

Are the best

choices

internally

consistens

integratable?

What‘s my

best

business

design?

How long

will this

design be

valid?

How can I

prepare

for

ongoing

redesign?

Business Design Process


The company center of gravity l.jpg

The Entrepreneurial Phase The Growth Phase The Success Phase

The Center

of Gravity

The Center

of Gravity

The

center

of

gravity

The

Customers

The

Company

The

Customers

The

Customers

The

Company

The

Company

The Company Center of Gravity


The traditional value chain l.jpg

The Traditional Value Chain Growth Phase The Success Phase

Start with Assets, Core Competencies

Assets/

Core

Competencies

Inputs, Raw

Material

Product/

Service

Offering

Channels

The

Customer

The Modern Value Chain

Start with the Customer

The

Customer

Channels

Offering

Inputs, Raw

Material

Assets/

Core

Competencies

The Traditional Value Chain


The modern value chain l.jpg

Truly Understanding the Customer Growth Phase The Success Phase

Purchase Criteria

Customer Anger

Customer

Priorities

Channels

Offering

Inputs, Raw

Material

Assets/

Core

Competencies

Preferences

Power

Decision-Making Process

Purchase Occasion

Buyer Behavior

Functional Needs

Systems Economics

The Modern Value Chain


Customer solutions profit l.jpg

Profit Growth Phase The Success Phase

0

Customer Solutions Profit


Product pyramid profit l.jpg

Price Growth Phase The Success Phase

Volume

Product Pyramid Profit


Multicomponent profit l.jpg

Base Business Growth Phase The Success Phase

Other Components

Multicomponent Profit


Switchboard profit l.jpg

Buyers Growth Phase The Success Phase

Sellers

Switchboard Profit


Time profit l.jpg

$/Unit Growth Phase The Success Phase

Cost

Price

Time

Time Profit


Blockbuster profit l.jpg

$/Project Growth Phase The Success Phase

Revenue

Cost

Project Type

Blockbuster Profit


Profit multiplier model l.jpg

Other Forms Growth Phase The Success Phase

Key Asset

Profit Multiplier Model


Entrepreneurial profit l.jpg

Base Growth Phase The Success Phase

Business

Spin-Outs

Entrepreneurial Profit


Specialization profit l.jpg

Return on Sales Growth Phase The Success Phase

Generalist Specialist

Specialization Profit


Installed base profit l.jpg

Profit Margin Growth Phase The Success Phase

Hardware/Base

Product

Consumables/

Follow-on Product

Installed Base Profit


De facto standard profit l.jpg

Profit Margin Growth Phase The Success Phase

Market Share

De Facto Standard Profit


Brand profit l.jpg

Price/Unit Growth Phase The Success Phase

Market

Price

Brand

Price

Brand Profit


Specialty product profit l.jpg

100 % Growth Phase The Success Phase

S

C

Revenue

S

C

Five Years

Ago

Today

Specialty Product Profit


Local leadership profit l.jpg

Profitability by Region Growth Phase The Success Phase

0

Local Market Share

Local Leadership Profit


Transaction scale profit l.jpg

$/Unit Growth Phase The Success Phase

Revenue

Cost

Size of Transaction

Transaction Scale Profit


Value chain position profit l.jpg
Value Chain Position Profit Growth Phase The Success Phase


Cycle profit l.jpg

Price Growth Phase The Success Phase

$/Unit

Cost

Utilization

Cycle Profit


After sale profit l.jpg

Base Growth Phase The Success Phase

Product

Follow-on

Products/Services

After-Sale Profit


New product profit l.jpg

Time Growth Phase The Success Phase

New Product Profit


Relative market share profit l.jpg

Return on Sales Growth Phase The Success Phase

Relative Market Share

Relative Market Share Profit


Experience curve profit l.jpg

Cost/Unit Growth Phase The Success Phase

Cumulative Experience

Experience Curve Profit


Low cost business design profit l.jpg

$/Unit Growth Phase The Success Phase

Conventional

Business

Design

Low Cost

Business

Design

Low-Cost Business Design Profit


Ge s business design sell the solution not just the box l.jpg

Sell the Box, or ... Growth Phase The Success Phase

Product

The Profit Zone

... Sell the Whole Solution

Product

Options

Accessories

Financing

Services

GE's Business Design:„Sell the Solution, Not Just the Box“


The smh product pyramid l.jpg

The Profit Zone Growth Phase The Success Phase

Blancpain

Omega, Longines,

Rado

Tissot, Certina, Mido, Pierre Balmain,

Hamilton, Calvin Klein

Swatch, Flik Flak

Endura

Lanco

The SMH Product Pyramid


Coca cola s business design manage the value chain l.jpg

1980 Growth Phase The Success Phase

Distribution

Consumer

Grocery

Logistics

Bottling

Syrup

Coca-Cola

Brand

Fountain

Vending

1996

Distribution

Consumer

Grocery

Logistics

Bottling

Syrup

The Profit Zone

Coca-Cola

Mega Brand

Fountain

Coca-Cola, diet Coca-

Cola, Caff. Free, diet

Caff. Free, Cherry,

Diet Cherry

Vending

Coca-Cola‘s participation, influence

no participation

Coca-Cola's Business Design:Manage the Value Chain


The charles schwab switchboard l.jpg

Mutual Fund Growth Phase The Success Phase

Companies

Investors

Mutual Fund

Companies

Investors

The Profit Zone

Schwab

One Source

The Charles Schwab "Switchboard"


Intel s business design two steps ahead l.jpg

The Profit Growth Phase The Success Phase

Zone

Intel

$/Unit

AMD

Cost

Price

Q2 Q4 Q6 Q8 Q10

Quarters Post-Launch

Intel's Business Design: „Two Steps Ahead“


Disney s business design reinvention l.jpg

The Profit Zone Growth Phase The Success Phase

The Value Capture

Cruises

Publishing

Videocassette

Hotels

Television

Retail

Merchandise

Theme Parks

Music

Animated and Live-Action Films

The Foundation

Disney‘s Business Design Reinvention


The thermo electron spin out business design l.jpg

The Growth Phase The Success Phase

Profit Zone

Thermo

Spectra

Thermo

Instrument

Systems

Thermo

Optek

Thermo

Voltek

Thermo-Electron

Thermedics

Thermo

Sentron

Thermolase

Thermo

Trex

Trex

Medical

The Thermo-Electron"Spin-Out“ Business Design


Microsoft s business design create the standard l.jpg

OEMs Growth Phase The Success Phase

Customers

The Profit Zone

Microsoft

Applications

Windows

Applications

Developers

Microsoft's Business Design:Create-the-Standard


Drawpack diagrams l.jpg
Drawpack Diagrams Growth Phase The Success Phase

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Usage rights Growth Phase The Success Phase

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