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Systematic review of strategic analysis methods (CPA strategy)
Systematically and comprehensively organizes the core methodology and technical actions of strategic analysis. This framework is also the core test point of the CPA strategy part. Friends in need hurry up and collect it!
Edited at 2023-11-29 16:38:13
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Systematic review of strategic analysis methods (CPA strategy)
- bacteria
This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
- Plant asexual reproduction
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
- Reproductive development of animals
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
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- Outline
strategy
Strategy and Strategic Management
company strategy
Basic concepts of corporate strategy
connotation
Traditional concept (Porter): focus on end points and paths, planning, overall, and long-term
Modern concept (Mintzberg): only focus on paths, risk, adaptability and competition.
Comprehensive concept (Thomson): advance planning and emergency response
denotation
Mission: pursuit of the bottom
Company purpose
The primary purpose of a for-profit organization is to bring economic value to its owners
Company purpose
Explain the business scope and reflect the company’s positioning
Business philosophy
What to do and what not to do
Goal: Measure whether it is achieved
financial and strategic goals system
Short-term and long-term goal system
levels of corporate strategy
overall strategy
Business field selection and resource allocation
business unit strategy
Compete effectively in business areas
functional strategy
Synergy: multiple activities within a single function, different functions
Corporate strategic management: how to arrive at it and how to implement it
Characteristics: Comprehensive, high-level, dynamic
Process: Analysis, Selection, Implementation
Evaluate strategic alternatives
suitability criteria
Acceptance criteria
feasibility criteria
strategic innovation management
Change and innovation, invention and innovation
Four types of strategic innovation
product
process
Positioning: repositioning existing products
Paradigm: Thinking/Business Model
Four aspects of innovation decision-making
novelty
Progressive, Doing Higher: Total Quality Management/Learning Curve/Lean
Breakthrough, Make a Difference: Creative Destruction
Innovative basic products and product families
Level of innovation: components or architecture (technology integration)
The time to innovate: the innovation life cycle
three stages
Rheology
transition
Mature
innovative context
Build an innovative organization
Components
Shared mission, leadership and willingness to innovate
Appropriate Organizational Structure: Organic and Mechanical
key individual
All employees participate in innovation
effective teamwork
creative atmosphere
cross borders
Develop innovative strategies
Main processes of innovation management
search
Look for signs of potential change
choose
Study the market, analyze yourself, the relationship between innovation and performance
implement
gather, consolidate
Obtain
Obtain benefits: process innovation, intellectual property, re-innovation
Power and stakeholders in strategic management
Key stakeholders of the enterprise
internal
Shareholders, managers, employees
external
Government, buyers/suppliers, creditors, the public
Interest conflicts and balance among stakeholders
Related theories
Investors and managers
Baumol's "sales maximization" model
Maris growth model
Williams theory of managerial authority
Employees and Business (Shareholders/Managers)
Leontief model
Corporate interests and social benefits
contradiction
Three aspects of social responsibility
Basic interest requirements of corporate stakeholders
Protect the natural environment
Sponsor and support social welfare undertakings
balanced
business ethics
Compromise - organizational sluggishness - extra payments
Power and the strategic process
Sources of power for business stakeholders
Control over resources and power to exchange
position in management hierarchy
Formal powers: statutory power, reward power, coercive power
Personal qualities and influences
Informal authority: role model power and expert power, more durable
Participate in or influence the strategic decision-making and implementation process of the enterprise
The extent to which stakeholders are concentrated or aligned
The use of power in strategic decision-making and implementation processes
Behavioral Patterns for Dealing with Conflict and Conflict: 5 Strategies
Firmness of one's own position
Want
Can
Cooperation
confrontation
Reconciliation (mostly unilateral concessions)
cooperation
Compromise (concession by both parties)
Avoid: run before or after
Strategic Analysis
Enterprise external environment analysis
Macro
Macro environment analysis: PEST
political and legal environment
political stability
The impact of government actions on businesses
The attitude and basic policies pursued by the ruling party, as well as the continuity and stability of these policies
The influence of various political interest groups on corporate activities
economic environment
Social and economic structure: industrial structure, exchange structure, consumption structure...
Economic development level and status: tax level, unemployment rate, government subsidies...
