strategic management tools
DESCRIPTION
Ansoff, SWOT, TOWS, Stakeholder MgtTRANSCRIPT
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ANSOFF MATRIX STAKEHOLDER
MANAGEMENT
ANALYSIS
SWOT ANALYSIS TOWS MATRIX
STRATEGIC
MANAGEMENT
ANALYSIS TOOLS
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1. Ansoff Matrix
PRODUCT MARKET
How to grow business /
organization through existing or
new products OR in existing or
new markets.
Help to assess and analyze
different degree of risk
associated with moving the
organization forward
4 growth strategies
i. Market Penetration
ii. Market Development
iii. Product Diversification
iv. Product Development
Example:
A business that operates in an
expanding market can grow
through market penetration.
A business in a mature, stable
market may choose to grow either
through market development or
product development depending
on its internal strengths.
If neither of these offers sufficient
potential, a business may consider
diversification to achieve further
growth
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1. Ansoff Matrix Increasing risk
Increasing risk
Based on recommended strategies identified using SPACE matrix, IE Matrix
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1. Ansoff Matrix
Strategic planning tool that provides a
framework to help executives, senior
managers, and marketers devise strategies
for future growth.
4 growth strategies alternative: 1. Market Penetration An organization tries to grow using its
existing offerings (products and services) in existing markets. In
other words, it tries to increase its market share in current market
scenario.
2. Market Development An organization tries to expand into new
markets (geographies, countries etc.) using its existing offerings.
3. Product Development Organization tries to create new
products and services targeted at its existing markets to achieve
growth.
4. Diversification - In diversification, an organization tries to grow
their introducing new offerings in new markets. It is the most risky
strategy because both product and market development is
required.
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1. Ansoff Matrix
EXAMPLES
Penetration:
Existing product to the existing customers -
changing pricing, adding minor features ,
changing packaging (size), highlighting
alternative uses (eg. Chocolate as a seasonal
gift)
Product Development:
New/improved product in existing market
Burger with salads (Mcdonald), new variety of
chocolate (Kitkat Rubies), Go Shop service
(ASTRO)
Market Development:
Existing product in different markets -
Mcdonald (opening new outlet), CIMB
Indonesia branch,
Diversification:
Requires product and market development
Mcdonald (McCaf), iPod touch (itunes)
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Background :
SWOT analysis was created in the 1960s by
business gurus Edmund P. Learned, C. Roland
Christensen, Kenneth Andrews and William D.
Book. SWOT, which stands for Strengths,
Weaknesses, Opportunities and Threats, is an
analytical framework that can help your company
face its greatest challenges and find its most
promising new markets.
What is the purpose:
SWOT analysis enables organizations to identify
both internal and external influences. Outside of
business, other organizations have found much
use in the method's guiding principles.
SWOT's primary objective is to help organizations
develop a full awareness of all the factors, positive
and negative, that may affect strategic planning
and decision-making. This goal can be applied to
almost any aspect of industry.
2. SWOT Analysis
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When to use SWOT :
SWOT is meant to be used during the proposal
stage of strategic planning. It acts as a
precursor to any sort of company action, which
makes it appropriate for the following moments: Exploring avenues for new initiatives
Making decisions about execution strategies for a new policy
Identifying possible areas for change in a program
Refining and redirecting efforts midplan
Internal factors
The first two letters in the acronym, S (Strengths)
and W (Weaknesses), refer to internal factors,
which means the resources and experience readily
available to you. Examples of areas typically
considered include: Financial resources, such as funding, sources of income and
investment opportunities
2. SWOT Analysis
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Physical resources, such as your company's
location, facilities & equipment
Human resources, such as employees,
volunteers and target audiences
Access to natural resources, trademarks,
patents and copyrights
Current processes, such as employee programs,
department hierarchies and software systems
External factors
External forces influence and affect every
company, organization and individual. Whether
these factors are connected directly or indirectly
to an opportunity or threat, it is important to take
note of and document each one. External factors
typically reference things you or your company do
not control, such as: Market trends, like new products and technology or shifts in audience
needs
Economic trends, such as local, national and international financial trends
Funding, such as donations, legislature and other sources
Demographics, such as a target audience's age, race, gender and culture
Relationships with suppliers and partners
Political, environmental and economic regulations
2. SWOT Analysis
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SWOT Analysis - Sample 2012- Maybank Auto Finance SWOT analysis to become No#1 Financer
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OPPORTUNITIES Cross-sell products and services as most
customers acquired from dealers are N2B.
Diversify to C&I, equipment finance, CVs and non -
prime used car market.
Revisit TOM to be more lean, efficient and effective.
Invest in HPS modernization/ platform and
processes re-engineering with more advanced
capabilities
THREATS Highly competitive business environment with
declining spread/ NII, some segments below
ROCA.
Maturing business. High market penetration and
vehicle population density.
New competitors from in-house finance
companies and offer new market entrants.
STRENGTHS Reputation & brand. A well - respected and
recognizable BOB brand in Auto finance.
