Chapter-04 essentials of Planning . Dr. Gehan Shanmuganathan , (DBA). Burger King Holdings. Burger King Holdings. Burger King CEO interviewed by Wall Street Journal Question was on how Burger King made the growth possible during the economic depression Answer
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Dr. GehanShanmuganathan, (DBA)
Define the present situation
Establish goals and objectives
Analyze environment in terms of aids and barriers
To goals and objectives
Implement the plan
Develop action plan to reach goals and objectives
Control the plan
5 M’s 7 S’s
Customers, Distributors, Suppliers & Competitors
Threat of newEntry
Threat of new entrants can be reduced based on barriers to entry. These would be
Economies of scale -
Product differentiation –
Capital requirements –
Switching Costs –
Access to distribution channels –
When organizations in an industry are faced with threats from substitute products, they are likely to find demand for their products are relatively sensitive to price
Whether the customers purchase a substantial proportion of the total sales of the producer
Whether the customer purchase from the industry, represents a large or small proportion of the customer’s total purchases.
Whether switching costs are high or low
Whether the products are branded or unbranded
The number of suppliers in the industry
The importance of the suppliers products to the firm
Whether the supplier has a differentiated product
Whether the switching cost of the customers are high
Whether there is a large number of equally balanced competitors
The rate of growth in the industry – when the market growth is slow companies tends to grab share from each other intensifying competition.
Whether buyers can switch easily from one supplier to another.
Capacity and unit cost of each competitor