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Strategy: Analysis and Practice ©2005 McGraw-Hill Education EuropeTeaching Notes: Finntrack
Cola Wars in ChinaCase Study
Analysis
Index Rationale and Objectives Case Study
How to Handle a Case Study Qualitative Research Business Research
Marketing research Market research Product research
Wahaha Group – Indicative Research Questions
Industry Analysis and Competitive Strategy Context Analysis Industry Information Market Structures Competitor Analysis
Porters 5 Forces Cola Wars Water Wars The Coca-Cola Company PepsiCo, Inc. Industry Analysis and Competitive Strateg
y Activity Market Analysis Activity
Competitive Position: Competitive Advantage Competitive Strategy: The analysis of
strategic position
Sustainable Competitive Advantage Sources of Cost Advantage
Core competency Economies of Scale Experience Curve Effects Economies of Scale Activity Vertical Integration
Value Chain Analysis Marketing
Marketing Tactics - Activity Market Research Market Positioning Marketing Strategy
Index Life Cycles, Turnarounds, Entrepreneurs
Life Cycle Analysis Product Portfolio Analysis
Product Portfolio Analysis – Activity
Crises Management Financial Crises Public Relations Crises Strategic Crises
Entrepreneurs Intrapreneurship
Global Strategies and International Advantage International Business
Multinational Corporations Globalisation
Globalisation Activity International Trade
SWOT Analysis Wahaha Group’s Strategic Options
Evaluation and Measurement Measuring the Positioning (Marketin
g) Business Case
Benchmarking Gap Analysis
Risk, Uncertainty and Strategy Risk management
Game Theory Decision Making
Cost-benefit Analysis Recommended Texts Resources
Case Study Research
Rationale and Objectives
• offer a holistic view business and management• demonstrate the case study research and analysis processes,
including methods, techniques and evaluation • familiarize students with the principles and techniques of qualitative
research and strategic analysis• develop and enhance students’ transferable skills in knowledge
management, strategy development and business communications.• develop and enhance students’ web research skills.
Objectives
The objectives of this resource are to
The resource covers the fundamentals of case study research and analysis. It focuses on a Chinese soft drinks company, Hangzhou Wahaha Group Co., Ltd and its position in global Cola Wars as well as the issues of business research including research objectives, and methodology.
Rationale
Rationale and ObjectivesRequired Text
Strategy Analysis and Practice
John McGee, Warwick Business SchoolHoward Thomas, Warwick Business SchoolDavid Wilson, Warwick Business School
Case Study
A case study is a particular method of qualitative research. Rather than using large samples and following a rigid protocol to examine a limited number of variables, case study methods involve an in-depth, longitudinal examination of a single instance or event: a case.
They provide a systematic way of looking at events, collecting data, analyzing information, and reporting the results.
As a result the researcher may gain a sharpened understanding of why the instance happened as it did, and what might become important to look at more extensively in future research. Case studies lend themselves especially to generating (rather than testing) hypotheses.
How to Handle a Case Study
Approaches to Authentic Learning Experience
Qualitative Research Involves investigating
participants' opinions, behaviors and experiences from the informants' points of view.
Is contrasted with quantitative research in that it does not rely on quantitative measurement and mathematical models, but instead uses logical deductions to decipher gathered data dealing with the human element.
Compared to quantitative research, it is more expensive, has smaller sample sizes and is hard to measure.
Business Research
Business Research is the systematic investigation of facts, knowledge, and information that relate to businesses or the world of business. There are several major types of business research.
Types of business research
Marketing research Market research Product research
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Wahaha Group
1. How will Wahaha’s multinational competitors respond to ‘Future Cola’ and other Future Series carbonated drinks achieving an impressive 18% market share (2002)?
2. How should Wahaha prepare for these responses?
3. How should it continue to increase its maker share?
Indicative Research Questions
Case Study
Business Case
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Industry Analysis and Competitive Strategy
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Industry analysis and competitive strategy
Context Analysis
Industry Information
Market Structures
Market Analysis
Competitor Analysis
Cola Wars
Water Wars
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Objective: to determine the opportunities and threats that exist for firms within a competitive environment
Industry Analysis and Competitive Strategy The Coca-Cola Company
PepsiCo, Inc.
Industry Analysis and Competitive Strategy Activity
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Context AnalysisContext analysis, also known as environmental scanning, is a method to analyze the environment in which a business operates.
Environmental scanning mainly focuses on the macro environment of a business. But context analysis considers the entire environment of a business, its internal and external environment. This is an important aspect of business planning because such an analysis allows the business to gain an insight into their strengths and weaknesses and also the opportunities and threats posed by the market within which they operate.
The main goal of this analysis is to analyze the environment in order to develop a strategic plan of action for the business.
