Analyzing the Current Situation

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Analyzing the Current Situation
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Todays Discussion (Overview)

• Environmental Scanning and Analysis
• Analyzing the Internal Environment
• Mission
• Resources
• Offering
• Previous Results
• Business Relationships
• Keys to Success and Warning Signs

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Overview Continued

• Analyzing the External Environment
• Demographic Trends
• Consumer Demographics
• Business Demographics
• Economic Trends
• Ecological Trends
• Technological Trends
• Political-Legal Trends
• Social-Cultural Trends
• Competitor analysis
• SWOT Analysis

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Environmental Scanning

• Macro-environment
• Broad demographic, economic, ecological,
  technological, political-legal and
  social-cultural forces
• Micro-environment
• Specific groups that more directly influence
  performance, such as customers, competitors,
  channel members, partners, suppliers, and
  employees

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SWOT

• Strengths
• Internal capabilities that can help the firm
  achieve its goals and objectives
• Weaknesses
• Internal factors that can prevent the firm from
  achieving its goals and objectives
• Opportunities
• External circumstances that the organization
  might be able to exploit for higher performance
• Threats
• External circumstances that might hurt the
  organizations performance, now or in the future

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Kodak

• Strengths
• Weaknesses
• Threats
• Opportunities

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Mission Statements
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Internal Environment (Resources)
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Offerings (Products)

• What products are being offered
• What price points
• Which customer segments
• What is the age, sales and profit trends
• New products
• Market share
• Importance of each product (supplements)
• How does each product support the bottom line
• Does one product account for a large of sales
• PLC can it be extended

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Previous Results

• Analyze trends
• Customer acquisition strategies
• Traditional catalog retailers spend about 38
• Net Flix spends about 35
• Too much?

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Business Relationships

• Do suppliers and distributors
• Have the capacity to increase volume if needed
• Maintain a suitable quality level
• Can be true partners in adding value
• Has the roster changed over time
• Is the company dependent on one partner

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Identify warning signs early
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External Environment 1 2
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Porters generic Strategies

• Cost leadership
• Differentiation
• Focus

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New coke
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• Coke Brands
• Pepsi Brands
• Cadbury Schweppes
• Jones Soda