economic system
macroeconomic policy
Other economic conditions
social and cultural environment
Demographic factors: geographical distribution, age, education level, marriage and divorce rate
Social mobility: social stratification, differences and transitions between classes
consumer psychology
lifestyle changes
cultural tradition
values
technical environment
application
Qualitative to quantitative
Subdivision: Decomposition Tree
Assignment: Delphi method, brainstorming
Summary: Bar Chart
Industrial resource allocation analysis framework: diamond model
Applicable conditions
Four factors to consider when analyzing whether a company should establish a production base in a certain country
Four determinants of why a certain industry in a country is competitive
Four elements: competition between supply and demand
factors of production
supply
Category 1
Primary factors of production: climate, unskilled workers
Advanced production factors: modern communications and transportation, higher education manpower, and research institutions need to be invested in creation by themselves
Category 2
general factors of production
specialized factors of production
Requirements
need
Domestic demand market is the driving force for industrial development
Expert and discerning customers stimulate the competitive advantage of domestic enterprises
Avant-garde demands and newly introduced national policies guide companies to meet anticipated demands
Industry competition
compete
Related and supporting industries
cooperate
choose
Collaborative development to make up for shortcomings
Make a long board
industry
Product Lifecycle
four stages
Introduction period
growth period
Highest profit
mature stage
Price provocation and product standardization
Recession
Divided by the inflection point of the industry sales growth rate curve
feature
Sales volume
Growth period: climbing steadily
Maturity stage: market saturation
price and profit
Production (capacity)
product quality
Maturity stage: product standardization, slow improvement
Industry competition
Mature stage: Provocative price competition appears
Operational risk (unilateral decrease), financial risk unilateral increase
Introduction period: product and market risks
Growth stage: market competition
Maturity period: Continuity of stable operations
Decline period: the time point when the product is completely withdrawn
Strategic goals: expand the market, strive for the largest share, consolidate share, and defend
Strategic path: R&D, MKT, OPS
limitation
Can't tell the difference
There are exceptions
Yi Zuoxiang
big difference
judge
income curve
Active user number curve
Baidu Index
Things to note: Trend judgment rather than precise quantification, extending the time range to see trends, filtering abnormal fluctuations, and verifying with facts
Porter's Five Forces
five basic forces
potential entrant
Threats: Divide shares and stimulate competition
Coping: creating barriers
structural barriers
Porter's Rule of Sevens
economies of scale
Product differences
Funding needs
switching cost
Distribution channel
Other advantages
government policy
Bain's Rule of Thirds
Cost advantage/economies of scale
Resource advantages/existing companies’ control of key resources
Market differences
behavioral disorders
Defense: Limit Entry Pricing
Attack: Entering the opponent's territory
replacement
indirect substitution
Substitute Threat: Value = Features/Cost = Performance/Price
vicarious defense
The main way to reduce prices and costs of old products is
New products: R&D, MKT
The new and old methods are different, mainly to improve cost performance
buyers
supplier
Bargaining power depends on the level of the four modernizations
集中化：集中度高或业务量大
差异化：产品差异化或资产专用性
一体化：产业链纵向一体化程度
透明化：信息掌握程度
existing competitors
Competition for market share: price wars, advertising, consumer services, etc...
Factors affecting competition intensity
Many opponents
Industrial development is slow
Goods are homogeneous (consumers think)
excess production capacity
Low barriers to entry, high barriers to exit
Strategies for Coping with the Five Forces
Change yourself: cost advantage or difference advantage
Change positioning: find market segments and concentrate on them
Five Forces of Change: Establish long-term strategic alliances with buyers/suppliers; seek entry-denial strategies to reduce the threat of potential entrants
limitation
static
Applicability: Not applicable to non-profit organizations
idealization
Information asymmetry
Ignore co-opetition
Incomplete: The Sixth Force
interactive complementary forces
how to respond
Early stage of industry: supply of complementary goods
Industrial development: Feeding back complementary products
Key Success Factors (KSF) Analysis
characteristic
Dynamic
Industry differences
cycle difference
Develop sales channels during the introduction period
Establishing trademark reputation during the growth period
Protect existing markets during maturity
Improving corporate image during recession
Individual Differences
scarcity
compete
Individual Company Perspective: Competitor Analysis
Analyze four aspects of a single opponent
Hypothesis-judgment/analysis of internal and external environment
Why analysis: Know the why, pursue the victory, and attack the blind spots
How to analyze:
Strategic objectives
Why analysis: Predict changes in opponents and find your own position
current strategy
Why analysis: what you are doing, what you can do, what you want to do
How to Analyze: Key Functional Guidelines for Each Area
Competitive advantage (capabilities)
How to analyze
Ability to counter strategic actions: rapid reaction capabilities (adversary to adversary, free cash reserves)
Ability to handle events in the environment/industry: ability to adapt to changes, core competencies, growth capabilities, endurance (cash reserves)
Industrial structure perspective: strategic group analysis
effect
Single strategic group: understanding the main focus of competition among companies within the group
Multiple strategic groups: Understand competition and differences between groups, and understand barriers to movement between groups
Competitive markets as a whole: Anticipate market changes or identify strategic opportunities
Enterprise internal environment analysis
Main line: resources and capabilities = core capabilities
Enterprise resource analysis
type
Tangible Resources: Geographic Location
Intangible resources: technical resources, goodwill
human Resources
Judgment criteria
scarcity
inimitability
Physically unique
Exclusion
Textbook: Geographical location, mineral mining, patented production
Others: global channels, cutting-edge computer systems, large amounts of cash and marketable securities
path dependency
It requires long-term accumulation to obtain, and is related to systems, management, and personnel.
Causal ambiguity
company culture
economic constraints
Market space is limited
irreplaceability
persistence
Enterprise capability analysis
type
R & D capabilities
QCT, TTM deviation rate
Production management capabilities
production process
production capacity
Inventory management
VMI
human resource Management
Quality Control
Marketing ability
Product competitiveness
sales activity ability
Market decision-making ability
financial capability
Organizational management ability
core competencies
critical test of identification
Is it valuable to customers?
Are there any advantages over competitors?
Is it difficult to imitate or copy?
