Overall - MBA Comp Guide

STRATEGIC MARKETING SCHEME
END WITH CONCLUSION
Introduction: (case overview)

Type of Business
Geographic Domain
Culture of Senior Management
Competitive Situation
ENTRY STRATEGY
1) FOREIGN DIRECT INVESTMENT

(DISADVANTAGE: HIGH RISK OF INVESTMENT)
(ADVANTAGE: FULL CONTROL OF BUS)
A) ACQUISITION
I. External Audit (environmental scanning or

industry analysis):
Macro Environment (societal environment) (PEST)
(1) Political- legal variables: ( David p. 93 Table)
-political stability,
-facilities for the entrance for new foreign investment,
-taxation law,
-deregulation trend
(2) Economic variables: (David p.85 Table)
-investment laws and regulations,
OVERALL - MBA COMP GUIDE.DOC

- The GDP (which directly reflects on consumer spending power)
- The currency depreciation or appreciation
- Wages level
-price elasticity of demand (kotler 477)
(3) Social, cultural, demographics variables: (p. 90 Table)
- Cultural fear or freedom level
- Cultural symbol (status)
- Demographics (age, size,)- continuous growth in the world population
- What’s socially acceptable?
(4) Technological variables (p.93)
-The Internet; (rapid growth in the internet infrastructure)
- The pace of technological change.
- The rate of development
- The presence of skilled persons
- Presence of technological capabilities.
(5) Competitive forces (p.96)

- Identification of Rival firms
- Determining their SWOT and capabilities
- Understand the degree of Intensity among competition in Egypt in this Industry
- Conduct a Competitive Intelligence Study Then establish an ongoing unit (and make
it clear to Local management that it is espionage to avoid culture clash)
* More on the competition shall be explained at Industry level using Porter 5F model in
the coming section of Task Environment

Task Environment
Directly related to our CO :
Task environment Use Porter 5 forces: (p. 100)

1. Threats of new entrants
2. Rivalry among existing firms
3. Threats of substitutes
4. Bargaining power of Buyers
5. Bargaining power of suppliers
* Other Stakeholders (Shareholders, Internal & Ext customers)
Market – Size of Market , Perfect competition, Oligopoly, Monopoly,

Customer- Awareness, education, Lobby groups (‫حماية المستھلك‬, Industrial Bus Buyer
Competitors – (strategy, objectives, strength and weaknesses)
Distributors and dealer (agents, broker, manufacturer rep., and others who finding
and selling to customer)
Suppliers (material supplier, service supplier such as marketing research agency,
Adv. Agency, insurance, telecommunication and insurance companies -– PR agency)
Few or several suppliers

Rivalry among existing firms?
CRITERIA SCORE
Number of firms, few equally balanced giants 4
Industry growth rate 1
Very high or fixed storage cost 3
Commoditization, low differentiation 1
Capacity, intermittent overcapacity 5
Diversity of rivalry 5
High strategic/corporate stakes 4
High exit barriers 3
TOTAL 26
% 55%
The bargaining power of buyers, how strong?

CRITERIA SCORE
A single or very few buyers purchase a high proportion of total sale 1
Product volume purchased 3
Products are standard or undifferentiated 4
Low switching costs 4
Buyer is in low profit business = sensitive to cost 4
Real threat of backward integration from buyer 3
Industry product not important for buyer quality 1
The buyer has full information on product 4
TOTAL 24
% 60%
The bargaining power of suppliers, how strong?

CRITERIA SCORE
Dominated by few companies, more concentrated than the target industry 4
The target industry is NOT important to the supplier 2
Supplier product is unique, or high switching cost 5
Supplier product is critical for the business of the target 4
Substitutes are not easily available 4
Real threat of forward integration from supplier 4
TOTAL 23
% 77%

Threat of new entrants – barriers to entry how high
CRITERIA SCORE
Powerful economies of scale 4
Strong customer loyalty by product differentiation 1
Large capital investment requirements 2
Switching cost for new products are high 4
Lack of access to distribution channels 3
Structural cost disadvantage 1
Government policy 4
TOTAL 19
% 54%
Substitutes:
CRITERIA SCORE
Relative perceived value tending to improve 2
Where the threat is to another industry's cash cow 4
TOTAL 6
% 60%
Relative Power of Other Stakeholders:
Challenges:
1- Globalization (p.107)
Knowing that the Co understudy is part of a global structure, the strategic
decisions shall be based on its impact on global productivity rather than
just local achievements in Egypt
This means that Production could be based in Egypt (low labour cost) and
supporting other branches worldwide.
However we have to “think Global & act Local” eg Mc Mehraga
2- Going international challenges:

II. International factors may cause significant risks to the company. The
company's business may be subject to unexpected changes in: regulatory
requirements, tariffs and other trade barriers, costs of localizing products
for foreign countries, lack of acceptance of localized products in foreign

countries, longer accounts receivable payment cycles, difficulties in
managing international operations, political instability, potentially adverse
tax obligations, restrictions on the repatriation of earnings and the burdens
of complying with a wide variety of foreign laws and regulations.
III. The laws of certain countries in which the company may sell its products
and services do not protect the company's software and intellectual
property rights. As a result, it may be possible for a third party to copy or
otherwise obtain and use the company's technology without
authorization, or to develop similar technology independently. If this
occurs to any substantial degree to the company's business, results of
operations and financial condition could be affected.
IV. An integral factor in the company's growth strategy is the development of
third party relationships with a number of consulting and systems
integrator firms to enhance its marketing, sales, and customer support
efforts.
3- Internet
Instant transmission of money and Information (ecommerce & Intranet)
1. Opportunities & Threats

WEIGHTED
EXTERNAL FACTORS WEIGHT RATING COMMENTS
SCORE
THREATS
Emergence of
substitutes products 0.1 4 0.4 Due to the global expansion
May interfere in company’s
Government regulations 0.25 5 1.25 policies
‫كتاب دنانة‬
OPPORTUNITIES
Expanding globally Will increase the companies
0.35 4 1.4 growth and reduce risk
Entering new market
segments 0.25 5 1.25 Like sport field
Capitalize on leading Will reduce risk and increases
position in the market 0.05 2 0.1 profit
TOTAL SCORES 1 4.4 ABOVE AVERAGE

Marketing Strategy Audit (Mission – Objectives – Strategy)
Marketing Organization Audit (Functional – Efficiency)
Marketing Productivity Audit (Profitability – Cost Effectiveness)
Marketing Functions Audit ( 4 Ps)
• People represent the business

