Professional Documents
Culture Documents
achievable within the given time frame that defines the planning
cycle. The manage- ment team must then allocate the resources
and leverage the companys capabilities in a man- ner that
ensures the tactics designed to achieve the objective actually
work and produce the desired results. Finally, the management
team needs to assess the success of the company in achieving
the desired objectives, and determine adjustments required in
order to further grow the company within upcoming planning
cycles. If an organization does not achieve its objectives as a
result of either poor positioning or poor execution of the
strategies initiated, then the company will most likely not
achieve the results anticipated and will need to redirect the
current organizational effort in order to get back on track and
achieve its revenue and profitability targets. A flattening, or
declining, of revenue or a reduction in overall profitability are key
identifiers as to whether a given plan is working. Figure 1.6
illustrates a failure to grow the company to the desired position
and meet its objectives during a planning cycle.
demand for the products and services they currently offer will
change/disappear
- same fundamentals imply for the not for profit org event ho they
dont strive for profits, they do need to create operational surpluses
and/or acquire external capital funding commitments that enable
reinvestment in the organization to ensure it remains vibrant and
responsive to community needs
- need to assess services to remain meaningful to the customers
and expand services where there is demand and capability to do
so
- add new programs and services that meet the current
community need
- high social responsibility- meet societal needs that are not met
by the fro profit org
Improving probability
-
- hand bag example diff brands, some ppl go for higher level of quality
ex coach or Gucci allowing the influence of emotional and brand
benefit to make decision
- key is to recognize the qualitieand to match them against the
segment of the market that will best respond, and then deliver the
value proposition in a manner superior to the competition that is
seeking the same market position and set of customers as you are.
Are there emotional benefits that the customer will attach to this
product/service offering? If so, how can I use this to assist me in
strengthening my value proposition?
Are there unique service benefits I can incorporate into this value
proposition that will assist me in supporting potential and existing
customers?
Can I create a strong market segmentation to compete? Market
Segment is a portion of the market that is deemed to possess unique
characteristics businesses can target in order to generate a preference
for their products and/or services.
Ex Tim hortons: strives to provide excellent service, has achieved
sufficient size and scope to keep its costs of doing business in line with
the competition. A key to its value proposition has been its ability to
tap into the emotional affiliation of Canadians with what the company
confirm that the market size of customers is large enough that, once
commercialized, the opportunity can enable the organization to make a
profit and sustain this profitability for the anticipated planning cycle
and beyond
confirm that a position within the market is feasible, which will enable
the company to compete in a manner that is superior to its direct
competition
confirm that the market situation will stay constant long enough for
the business plan to be developed and executed
confirm that the business has the resource base and the capability to
execute the strategy execute the strategy in an efficient and effective
manner, achieving the objectives set forth within the business plan
created