Others: functional analysis, resource analysis, process system analysis
evaluate
Enterprise self-evaluation
intra-industry comparison
Benchmark Analysis: Benchmark Analysis
datum object
Investment: taking up a lot of funds
Operations: Improving customer relations
Output: What affects the results of business activities
Base type
internal benchmark
Various departments within the enterprise
competitive benchmark
There is competition in the same industry
process or activity baseline
No competition in different industries
General benchmark
No competition in different industries
customer benchmark
Cost drivers and activity-based costing
Gather information about competitors
value chain analysis
Two types of activities in the value chain
basic activities
Internal logistics (incoming goods logistics)
Advances and retreats of raw materials
Production and operation
Processing, assembly, packaging, equipment maintenance, testing, and factory building
External logistics (outbound logistics)
Final product warehousing, order acceptance, delivery
Marketing
Serve
Training, repairs, parts supply and product commissioning
Support activities
Company infrastructure (finance, planning)
Control systems (such as performance appraisal systems), senior executives, excluding factory buildings
human resource Management
technology development
Leadership decision-making techniques
Procurement management
Hire consulting services
Decomposition of value chain and classification of value activities
Basic principles of decomposition
with different economics
Have a great impact on achieving product differentiation
Great impact on achieving cost leadership
Value chain analysis: point-line-chain
within the enterprise
single activity
Identify key activities that support the company's competitive advantage
Multiple activities
Clarify the linkages between activities within the value chain
inter-enterprise
value system
Clarify the connections between value activities within the value system
business portfolio analysis
boston matrix
core concept
Adapt to market needs
Reasonable allocation of resources
Fundamental
External factors: market gravity
market growth rate
Internal factors: corporate strength
market share
Business portfolio division
Just listed: high growth, low share
problem business
Increased share, double high
star business
delisting
Growth declines after high share
cash cow business
Growth rate decreases, double low
Thin dog business
delisting
Growth rate decreases, double low
Thin dog business
delisting
matrix elements
Vertical axis: market growth rate (industry data), representing industry prospects
10% dividing line
Horizontal axis: Relative market share (ratio to the market share of the largest competitor), representing competitive position
dividing line 1.0
Intersection: a business or product
Circle area: The ratio of the revenue of the business or product to the total revenue of the company
Characteristics, strategies and management organization choices under different business portfolios
problem business
feature
High investment, low return
coping strategies
Short-term stardom
develop
Hope to become a star
long term support
No future
harvest/give up
Management organization selection
Organization: think tank or project organization form
Talent: Ability to plan and dare to take risks
star business
feature
Good development costs more money
response
develop
Management organization selection
Organization: Business Unit
Talent: Expert in both production technology and sales
cash cow business
feature
Highly profitable and complementary to each other
response
No more growth
Harvest: Compress investment, extract oil
Still growing
Keep
Management organization selection
Organization: Business Unit
Talent: Marketing type
Acquisition of business
feature
Low profit, occupying resources
response
retreat
Reduce batch size and gradually withdraw
Transfer remaining resources to other businesses
Reorganize product lines or merge into other business units
universal matrix
Fundamental
Add multiple indicators to the coordinate axis: 3*3
competitive position
Industry attractiveness
use
Third from upper left
develop
Diagonal three
Third from lower right
limitations
Biased: weights
complicated
SWOT analysis
Fundamental
concept
Strength
Weakness
Opportunities
Threats
Internal analysis of the company
Advantages and disadvantages
Single item
comprehensive
Corporate external analysis
opportunities and threats
application
Take advantage of advantages and seize opportunities
Growth StrategySO
Reversing disadvantages and seizing opportunities
Turnaround strategy WO
Eliminate weaknesses and avoid threats
Defensive strategy WT
Enhance strengths and avoid threats
Multiple business strategiesST
expand
Thinking from outside and inland
enterprise
personal planning
Change from the inside out
Strategic Choice
overall strategy
development strategy
What
integrated strategy
Vertical industrial chain
forward integration
Motivation: By controlling sales channels, it is conducive to controlling the market and increasing sensitivity to changes in consumer demand.
Applicable conditions: Have funds & manpower; great potential for industry growth; high profits in the sales process; existing sellers have high sales costs or poor reliability
backward integration
Motivation: By controlling the cost, quality, and supply reliability of key raw materials, it is conducive to stable production and operations.
Applicable conditions: Have funds & manpower; great potential for industry growth; high profits in the supply chain; existing suppliers have high supply costs or poor reliability;
risk
Horizontal mergers and acquisitions
Motivation: Achieve economies of scale to gain competitive advantage
Applicable conditions: Have funds & manpower; have great potential for industrial growth; comply with anti-monopoly laws and regulations, and be able to obtain a certain monopoly position in local areas; have significant economies of scale in the industry; and have fierce competition in the industry
Applicable condition memory
S: Resource capability Others
O: virtual, virtual, real
T: Stakeholders
1234 model
1Support: Administration and Support Activities
2 products: raw materials and products
3 activities: supply, production, sales
4 roles: suppliers, competitors, distributors, consumers
Intensive strategy (Ansoff matrix)
Existing products
existing market
market penetration
Method: Marketing means
Applicable situations
Have advantage
Benefits are limited to existing
The market is growing
Low risk, less investment
subtopic
new market
Market Development
Applicable situations
There are people with money
Success or overcapacity in existing areas
The market is not saturated
Reliable channel
Main business is globalizing
Method: Other regions or market segments
New product
existing market
product development
Applicable situations
R & D capabilities
credibility and satisfaction
Industry suitable for innovation
High-speed industrial growth stage
High-quality products at the same price as competitors
new market
Diversification
Diversification Strategy
Diversification
Purpose: Obtain new profit growth points or avoid risks
Classification
Related Diversification (Concentricity): Integrating Advantages
Unrelated diversification (centrifugal): balance cash flow or obtain new profit growth points
Advantages and Risks
Original business
Advantages: Make full use of resources; use surplus funds; use image and reputation to enter another industry
Risks: brought by the original business industry
new business
Advantages: Easier financing; new growth points; access to capital or other financial benefits
Risks: Industry Entry and Exit
overall business
Advantages: spread risk
Risk: overall market risk; internal operation integration risk
How
External development (mergers and acquisitions)
Classification
Industry classification
horizontal merger
vertical merger
Diversified M&A
Attitude of the acquiree
Friendly mergers and acquisitions
hostile takeover
Identity of the acquiring party
Industrial capital mergers and acquisitions
Financial capital mergers and acquisitions
Acquisition funding sources
LBO
non-leveraged buyout
motivation
Avoid entry barriers, enter quickly, seize market opportunities, and avoid various risks
Gain synergy.