• Method • Define market or subject • Trend Analysis
• Competitor Analysis • Competition levels • Competitive forces • Competitor behavior • Competitor strategy
• Opportunities and Threats • Organization Analysis
• Internal analysis • Competence analysis
• SWOT-i matrix • Strategic Plan • Example
• Define market • Trend Analysis • Competitor Analysis • Opportunities and Threats • Organization Analysis • SWOT-i matrix • Strategic Plan
Industry Information Beverage Digest
Beverage World
BevNET
National Soft Drink Association
Beverages (Nonalcoholic) Industry
The Soda Pop Story
Soft Drinks and Health Click on Image
Market Structures
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In economics, market structure describes the state of a market with respect to competition.
There are two kinds of market structures that are usually discussed: perfectly competitive market structure and imperfectly competitive market structure. Perfectly competitive market structure is an ideal state of a market in which the competition amongst the buyers and sellers is likely to be perfectly balanced.
Market Structures
The imperfectly competitive structure is quite identical to the realistic market conditions where some monopolists, oligopolists, and duopolists exist and dominate the market conditions.
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Market Analysis
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Market Analysis
Related Readings
Market Analysis 1
Market Analysis 2
Market Analysis Activity
Competitor Analysis
Competitor array Competitor profiling Media scanning New competitors See also External links
Competitor Analysis – A brief guide
Porters 5 Forces
Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potentialcompetitors.
Click on Image. Sensory profiling can help you to understand how your product differs from the competition's and how to improve it.
Cola WarsBackground
Cola Wars is the term used to describe the campaign of mutually-targeted television advertisements and marketing campaigns in the 1980s and 1990s between Coca-Cola and Pepsi-Cola. They first began showing people doing blind taste tests in which they preferred one product over the other, then they began hiring more and more popular spokespersons to promote their products.
They focused particularly on rock stars; notable soft drink promoters included Michael Jackson (for Pepsi) and Paula Abdul (for Diet Coke). One example of a heated exchange that occurred during the Cola Wars was Coca-Cola making a strategic retreat on July 11, 1985, by announcing its plans to bring back Coke Classic.
Pepsi ads often focused on regular people, particularly the young (and young-at-heart) and those in the future, choosing Pepsi over Coke, supporting Pepsi's Positioning (marketing) as "The Choice of a New Generation."
Pepsi Stuff represented a major assault in the Cola Wars
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Global Cola Wars • Global Cola Wars (and other familiar
scenes)
• Cola wars add spirited edge Move over, hard lemonade and Zima: Jack Daniels and Miller Brewing prepare to debut hard cola
• Over a Century of Cola Slogans, Commercials, Blunders, and Coups
• Marketing in China
• Chinese enter Cola War!
• Naming in Chinese, the Coca-Cola Story
• A turncoat in the Cola Wars
• The Yin and Yang of Chips
• Company Profile
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Water Wars
Bottled water is a multibillion-dollar growth industry - on its way to becoming the most consumed beverage in America outside of soft drinks. Should you buy it, bottle it, or invest in it? Here's a look at the major players, the outlook for investors and consumers, and even the results of one writer's taste test.
The players
One might salivate over the prospect of investing in this kind of growth. But doing so in any significant way in your portfolio is difficult. Mega-multinationals have taken over the industry so their bottom lines are only affected minimally by water sales.
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• The largest player by far is better known in the U.S. for chocolate than water. Nestle S.A.'s (OTCBB: NSRGY) water division sells 70 bottled water brands in 160 countries. Its North American subsidiary sells nine domestic brands, including Arrowhead, Poland Spring, and Deer Park, and five imported brands, including San Pellegrino and Perrier. Nestle Waters North America, Inc. had revenues of $2.1 billion in 2001 (2002's numbers aren't available yet). Its market share is 32.5% and growing.
Water Wars
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Water Wars
PepsiCo (NYSE: PEP) comes in second place with its Aquafina product, which currently only has a 10% market share but is the top-selling single-serve bottled water in the U.S. In 2001, Aquafina sales grew nearly 45% and comprised 4% of all of Pepsi's beverage sales.
Coca-Cola (NYSE: KO) falls into third place, its Dasani product grabbing an 8.5% market share in 2001. Sales grew a hefty 40% in 2002, however. Coca-Cola also recently entered into a production, marketing, and distribution partnership with France's Groupe Danone, owner of a number of niche water brands, including Evian. Over the last three years, Coke's global bottled water business has grown at a compound annual rate of 59%. Click on Image
Water Wars
Facts and figures Key figures Executive committee PublicationsBrands portfolio Nestlé Brands International brands Local brandsOur markets North America Europe Middle- East / Africa Asia - Oceania Latin AmericaA rapidly expanding market
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The Coca-Cola Company Company Analysis
• Bottlers • Products and brands
• Brand Portfolio • Failures
• Criticisms • Monopolistic Practices • Discrimination
• Coca-Cola in China• World of Warcraft Coke commercial from China • Coca-Cola targets rural China
• Coca-Cola in India• Coca-Cola in UK • Praises • History • Santa Claus • Corporate Governance
• Annual Reports• Stock
• Key Numbers
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The Coca-Cola Company
See also External links
Coke's Sinful World Coca-Cola: A Classic Critical Perspectives
PepsiCo, Inc. Company Analysis
History Corporate governance
Annual Report Key NumbersFormer top executives at PepsiCo
Social issues Diversity
PepsiCo brands Partnerships Marketing
Criticisms Long-term health effects Pepsi in India Pepsi in Burma
Rivalry with Coca-Cola Troubled popstar endorsements See also Notes External links
Gatorade Pepsi's New Challenge
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Top Competitors Cadbury Schweppes
Dr Pepper Schweppes
7UP A&W Canada Dry Diet Rite®
Hawaiian Punch Mott’s Slush Puppie Snapple Sunkist Soda Welch’s
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Industry Analysis and Competitive Strategy Activity 1/2
Based on British Airways Activity by
Task 1Identify the key assets that Wahaha Group possesses that might give it some competitive advantage. Think about the physical assets, human assets as well as its image when compiling your list.