– The image they present can be important
– First contact often human – what is the lasting image they
provide to the customer?
– Extent of training and knowledge
of the product/service concerned
– Mission statement – how relevant?
– Do staffs represent the desired culture
of the business?
Process
• How do people consume services?
• What processes do they have to go through to acquire the
services?
• Where do they find the availability
of the service?
– Contact
– Reminders
– Registration
– Subscription
– Form filling
– Degree of technology
Physical Environment
• The ambience, mood or physical presentation of the
environment

– Smart/shabby?
– Trendy/retro/modern/old fashioned?
– Light/dark/bright/subdued?
– Romantic/chic/loud?
– Clean/dirty/unkempt/neat?
– Music?
– Smell?
2. Internal Environment
Corporate structure: (p.250) +HR Paper
The organization is the process of arranging people and other resources to work
together to accomplish a goal and as a result of the company strategy the
organization structure must be adjusted to cope with the new strategy and
achieve its goals.
The organization's strategy to grow and go more international must be reflected

on the organization structure to achieve the required result.
Simple structure:
Owner-manager makes decisions.
Little specialization of tasks.
Few rules, little formalization.
Advantages: Provides high flexibility

Rapid product introduction
Few coordination problems

Functional structure:
The company rather being lead by an entrepreneur, he is replaced by as team of
managers who have functional specializations. The entrepreneur must learn now
to delegate his responsibilities; otherwise, the new structure will yield no benefit
Advantages
• Centralized control of operations
• Promotes in-depth functional expertise
• Enhances operating efficiency where tasks are routine
Disadvantages
• Functional coordination problems
• Inter-functional rivalry
• Overspecialization and narrow viewpoints
• Hinders development of cross-functional experience
• Slower to respond in turbulent environments
President
Accounting Legal affairs
HR Finance Marketing R&D Production

Divisional structure:
It occurs especially when the organization is managing diverse product line or
when the organization is expanding to cover wider geographical areas
Advantages:
 Decentralized decision making
 Each business is organized around products
 Puts profit/loss accountability on manager
 Facilitates rapid response to environmental changes
 Allows efficient management of a large number of units
Disadvantages
 May lead to costly duplication of functions
 Inter-divisional rivalry
 Corporate managers may lose in-depth understanding
President
Product Product
division A Marketing division B
Finance Finance
Manufacturing
HR Marketing HR
Manufacturing

Strategic business unit (SBU) structure: (p250)
Matrix Structure
The matrix structure (some times called the matrix organization) it combines the
functional and divisional structure. It is designed to gain the advantage and
minimize the disadvantages of the functional and divisional structures.
The matrix is formed by using permanent cross functional teams to integrate

functional expertise in support of a clear divisional focus on project, product or
program.
The matrix structure in the multinational organizations offers a flexibility to

deal with the regional differences as well as the multi products, programs or
regional needs.
The matrix structure is the common solution for the organizations that pursues
the growth strategies in a dynamic and complex environment
 Functional & product form are combined simultaneously at the same

level.
 Employee have 2 superior, functional superior & horizontal product
manager
When to use ?
• Scarce resources
• Ideas need to be cross fertilized across projects
• External environment is very complex and changeable
3 Distinct phase exist in the development of matrix structure

1 -Temporary cross functional task forces:
Project manager is in charge as the key horizontal link
2 -Product or brand management:
The functional is still the primary organizational structure, product
manager act as integrator of semi permanent product or brand
3-Mature matrix:
A true dual authority structure, functional & product structure are
permanent

General Manager (Assistant)
Project Manufacturing Engineering Sales

Marketing
Manager Manager Manager Manager Manager
Project A xxxx xxxx xxxx xxxx
Project B xxxx xxxx xxxx xxxx
Project C xxxx xxxx xxxx xxxx
Network structure
• many activities are outsource
• series of independent firms or business units that are linked together by computers in
an IS
• Used when the environment is unstable
Nike , Reebok , Benetton use the network structure on there operation functions by
subcontracting manufacturing to other companies in low cost location around the world.
Advantages:
• Rapid response time

• Firm’s emphasize their own core competencies
• Very flexible
• Reduces capital intensity
Corporate Culture
It is the collection of beliefs, expectations and values learned, shared by a corporation's
members, and transferred from one generation of employees to another. It might be changing
or elaborating but hardly completely fades away. It gives the corporation its identity.
The best organization have strong culture that show respect for members

Leadership Style +HR Paper
The founder (SA) at this point is following a telling leadership style, which is
characterized by giving a specific task directions and closely supervising tasks.
At this point of time and according to the current circumstances the leadership
style must be adapted to match the near future circumstances.
According to behavioural approach, there are four styles:
1. Laissez-faire shows low concern for both people and task. Turn most
decisions over the work group and show less interest in the work process
or its results.
2. Directive or Autocratic, High concern for task and low concern for
people. Make most of the decisions, gives directions and expect his
orders to be followed.
3. Supportive or human relations leader shows high concern for people
and low concern for tasks. Warm in interpersonal relationships, avoid
conflict, and seek harmony in decision-making.
4. Participative or democratic, shows high concern for both people and
task. Share decisions with the work group, encourage participation and
support the work efforts of others.
Corporate Resources
1-Marketing (st, segmentation, targeting, positioning 4Ps)
2-Finance (financial ratios #trend or comparative)
3-R&D
4-Operations
5-MIS
INFORMATION SYSTEMS
-Managing and using information systems can pose several challenges
including the development process and ethical responsibilities.
-Information systems are a major source of information and support needed to
promote effective decision making by managers and business professionals.
Information systems can be categorized based on their intended purpose.
1. HUMAN RESOURCES

OPERATION SUPPORT SYSTEMS
DEFINITION:
Information systems that process data generated by and used in business operations
Goal is to efficiently process business transactions, control industrial processes, support
enterprise communications and collaboration, and update corporate databases
TRANSACTION PROCESSING SYSTEMS (TPS)

process data resulting from business transactions, update operational databases, and produce
business document
PROCESS CONTROL SYSTEMS (PCS)

monitor and control industrial processes.
ENTERPRISE COLLABORATION SYSTEMS

support team, workgroup, and enterprise communications an collaboration.
MANAGEMENT INFORMATION SYSTEMS (MIS)

provide information in the form of pre-specified reports and displays to support business
decision making.
DECISION SUPPORT SYSTEMS (DSS)

provide interactive ad hoc support for the decision making processes of managers and other
business professionals.
EXECUTIVE INFORMATION SYSTEMS (EIS)

provide critical information from MIS, DSS, and other sources tailored to the information
needs of executives.
EXPERT SYSTEMS
provide expert advice for operational chores or managerial decisions