Overcome negative externalities of enterprises, reduce competition, and enhance control over the market
Reason for failure
Beforehand: Improper decision-making
What’s happening: Overpaying for M&A
Afterwards: Enterprise integration cannot be carried out well after mergers and acquisitions
company culture
Special: Cross-border mergers and acquisitions face political risks
Internal Development (New Construction)
Reasons for implementation
A deep understanding of the product during the development process
No suitable acquisition target exists
Management style and corporate culture remain unified
Provide career development opportunities for managers
The consideration is lower and no additional amount is paid for goodwill when acquiring the asset.
Unlikely to incur hidden or unpredictable losses from mergers and acquisitions
Technological innovation methods
There are plans to receive financial support and costs can be spread over time
lower risk
Internal development costs increase more slowly
shortcoming
obstacle
Structural barriers: lack of experience and scale, barriers to entry
Behavioral disorders: Provoking competition
Slow and stupid: slow development and lack of knowledge system
Application conditions
Can get in
Can bear it
Strategic Alliance
Motivation: Exploiting complementarity, one mention and three reductions
Promote technological innovation
Avoid business risks
avoid competition
Realize resource complementation
Open up new markets
Reduce coordination costs: The coordination costs of merging and acquiring large companies are relatively high
Classification
equity alliance
Joint venture
Mutual shareholding investment
contractual alliance
functional protocol
Control
Enter into an agreement
define goals
Designing structures for equality
Evaluate inputs
Provide for breach of contract and dissolution clauses
Establish an alliance of cooperation and trust
stabilization strategy
contraction strategy
Reasons for implementation
active cause
The need for strategic reorganization of large enterprises
short-term behavior of small businesses
passive cause
external
internal
Way
austerity and concentration
Mechanism change
Finance and Financial Strategy
cost cutting strategy
turn
Reposition or adapt existing products and services
Adjust marketing strategy
give up
Involving changes in property rights
Difficulties in implementation
Difficulty in judgment
exit barriers
Degree of specificity of fixed assets
exit cost
internal strategic connections
emotional disorder
Government and Social Constraints
Competitive Strategy (Business Unit Strategy)
basic competitive strategy
Cost leadership strategy
motivation
create barriers to entry
Enhance bargaining power
Reduce the threat of substitutes
Stay ahead of the competition
Implementation conditions
market outlook
consumer
Care about price: high price elasticity, a large number of price-sensitive users
Don’t care about the brand: use the product the same way
Easy to replace: low switching costs
product
Product standardization makes it difficult to achieve differentiation
competitor
Price competition is the main means
resources and capabilities
Choose the appropriate trading organization form
Reduce various factor costs
Focus on gathering
Equip corresponding production facilities in industries with significant economies of scale to achieve economies of scale
Improve production capacity utilization
Improve productivity
Improve product process design
risk
cost
After technological changes, accumulated experience and cost reduction investments are wiped out.
competitor
New entrants achieve lower cost positions through imitation or high-tech investment
consumer
Shift to focus on brand image, original advantages turn into disadvantages
Differentiation Strategy
motivation
create barriers to entry
Enhance bargaining power
Reduce the threat of substitutes
Maintain customer sensitivity
Implementation conditions
market outlook
Consumers: Customers have diverse needs
Product: The product can be differentiated and recognized
Competitors: Innovation takes center stage
resources and capabilities
Have an incentive system, management system and a good creative culture that can inspire employees' creativity
Have strong R&D capabilities and product design capabilities
Have strong marketing capabilities
Overall: The ability to improve the quality of a certain business operation, establish a brand image, maintain advanced technology and establish and improve distribution channels as a whole
risk
Cost: The cost for companies to differentiate their products is too high
Consumers: Changes in market demand
Competitors: Imitation and Offense by Opponents
centralization strategy
Classification
Focused cost leadership strategy
Focus on differentiation strategy
motivation
Resist threats from the five industrial forces
Enhance relative competitive advantage
Implementation conditions
market outlook
Consumers: Differences in needs among buyer groups
Product (or market): The target market is relatively attractive
Competitors: There are no other competitors in the target market using a similar strategy
resources and capabilities
Limited resource capacity, only selected market segments
risk
Market: Narrow Target Market Risk
Competitor: rival enters
Consumers: The difference in demand becomes smaller
Comprehensive analysis of basic strategies: The Strategy Clock
Cost leadership strategy
Low price and low value strategy: Pinduoduo
Low price strategy: Taobao
Differentiation Strategy
High Value Strategy: Centennial Mountain
High Value, High Price Strategy: Evian
Hybrid strategy: cost leadership and differentiation
High value and low cost: high quality and low price
reason
economies of scale
experience curve
total quality management
failure strategy
low value high price
Starting price
Low quality and high price
Disguised price increase
Competitive Strategies for Small and Medium Enterprises
Scattered industries
Reason: Basic economic characteristics of the industry
Strategic Choice
Overcoming fragmentation: Gaining a cost advantage
Chain or special operation
Technological innovation creates economies of scale
Discover industry trends early
Increase added value: Improve product differentiation
Specialization: Goal aggregation
Specialization by product type or product segment
Customer Type Specialization
Geographic area specialization
Beware of potential strategic pitfalls
Avoid seeking dominance
Maintain strict strategic focus
Avoid over-centralization
Understand competitors' strategic objectives and overhead costs
Avoid overreacting to new products
Emerging industry
Common features of internal structure
Technical uncertainty
Strategic uncertainty
Costs change rapidly
The influx of budding companies and the establishment of new businesses
First-time buyers (more potential consumers wait and see, need to be induced to buy)