Related Readings
• Made in China
• Wahaha Claims Top Beverage Spot
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Industry Analysis and Competitive Strategy Activity 2/2
Task 2 Use Porter's Five Forces model to analyse the market.
You will need to think about the extent of the competition it is facing - how this has changed, the different needs of its customers, who its suppliers might be and what influence they can have (think oil prices, for example!) and the nature of the substitutes to air travel (are businesses finding new ways of putting people in touch with each other, for example?)
Market Analysis ActivityThis Activity is designed to give you the opportunity to conduct a market analysis on a business using the PowerPoint Presentation [244 KB] and Mind Map as guides to help you. Look at these resources first and ensure that you understand the meaning of the key terms.
Task
Conduct a market analysis of Wahaha Group. You will need to consider the points indicated here.
Related Readings
Wahaha Corporation – MarketBuster
Beverage tycoon plans more expansion
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Competitive Position: Competitive Advantage Competitive Strategy: The analysis o
f strategic position
Sustainable Competitive Advantage
Sources of Cost Advantage
Core Competencies
Economies of Scale
Economies of Scale Activity
Experience Curve Effects
Vertical Integration
Value Chain Analysis
Marketing
Market Research
Market Positioning
Marketing Strategy
Measuring the Positioning (Marketing)
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Sustainable Competitive Advantage Companies that compete by
selling similar products (or even substitutes) to the same group of customers constitute an industry.
A company that is more profitable than its rivals is exploiting some form of advantage.
The benchmark for profitability is the company's cost of capital.
To consistently make profits in excess of its cost of capital - economic rent - the company must possess some form of sustainable competitive advantage (SCA).
Barriers to entry Marketing Strategic management Marketing management Core competency Positioning Marketing mix Marketing plan Michael Porter Strategic planning Strategy Synergy Porter 5 forces analysis Value chain
Contents
Sustainable Competitive Advantage A firm possesses a SCA when it
has value creating processes and positions that cannot be duplicated or imitated by other firms that lead to the production of above normal rents.
A SCA is different from a competitive advantage (CA). However, these above normal rents can attract new entrants who drive down economic rents.
A CA is a position a firm attains that lead to above normal rents or a superior financial performance.
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Sustainable Competitive Advantage The processes and positions that
engender such a position (CA) is not necessarily non-duplicable or inimitable. It is possible for some companies to, temporarily, make profits above the cost of capital without sustainable competitive advantage.
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Sources of Cost Advantage
Marketing Marketing management Sustainable competitive advantage
A company's core competency are things that a firm can (also) do well and that meet the following three conditions specified by Hamel and Prahalad (1990).
1.It provides customer benefits,
2.It is hard for competitors to imitate, and
3.It can be leveraged widely to many products and market.
A core competency can take various forms, including technical/subject matter know-how, a reliable process, and/or close relationships with customers and suppliers (Mascarenhas et al. 1998).
It may also include product development or culture such as employee dedication. Modern business theories suggest that most activities that are not part of a company's core competency should be outsourced.
Core Competency
Sources of Cost AdvantageEconomies of Scale Business Economics
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Economies of Scale - Activity
Image: Sony PlayStation controls - the company have shipped 60 million units since PlayStation 2 was released. Copyright: Patricia Benitez
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PlayStations at £115, colour printers for under £30, free scanners, keyboards for less than £10, a mouse for the same price as a mouse mat, CD and DVD players for less that £40! What have all these products got in common? The answer is economies of scale. The firms involved in the manufacture of these items produce them in vast quantities.
Experience Curve Effects
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The learning curve effect and the closely related experience curve effect express the relationship between experience and efficiency. As individuals and/or organizations get more experienced at a task, they usually become more efficient at them. Both concepts originate in the old adage, "practice makes perfect".
The learning curve effect
The experience curve effect
Reasons for the effect
Experience curve discontinuities
Strategic consequences of the effect
Criticisms See also Books and articles External links
Learning curve calculator
Marketing
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Types of markets The Marketing Mix
Four Ps Seven Ps Technique Criticism of marketin
g List of marketing top
ics Marketing Tactics -
Activity
Marketing, as suggested by the American Marketing Association, is "an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders".
