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Management in Organisations Strategy and Marketing.

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Presentation on theme: "Management in Organisations Strategy and Marketing."— Presentation transcript:

1 Management in Organisations Strategy and Marketing

2 qShort-term profitability (businesses) or short- term accounting (public sector) qHaving no clear strategic position (target sectors and competitive position) qClamping down on costs, whilst tolerating high levels of waste qA 'take it or leave it' attitude to 'customers' qBuying at the lowest price qDiscouraging change - but changing arbitrarily when forced to change qFirefighting management - the trouble-shooter 'traditional' management style In many organisations it is based on:

3 qEmployees would do as they were told qDemand exceeded supply qCustomers' expectations increased or changed only slowly qThe world situation didn't change This management style was successful only as long as:

4 qMore competitors than ever qFiercely competitive strategies qFluid and unpredictable financial systems qCustomers' expectations increasing qEmployees' expectations increasing qInvestors' expectations increasing qRapid changes in everything from technology to travel and trade Conversely, the current situation worldwide is characterised by:

5 qDoing what they have always done qNot understanding or ignoring competitive positioning qTrying to control people through systems qConfusing quality with grade qThe 'acceptable quality level' (AQL) qFirefighting is macho! qThe 'not my problem' syndrome Weaknesses to be eliminated In order that organisations can again compete successfully in this environment, they must eliminate some of the main weaknesses:

6 Sources of Strategic Advantage q 28% - Operations Management q 18% - Marketing and Distribution q 17% - Momentum/Name Recognition q 16% - Quality/service q 14% - Good Management q 4% - Financial Resources q 3% - Other

7 The strategy hierarchy

8 Marketing can be defined as: the management process that identifies, anticipates and supplies customer requirements efficiently and profitably.

9 The Business Planning Process: Mission Aims and Objectives

10 qA long time-scale qA definition of the business scope qA customer orientated perspective qIt must inspire and motivate qIt must be realistic Good mission statements have a number of characteristics

11 The Business Planning Process: qPEST qPorters five Forces qSWOT Analytical models and tools

12 PEST PoliticalEconomicSocialTechnical Legislation Ideology Attitudes Trends Credits Income Interest rates Tax Exchange rates International trends Gross National Product Wealth distribution Values Attitudes Worth ethic Life styles Demographics Work force Religion Status Discoveries Developments Substitutes

13 Industry competitors Intensity of rivalry Bargaining power of suppliers Threat of substitutes Bargaining power of buyers Threat of new entrants Porter’s Five Forces of competition

14 SWOT From Analysis to Decision and Action

15 Market Segmentation Major segmentation variable for industrial markets q Type of industry q Technology used q Geographical location q Purchasing procedures q Number of sites q State of development q Size of purchases q Buying criteria q State of R&D q Organisation size

16 The Marketing Mix The traditional marketing mix: q Product q Place (distribution) q Price q Promotion (marketing communication) And the service extended marketing mix: q People q Process q Physical evidence q Period (time).

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