developmental disabilities
Difficulties in selecting, acquiring and applying proprietary technology
Inadequacy of raw materials, parts, capital and other supplies
Customer confusion and wait-and-see
Reaction of the substituted product
Lack of courage and ability to take risks
Development Opportunities
Strategic Choice
Shape industrial structure
Correctly treat the externalities of industrial development: the balance between the overall interests of the industry and the company's own interests
Pay attention to changes in industry opportunities and obstacles, and take the initiative in industrial development and changes
Choose the right time and field to enter
Scenarios suitable for early entry
image and reputation
learning curve
customer loyalty
Early partnerships
Not suitable early
Face excessive switching costs after entering early
Opening up a market is costly
Technological changes enable late entrants to benefit from having the latest products and processes
blue ocean strategy
Value innovation: achieving differentiation at low cost
Key differences from Red Ocean strategy
Avoid competition and expand non-competitive market space
Create and capture new needs
Break the law of interchange between value and cost, and pursue differentiation and low cost at the same time
Establish principles
Rebuilding market boundaries
six basic rules
industry
Examine alternative industries
strategic group
Across different strategic groups within the industry
buyer group
Redefine buyer groups
Product or service scope
Look at complementary products or services
Functional-emotional orientation
Reset the functional or emotional appeal of customers (industry)
across time
Participate in shaping external trends across time
Focus on the big picture rather than the numbers
Go beyond existing needs
Common needs of non-customers
Follow a sound strategic sequence
Utility-Price-Cost-Acceptance
Implementation principles
Overcome key organizational barriers
Make execution part of the strategy
Summarize
Fundamental change: paradigmatic
Based on reality rather than conjecture
Either inside or outside: you can be in the red ocean of industry
Higher level: leaning towards corporate strategy
functional strategy
marketing strategy
Strategic level STP
Market segmentation: Segmenting
consumer
Geographic Segmentation: Countries
Population Segmentation: Nationality
Psychological segmentation: lifestyle, personality
behavioral segmentation
Industrial market (enterprise)
User's industry category
User scale
User's geographical location
buying behavior factors
Target market selection: Targeting
No difference
Differentiation
centralization
Factors to consider
market similarity
product homogeneity
Enterprise strength
Product life cycle stages
competitor strategy
Market positioning: Positioning
preempt or fill
coexist or confront
replace competitors
Tactical Level 4P
Product Strategy: Product
product portfolio
Related concepts
width
length
depth
Strategy
expand
reduce
Extension: positioning
Brands and Trademarks
single brand name
Each product has a different brand name
private label
product development
Promotional strategy: Promotion
four elements
advertising promotion
media
Business promotion
non-media
public relations
Promote corporate image
personal selling
Sales representative contacts customer
three strategies
Push type
Promoted to consumers through channel providers
Pull type
direct to consumer
push-pull combination
Distribution Strategy: Place
A
exclusive
Suitable for high technical content and need after-sales service
Dense
Daily consumer goods
choose
Suitable for optional and specialty items in consumer goods
B
direct
indirect
C
on-line
offline
Distribution channels must align the product image with the customer's perception of the product
Price strategy: Price
basic pricing method
Cost-oriented (lower limit)
Demand-oriented (upper limit)
high pricing strategy
low pricing strategy
Competitive Price Pricing (Reference)
prevailing price pricing
sealed bid pricing
Main pricing methods
psychological pricing
Product portfolio pricing
Discounts and concession pricing
Geographical Spread Strategy
new product pricing method
Penetration Pricing (Low Price)
Seize the market and sacrifice short-term profits
Skimming pricing (high prices)
Satisfactory pricing (median price)
R&D strategy
type
Product Research: Differentiation
Process Research: Cost Leadership & Differentiation
Power source
demand pull
technology push
strategic role
basic competitive strategy
Value Chain
Ansoff matrix
Product Lifecycle
position
attack
Become a company that introduces new technology products to the market
follow
Become an innovative imitator of successful products
Become a low-cost producer of successful products
Become an imitator of low-cost producers of successful products
Production operations strategy
Main factors involved
batch
type
demand changes
visibility
content
Product (service) selection
market conditions
Internal production and operating conditions
financial conditions
Differences in goals among departments
Make or buy options
Completely homemade
Homemade during assembly stage
Production and operation mode selection
High volume, low cost
Multiple varieties, small batches
computer integrated manufacturing
mass customization
Supply chain and distribution network selection
supply chain
Efficient supply chain
Agile supply chain
Distribution network
Factory direct delivery
Distributor Carrier
Taobao
Distributor delivery
Jingdong
Retailer Inventory Customer Pickup
Walmart
Distributor inventory, customer pickup
Community group buying
Competitive FocusTQCF
Delivery time
Fast delivery: secure your order
Delivery as promised
QualityQuality
CostCost
Manufacturing Flexibility
Production process planning
Capacity planning
Types of Capacity Planning and Methods of Balancing Capacity and Demand
Leading strategy: make to stock MTS
Stock production
Matching strategy: Engineer to oder ETO
Resource-to-order production
Lagging strategy: make to oder MTO
Order production
Procurement strategy
Supply strategy
Few or single sources
More supply and less batch size
Balanced supply strategy
Trading straregy
Classification
market trading strategies
Reduce costs and pursue short-term benefits
short term cooperation strategy
Be innovative and pursue short-term interests
functional alliance strategy
Reduce costs and pursue long-term benefits
Innovative alliance strategies
Be innovative and pursue long-term interests
Procurement model
Tradition
MRP procurement model: material requirement plan material requirement plan
JIT procurement model: just in time procurement, just in time
VMI procurement model: Vendor managed inventory
Digital procurement model
HR strategy
Human resource planning: matching supply with demand
overall plan
business plan
balancing strategy
structure mismatch
Reconfigure
specialized training