Market Positioning
• Market Positioning• Product positioning strat
egy • Product positioning proc
ess • Positioning concepts • Measuring the positionin
g • See also
• Conjoint Analysis• Factor Analysis • Lists
• References
Market Research• Other types of busi
ness research • Types of marketing
research • Marketing research
methods • Some commonly us
ed marketing research terms
• See also
Strategic Management • General approaches • The strategy hierarchy • Historical development of strat
egic management • Birth of strategic manage
ment • Growth and portfolio theor
y • The marketing revolution • The Japanese challenge • Gaining competitive adva
ntage • External Links
Click on Image. Source: ©2006 Framework Partners Inc
Marketing Strategy
A marketing strategy serves as the foundation of a marketing plan. A marketing plan contains a list of specific actions required to successfully implement a specific marketing strategy.
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Marketing Strategy
An example of marketing strategy is as follows: "Use a low cost product to attract consumers”.
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Marketing StrategyOnce our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service.“
A strategy is different than a tactic. While it is possible to write a tactical marketing plan without a sound, well-considered strategy, it is not recommended. Without a sound marketing strategy, a marketing plan has no foundation.
Marketing strategies serve as the fundamental underpinning of marketing plans designed to reach marketing objectives. It is important that these objectives have measurable results.
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Marketing Tactics - Activity
Image: Having impressive adverts may be a useful marketing tactic but the role of the marketing function involves much more than this. Do customers recognise the brand? Is there a unique selling point (USP) that can be used to differentiate your product or service from another? How will the firm manage its cash flow? All these factors and more are part of the tactics that are used in the marketing function. Copyright: Gunter Hofer
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Life Cycles, Turnarounds, Entrepreneurs Competitive strategy: moving fro
m theory to practice Life Cycle Analysis
Product Portfolio Analysis Boston MatrixGE MatrixProduct Portfolio Analysis –
Activity
Crises Management Financial Crises Public Relations CrisesStrategic Crises Negotiation / Conflict Resoluti
on Entrepreneurs
Intrapreneurship Entrepreneuring / Venturing
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Life Cycle Analysis
The Stages Management of the c
ycle Market evolution
Market Identification
Technology life cycle
Lessons of the Product Life Cycle
See also Finding related topic
s References External links
The conditions a product is sold under will change over time. The Product Life Cycle refers to the succession of stages a product goes through. Product Life Cycle Management is the succession of strategies used by management as a product goes through its life cycle.
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Product Portfolio Analysis Product Life Cycles and the Bo
ston Matrix The Chart Practical Use of the Boston Ma
trix Relative market share Market growth rate
Risks and criticisms Alternatives
Boston Consulting Group's Advantage Matrix
Other uses of the growth-share matrix
See also Cash Cow B.C.G. Analysis
ReferencesClick on Image. Larger Image.
Product Portfolio Analysis
General Electric (GE)
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Product Portfolio Analysis - Activity
Image: Different coloured post-it notes. Copyright: Ákos Rappay
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The aim of this Activity is to investigate Product Portfolio Analysis and in particular to analyse how products are developed and then manipulated to maintain their market share and market profile. The Activity will focus on one product - the humble 'Post-it' note.
This product has become an essential piece of equipment for a whole variety of people from householders, to remind them about things that need doing, to office workers and to students.
Crisis ManagementCrisis management involves identifying a crisis, planning a response to the crisis and confronting and resolving the crisis. Crisis management can be applied in almost any field of endeavor, but it is most commonly used in international relations, political science and management. For more about crisis management in international relations, see International crisis.
In general terms, the theory of crisis management can be divided into crisis bargaining and negotiation, crisis decision making, and crisis dynamics.
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Crisis Management
Crisis Management Plans Crisis Communication Plan Crisis Planning and
Communications Corporate Crisis Management
Crisis ManagementIn business there are three main types of crisis:
Financial crisis - short term liquidity or cash flow problems; and long term bankruptcy problems.
Public relations crisis - negative publicity that could adversely effect the success of the company.
Strategic crisis - changes in the business environment that call the viability of the company into question - for example the introduction of the automobile was a strategic crisis for buggy-whip manufacturers.
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Financial Crisis1. Are your inventories growing?
2. Have you noticed shrinking profit margins?
3. Are your suppliers curtailing your credit?
4. Do you see accounts receivables ballooning?
5. Is it becoming hard to to pay your bills on time?
6. Has your accounting been incomplete or slow lately?
7. Are restrictions pinching your cash flow?
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Public Relations Crisis
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Almost every organisation sometimes attracts unwelcome attention from the press.
An industrial dispute, product failure, service problem or accident can get the press flocking to your door when you’re least able to deal with them.
Strategic CrisisMany of today's organizations face the ultimate choice - change or die.
Few organizations are prepared for the magnitude of change that will be required of them if they are to survive and thrive in the next 20 years.
