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Chap08 Strama PDF
Chap08 Strama PDF
Chap08 Strama PDF
Strategic Management:
Concepts & Cases
10th Edition
Fred David
PowerPoint Slides by
Anthony F. Chelte
Western New England College
Ch 8-1
Copyright 2005 Prentice Hall
Chapter Outline
Marketing Issues
Finance/Accounting Issues
Ch 8-2
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Chapter Outline (cont’d)
Ch 8-3
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Implementing Strategies
Ch 8-4
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The Nature of Strategy
Implementation
Ch 8-5
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The Nature of Strategy
Implementation
Ch 8-6
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Nature of Strategy
Implementation
Low Success Rate – Strategy Implementation
Ch 8-7
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Nature of Strategy
Implementation
Successful Strategy Implementation
Ch 8-8
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Marketing Issues
Ch 8-9
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Marketing Issues
Ch 8-10
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Marketing Issues
1. Market segmentation
2. Product positioning
Ch 8-11
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Marketing Issues
Market Segmentation
Ch 8-12
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Marketing Issues
Market Segmentation
Ch 8-13
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Marketing Issues
Market Segmentation
Ch 8-14
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Marketing Mix – Component Factors
Product Place Promotion Price
Distribution
Quality Advertising Level
channels
Distribution Discounts &
Features Personal selling
coverage allowances
Inventory
Packaging
levels/locations
Transportation
Product line
carriers
Warranty
Service level
Ch 8-15
Marketing Issues
Geographic
Demographic
Market Segment
Basis Psychographic
Behavioral
Ch 8-16
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Marketing Issues
Geographic
Region
County size
City or SMSA size
Density
Climate
Ch 8-17
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Marketing Issues
Geographic
Demographic
Market Segment
Basis Psychographic
Behavioral
Ch 8-18
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Marketing Issues
Demographic
Age
Family Size
Family Life Cycle
Income/Occupation
Education
Religion
Race/Nationality
Ch 8-19
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Marketing Issues
Geographic
Demographic
Market Segment
Basis Psychographic
Behavioral
Ch 8-20
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Marketing Issues
Psychographic
Social Class
Lifestyle
Personality
Ch 8-21
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Marketing Issues
Geographic
Demographic
Market Segment
Basis Psychographic
Behavioral
Ch 8-22
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Marketing Issues
Behavioral
Use occasion
Benefits sought
User status
Usage rate
Loyalty status
Readiness stage
Attitude toward product
Ch 8-23
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Marketing Issues
Product Positioning
Ch 8-24
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Marketing Issues
Customer Wants
Product
Positioning
Customer Needs
Ch 8-25
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Product Positioning Steps
2. Diagram Map
5. Develop Marketing
Plan
Ch 8-26
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Product Positioning Map
High
Convenience Rental Car Market
•
Firm 1
Firm 2
•
High Low
Customer Customer
Loyalty Loyalty
•
Firm 3
Low
Convenience
Ch 8-27
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Marketing Issues
Product Positioning as Strategy Implementation
Tool
Ch 8-28
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Finance/Accounting Issues
Ch 8-29
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Finance/Accounting Issues
Ch 8-30
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Finance/Accounting Issues
Ch 8-31
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Finance/Accounting Issues
Ch 8-32
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Finance/Accounting Issues
Debt
Equity
Ch 8-33
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Finance/Accounting Issues
EPS/EBIT analysis
Earnings per share/Earnings before interest and
taxes
Ch 8-34
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EPS-EBIT Analysis
(in $millions)
Heinz Company – Year End 2001
$Amount Needed: $500
Stock Price $40
EBIT Range $1000 to $2000
Tax Rate 175/673 = .26 = 26%
Interest Rate 5%
# Shares Outstanding 350
Ch 8-35
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EPS-EBIT Analysis (in $millions) – Heinz
Company
Stock Financing Financing Financing
Interest (5%) 0 0 25 25 10 10
Ch 8-36
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Finance/Accounting Issues
Conclusion:
Ch 8-37
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Finance/Accounting Issues
Ch 8-38
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Finance/Accounting Issues
Ch 8-39
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Finance/Accounting Issues
Steps in Preparing Projected Financial
Statements (cont’d)
Ch 8-40
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Projected Income Statement for Litten Company (in millions)
Projected Year
Prior Year 2004 2005 Remarks
Ch 8-41
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Finance/Accounting Issues
Financial Budget
Ch 8-42
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Finance/Accounting Issues
Types of Budgets
Cash budgets
Operating budgets
Sales budgets
Profit budgets
Factory Budgets
Expense Budgets
Ch 8-43
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Finance/Accounting Issues
Types of Budgets
Divisional budgets
Variable budgets
Flexible budgets
Fixed budgets
Ch 8-44
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Finance/Accounting Issues
Ch 8-45
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Finance/Accounting Issues
Ch 8-46
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Research & Development
Issues
Ch 8-47
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Research & Development
Issues
Constraints
Ch 8-48
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Research & Development
Issues
Ch 8-49
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Management Information
Systems (MIS) Issues
Ch 8-50
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MIS Issues
Functions of MIS
Ch 8-51
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For Review (Chapter 8)
Outstanding Shares
EPS/EBIT Analysis
Method
Ch 8-52
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For Review (Chapter 8)
Projected Financial
Statement Analysis
Vacant Niche
Ch 8-53
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