Personnel replacement
supply exceeds demand
Expand business scale and explore new growth points
layoff or dismissal
Encourage early retirement
Recruitment freeze
Shorten working hours
Rich employees are trained to optimize supply
Supply is less than demand
outside employment
Increase work efficiency
extended working hours
Reduce turnover rate
outsourcing of certain operations
Human resources acquisition
recruit
internal
external
Selection
Recruit
Training & Development
HR performance evaluation
performance plan
Goals, processes, means: KPI, BSC, management by objectives method
performance monitoring
performance appraisal
performance feedback
Salary
fairness principle
external fairness
internal fairness
individual fairness
salary incentives
basic salary
Stable, attract and retain talents
variable pay
Performance pay
indirect compensation
Welfare
horizontal strategy
leading
match
delay
mix
Match with enterprise competitive strategy
HR Acquisition Strategy
cost leadership
Recruit externally
Emphasis on skills
HR screens resumes, interviews, and formal employment
Promotion is narrow and difficult to switch
Differentiation
Comes from within, emphasizing fit with corporate culture
Business department screening decisions, multiple assessments, informal employment
Broader development and more flexibility
centralization
Take care of both
Narrow and difficult to convert
psychological test
Human resources training and development
cost leadership
limited knowledge and skills
Internal training: corporate university or regular training
Differentiation
extensive knowledge
External training
centralization
Moderate
performance management
cost leadership
Result-oriented, single evaluation
Differentiation
Assess results and behaviors across a broad range of assessments
centralization
compensation strategy
cost leadership
External fairness, based on position or seniority, mainly fixed salary, centralized power (high-level decision-making)
Differentiation
Internal fairness, based on ability or performance, mainly variable compensation, authorized decision-making
centralization
Internal fairness, combining ability and performance, fixed and floating.
financial strategy
choose
Based on product life cycle
Matching financial risk with operating risk: one high, one low
Operational risks unilaterally decreased, and financial risks unilaterally increased.
From equity financing to debt financing
The dividend payout ratio rises unilaterally and the price-earnings ratio unilaterally falls.
Based on value creation or growth rate
factor
Whether to create value: return-cost
Whether financing is needed: Growth rate - sustainable growth rate
Greater than 0, cash shortage
financial strategy matrix
international business strategy
motivation
seek market
seeking efficiency
From more advanced to less advanced (labor cost)
seek resources
From resource scarcity to resource abundance (natural resources)
Seek ready assets
Merger and acquisition of well-known enterprises (management experience, brand, technology)
Main way
Export trade
Target market selection (where to go)
area path
Traditional (continuous)
High-tech products
Primary products and labor-intensive low-end products
New type (discontinuous)
High-tech products
Select target customers
Market segmentation: volume, size, characteristics
Choosing an entry strategy (what to sell)
Standardization or customization
Three modes
Japanese model: standardization
European model: separate and independent
American model: new local products, re-export if necessary
Distribution channels and export marketing
Many links
high cost
go different
Have feedback
Export trade pricing
subtopic
Foreign direct investment (FDI)
Classification
Sole proprietorship (wholly owned subsidiary)
Advantages: Full control, avoidance of conflicts
Disadvantages: large investment, high risk, little support
joint venture
Advantages: low investment, repair defects
Disadvantages: high coordination costs
Non-equity arrangements (contractual alliances)
International operations of enterprises in global value chains
Global value chain construction
Corporate role positioning
Leading companies
first grade supplier
Other tier suppliers
Contract Manufacturer (Specialist)
Division of labor model
Foreign direct investment (bureaucratic style)
Find your son to do it, employment model
Products are complex and valuable
market transaction
Buy directly, buy-sell relationship
Products are simple and standardized
non-equity form
capture type
Looking for someone to do (younger brother), network relationship, power
The product is complex and I don’t make it myself
Modular type
Find someone to do it (expert), network relationship, complementary abilities
The product is complex but can be modularized
Relevant
Looking for someone to do (family, friends, neighbors), online relationships, space
The product is complex and requires multi-party communication
Upgrading of enterprises in developing countries
type
Process upgrade
product upgrade
Function upgrade
Value chain upgrade
strategy type
two quadrants
degree of collaboration
Indigenous independence and adaptability
four types
International Strategy: Home Country Product Development
Multi-country localization: KFC
Globalization strategy: Apple mobile phones, standard products sold in multiple locations
Transnational strategy: two-way and close cooperation between companies
Corporate strategy for emerging markets
Allocate resources according to industry characteristics (strategic analysis of local enterprises)
External environment analysis: standardization pressure in different industries
Globalization pressure (standardized products)
localization pressure
Internal environment analysis: Assess your own advantageous resources
Strategic choices for local companies
Dimensions
The degree of globalization of the industry (standardization, or the need for globalization)
Advantageous resources of local companies in emerging markets
four situations
Low, suitable for the country
defender
strategic initiatives
Serve the country
Adjust product
Strengthen channels
Low, can be transplanted overseas
Expander, go to surrounding markets
strategic initiatives
Leverage local advantages to expand into surrounding markets
High, suitable for the country
Dodger
strategic initiatives
Not planning to transform
Cooperation: joint venture, cooperation
For sale: to multinational companies
Planning to transform
Overall: Redefine core business and avoid competition
Market: Focus on market segments and avoid competition
Products: Produce products that are complementary to those of multinational companies
High, can be transplanted overseas
counterbalancer
strategic initiatives
Leading: Don’t stick to cost competition
Obtaining resources: Obtaining resources from developed countries
Find the market: Find a market that is clearly positioned and easy to defend.