Fewer still understand the nature of the change.
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EntrepreneursEntrepreneur is a loanword from the French language that refers to a person who undertakes and operates a new enterprise or venture, and assumes some accountability for the inherent risks.
Most commonly, the term entrepreneur applies to someone who establishes a new entity to offer a new or existing product or service into a new or existing market, whether for a profit or not-for-profit outcome (see entredonneur).
Business entrepreneurs often have strong beliefs about a market opportunity and are willing to accept a high level of personal, professional or financial risk to pursue that opportunity.
Defining entrepreneur Entrepreneur as a risk be
arer Entrepreneur as an organ
izer Functional and indicative
approach to entrepreneur definition
Entrepreneur as a person willing to engage uncertainty
Entrepreneur as a leader Nature or Nurture (origins of t
he entrepreneur)
References Theories of the Firm
Entrepreneurs
Famed entrepreneurs in America include: Henry Ford (automobiles), J. Pierpont Morgan (banking), Thomas Edison (electricity/light bulbs), Bill Gates (computer operating systems and applications), Steve Jobs (computer hardware, software), the British entrepreneur Richard Branson (travel and media) and others.
Entrepreneurial Economics
If entrepreneurship remains as important to the economy as ever, then the continuing failure of mainstream economics to adequately account for entrepreneurship indicates that fundamental principles require re-evaluation.
Entrepreneurial Economics is the study of the entrepreneur and entrepreneurship within the economy.
The charecteristics of entrepreneurial economy (regional or national level) are high level of innovation combined with high level of entrepreneurship which result in the creation of new ventures as well as new sectors and industries.
Entrepreneur Entrepreneurship Entrepreneurial education Social Entrepreneur Serial entrepreneur Parallel entrepreneur
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Intrapreneurship The History of Intr
apreneurship Human
Resources Issues Intrapreneurial
Organisation The Intrapreneur
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Global Strategies and International Advantage Global Strategies and International A
dvantage
International Business
Multinational Corporations
Globalisation
Globalisation Activity
International Trade
National Innovation Systems
International BusinessInternational Business is a term used to collectively describe topics relating to the operations of companies with interests in several countries.
Such companies are sometimes called MultiNational Corporations or MNCs. Points of discussion with this topic may include cultural considerations, which itself may include differences in law and legal systems, language barriers, living standards, climate and more. These have to be overcome for a MNC to be successful in an overseas venture.
Well known examples of MNCs include fastfood companies McDonald's and Yum Brands, vehicle manufacturers like General Motors and Toyota, consumer electronics companies like LG, Sony, and General Electric.
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Multinational Corporations
• Horizontally integrated multinational corporations manage production establishments located in different countries to produce same or similar products.
• Vertically integrated multinational corporations manage production establishment in certain country/countries to produce products that serve as input to its production establishments in other country/countries.
• Diversified multinational corporations manage production establishments located in different countries that are neither horizontally or vertically integrated.
A multinational corporation (MNC) or multinational enterprise (MNE) or transnational corporation (TNC) or multinational organization (MNO) is a corporation/enterprise that manages production establishments or delivers services in at least two countries.
Multinational corporations (MNC) are often divided into three broad groups:
Multinational Corporations
Critiques Examples See also External links References
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GlobalisationMNCs generally have a subsidiary or an interest over a company in the country of venture.
One of the results on the increasing success of International Business ventures is Globalisation.
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Globalisation - Activity
A member of the Clandestine Rebel Clown Army protesting during the week of the July 2005 G8 Summit, held at Gleneagles, near Edinburgh, Scotland.Title: Edinburgh Prepares For Influx Of Protestors To G8 Summit. Copyright: Getty Images, available from Education Image Gallery
International TradeInternational trade is the exchange of goods and services across international boundaries or territories. In most countries, it represents a significant share of GDP.
While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries.
Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact. Increasing international trade is the usually primary meaning of "globalization".
Derek trade theory Ricardian model Heckscher-Ohlin model Specific Factors Gravity model
Regulation of international trade
Risks in international trade Economic risks Political risks
See also External links
Data Diplomacy Monitor - In
ternational Trade
Export Trade Finance
Porter’s Diamond
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The Competitive Advantage of Nations
Four attributes of a nation comprise Porter's "Diamond" of national advantage:
factor conditions (i.e. the nation's position in factors of production, such as skilled labour and infrastructure),
demand conditions (i.e. sophisticated customers in home market) related and supporting industries, and
firm strategy, structure and rivalry (i.e. conditions for organization of companies, and the nature of domestic rivalry).
Cluster Analysis (in Marketing)
Cluster analysis is a class of statistical techniques that can be applied to data that exhibits “natural” groupings. Cluster analysis sorts through the raw data and groups them into clusters.
A cluster is a group of relatively homogeneous cases or observations. Objects in a cluster are similar to each other. They are also dissimilar to objects outside the cluster, particularly objects in other clusters.