KNOWLEDGE MANAGEMENT SYSTEMS
support the creation, organization, and dissemination of business knowledge to employees
and managers
FUNCTIONAL BUSINESS SYSTEMS

support basic business functions
STRATEGIC INFORMATION SYSTEMS

support processes that provide a firm with strategic products, services, and capabilities for
competitive advantage
CROSS-FUNCTIONAL INFORMATION SYSTEMS

integrated combinations of information systems
6- Human Resource + HR paper

REGARDING HUMAN RESOURCE MANAGEMENT
END WITH CONCLUSION
Human resource management is one of the most important key success factors
in organization, which is not totally implemented in Egypt, and its improvement
will greatly improve the organization performance
1. Human Resource Objectives

The human resource objective reflects the intention of the senior management
(strategy) with a balance to the related topics such as HR functions, society,
governing rules, etc.
There are four major objectives for the Human resource management;
1. Organizational objectives: to achieve the required organization
effectiveness and objectives and ensure that the organization always has
people with the right abilities available to do the right work
2. Functional Objectives: maintain the department’s contribution at a level
appropriate to the org. needs
3. Societal Objective : respond ethically and socially to the challenges of the
environment while minimizing the negative impact of such demands on
the organizations
4. Personal objectives: to assist retain and motivate the employees for
achieving their personal goals and guide them to better achievement
(most important )

2- Human Resource Strategy:
The human resource Strategy addresses the issue of whether to recruit a low
skill, low paid, high turnover employees or higher a high skill, high paid, low
turnover employees. The organization policy to go international must be a
highly paid high skill, low turn over employees to improve creativity of the
employees and the turnover must be kept at its minimum levels.
3-Human Resource Policies and Programs
- Preparation and selection: Review of the employees' job description, job

specification and job performance standard to match the change of the
organization.
- Succession Planning: the preparation of the company succession plan will
enable the organization to stand any future challenges.
- Career Path and development: the preparation of the career path for the
employees will help the stability and minimize the turnover of the employees.
- Recruitment: designing a good recruitment process (Selection, interviews)
with a high level of orientation to ensure the compatibility of the new recruited
employees with the existing culture to achieve organizational objectives.
- Training and development: on-the- job” training, Off-the-Job training and
Provide career planning assistance for employees.
- Incentive system will ensure the motivation of the employees to better
performance (linking incentive to production)
- Compensation Policies and protection: What employees get in exchange for
their contribution to the organization”,  maintain, retain productive
workforce, achieve the org. objectives
- Testing: Will ensure the qualification of the candidates and their fit in the
organization culture.
- Managing workforce diversity( if the organization is going internationally)
- Enhance employee participation: in implementing our strategy, all
employees from different organizational levels must make a meaningful
contribution in decision-making .this will increase employee's involvement and
enhance their working life balance.
- Enhance employee organizational commitment: by increasing job
involvement, which results in lower levels of absenteeism and turnover.
- Implementing employee recognition programs: starting with personal
attention and ending with appreciation for a job well done.
- Develop effective staffing plans supporting the organizational strategies by
allowing to fill job openings proactively (in terms of number and the quality of
the workforce for the short and long term) VIP in case of international
operations.( if the company is multinational)

i. Internal Factor Analysis Summary IFAS
WEIGHTED
EXTERNAL FACTORS WEIGHT RATING COMMENTS
SCORE
WEAKNESSES
Decline in film industry 0.1 4 0.4 Needs to be developed
Decline in theme park
attendance 0.05 2 0.1 Needs more marketing efforts
Financial performance 0.15 4 0.6 May lead to great losses
STRENGTHS
Copyright protection 0.2 4 0.8 Strong Competitive advantage
Products diversification 0.2 4 0.8 More attractive
Information system 0.1 4 0.4 Strong communications
Strong brand name and
reputation 0.1 4 0.4 High Loyalty
Human resource
management 0.1 5 0.5 Successful services
TOTAL SCORES 1 4 ABOVE AVERAGE
ii. Segmental Analysis:

Ratio Analysis (Profitability – Liquidity – Leverage – activity)
iii. Competitor analysis:
In relation to macroeconomic factors (focus on competitor's strengths which are your

weaknesses)
iv. Customer analysis:

V. SOWT analysis
FIGURE-7: STRENGTHS AND WEAKNESSES ANALYSIS
STRENGTHS PERFORMANCE IMPORTANCE

& Fundamental Marginal Marginal Fundamental
WEAKNESSES Neutral High Medium Low
strength strength weakness weakness
MARKETING FACTORS
1. Relative market share 13. Dealer network
2. Reputation 14. Dealer loyalty
3. Previous performance 15. Geographical coverage
4. Competitive stance 16. Sales force
5. Customer base 17. After sales service
6. Customer loyalty 18. Manufacturing costs
7. Breadth of product range 19. Manufacturing flexibility
8. Depth of product range 20. Raw material advantage
9. Product quality 21. Pricing
10. Program of product 22. Advertising
modification 23. Unique selling propositions
11. New product program 24. Structure of competition
12. Distribution Costs
FINANCIAL FACTORS
25. Cost of capital
26. Availability of capital
27. Profitability
28. Financial stability
29. Margins
MANUFACTURING FACTORS
30. Production facilities
31. Economies of scale
32. Flexibility
33. Workforce
34. Technical skill
35. Delivery capabilities
36. Supplier sourcing flexibility
ORGANIZATIONAL FACTORS
37. Culture

38. Leadership
39. Managerial capabilities
40. Workforce
41. Flexibility
42. Adaptability
Figure-3 The methods for developing a sustainable competitive advantage can

be divided into three main groups:
1. ORGANIZATIONAL ADVANTAGES
 Economies of scope and/or scale

 Flexibility
 Competitive position
 Size
 Speed of response
 Past performance
 Financial strengths
 Patterns of ownership
 Reputation
2. DEPARTMENTAL AND FUNCTIONAL ADVANTAGES
MARKETING
 Customer base
 Customer knowledge
 New product skills
 Pricing
 Communication and advertising
 Distribution
 Sales force
 Service support
 Reputation
RESEARCH AND DEVELOPMENT

 Product technology
 Patents
PRODUCTION
 Technology
 Process efficiency
 Economies of scale
 Experience
 Product quality
 Manufacturing flexibility
PERSONNEL
 Good management—worker relations
 Workforce flexibility
OVERALL - MBA COMP GUIDE.DOC PAGE 19 OF 49

3. ADVANTAGES BASED ON RELATIONSHIPS WITH EXTERNAL BODIES
 Customer loyalty
 Channel control
 Preferential political and legislative treatment
 Government assistance
 Beneficial tariff and non-tariff trade barriers
 Cartels
 Intra-organizational relationships
 Access to preferential and flexible financial resources
VI. TOWS Matrix

The TOWS matrix, which while making use of the same inputs (Threats, Opportunities,
Weaknesses and Strengths), reorganizes them and integrates them more fully into the
strategic planning process. To do this involves the seven steps that are illustrated in Figure-
9. The TOWS matrix is then illustrated in Figure-10.

