Environments (Micro (8 business functions (GManagement, Financial, HR,…
'SW' - internal
Strengths: Strong brand, loyal customers, strong management team, HR, patent rights
Weaknesses: poor access to distribution channels (place), unreliable goods/services, high costs
'OT' - external
Change in customer preference/taste, changes in legislation, changes in tax rates, technological advances, Political instability, new competitors/products/substitutes
8 business functions
Determine competitive advantage
Strategically relevant resource: valuable, rare, unique, non-substituteable
Value Chain Analysis
Balanced Score Card
Porter's 5 Forces
Level of rivalry in the market
Competitor info: Better - Locations (closer, more convenient), selection of products (deliveries), financial performance, products, quality, brand loyalty, new products, market share, employees, etc.
Availability of substitute products
Different product satisfies same need. Factors: cost, health, convenience, availability. Market research.
Threat of new entrants
Not yet opened/trading
Power of suppliers
Relationship between supplier & business: right quality & quantity at the right time & price. Prompt delivery, they want prompt payment. Open communication.
Power of buyers
Want quality product at a reasonable price. Create a pleasant, hassle-free experience.Provide choices & discounts.
Customers, suppliers, regulators, competitors, trade unions, NGO's, government departments & intermediaries
Business can influece
Political: Political instability (good corporate governance to reassure investors)
Physical: geographic factors (location)
Economic: cost of supply, inflation & tax (offer discounts)
Ethical: in marketing, negotiations, business practices, etc.
Social: crime (keep up with latest security technology to ensure customers feel safe), HIV/AIDS, etc.
Tech: keep up with latest tech trends
Legal: all acts (must comply with & be well informed of SA labour legislation, etc.
Environmental: droughts, etc. (higher prices for food - alternative sources of supply - VCA) sustainability of resources, pollution.
Strategies (look at pg 85 - 92)
Types of goods: convenience (milk, bread); select/shopping (shoes, clothing); speciality (cars)