The diagram above illustrates the results of a survey that studied drinkers’ perceptions of spirits (alcohol). Each point represents the results from one respondent. The research indicates there are four clusters in this market.
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National Innovation System
Also called National System of Innovation.
The national innovation system is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level.
According to innovation system theory, innovation and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes.
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National Innovation System
There is no single definition of national innovation systems. Here are a few country specific status reports from the OECD.
A national system of innovation has been defined as follows:
.. the network of institutions in the public and private sectors whose activities and interactions initiate, import, modify and diffuse new technologies. (Freeman, 1987)
.. the elements and relationships which interact in the production, diffusion and use of new, and economically useful, knowledge ... and are either located within or rooted inside the borders of a nation state. (Lundvall, 1992)
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Construction of China's National Innovation System
The Construction of the National Innovation System is an important strategic decision made by the Chinese Government to speed up economic and social development in China by fully implementing the policies of rejuvenating China through science and education, and of sustainable development.
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Construction of China's National Innovation System
Overall Planning for the KIP Pilot
Project Progress in the Initial Phase of the KIP Pilot Project
Main Goals for the Phase of All-round Implementation of the KIP Pilot Project
Achievements Notched by KIP Pilot Project over Past Four Years
Strategic Action Plan for Science and Technology Innovation
SWOT AnalysisA SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in any other situation requiring a decision.
The required first step in SWOT analysis is the definition of the desired end state or objective.
The definition of objective must be explicit and approved by all participants in the process.
This first step must be performed carefully because failure to identify correctly the end state aimed for leads to wasted resources and possibly failure of the enterprise.
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SWOT AnalysisIn relation to objectives the following terms have been used in the literature: desired end states, plans, policies, goals, objectives, strategies, tactics and actions.
Definitions vary, overlap and fail to achieve clarity.
The following concept has been found useful.
The items listed above may be organized in a hierarchy of means and ends and numbered as follows:
Top Rank Objective (TRO), Second Rank Objective, Third Rank Objective, etc.
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SWOT Activity
SWOT AnalysisFrom any rank, the objective in a lower rank answers to the question "How?" and the objective in a higher rank answers to the question "Why?"
The exception is the Top Rank Objective (TRO): there is no answer to the "Why?" question. That is how the TRO is defined.
An example may help to clarify the concept presented above.
Improving Your Ability to Recognize Business Opportunities
SWOT Analysis of Tesco PLC Analysis of Forest & Forest Case Customer-centric SWOT Radford Intranet-Definition Click on Image
Wahaha Group’s Strategic OptionsPorter Generic Strategies Cost Leadership Str
ategy Differentiation Strat
egy Segmentation Strat
egy Recent developmen
ts Criticisms of generic
strategies References
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Wahaha Group’s Strategic OptionsMarket Dominance Strategies
Market dominance strategies are marketing strategies which classify businesses by reference to their market share or dominance of an industry.
What is market dominance?
Market dominance strategies
Market leader Market challeng
er Market follower Market nicher
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Wahaha Group’s Strategic Options
Related Readings
• Wahaha Claims Top Beverage Spot
Growth Strategies
Horizontal integration Vertical integration Diversification (or conglo
meration)
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Wahaha Group’s Strategic OptionsMarketing Warfare Strategies Marketing warfare strategies are a type of strategies, used in business and marketing, that try to draw parallels between business and warfare, and then apply the principles of military strategy to business situations. In business we do not have enemies, but we do have competitors; and we do not fight for land, but we do compete for market share. It is argued that, in mature, low-growth markets, and when real GDP growth is negative or low, business operates as a zero-sum game. One person’s gain is possible only at another person’s expense.
Success depends on battling competitors for market share.
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Wahaha Group’s Strategic Options
The use of marketing warfare strategies
Marketing Warfare Strategies
Guerrilla marketing warfare strategies
Learning from Napoleon Robin Hood invades busi
ness schools See also Lists of related topics
Marketing Warfare Strategies
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Evaluation and Measurement
Evaluation is the systematic determination of merit, worth, and significance of something or someone. Evaluation often is used to characterize and appraise subjects of interest in a wide range of human enterprises, including the Arts, business, computer science, criminal justice, education, engineering, foundations and non-profit organizations, government, health care, and other human services. Evaluation concepts and issues
The distinction between evaluation and assessment
Evaluation standards and meta-evaluation
Evaluation approaches Classification of approaches Summary of approaches
Evaluation methods and techniques
See also Notes and references External links
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Measuring the Positioning
Positioning is expressed relative to the position of competitors. The term was coined in 1969 by Al Ries and Jack Trout in the paper "Positioning" is a game people play in today’s me-too market place" in the publication Industrial Marketing.
Positioning is facilitated by a graphical or non-graphical techniques, such as perceptual mapping, various survey techniques, and statistical techniques like multi dimensional scaling, factor analysis, conjoint analysis, and logit analysis.
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Perceptual Mapping Perceptual mapping is a graphics technique used by marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a product, product line, brand, or company is displayed relative to their competition.
