Académique Documents
Professionnel Documents
Culture Documents
1. 4 P’s
2. 4 C’s
3. 5 C’s
4. Mc Kinsey’s 7 S Framework
5. BCG Growth Matrix
6. Economies of Scale
7. CVP Analysis
8. NPV & Sunk Costs
9. Porter’s 5 Forces Framework
10. SWOT Framework
11. Core Competencies
12. Value Chain Analysis
4P’s
• Specifications of actual goods or services and how it relates to the end-
Price •
•
•
Decide on price don’t let it just happen.
Includes setting up of discounts as well.
The price need not be monetary – it can be time, energy or attention
Place • how the product gets to the customer; for example, point-of-sale
placement or retailing.
• Channel and effect of the environment in which the product is sold.
What is it ?
Character, Capital, Capacity, Collateral, Conditions
McKINSEY’S 7S FRAMEWORK
Structure
Systems
2. Positioning of brands against their main competitors and indicates where it might be likely to
go in the future
3. Identify the type of marketing activities that might be expected to be effective in future
Relative Market Share = Incumbent company’s sales / Largest rival’s sales
Market Growth rate = YOY Increase in Industry Sales
Stars are riding high – market share / Question marks: the initial stage
Market Growth Rate
High
Internal
The cost per unit
$12,000 depends on the size of
an individual firm but
10,000 not necessarily on
that of the industry.
Economies Constant The market structure
of returns to will be imperfectly
scale scale Diseconomies competitive with large
of firms having a cost
scale advantage over small.
Rate of Discount – Determined taking inflation and expected returns into account
NPV - The difference between the present value of cash inflows and the present value
of cash outflows of a particular project
Advantages Disadvantages
• Considers Time Value of Money • Sensitivity to forecasted cash flows
• Simple Methodology of calculation • Sensitivity to Discount Rates
SUNK COSTS
SUNK COSTS FALLACY
“When you’re too concerned about wasting a previous investment is
when you’re most likely to waste even more”
These above factors are identified as part of an external analysis and examples of tools
used to conduct such an analysis also include Five Forces Model and PESTLE.
CORE COMPETENCY
•Is something a company does
especially well relative to its
competitors
•Refers to a set of skills or
experience in some activity
typically achieved by long-term
development of processes
•Are not seen as being fixed;
should change in response to
changes in the company's
environment
Build world leadership in the design and development of a particular class of product
functionality to meet ever-changing market demands and to enter new and future
markets.
GENERIC VALUE CHAIN
METHODOLOGY FOR VALUE CHAIN ANALYSIS
Step 1 • Customisation of the generic value chain eg, a company has outsourced its HR
function
Step 2 Linkages exist if the performance or cost of one activity affects another) eg, the
inbound logistics of raw materials need to be on time to avoid disruptions to the
manufacturing process.
• Analysis of key industry players’ value chains and their relationship to the company
Step 3 ( termed value system))- how does our product fit into their value chain eg, a food
manufacturer delivering food to a large retail chain.
Step 4 • Optimisation: reducing the end to end manufacturing time of a product or the
number of rejects.
• Coordination: service engineers communicating to R&D product design faults
and recurring product problems so that the product can be continually
improved.