Looking for a breakthrough: Find a suitable breakthrough point in the global industry
strategy implementation
organizational structure
Division of labor and integration
Division of labor
horizontal division of labor
Entrepreneurial
functional system
Business unit system
M type
SBU type
matrix system
H system
The organizational structure of an internationally operating enterprise
Multi-country localization
Global regions and distribution structure
globalization strategy
Global products and distribution structure
international strategy
International Department Structure
transnational strategy
transnational structure
vertical division of labor
Tall type
centralization
Flat type
Decentralization
Integrate
Basic coordination mechanism of horizontal division of labor
Adapt to each other and adjust on their own
direct command, direct control
Work process standardization
Standardization of work results
Standardization of skills (knowledge)
shared values
Corporate strategy and organizational structure
The leading nature of strategy and the lagging nature of structure
The development stage and structure of the enterprise
Expansion of quantity
market penetration strategy
Entrepreneurial
geographical spread
market development strategy
functional system
market integration
vertical integration strategy
Business unit
Diversification
Diversified business strategy
Unit organizational structure, matrix system, H-shaped
Organizational strategic types (four ways to adapt to changes in the internal and external environment)
Defensive type: There are more companies in the mature stage
Groundbreaking issue: Strategic goals pursue stability
Solutions to pioneering problems: Competitive pricing or high-quality products
Engineering Technology Issues: Creating Highly Cost-Effective Core Technologies
Administrative Management Problems: Mechanical Organization
Risk: Impossible to make significant changes to market conditions
Pioneering type: introduction period and growth period
dynamic environment
Seeking the ability to grasp dynamic environments
Develop low-mechanization and exceptional multi- and standard technologies to solve this problem
Organic and flexible, lack of efficiency
Analytical type: matrix system
reactive
Last resort
company culture
type
power oriented
Family business
role-oriented
State-owned enterprises
task oriented
High-Tech Companies
people oriented
Club, not easy to manage
culture and performance
Negative Impact: Culture, Inertia, and Poor Performance
How to do
Create value, unique to the enterprise, and difficult to imitate
Strategic stability and cultural adaptability
Less changes in organizational elements and greater potential consistency
Steady progress: a stabilization strategy
There are many changes in organizational elements and great potential consistency.
Never forget the original intention: a company with good profits
Little change in organizational elements Little potential consistency
Seeking common ground while reserving differences: some business changes
There are many changes in organizational elements and little potential consistency.
Starting over: Re-strategizing
strategic control
Strategy failure
reason
Lack of internal communication
Information transfer during the implementation process is blocked
resource gap
Improper employment and dereliction of duty
Manager’s decision making mistakes
changes in external environment
type
early failure
accidental failure
late failure
strategic control and budgetary control
Budgetary control is one of the methods
Internal quota for less than one year
Several years around qualitative and quantitative methods with a focus on continuous corrective behavior internally and externally
process
set a goal
Method of choosing
Implementing measures
feedback effect
method
Budget
incremental budget
zero based budgeting
business performance measurement
financial metrics
Profitability and rate of return
Shareholder investment indicators
liquidity indicator
Comprehensive liability and capital leverage indicators
non-financial indicators
ESG
Environmental aspects
social aspect
Corporate Governance
BSC Balanced Scorecard
Measurement angles and indicators
financial perspective
Customer perspective
internal process perspective
Innovation and Learning Perspective
Balance of four aspects
financial and non-financial
long term goals and short term goals
Anticipatory and outcome indicators
internal and external stakeholders
Special Topics in Statistical Analysis and Reporting
digital technology
development path
Informatization: Business digitization
Digitization: data business
Intelligence: human-computer interaction
Application areas
Big Data
feature
Massiveness
Diversity
High speed
value
AI
Mobile Internet
cloud computing
IAAS
PAAS
SAAS
Internet of ThingsIoT
sensor
Radio Frequency Identification
Embedded system technology
Blockchain
Impact on company strategy
Impact on organizational structure
Transformation of organizational structure to platform
Build a fusion structure of traditional and digital
Taking the new organizational structure as the main form
Team structure
virtual organization
Impact on business model
The influence of Internet thinking
The impact of diversification
Impact of consumer engagement
Impact on products and services
personalise
Intelligent
Connectivity
Ecological
Impact on business processes
digital strategy
Key aspects of digital strategic transformation
technological change
organizational change
managing change
business
Production
marketing
finance
The Difficulties of Digital Transformation
main mission
Build digital organizational design and transform business models
Strengthen core technology research
Break digital islands and create an ecosystem
Strengthen cultural construction
Leverage emerging technologies to improve network security
Pay attention to digital ethics and improve digital literacy
Corporate Governance
Overview
Corporate governance issues are an inevitable outcome of enterprise development
feature
Decentralized ownership structure
Separation of ownership and control
Three major governance issues
insider control issues
breach of duty of loyalty