Also see Cluster Analysis
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Statistical Surveys Statistical surveys are used to collect quantitative information about items in a population. Surveys of human populations and institutions are common in political polling and government, health, social science and marketing research.
A survey may focus on opinions or factual information depending on its purpose, and many surveys involve administering questions to individuals.
When the questions are administered by a researcher, the survey is called a structured interview or a researcher administered survey.
Contents
Structure and standardization Serial surveys Advantages of surveys Disadvantages of surveys Advantages of self-administered qu
estionnaires Disadvantages of self-administered
surveys Advantages of researcher administ
ered interviews Survey methods Methods used to increase respons
e rates Research
Doctoral and Masters Degrees
Masters Degrees Only External links References
Statistical SurveysWhen the questions are administered by the respondent, the survey is referred to as a questionnaire or a self-administered survey.
See also Opinion poll Marketing Marketing research Quantitative marketing r
esearch
Questionnaire construction
Lists of related topics
Contents
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Multidimensional Scaling
Multidimensional scaling (MDS) is a set of related statistical techniques often used in data visualisation for exploring similarities or dissimilarities in data. An MDS algorithm starts with a matrix of item-item similarities, then assigns a location of each item in a low-dimensional space, suitable for graphing or 3D visualisation.
Categorization of MDS Applications
Marketing Comparison and adva
ntages Multidimensional
scaling procedure References See also
Factor analysis, Discriminant analysis
External links
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Factor AnalysisFactor analysis is a statistical technique used to explain variability among observed random variables in terms of fewer unobserved random variables called factors.
The observed variables are modeled as linear combinations of the factors, plus "error" terms.
Factor analysis originated in psychometrics, and is used in social sciences, marketing, product management, operations research, and other applied sciences that deal with large quantities of data.
Example Mathematical model of the same
example Factor analysis in psychometrics
History Applications in psychology Advantages Disadvantages
Factor analysis in marketing Information collection Analysis Advantages Disadvantages
Bibliography See also
Conjoint Analysis Conjoint analysis, also called multi-attribute compositional models or stated preference analysis, is a statistical technique that originated in mathematical psychology. Today it is used in many of the social sciences and applied sciences including marketing, product management, and operations research.
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Conjoint analysis (Marketing)
Conjoint AnalysisThe objective of conjoint analysis is to determine what combination of a limited number of attributes is most preferred by respondents. It is used frequently in testing customer acceptance of new product designs and assessing the appeal of advertisements. It has been used in product positioning, but there are some problems with this application of the technique. Click on Image
• Conjoint Analysis Tutorial
Logit Analysis in Marketing
Logit analysis is a statistical technique used by marketers to assess the scope of customer acceptance of a product, particularly a new product. It attempts to determine the intensity or magnitude of customers' purchase intentions and translates that into a measure of actual buying behaviour.
Logit analysis assumes that an unmet need in the marketplace has already been detected, and that the product has been designed to meet that need. The purpose of logit analysis is to quantify the potential sales of that product. It takes survey data on consumers purchase intentions and converts it into actual purchase probabilities.
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Logit Analysis in Marketing
Logit analysis defines the functional relationship between stated purchase intentions and preferences, and the actual probability of purchase.
A preference regression is performed on the survey data. This is then modified with actual historical observations of purchase behavior.
The resultant functional relationship defines purchase probability.
This is the most useful of the purchase intention/rating translations because explicit measures of confidence level and statistical significance can be calculated.
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Logit Analysis in Marketing
Other purchase intention/rating translations include the preference-rank translation and the intent scale translation.
The main disadvantage is that the software is not easy to find.
Logit and Probit Analysis
Business CaseA business Case is a part of the project mandate, or separate document referenced by the project mandate (depending on the scale of the project), produced before a project is initiated. It is owned by the executive sponsor. Many project methodologies, such as PRINCE2, explicitly require a formal business case.
The Business Case addresses, at a high level, the business need that the project seeks to resolve. It includes the reasons for the project, the expected business benefits, the options considered (with reasons for rejecting or carrying forward each option), the expected costs of the project, a gap analysis and the expected risks.
In almost all cases the option of doing nothing should be included with the costs and risks of inactivity included along with the differences (costs, risks, outcomes etc) between doing nothing and the proposed project.
Business CaseIt is from this that the justification for the project is derived.The case will be reviewed at the initiation of the project (before the go/no-go decision is made) and periodically during the running of the project (e.g. at stage or sub-project boundaries) to ensure that:
The business case is still valid, i.e. the business need still exists. The project is still on track to deliver the solution to the business need.
As a result of this review the project may be terminated or future parts amended. The business may also be subject to amendment if the review concludes that the business need has abated or changed, this will have a knock on effect on the project.
Strategic Business Case
Benchmarking Benchmarking (also "best practice benchmarking" or "process benchmarking") is a process used in management and particularly strategic management, in which organizations evaluate various aspects of their processes in relation to best practice, usually within their own sector. This then allows organizations to develop plans on how to adopt such best practice, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to challenge their practices.