An example of how Daimler-Benz used the TOWS matrix in its Mercedes cars division is
illustrated in Figure-11.
FIGURE 214 TOWS ANALYSIS FOR DAIMLER-BENZ’S MERCEDES-BENZ CAR DIVISION

1990
INTERNAL STRENGTHS INTERNAL WEAKNESSES
1. Cash position 1. High costs

2. Luxury car image 2. Venturing into unrelated
3. New car models businesses
STRATEGIES 3. Organizational diversity
4. Location dose to
TACTICS suppliers 4. Reliance on past
ACTIONS 5. Engineering and successes and
technology bureaucracy
5. Long cycle for new model
development
6. Relatively weak position
in Japan
EXTERNAL OPPORTUNITIES S-0 STRATEGY W-0 STRATEGY
1. Demand for luxury cars 1. Develop new models 1. Reduce costs through
2. Eastern Europe, especially (using high-tech) and automation and flexible
East Germany charge premium manufacturing
prices 2. Manufacture parts in
3. Prosperity through EC
1992 2. Use financial Eastern Europe
resources to acquire 3. Reorganizations
4. Electronics technology
other companies or
4. Daimler-Benz
increased production
management holding
capacity
companies

EXTERNAL THREATS S-T STRATEGY W-T STRATEGY
5. Decrease in defense needs 1. Transform defense 1. Retrench in South Africa

because of easing of East— sector to consumer 2. Form strategic alliance
West tensions sector with Mitsubishi to
6. BMW, Volvo, Jaguar, Lexus, 2. Develop new models penetrate the Japanese
Infinity in Europe to compete especially market
7. BMW in Japan in Europe
8. Diesel emissions
9. Renault/Volvo cooperation
10. Political instability in South
Africa
A SUMMARY OF KEY FINANCIAL RATIOS
RATIO HOW CALCULATED WHAT IT MEASURES
Liquidity Ratios
Current assets The extent to which a firm can meet its

Current Ratio
Current liabilities short-term obligations
Current assets minus inventory The extent to which a firm can meet its
Quick Ratio short-term obligations without relying
Current liabilities upon the sale of its inventories
Leverage Ratios
Debt-to-Total- Total assets The percentage of total funds that are

Assets Ratio Total Debt provided by creditors
Debt-to-Equity Total debt The percentage of total funds provided

Ratio Total stockholders’ equity by creditors versus by owners
Long-Term Long-term debt The balance between debt and equity in

Debt-to-Equity
Total stockholders’ equity a firm’s long-term capital structure
Ratio
Times- Profits before interest and taxes The extent to which earnings can
Interest- decline without the firm becoming
Earned Ratio Total interest charges unable to meet its annual interest costs
Activity Ratios
Whether a firm holds excessive stocks
Sales
Inventory of inventories and whether a firm is
Turnover selling its inventories slowly compared
Inventory of finished goods to the industry average.
Fixed Assets Sales Sales productivity and plant and

Turnover Fixed Asset Fixed assets equipment utilization
Sales Whether a firm is generating a

Total Assets
sufficient volume of business for the size
Turnover Total Assets of its asset investment
Accounts Annual credit sales The average length of time it takes a
Receivable firm to collect credit sales (in percentage
Turnover Accounts receivable terms)
Average Accounts receivable
The average length of time it takes a
Collection
Total credit sales/365 days firm to collect on credit sales (in days)
Period
Growth Ratios
Annual percentage growth in total
Sales Firm’s growth rate in sales
sales
Net Income Annual percentage growth in profits Firm’s growth rate in profits
Earnings Per
Annual percentage growth in EPS Firm’s growth rate in EPS
Share
Dividends Per Annual percentage growth in Firm’s growth rate in dividends per
Share dividends per share share
RATIO HOW CALCULATED WHAT IT MEASURES
Profitability Ratios
Gross Profit Sales minus cost of goods sold The total margin available to cover
Margin Sales operating expenses and yield a profit
Earnings before interest and Profitability without concern for taxes

Operating taxes (EBIT) and interest
Profit Margin
Sales
Net Profit Net income After-tax profits per dollar of sales

Margin Sales
Return on Net income After-tax profits per dollar of assets; this
Total Assets ratio is also called return on investment
(ROA) Total assets (ROT)
Return on Net income After-tax profits per dollar of
Stockholders’
Total stockholders’ equity stockholders’ investment in the firm
Equity (ROE)
Net income
Earnings Per Earnings available to the owners of
Share (EPS) Number of shares of common common stock
stock outstanding
Price-earnings Market price per share

Attractiveness of firm on equity markets
Ratio Earnings per share

I. Mission
 It is clearly set at beginning but may change to take advantage of a new opportunity
or to respond to new environmental condition
 It is a written form to share and communicate it with managers, employees and

customers and if it is clear, it provides a shared sense pf purpose, direction and
opportunity even for geographically dispersed employees
Characters of a good mission statement

1- Focus on limited goals
2- Stress on major policies and values
3- Define major competitive scope of operations
The Strategic Breakthrough Model

Companies often find themselves in a stalemated situation where it appears that they cannot
reach their projected sales goals. Consider the situation illustrated in Exhibit 3—5. The
company has set a high sales goal to be reached by the fifth year.
It has projected the various sources of sales over the five-year period.

1. Its current products in its current markets (given the same market share) supply the
base level, which grows for a while and then-declines because of the product life cycle.
2. Sales would be higher if the company could increase its market share. More sales can
come from introducing the company’s current products into new markers
(geographical and segmental).
3. Additional sates will come from launching new products.
4. Finally, the company could acquire new companies or brands.
Yet all those strategy additions may not add up to management’s desired sales performance
goal. Either the company will have to reduce its sales (and profit) goal or find “breakthrough”
ideas to fill the remaining strategic gap.
That was the situation facing jack Welch, CEO of general Electric, some years ago. It
appeared that GE would not be able to reach its five-year sales and profit goals. At that point,
Welch asked each GE division to find one or two “breakthrough” ideas that would
significantly raise the businesses’ sales and profit performance. He wanted more than
improvement thinking; he wanted breakthrough thinking.
The strategic breakthrough model worked as follows, GE Medical Systems scheduled an all-
day “breakthrough” session involving twenty senior managers. The twenty managers formed
four teams, each with a different mandate. The respective team mandates were:
 Find new customers and segments
 Find new sales strategies
 Find new pricing and equipment financing solutions
 Find new product features

