1 Chapter 8 Implementing Strategies: Marketing, Finance/Accounting, R&D and CIS Issues

2 Marketing Variables of Central Importance to Strategy Implementation Market Segmentation The subdividing of a market into distinct subsets of customers according to need and buying habits. Product Positioning Involves those activities involved in determining how the firm’s offering is perceived in the marketplace relative to competitive offerings. ©1999 Prentice Hall

3 Acquiring capital to implement strategies –Profit from operations –Sale of assets –Use debt or equity financing (EPS/EBIT analysis)? Pro Forma Financial Statement Analysis –Allows an organization to examine the expected results of various actions and approaches. Financial Budget –A document that details how funds will be obtained and spent for a specified period of time. Should the firm go public? Finance/Accounting Issues Important to Strategy Implementation

4 R&D is responsible for developing new products and improving old products. Three major R&D approaches: –First to market –Innovative imitator –Low-cost producer through imitation R&D Issues Important to Strategy Implementation

5 Information systems should support cross- functional integration of the business functions. Information is a valuable organizational asset that can be controlled and managed. MIS Issues Important to Strategy Implementation