Business Diagnostics Framework

Transcription

1 CeoBusinessDiagnostics.com Business Diagnostics Framework Mike Thompson, FCMC

2 Business Diagnostics Evaluate and Grow Your Business Michael Thompson With: Richard Mimick Terry Rachwalski

3 Size Up Grids External Business Environment Industry Conditions Internal Finance Marketing Operations Human Resources Technology

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6 External Size Up External Business Environment Industry Conditions

7 PEST-C Analysis Political Factors Economic Issues Societal Factors Technological Considerations Competitive Considerations

8 P.E.S.T. - An Overview Economic Interest Rates Inflation Rates Employment Economic Growth Political Assistance Regulations Competition Your Company Societal Demographics Social Awareness Lifestyle Changes Environmental Issues Technological R&D Early Adoption Product Life Cycles

9 The Business Environment Opportunities Threats Political Economic Societal Technological

10 Industry Conditions Industry Evaluation Characteristics Trends Industry Competitive Conditions Competition Assessment Competitive Advantage Situation Analysis (SWOT or TOWS)

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13 Industry Competitive Environment Intensity of Competition Buyer Power Supplier Power Industry Segment Company B Company C Company A Threat of Substitutes Need to Complete: Competitor Assessment Situation Analysis (SWOT) Identify Key Success Factors Threat of New Entrants

14 Industry Competitive Conditions Threat of new entrants Bargaining power of customers Bargaining power of suppliers Threat of substitutes Intensity of competition High Medium Low Michael Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors, The Free Press, 1980

15 Competitive Analysis SMART Model Critical Success Factor Competitor #1 Competitor #2 Competitor #3 Product Customer Service Price Social Media Presence Experience

16 The Internal Size UP Financial Evaluation Marketing Strategy Operations Human Resources Management Technology Assessment

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18 The Financial Evaluation Financial Statements Financial Goals and Ratio Analysis Financial Projections Managing Cash Drivers Capital Budgeting Techniques

19 Financial Goals and Ratio Analysis Profitability and Cash Flow Liquidity Stability Debt Services Efficiency Growth

20 Financial Size up Profitability and Cash Flow Liquidity Stability Efficiency Growth Strength Weakness Michael Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors, The Free Press, 1980

21 Managing Cash Drivers Improved A/R Collection Defined A/P Settlement Maximize Inventory Turnover

22 Marketing Strategy Market Analysis Marketing Strategy Development Marketing Strategy Execution

23 Market Analysis Segment Analysis Competitor Evaluation Trade Analysis Sustainable Competitive Advantage Unmet Customer Needs Assessment

24 Marketing Strategy Price Product Place (Distribution) Promotion The 5 th P: People

25 Marketing Size up Market Tactics Market Analysis Market Strategy Execution Strength Weakness

26 The Operations Review Business Process (includes supply chain) Risk Management Issues Legal Concerns Location Decisions Technology Considerations

27 Operations Size up Operations/business process Risk Management Legal Issues Location Considerations Technology Considerations Strength Weakness

28 HR Management HR Function Recruitment & Hiring Training & Development Compensation Planning Leadership Organizational Structure Skills Development Teams & Teamwork Management Capabilities

29 The Technology Assessment Technology Description Product/Process Evaluation Intellectual Property Issues Markets Potential Risk Factors

30 The Technology Assessment Market Tactics Market Analysis Market Strategy Execution Strength Weakness

31 Technology Push vs Market Pull Technology Market feedback modifies technology and products Products and/or Services Markets Market Pull 3 Denzil Doyle, Making Technology Happen

32 Technology Evolution and Cash Flow Realities IDEA R & D Product Development Production & Distribution Product Migration Market Expansion + _ The Valley of Uncertainty

33 Marston Control Devices Case Manufactures control components for industrial robots Apparent strengths Hidden weaknesses Strategic opportunities Potential threats

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35 Marston Control Size up Use the Business Diagnostics Framework Use Size up grids External and Internal Strategic Direction?

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