II. Market segmentation, Targeting and
Positioning
DEVELOPING VALUE PROPOSITION

1. Choose a broad poisoning for the product
2. Choose a specific poisoning for the product
3. Choose a value poisoning for the product
4. Develop the total value proposition for the product
1. CHOOSING A BROAD POSITIONING

Michael Treacy proposed a three-way framework, which they called VALUE DISCIPLINES.
Within its industry, a firm could be the PRODUCT LEADER, the OPERATIONALLY EXCELLENT
FIRM, or the CUSTOMER INTIMATE FIRM.
This framework is based on the notion that in every market there are three types of
customers:
 Some customers favor the firm that is advancing the technological frontier (product
leadership).
 Another customer group does not need the latest products but wants highly reliable
and dependable performance (operational excellence).
 A final customer group prefers the firm that is most responsive and flexible in
meeting their individual needs (customer intimacy).
VALUE DISCIPLINES
OPERATIONAL
EXCELLENCE PRODUCT LEADERSHIP CUSTOMER INTIMANCY
CORE BUSINESS Sharpen distribution Nurture ideas, translate Provide solutions and
PROCESSES systems and provide no them into products, and help customers run
THAT…. hassle service market them skilfully their businesses
STRUCTURE Has strong, central Acts in an ad hoc, Pushes empowerment

THAT…. authority and a finite organic, Loosely knit, close to customer
level of empowerment and ever-changing way contact
MANAGEMENT Maintain standard Reward individuals’ Measure the cost of

SYSTEM THAT…. operating procedures innovative capacity and providing service and of
new product success maintaining customer
loyalty
CULTURE Acts predictably and Experiments and thinks Is flexible and thinks
THAT… believes “one size fits all” “out-of-the-box” “have it your way”
Treacy and Wiersema observed that it is difficult for a firm to be best in all three ways, or
even in two ways. Most firms do not have sufficient funds to be best at everything.

Furthermore, the three value disciplines require different managerial systems and attitudes
that often conflict.
The authors suggest, however, that business units within the same company can each
practice a different value discipline.
Treacy and Wiersema propose that a business should follow four rules for success:
1. Become best at one of the three value disciplines.
2. Achieve an adequate performance level in the other two disciplines.
3. Keep improving one’s superior position in the chosen discipline so as not to lose out
to a competitor.
4. Keep becoming more adequate in the other two disciplines, since competitors keep
raising customers’ expectations about what is adequate.
Broad positioning frameworks provide a useful starting point for positioning. However, they
conceal a wealth of other positioning possibilities.
2. CHOOSING A SPECIFIC POSITIONING

Companies need to go beyond a broad positioning to express a more concrete benefit and
reason to buy. Many companies advertise a single major benefit positioning, drawing from
such possibilities as:
SPECIFIC POSITIONING:
 Best quality
 Best performance
Thus in the automobile market, Mercedes owns the
 Most reliable
“most prestigious” position; BMW owns the “best
 Most durable (driving) performance” position; Hyundai owns the
 Safest “least expensive” position; and Volvo owns the
 Fastest “safest” position.
 Best value for the money
 Least expensive
 Most prestigious
 Best designed or styled
 Easiest to use
 Most convenient
Volvo’s case is interesting in that Volvo recognized that in every country of the world, some
car buyers make safety their highest priority. In discovering this global niche, Volvo is able to
sell its cars all over the world. Volvo has added a SECOND BENEFIT POSITIONING of their
automobile, namely the claim that it is one of the most durable cars. They use that second
positioning in countries like Mexico, where the buyer is concerned more with buying a ling-
lasting car than with safety.
Some companies even practice TRIPLE BENEFIT POSITIONING. Smith Kline Beecham promotes
its Aqua-Fresh toothpaste as offering three benefits: anti-cavity protection, better breath,
and whiter teeth. The toothpaste exudes from the tube in three colors, each suggesting and

delivering a different benefit. Beecham wants its Aqua-Fresh brand to “COUNTERSEGMENT”
that is, to attract three segments instead of one.
In searching for a specific positioning, the business unit should consider the following
possible sources:
 ATTRIBUTE POSITIONING: The Company positions itself on some attribute or feature. A
hotel describes itself as the city’s tallest hotel. Positioning by feature is normally a weak
choice since no benefit is explicitly claimed.
 BENEFIT POSITIONING: The product promises a benefit. Tide claims that it cleans better.
 USE/APPLICATION POSITIONING: The product is positioned as the best in a certain
application. Nike might describe one of its shoes as the best to wear for racing and
another as the best to wear for playing basketball.
 USER POSITIONING: The product is positioned in terms of a target user group, Apple
Computer describes its computers and software as the best for graphic designers.
 COMPETITOR POSITIONING: The product suggests its superiority or difference from a
competitor’s product. Avis described itself as a company “that tries harder” (than Hertz,
by implication); 7 UP called itself the Uncola,
 CATEGORY POSITIONING: The Company may describe itself as the category leader, Xerox
means copy machines.
 QUALITY/PRICE POSITIONING: The product is positioned at a certain quality and price
level. Taco Bell represents its tacos as giving the most value for the money.
Companies must avoid the following errors in positioning their brand:

 UNDER-POSIRIONING: Failing to present a strong central benefit or reason to buy this
brand
 OVER-POSIRIONING: Adopting such a narrow positioning that some potential customers
may overlook the brand
 CONFUSED POSITIONING: Claiming two or more benefits that contradict each other.
 IRRELEVANT POSITIONING: Claiming a benefit which few prospects care about
 DOUBTFUL POSITIONING: Claiming a benefit that people will doubt the brand or company
can actually deliver
3. CHOOSING A VALUE POSITIONING

We have discussed the selection of one or more specific benefits that the brand will advertise,
without mentioning anything about how the brand will be priced. But buyers think in terms
of value for the money: what they get for what they pay. The seller must value-position the
brand. We can distinguish five value positions.
MORE FOR MORE

Companies can always be found that specialize in making the most upscale version of the
product and charging a high price to cover their higher costs. Called luxury goods, such
products claim to be better in quality, craftsmanship, durability, performance, or style.
Examples include Mercedes automobiles, Mont Blanc writing instruments, and Gucci
apparel.

