Favorite Business Models...

Transcription

1 Favorite Business Models Slides Powered by All rights reserved.

2 Markets and Structure of Flow Resources Money Resource markets Resources Money Taxes, goods Services, money Manufacturer markets Services, money Taxes, goods Government markets Taxes Services Consumer markets Services, money Taxes, goods Money Goods and services Middlemen markets Money Goods and services

3 A Company s Macroenvironment MACROENVIRONMENT IMMEDIATE INDUSTRY & COMPETITVE ENVIRONMENT Suppliers Substitute COMPANY Rival Firms Buyers New Entrants The Economy at large

4 $ Millions Break-even Analysis 35 Total Revenue Total Costs Fixed Expenses* 0 Profit Loss Break-Even Volume (90,000) 200 Units Sold (000) * Fixed Expenses = Marketing Expenses and Other Direct Expenses

5 Price Demand and Supply D F G S E A B S 0 Quantity D

6 Price Price Price Price Elasticity e = - e < - 1 e = 0 (total inelastic demand) e = - 1 e > - 1 e = - (total elastic demand) Quantity Quantity P1 P2 (-) (+) e = 0 P1 P2 (-) (+) 0 Quantity 0 Quantity Demand is elastic and expenditure increases when price falls from P1 to P2 Demand is inelastic and expenditure increases when price falls from P1 to P2

7 Sales over profits The Product Life Cycle Sales Profits Introduction Growth Maturiy Shake-out Decline Stages over Time

8 The Life-Cycle Portfolio Matrix THE BUSINESS UNIT S COMPETITIVE POSITION Strong Average Weak Development A Growth B C THE INDUSTRY S STAGE IN THE EVOLUTIONARY LIFE CYCLE Competitive shakeout Maturity D E F Saturation G Decline H

9 The Product-Positioning Map High quality E A Low price B High price C D Low quality

10 The Four P s of McCarthy Environment Product Price Place Promotion Environment

11 Efficiency vs. Effectiveness STRATEGIC MANAGEMENT Effective Ineffective 1 2 Efficient Thrive Die slowly OPERATIONAL MANAGEMENT 3 4 Inefficient Survive Die quickly

12 SWOT Analysis Strengths Weaknesses Opportunities Threats

13 The Generic Value Chain Firm infrastructure Human resources management Technology development Procurement Inbound logistics Operations Outbound logistics Marketing and sales Service Primary Activities

14 The Ansoff Matrix PRODUCTS AND/OR SERVICES Existing New Existing Market penetration New product development MARKETS New Market development Diversification

15 BCG s Growth-Share Matrix RELATIVE MARKET SHARE High Low MARKET GROWTH RATE High Star Question Mark Low Cash Cow Dog

16 McKinsey 7-S Framework Structure Strategy Systems Superordinate Goals Skills Style Staff

17 Core Competencies Banner Brand Business Units Core Products (Platforms) Core Competencies

18 The General Electric Business Screen COMPETITIVE POSITION Strong Average Weak Low INDUSTRY ATTRACITVENESS Medium High

19 BUSINESS STRENGTH GE / McKinsey Multifactor Portfolio Matrix INDUSTRY ATTRACTIVENESS Invest Invest Manage Selectively for Earnings Invest Manage Selectively for Earnings Harvest or Divest Manage Selectively for Earnings Harvest or Divest Harvest or Divest

20 Market and Technology Risk Bubble Diagram Very high MARKET RISK Moderate Very low Very low Moderate Very high TECHNOLOGY RISK

21 A Nine-Cell Industry Attractiveness- Competitive Strength Matrix COMPETITIVE STRENGTHS/BUSINESS POSITION Strong Average Weak High Business F Business A LONG-TERM INDUSTRY ATTRACTIVENESS Medium Business C Business B Low Business E Business D High priority for investment Medium priority for investment Low priority for investment

22 Porter s Five Forces Potential Entrants Threat of new entrants Suppliers Bargaining power of suppliers Industry competitors Bargaining power of buyers Buyers Rivalry among existing firms Threat of substitute products or services Substitutes

23 The Generic Strategies COMPETITIVE ADVANTAGE Lower Cost Differentiation Broad Target Cost Leadership Differentiation COMPETITIVE SCOPE Narrow Target Cost Focus Differentiation Focus

24 Leavitt s Diamond Task Structure People Technology

25 Maslow s Hierarchy of Human Needs Self-Actualization Needs (self-development and realization) Esteem Needs (self-esteem, recognition, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst)

26 concern for people Managerial Grid Country Club Management (1,9) Production is incidental to lack of conflict and good fellowship Team management (9,9) Production is from integration of task and human requirements Dampened Pendulum (5,5) (Middle of the road.) Push for production but don t go all out. Give some but not all all: be fair but firm Impoverished Management (1,1) Effective production is unobtainable becaus people are lazy, apathetic and indifferent. Sound and mature relationships are difficult to achieve because, (human nature being what it is) conflict is inevitable Task Management (9,1) Men are a commodity just as machines. A manager s responsibility is to plan, direct and control the work of those subordinate to him concern for production

27 Customer needs Micro operations Business processes Customer needs fulfilled Customer needs Business processes Customer needs fulfilled The Business Process Re-engineering Approach Micro operations Function 1 Function 2 Function 3 Function 4 Activity 1 Activity 2 Activity 3 Activity 4

28 Total Quality Management Whole operation involved Quality srategy Teamwork Staff empowerment Involves customers and suppliers Quality systems Quality costing Problem solving Quality planning Statistical methods Process performance Quality standards Inspection Quality control Quality assurance Total quality management Error detection rectification

29 Supply Chain Management Second-tier suppliers First-tier suppliers First-tier customers Second-tier customers The Operation Supply side Demand side Purchasing and supply management Physical distribution management Logistics Materials management Supply chain management

30 Du Pont Scheme Return on equity ROE = Earnings after tax Owner s equity Return on invested capital ROIC = Earnings before interest and tax Invested capital Financial leverage multiplier Tax effects Operating profit margin Capital turnover Financial structure ratio Financial cost ratio Tax effect ratio Earnings before interest and tax Sales Sales Invested capital Invested capital Owner s equity Earnings before tax Earnings before interest and tax Earnings after tax Earnings before tax Sales Invested capital Owner s equity Cost of debt Tax rate Operating costs Cash Working Capital requirement Fixed assets

31 Financing Life Cycle FFF & Angels Venture Capitalist Investment Banks & Banks Seed Capital & Early Stage Early Growth Later Growth Enterprise Cash Flow Mezzanine 3rd Public Market Enterprise Financing 2nd 1st Initial Public Offering Valley of Death Break-even point Time Emerging Growth

32 Drawpack Diagrams Drawpack.com offers premium Business Diagrams for students and professionals around the globe for their personal use. Please enjoy these Business Diagrams. You can send these slides to your personal contacts who might be interested in Business Diagrams. For further information about our service please contact us: Please find our membership offer on

33 Usage rights 1. Drawpack.com allows the customer an unlimited but not exclusive right to use the provided services, products and diagrams. 2. The services, products and diagrams that the customer has received can be copied, edited, saved and used by the customer for their personal and commercial use. 3. The customer is prohibited from providing the service, products and diagrams on professional download levels in the area of audio, video and software transmission. This includes providing the services, products and diagrams via download against payment or free of charge. The customer is prohibited providing the services, products and diagrams on internet servers or on websites with public access. 4. The customer is prohibited providing identical or similar services to those provided on with the services, products and diagrams. 5. Any infringements against the above usage rights will lead to legal action. All rights are reserved to