breach of duty of diligence
The tunneling problem of ultimate shareholders versus small and medium shareholders
Performance
Abuse of Company Resources: Violation of Diligence
Taking up company resources: violating loyalty
Directly occupy resources
direct borrowing
Prepayments
Appropriate intangible assets such as company brand patents
Related transactions (non-market prices)
predatory financial activities
predatory financing
insider trading
predatory capital operations
excess dividends
Relationship issues between enterprises and other stakeholders
How to protect the interests of small shareholders
cumulative voting
Establish an effective shareholder civil compensation system
Establish a voting rights exclusion/avoidance system
Improve the proxy voting rights of small shareholders
Establish a shareholder exit mechanism
internal governance structure
model
single-tier board system
two-tier board of directors
Composite structure
shareholders meeting
Board of Directors
supervisory board
Party organization
external governance mechanism
Market
capital market
managers market
Corporate governance infrastructure
information disclosure system
prior control
Agency
prior control
laws and regulations
ex post control
Government Regulation
control during events
Law, administration, market, information disclosure
Public opinion supervision
control during events
Risk and risk management
Overview
The concept and components of risk
Components
risk factors
risk event
loss
Concepts, objectives and evolution of risk management
feature
strategic
Fully staffed
professional
duality
Systematic
Risk preference and risk tolerance (boundaries of preference)
Main risks faced by enterprises
external risks
politics
Legal & Compliance
social culture
Manifestations
between countries
between businesses
Enterprise internal
technology
market
Manifestations
Risks arising from changes in price, supply and demand of products or services
Risks arising from changes in the adequacy, stability and price of the supply of energy, raw materials, accessories and other materials
Credit risk of major customers and suppliers
Risks arising from changes in tax policies, interest rates, exchange rates, and stock price indexes
Risks from potential entrants, competitors, and competition with substitutes
internal risk
strategy
Internal control perspective
Lack of clear development strategy or inadequate implementation
Development strategy is too radical
Development strategies change frequently due to subjective reasons
operations
Manifestations
Products: Product structure and new product research and development bring
Market: New market development, marketing strategy triggers
Quality assurance: errors in management of quality, safety, environmental protection, information security, etc.
Triggered by organizational effectiveness, management status, corporate culture, knowledge structure or professional experience of middle and senior management or professionals
Personnel moral hazard or business control system failure
Triggered by the supervision, evaluation and improvement of processes and information system operations
Mistakes in derivatives business bring about
Risks such as natural disasters
finance
Basic process of risk management
Gather initial information for risk management
Conduct a risk assessment
Develop a risk management strategy
Propose and implement risk management solutions
Risk management supervision and improvement
risk management system
risk management strategy
component
fixed range
Determine risk appetite
Determine risk tolerance
statistical methods
maximum possible loss
probability value
expected value
Volatility
Value at Risk
intuitive approach
expert opinion method
analytic hierarchy process
Set standards
Select tools
seven tools
Exposures
Be applicable
Unrecognized
recognized
unable to afford
no alternative
Acceptable after considering cost-effectiveness
Generally not used for major risks
Risk Aversion
risk transfer
risk transformation
risk hedging
risk compensation
risk control
Allocate resources
Risk management measures
Traditional risk management: before/after
risk transfer
Insurance
risk compensation
Professional self-insurance
Risk capital: capital required to cover unexpected losses
Emergency capital: life-saving money from the bank
Modern risk management
Choice of financial derivatives
forward contract
swap transaction
futures
options
Hedging (risk hedging)
Futures Hedging
short
long
Strategy
Futures speculation
Options Hedging and Speculation
Risk management organizational function system
Board of Directors
Supervision, approval
risk management committee
review
Risk management function department
implement
The Audit Committee
Other functional departments and business units of the enterprise
subsidiary company
risk management information system
internal control system
internal environment
risk assessment
control activities
Information and communication
internal supervision
Risk management techniques and methods
Brainstorming
Qualitative analysis during the risk identification phase
stimulate imagination
Comprehensive communication
Suggestions are invalid, opinions are scattered, and it is difficult to ensure comprehensiveness
Delphi method
Find experts to express their opinions anonymously and anonymously
Qualitative method of risk identification stage
Avoid dominance by important figures, where unpopular views can emerge
The process is complicated and takes a long time
Failure model, effects and hazard analysis (FMECA)
Qualitative/Quantitative
Discover flaws or weak links
Unable to identify multiple failure modes simultaneously
Time consuming and expensive
flowchart analysis
Qualitative analysis
Markov analysis
quantitative, modeling
risk assessment diagram
matrix
possibility
Influence
Qualitative analysis
Prioritize
subjective judgment
scenario analysis
frame
scene
optimal
benchmark
worst
Influencing factors
probability of occurrence
result
Quantitative Qualitative
sensitivity analysis
Assuming that a factor changes to a certain extent, the impact on another indicator
event tree analysis
Qualitative Quantitative
decision tree method
statistical inference