The product is not only fine in itself; it is delivering prestige to the buyer. Often the price far
exceeds the actual increment of quality.
One can find very expensive restaurants, hotels, coffees, brandies, and so on. One is
surprised occasionally at the entry of a new competitor who sets an unusually high price.
Haagen-Dazs came in as a premium ice cream brand at a price never before charged for ice
cream; Starbucks came in as an expensive coffee where coffee could always be had for much
less; some Cuban cigar brands command an unbelievably high price, in general, a company
should be alert to the possibility of introducing a “much more for much more” brand in any
underdeveloped product or service category.
Yet more-for-more brands are vulnerable: They often invite imitators who claim the same
quality but are priced lower. And luxury goods are at risk during economic downturns when
buyers become more cautious in their spending.
MORE FOR THE SAME

Companies have been able to attack a “more for more” brand by introducing a brand
claiming comparable quality and performance but priced much lower ‫مستورد‬. The Toyota
company introduced its new Lexus automobile with “more for the same” value positioning.
Lexus advertising shows the Mercedes and Lexus side by side and the superior qualities of
the Lexus; and through evidence that Lexus dealerships were providing a better buying
experience than Mercedes dealerships. Mercedes car owners in many American cities ended
tip making their next car purchase a Lexus. Since that time the Lexus repurchase rate has
been 60 percent twice that of the average car brand repurchase rate.
THE SAME FOR LESS

It seems that everyone is happy when they can buy a typical product or brand at less than the
normal price. Everything—Arrow shirts, Goodyear tires, Panasonic TV sets—seems to be
available at a lower price at some store or discount shop.
Discount stores don’t claim to have superior products, but they can offer ordinary brands at
deep savings, based on superior purchasing power.
LESS FOR MUCH LESS

Some people complain that some manufacturers or service providers provide more than they
require but they still have to pay the higher price. One cannot say to a hotel, “take out the TV
set and charge me less,” or tell an airline, “skip the food and charge me less.”
Therefore sellers have an opportunity to enter a market with a “less for much less” offering.
There is a hotel in Tokyo that rents not a room but a berth for substantially less than the
normal hotel price. Southwest Airlines, the most profitable U.S. air carrier, charges much
less by not serving food, not assigning seats, not using travel agents, and not transferring
luggage to other carriers.
MORE FOR LESS

Of course, the winning value positioning would be to offer prospects and customers more for
less.” This is the attraction of highly successful category killer stores. Sportmart offers the
largest selection of sports equipment and sports clothing for the lowest prices. Mass
merchandisers make a similar claim: walking into a Wal-Mart store, one meets a friendly

greeter, sees a whole array of attractively laid-out, well-known branded goods, finds everyday
low prices, and generous return policies, and leaves thinking of Wal-Mart as a place where he
or she can get more for less.
III. Strategic Formulation
1.

2. Growth Strategies

Ansowf's Matrix: (COMPANY'S GROWTH PATH TO BUILD DEMAND)
PRODUCTS
MARKET
Existing Modified New
Existing Sell more of our existing Modify our current Design new products that
products to our existing products and sell more will appeal to our existing
types of customers. (Market of them to our existing customers. (New product
penetration) customers. (Product development)
modification)
Markets Enter and sell our products Offer and sell modified Design new products for
Modified in other geographical areas. products to new prospects in new
(Geographical expansion) geographical markets. geographic areas.
New Sell our existing products to Offer and sell modified Design new products to
new types of customers. products to new types sell to new types of
(Segment invasion) of customers. customers.
(Diversification)
OTHER 2 OPTIONS REGARDING ANSOWF'S:

1. Innovating delivery system (Email, Telephone…)
2. Invading new market spaces (alliances, joint ventures)
3. Military strategies

PRINCIPLES OF DEFENSIVE MARKETING WARFARE
1. Only the market leader should consider playing defence.
2. The best defensive strategy is the courage to attack.
3. Strong competitive moves should always be blocked.
DEFENSIVE STRATEGIES: FOR MARKET LEADER

A) Position defence: of the current market (weakest way)
B) Mobile defence: market broadening, diversification into unrelated industries.
C) Flanking defence: Don't ignore secondary markets
D) Contraction defence: withdraw from segments &/or geographical regions which are
most vulnerable
E) Pre-emptive defence: Striking first by first gathering information about the
competitors and capitalizing on competitive advantage
F) Counter offensive attack: response after the attack by:
 Attack head on
 Attacker's flank
 Pincer movement
PRINCIPLES OF OFFENSIVE MARKETING WARFARE

1. The main consideration is the strength of the leader’s position
2. Find weakness in the leader’s strength and attack at that point.
3. Launch the attack on as narrow a front as possible.
OFFENSIVE STRATEGIES: FOR MARKET CHALLENGER

A) Frontal attacks: matching competitors in everything (should have superior resources
& willing to persevere.
B) Flank attack: attack part of the market where the competitor is weak
C) Bypass attack: offer new type of product that makes the competitors product
unnecessary
D) Encirclement: Encircles the competitor's position in terms of products or markets or
both.
E) Guerrilla warfare: "Hit & Run", small intermittent assaults on different market
segments (think of exit strategies)
PRINCIPLES OF FLANKING MARKETING WARFARE

1. A good flanking move must be made into an uncontested area.
2. Tactical surprise ought to be an important element of the plan.
3. The pursuit is as critical as the attack itself.
PRINCIPLES OF GUERRILLA MARKETING WARFARE
1. Find a segment of the market small enough to defend.

2. No matter how successful you become, never act like the leader.
3. Be prepared to bugout at a moment’s notice.

A- Product & Service Strategy:
USING THE CONSUMPTION CHAIN TO FIND NEW OPPORTUNITIES (FOR B2C)

1. How do people become aware of their need for your products or service?
2. How do consumers find your offering?
3. How do consumers make their final selections?
4. How do consumers order and purchase your product or service?
5. How is your product or service delivered?
6. What happens when your product or service is delivered?
7. How is your product installed?
8. How is your product or service paid for?
9. How is your product stored?
10. How is your product moved around?
11. What is the customer really using your product for?
12. What do customers need help with when they use your product?
13. What about returns or exchanges?
14. How is your product repaired or serviced?
15. What happens when your product is disposed of or no longer used?
FAITH POPCORN’S TEN LIFESTYLE TRENDS

Cashing Out: slower but more rewarding paces for those who have worked hard then they
seek relaxation and leisure time so they would be an ideal target for products like music,
books and travel packages
Cocooning: Those who want the out-door enjoyment inside willing to pay a premium for that
they would be an ideal target for products like home theaters for example

Down-Aging: Tendency to feel younger than one’s age
Egonomics: Treated differently from others
Fantasy Adventure: Meets people needs to offset their daily routine
99 Lives: Juggle many roles and responsibilities
S.O.S: Make society more socially responsible along the three critical Es: Environment,
Education, and Ethics
Small Indulgences: Stressed out consumers need occasional emotional fixes
Staying Alive: People’s drive to live longer and better lives
The Vigilante Consumer : Those who claim their rights
Product modification Strategies

CONSUMER ACTIVITY CYCLE (FOR B2B)
CCC and CAC are being used:

 Improve the product strategy by knowing to what extent the product fits the target
segment
 Come up with better product ideas
C- Price:
VALUE PRICING USING CONJOINT ANALYSIS

 Popular marketing research technique.
 Determine features and pricing.
 Less expensive than concept testing.
 Easy to understand; Difficult to master.
 Apply to service product development and pricing.