#1 dealer finance position that provides strategic
advantages and strong retail market position
among dealers.
Strong performance with lowest GIL rates and
highest growth in the industry.
Strong and hungry marketing and processing team
(MOPO) who are focus on delivery excellence
services to the dealers.
WEAKNESSES Rising CIR due to lower margin and higher cost.
High Fixed cost structure.
Limited fee-based income opportunities and
business regulated by HP Act.
Managing non-performer (10%), increasing staff
complacency and lack of staff diversity.
Old HPS system and business processes.
S W O T
2. SWOT Analysis Example 2012- Maybank Auto Finance SWOT analysis to become No#1 Financer
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TOWS is simply SWOT spelled backwards.
The TOWS matrix is used for strategic
planning and helps to identify opportunities
and threats and measure them against
internal strengths and weaknesses.
How to use tool:
To carry out a TOWS Analysis, consider the
following combinations:
Strengths/Opportunities:
Consider all strengths one by one listed in
the SWOT Analysis with each opportunity
to determine how each internal strength
can help to capitalize on each external
opportunity.
Strength/Threats:
Consider all strengths one by one listed in
the SWOT Analysis with each threat to
determine how each internal strength can
help to avoid every external threat.
3. TOWS Matrix
http://www.volunteerhub.com/blog/time-to-call-the-swot-team/
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Weaknesses/Opportunities: Consider all weaknesses one by one listed in the SWOT Analysis with each opportunity to determine how each internal weakness can be eliminated by using each external opportunity.
Weaknesses/Threats: Consider all weaknesses one by one listed in the SWOT Analysis with each threat to determine both can be avoided
3. TOWS Matrix
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Strengths (S) Weakness (W)
Opportunities (O)
SO
"Maxi-Maxi" Strategy
Strategies that use
strengths to maximize
opportunities.
ST
"Maxi-Mini" Strategy
Strategies that use
strengths to minimize
threats.
Threats (T)
WO
"Mini-Maxi" Strategy
Strategies that minimize
weaknesses by taking
advantage of
opportunities.
WT
"Mini-Mini" Strategy
Strategies that minimize
weaknesses and avoid
threats.
Internal Factors
External Factors
3. TOWS Matrix
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TOWS Matrix To generating strategic options
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Strengths (S)
1. Strong R & D and Engineering
2. Strong sales and service network
3. Efficient production/automation
Capabilities
Weaknesses (W)
1. Heavy reliance on one product
(Although Several Less
Successful Models were
Introduced)
2. Rising costs in Germany .
3. No experience with U.S. labor
unions if building plant in the U.S.
Opportunities (O)
1. Growing affluent market demands
more luxurious cars with many
option.
2. Attractive offers to build an
assembly plant in U.S.
3. Chrysler and American Motors
need small engines.
(O1S1S2) Develop and produce
multiproduct line with many options, in
different price classes (Dasher,
Scirocco, Rabbit Audi Line)
(O1W1) Develop compatible models
for different price levels (Ranging from
Rabbit to Audi Line)
Threats (T)
1. Exchange Rate - Devaluation of
Dollar in relation to Deutshe Mark
(DM).
2. Competition from Japanese and
U.S. Automakers.
3. Fuel shortage and price
(T3S1) Improve fuel consumption
through, fuel injection and develop fuel
efficient diesel engines
(T2,W1) Reduce threat of competition
by developing flexible product line.
Internal Factors
External Factors
3. TOWS Matrix
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What are the purpose:
Using the opinions of the most powerful
stakeholders to shape the projects at an early
stage.
Gaining support from powerful stakeholders can
help to win more resources
Anticipating what people's reaction to project
Identifying all persons, groups and institutions who
may have an interest in a project and taking steps
to manage their interests and expectations so that
the project runs as smoothly as possible
When to use :
Needs to be done in the early stages of a project
so that any risks and required communication can
be included in the overall project plan
4. Stakeholder Management
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Who to use :
Being used by aid agencies, governments or
consultant groups: 1. Imperial College London
2. Office of Government Commerce UK 2003
3. Aubrey L. Mendelow, Kent State University, Ohio 1991
How to use the tool:
Step 1. Identify Your Stakeholders
Who are stakeholders? Involved in the development of the product
Managing the development of the product
Working with the product
Owner of the product
Affected by the development of the product.
Directly or indirectly involved in rules and regulations of the product usage
4. Stakeholder Management
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Step 2. Prioritize Your Stakeholders
Specifies how each stakeholder influences the organization
Decides what the organization needs from each one of them
Rank them with respect to their influence and importance
Analyse on the power versus interest grid and which defines the power of these stakeholders in implementing any changes versus interests of them in order to implement these changes.
4. Stakeholder Management
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Step 3. Understand Your Key Stakeholders
Need to know more about key stakeholders.
Need to know how they are likely to feel about and react to the project
Need to know how best to engage them in the project and how best to communicate with them.
4. Stakeholder Management