Advantages of benchmarking Competitive benchmarking Collaborative benchmarking Procedure Cost of benchmarking Benchmarking in financial markets External links
Benchmarking for competitive advantage
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Gap Analysis Gap analysis is a business assessment tool enabling a company to compare its actual performance with its potential performance. This provides the company with insight to areas which have room for improvement.
The process involves determining, documenting and approving the variance between business requirements and current capabilities. Gap analysis naturally flows from benchmarking or other assessments.
Once the general expectation of performance in the industry is understood then it is possible to compare that expectation with the level of performance at which the company currently functions.
Gap Analysis and New Products [1]
Usage Gap Market potential Existing usage Distribution Gap Product Gap Competitive Gap
Market Gap Analysis
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Gap AnalysisThis comparison becomes the gap analysis. Such analysis can be performed at the strategic or operational level of an organization.
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Risk, Uncertainty and Strategy Risk, Uncertainty and Strategy
Risk management
Game theory
Decision Making
Cost-benefit Analysis
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Risk ManagementGenerally, Risk Management is the process of measuring, or assessing risk and then developing strategies to manage the risk.
In general, the strategies employed include transferring the risk to another party, avoiding the risk, reducing the negative effect of the risk, and accepting some or all of the consequences of a particular risk.
Traditional risk management focuses on risks stemming from physical or legal causes (e.g. natural disasters or fires, accidents, death, and lawsuits). Financial risk management, on the other hand, focuses on risks that can be managed using traded financial instruments.
Areas of risk management Enterprise Risk Mana
gement
Risk management activities as applied to project management
Risk Business Continuity Plannin
g
Uncertainty Financial risk management Critical chain Futures Studies Earned value management Insurance Precautionary principle Project management Value at risk Operational risk managemen
t
Risk ManagementIntangible risk management focuses on the risks associated with human capital, such as knowledge risk, relationship risk, and engagement-process risk.
Regardless of the type of risk management, all large corporations have risk management teams and small groups and corporations practice informal, if not formal, risk management.
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Game TheoryGame theory is a branch of applied mathematics that studies strategic situations where players choose different actions in an attempt to maximize their returns.
First developed as a tool for understanding economic behavior and then by the RAND Corporation to define nuclear strategies, game theory is now used in many diverse academic fields, ranging from biology and psychology to sociology and philosophy.
Beginning in the 1970s, game theory has been applied to animal behavior, including species' development by natural selection.
Representation of games Normal form Extensive form
Types of games Symmetric and asymmetric Zero sum and non-zero sum Simultaneous and sequential Perfect information and imper
fect information
Infinitely long games Uses of game theory
Economics and business Computer science and logic Political science
History of game theory Notes References
Game TheoryBecause of interesting games like the prisoner's dilemma, in which rational self-interest hurts everyone, game theory has been used in political science, ethics and philosophy.
Finally, game theory has recently drawn attention from computer scientists because of its use in artificial intelligence and cybernetics.
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Decision Making Decision making is the cognitive process leading to the selection a course of action among alternatives.
Every decision-making process produces a final choice called decision. It can be an action or an opinion. It begins when we need to do something but we do not know what. Therefore, decision-making is a reasoning process which can be rational or irrational, and can be based on explicit assumptions or tacit assumptions.
• Decision making style • Decision making in groups • Decision making in business
and management
• Sources of Power: How people make decisions], -Klein, G.
• Intelligent Decision Support Systems
• Decision analysis• Decision Analytic Methods • Multi-criteria decision analysi
s
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Cost-benefit Analysis Cost-benefit analysis is the most important technique for project appraisal in the public sector.
During cost-benefit analysis, monetary values may also be assigned to less tangible effects such as risk, loss of reputation, market penetration, long-term strategy alignment, etc. This is especially true when governments use the technique, for instance to decide whether to introduce business regulation, build a new road or offer a new drug on the state healthcare.
In this case, a value must be put on human life or the environment, often causing great controversy.
Kaldor-Hicks efficiency - economic principle underlying cost-benefit analysis
Pareto efficiency - alternative economic principle
Net present value - a similar type of calculation
Excess burden of taxation - which should be figured into cost-benefit analyses of publicly funded projects
Cost-benefit AnalysisThe cost-benefit principle says, for example, that we should install a guardrail on a dangerous stretch of mountain road if the dollar cost of doing so is less than the implicit dollar value of the injuries, deaths, and property damage thus prevented (R.H. Frank 2000).
Cost-benefit calculations typically involve using time value of money formula. This is usually done by converting the future expected streams of costs and benefits to a present value amount.
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Recommended TextsBusiness Research Methods with Student CD-ROM
Cooper, Donald R Schindler, Pamela S. ISBN: 0072819790Format: BB Pub Date: 2002-07-23 Copyright: 2003Edition:8
Management: Competing in the New Era, 5/eThomas S Bateman, University of VirginiaScott A Snell, Pennsylvania State University