C- Promotion:
ADVERTISING SALES PROMOTION PUBLIC RELATIONS SALES FORCE

Print & broadcast ads Contests, games Press kits Sales presentations
Packaging-outer Stakes, lotteries Speeches Sales meetings
Packaging inserts Premiums and gifts Seminars Incentive programs
Motion pictures Sampling Annual reports Samples
Brochures & booklets Fairs and trade shows Charitable donations Fairs and trade shows
Posters and leaflets Exhibits Sponsorships
Directories Demonstrations Publications DIRECT MARKETING
Reprints of ads Coupons Community relations Catalogs
Billboards Rebates Lobbying Mailings
Display signs Low-interest financing Identity media Telemarketing
Point-of-purchase Entertainment Company magazine Electronic shopping
Displays Trade-in-allowances Events TV shopping
Audio-visual material Continuity programs Fax mail
Symbols and logos Tie-ins E-mail
Videotapes Voice
ADVERTISING 5M MODEL
Mission
Message
Media
Money
Measurement
ADVERTISING OBJECTIVES “AIDA” MODEL

Awareness
Interest
Desire
Action
PUBLIC RELATIONS
P = Publications
E = Events
N = News
C = Community
I = Identity Media
L = Lobbying Activity
S = Social Responsibility

D- Distribution & Place:
DISTRIBUTION DECISIONS
Channels Coverage
Assortments
Locations
Inventory
Transport
DISTRIBUTION DECISIONS CRITERIA FOR PROPER CHANNEL STRUCTURING

Cost
Capital
Coverage
Control
Continuity
Character
WHAT WORK IS PERFORMED BY MARKETING CHANNELS?

1. Many producers lack the financial resources to carry out direct marketing
2. In some cases direct marketing simply is not feasible
3. Producers who do establish their own channels can often earn a greater return by
increasing their investment in their main business
CHANNEL FUNCTIONS AND FLOWS

a. Key Functions
i. Gather information about potential and current customers,
competitors, and others
ii. Develop and disseminate persuasive communications to stimulate
purchasing
iii. Reach agreements on price and other terms so that transfer of
ownership or possession can be effected
iv. Place orders with manufacturers
v. Acquire funds to finance inventories at different levels in the
marketing channel
vi. Assume risk connected with carrying out channel work
vii. Provide for the successive storage and movement of physical products
viii. Provide for buyers’ payment of their bills through banks and other
financial institutions
ix. Oversee actual transfer of ownership from one organization or person
to another
CHANNEL-DESIGN DECISIONS
• Push strategy
• Pull strategy

DESIGNING A CHANNEL SYSTEM INVOLVES FOUR STEPS
• Analyzing customer needs
• Establishing channel objectives
• Identifying major channel alternatives
• Evaluating major channel alternatives

COMPANY ‘’X’’ STRUCTURE
The organization is the process of arranging people and other resources to work together to
accomplish a goal and as a result of the company strategy the organization structure must be
adjusted to cope with the new strategy and achieve its goals.
The organization's strategy to grow and go more international must be reflected on the
organization structure to achieve the required result.
SIMPLE STRUCTURE:
 Owner-manager makes decisions.
 Little specialization of tasks.
 Few rules, little formalization.
ADVANTAGES:
 Provides high flexibility
 Rapid product introduction
 Few coordination problems
FUNCTIONAL STRUCTURE:
The company rather being lead by an entrepreneur, he is replaced by as team of managers
who have functional specializations. The entrepreneur must learn now to delegate his
responsibilities; otherwise, the new structure will yield no benefit
ADVANTAGES
 Centralized control of operations
 Promotes in-depth functional expertise
 Enhances operating efficiency where tasks are routine
DISADVANTAGES
 Functional coordination problems
 Inter-functional rivalry
 Overspecialization and narrow viewpoints
 Hinders development of cross-functional experience
 Slower to respond in turbulent environments

DIVISIONAL STRUCTURE:
It occurs especially when the organization is managing diverse product line or when the
organization is expanding to cover wider geographical areas
ADVANTAGES:
 Decentralized decision making
 Each business is organized around products
 Puts profit/loss accountability on manager
 Facilitates rapid response to environmental changes
 Allows efficient management of a large number of units
DISADVANTAGES
 May lead to costly duplication of functions
 Inter-divisional rivalry
 Corporate managers may lose in-depth understanding
MATRIX STRUCTURE
The matrix structure (some times called the matrix organization) it combines the functional
and divisional structure. It is designed to gain the advantage and minimize the disadvantages
of the functional and divisional structures.
The matrix is formed by using permanent cross functional teams to integrate functional
expertise in support of a clear divisional focus on project, product or program.
The matrix structure in the multinational organizations offers a flexibility to deal with the
regional differences as well as the multi products, programs or regional needs.
The matrix structure is the common solution for the organizations that pursues the growth
strategies in a dynamic and complex environment

 Functional & product form are combined simultaneously at the same level.
 Employee have 2 superior, functional superior & horizontal product manager
WHEN TO USE?
 Scarce resources
 Ideas need to be cross fertilized across projects
 External environment is very complex and changeable
3. DISTINCT PHASE EXIST IN THE DEVELOPMENT OF MATRIX STRUCTURE

1. TEMPORARY CROSS FUNCTIONAL TASK FORCES: Project manager is in charge as the key
horizontal link
2. PRODUCT OR BRAND MANAGEMENT: The functional is still the primary organizational
structure, product manager act as integrator of semi permanent product or brand.
3. MATURE MATRIX: A true dual authority structure, functional & product structure are
permanent
NETWORK STRUCTURE
 many activities are outsource
 series of independent firms or business units that are linked together by
computers in an IS
 Used when the environment is unstable
Nike, Reebok, Benetton use the network structure on there operation functions by
subcontracting manufacturing to other companies in low cost location around the world.
ADVANTAGES:
 Rapid response time

 Firm’s emphasize their own core competencies
 Very flexible
 Reduces capital intensity
Leadership Style
The founder (SA) at this point is following a telling leadership style, which is characterized
by giving a specific task directions and closely supervising tasks. At this point of time and
according to the current circumstances the leadership style must be adapted to match the
near future circumstances.
According to behavioural approach, there are four styles:

