P L A N N I N G

MARKETING
Corporate Appraisal
Chapter 3

S T R A T E G Y
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Topics: Chapter 3
Publics Value

System Resources Key Success Factors Performance

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Corporate Appraisal: Definition

Measurement of the readiness of the internal culture of the corporation to interact with the external environment.

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Corporate Appraisal and Marketing

Aspects of the corporation that have a direct bearing on corporate-wide strategy, which is referred to in defining the business unit mission.

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Corporate Appraisal and Marketing

Marketing strategy is formulated at the level of the business unit.

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Scope of Corporate Appraisal

Corporate

publics Values of top management Corporate resources Past performance of business units External environment
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Corporate Publics
Individuals

and groups who have an interest in the firm Groups that must be satisfied Stakeholders

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Corporate Publics
Owners Employees Customers Suppliers Government Community Society Lenders

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Concerns of Corporate Publics: Owners

Payout Equity Stock

prices Non-monetary desires

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Concerns of Corporate Publics: Customers

Business

reliability and continuity Product

reliability improvement price service marketing efficiency
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Concerns of Corporate Publics: Employees

Rewards: Environment Continuity Advancement

monetary recognition pride

Challenge

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Concerns of Corporate Publics: Suppliers

Price Stability Continuity Growth

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Concerns of Corporate Publics: Lenders

Risk Interest

payments Repayment of principal

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Concerns of Corporate Publics: Government

Taxes Security

and law enforcement Management expertise Democracy Capitalism Programs

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Concerns of Corporate Publics: Community

Economic Education Employment

growth and efficiency and training

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Concerns of Corporate Publics: Society

Equal

opportunities Urban re-development Pollution abatement

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Concerns of Corporate Publics: Society

Conservation Recreation Culture

and the arts Medical care

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Corporate Publics and Strategy

Communicate

with customers Wholesome products Information on ingredients Low prices

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Values
Philosophy Dear,

or important Management/ leader influence

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Importance of Values
Serve

as inputs into corporate strategy Conflicting values of managers will be reflected in conflicts over policies, objectives, strategies and structure.
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Corporate Culture
Set

of norms and behaviors Firms essence Slow to change Gives sense of direction

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Categories of Corporate Culture

Managers with certain traits gravitate to different cultures ACADEMIES
Develop experts

BASEBALL TEAMS
Entrepreneurial Inventiveness

CLUBS
Develop generalists

FORTRESSES
Survival

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Manager Traits: Academies

Have

parents who value:

Self-reliance Honesty Consideration

Less

Religious

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Manager Traits: Academies

Business

school graduate with high grades Have problems with subordinates in first 10 years of work

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Manager Traits: Clubs

Have

parents who value:

Honesty, consideration
Lower

regard for hard work, selfreliance More religious

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Manager Traits: Clubs

Value:

health, family, security

Less

value on :

future income, autonomy

Less

likely to have equity in company

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Manager Traits: Baseball Teams

Have

unpredictable fathers Problems in career planning in first 10 years Work for more companies

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Manager Traits: Baseball Teams

Value:

personal growth and future income

Less

value on:

security

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Manager Traits: Fortresses

Have

parents who value curiosity Were helped by strong mentors first year

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Manager Traits: Fortresses

Less

value on:

belonging, professional growth, future income

Problems

in career planning, onthe-job decisions, job implementation

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Cultural Change
Know

the old culture Encourage employees who resist old culture Find the best subculture

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Cultural Change
Dont

attack culture head-on Visions dont work miracles, but can guide Time: 5 to 10 years Live the desired culture

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Resources
Distinctive

capabilities and

strengths Measure relative to competition Use resources fully

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Strategic Factors in Business

Managerial Financial Personnel Materials Engineering

&

Production Products Management Marketing

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Resources and Marketing Strategy

Financial:

ample cash Human Resources: age of key management people

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Resources and Marketing Strategy

Plant

and Equipment: parts and components for final product Technical: products function well Marketing: knowledge and close relationship of channel partners

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Key Success Factors

Industry-specific May

fall in any category Exist in various functional areas

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Key Success Factors in Different Industries

Key Factor Raw materials source Product facilities Design Production Technology Increase Profit
Uranium Shipbuilding, Steel Aircraft Soda, Semiconductors

Gain Share
Petroleum Shipbuilding, Steel Aircraft Soda, Semiconductors
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Key Success Factors in Different Industries

Key Factor Product range Engineering Sales Force Increase Profit
Department Stores Computers

Gain Share
Components Large scale integration, microprocessors Automobiles

Electronic Code Recorders

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Key Success Factors in Different Industries

Key Factor Distribution Servicing Design Increase Profit
Beer Shipbuilding, Steel Elevators

Gain Share
Films, Appliances Shipbuilding, Steel Commercial Vehicles

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Past Performance
Assesses

current situation Identify trends Examine productivity measures (ROI, sales per salesperson)

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Past Performance of Business Unit

Effectiveness

versus competitors Efficiency-outcome vs. resources used Adaptability to environment

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