5. LAISSEZ-FAIRE shows low concern for both people and task. Turn most decisions over
the work group and show less interest in the work process or its results.
6. DIRECTIVE OR AUTOCRATIC, High concern for task and low concern for people. Make
most of the decisions, gives directions and expect his orders to be followed.
7. SUPPORTIVE OR HUMAN RELATIONS LEADER shows high concern for people and low
concern for tasks. Warm in interpersonal relationships, avoid conflict, and seek
harmony in decision-making.
8. PARTICIPATIVE OR DEMOCRATIC, shows high concern for both people and task. Share
decisions with the work group, encourage participation and support the work efforts
of others.
COMPANY -X- CULTURE "The company way"

It is the collection of beliefs, expectations and values learned, shared by a corporation's
members, and transferred from one generation of employees to another. It might be
changing or elaborating but hardly completely fades away. It gives the corporation its
identity.
REGARDING HUMAN RESOURCE MANAGEMENT
Human resource management is one of the most important key success factors in
organization, which is not totally implemented in Egypt, and its improvement will greatly
improve the organization performance
2. HUMAN RESOURCE OBJECTIVES

The human resource objective reflects the intention of the senior management (strategy)
with a balance to the related topics such as HR functions, society, governing rules, etc.
There are four major objectives for the Human resource management;
5. ORGANIZATIONAL OBJECTIVES: to achieve the required organization effectiveness and
objectives and ensure that the organization always has people with the right abilities
available to do the right work
6. FUNCTIONAL OBJECTIVES: maintain the department’s contribution at a level
appropriate to the org. needs

7. SOCIETAL OBJECTIVE : respond ethically and socially to the challenges of the
environment while minimizing the negative impact of such demands on the
organizations
8. PERSONAL OBJECTIVES: to assist retain and motivate the employees for achieving their
personal goals and guide them to better achievement (most important )
3. HUMAN RESOURCE STRATEGY:
The human resource Strategy addresses the issue of whether to recruit a low skill, low paid,
high turnover employees or higher a high skill, high paid, low turnover employees. The
organization policy to go international must be a highly paid high skill, low turn over
employees to improve creativity of the employees and the turnover must be kept at its
minimum levels.
4. HUMAN RESOURCE POLICIES AND PROGRAMS

 PREPARATION AND SELECTION: Review of the employees' job description, job specification
and job performance standard to match the change of the organization.
 SUCCESSION PLANNING: the preparation of the company succession plan will enable the
organization to stand any future challenges.
 CAREER PATH AND DEVELOPMENT: the preparation of the career path for the employees
will help the stability and minimize the turnover of the employees.
 RECRUITMENT: designing a good recruitment process (Selection, interviews) with a high

level of orientation to ensure the compatibility of the new recruited employees with the
existing culture to achieve organizational objectives.
 TRAINING AND DEVELOPMENT: on-the- job” training, Off-the-Job training and Provide
career planning assistance for employees.
 INCENTIVE SYSTEM will ensure the motivation of the employees to better performance
(linking incentive to production)
 COMPENSATION POLICIES AND PROTECTION: What employees get in exchange for their
contribution to the organization  maintains, retain productive workforce, achieve the
org. objectives.
 TESTING: Will ensure the qualification of the candidates and their fit in the organization
culture.
 MANAGING WORKFORCE DIVERSITY ( if the organization is going internationally)
 ENHANCE EMPLOYEE PARTICIPATION: in implementing our strategy, all employees from

different organizational levels must make a meaningful contribution in decision-making
.this will increase employee's involvement and enhance their working life balance.
 ENHANCE EMPLOYEE ORGANIZATIONAL COMMITMENT: by increasing job involvement, which

results in lower levels of absenteeism and turnover.
 IMPLEMENTING EMPLOYEE RECOGNITION PROGRAMS: starting with personal attention and

ending with appreciation for a job well done.

 DEVELOP EFFECTIVE STAFFING PLANS supporting the organizational strategies by allowing
to fill job openings proactively (in terms of number and the quality of the workforce for
the short and long term) VIP in case of international operations.( if the company is
multinational)
GE Evaluation Criteria
Alternative strategies should be evaluated based on their impact on the following:

1. Financial Results
2. Market Position
3. Productivity
4. Product leadership
5. Employee Attitude
6. Personnel Development
7. Community Impact
8. S/T vs L/T

GE Evaluation Criteria

BALANCED SCORE CARD

FM
HR = Training = Virtual University for imployees eg IPSOS

Marketing = MR

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STRATEGIC MARKETING SCHEME

END WITH CONCLUSION

Introduction: (case overview)

1) FOREIGN DIRECT INVESTMENT

I. External Audit (environmental scanning or

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(5) Competitive forces (p.96)

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Task environment Use Porter 5 forces: (p. 100)

Market – Size of Market , Perfect competition, Oligopoly, Monopoly,

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The bargaining power of buyers, how strong?

The bargaining power of suppliers, how strong?

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Relative Power of Other Stakeholders:

However we have to “think Global & act Local” eg Mc Mehraga

2- Going international challenges:

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Instant transmission of money and Information (ecommerce & Intranet)

1. Opportunities & Threats

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• People represent the business

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The organization's strategy to grow and go more international must be reflected

Advantages: Provides high flexibility

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Accounting Legal affairs

HR Finance Marketing R&D Production

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The matrix is formed by using permanent cross functional teams to integrate

The matrix structure in the multinational organizations offers a flexibility to

 Functional & product form are combined simultaneously at the same

3 Distinct phase exist in the development of matrix structure

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Project Manufacturing Engineering Sales

Project A xxxx xxxx xxxx xxxx

Project B xxxx xxxx xxxx xxxx

Project C xxxx xxxx xxxx xxxx

• Rapid response time

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TRANSACTION PROCESSING SYSTEMS (TPS)

PROCESS CONTROL SYSTEMS (PCS)

ENTERPRISE COLLABORATION SYSTEMS

MANAGEMENT INFORMATION SYSTEMS (MIS)

DECISION SUPPORT SYSTEMS (DSS)

EXECUTIVE INFORMATION SYSTEMS (EIS)

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FUNCTIONAL BUSINESS SYSTEMS

STRATEGIC INFORMATION SYSTEMS

CROSS-FUNCTIONAL INFORMATION SYSTEMS

6- Human Resource + HR paper

END WITH CONCLUSION

1. Human Resource Objectives

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3-Human Resource Policies and Programs

- Preparation and selection: Review of the employees' job description, job

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ii. Segmental Analysis:

iii. Competitor analysis:

In relation to macroeconomic factors (focus on competitor's strengths which are your

iv. Customer analysis: