Chapter 2
-
Upload
shalinipandey2319 -
Category
Documents
-
view
70 -
download
2
Transcript of Chapter 2
Export Planning, Joris Leeman © 2010
Export planningHow to write an international marketing plan
Internationalisation of the firm
Chapter 2: External and internal analysis
Export Planning, Joris Leeman © 2010
Export Planning, Joris Leeman © 2010
Export planningLearning objectives (learning tasks) Ch. 2
At the end of the chapter you will be able to:
1. describe a company briefly in terms of its vision and mission, its business definition,and its product lines and markets;
2. explain how to set up an external analysis by means of the DESTEP analysis;
3. execute a trend analysis based upon the DESTEP analysis;
4. explain how to set up an internal analysis by means of its organisation structure, the 7S model, and its organisational capabilities;
5. put together a SWOT analysis and SWOT matrix with its strategic options.
Export Planning, Joris Leeman © 2010
EXPORT PLANNING: 4 phases/10 steps
Export Planning, Joris Leeman © 2010
Export planningVision and mission Example from Kellogg’s
Export Planning, Joris Leeman © 2010
Export planningBusiness definition by Abell Example from Henkel
Export Planning, Joris Leeman © 2010
Export planningSales by product lines and geographic markets
Export Planning, Joris Leeman © 2010
Export planningOverview of the organisation structure of a company
Example of PepsiCo
Export Planning, Joris Leeman © 2010
Export planning7S model by McKinsey
Export Planning, Joris Leeman © 2010
Export planningEnvironmental analysis and trend direction
Export Planning, Joris Leeman © 2010
The PEST analysis consists of five main steps:
1. Understand a category's relevant trends - research the important variables of the organisation's strategy - determine the long term trends that apply to these variables - research the past behaviour of these variables - analyse the predictability of the trend lines and their fluctuations - assess the impact of these trends on the organisation
2. Understand trend interdependencies - analyse which trends are interrelated - determine which trends conflict by understanding
movements in opposite directions
3. Distil likely issues from the identified trends - validate the impact of trends on the organisation - distil the most critical trends that have the greatest impact given
the organisation's objectives
Export planningDESTEP or PEST analysis
Export Planning, Joris Leeman © 2010
4. Forecast the direction of issues - determine the fundamental drivers behind a critical trend - assess the behaviour of the critical trend - run a sensitivity test to assess impact (take -10% of your worst case scenario)
5. derive implications for the organisation - assess the effect of critical environmental changes on the industry - assess effect of critical environmental changes on a firm's competitive position - assess the effect of critical environmental changes on a direct competitor's position - validate a firm's competitive position given the likely positions of its direct competitors
Export planningDESTEP or PEST analysis
Export Planning, Joris Leeman © 2010
Internal and external analysisSWOT analysis
Examples
Export Planning, Joris Leeman © 2010
Internal and external analysisTOWS analysis: strategic options
Export Planning, Joris Leeman © 2010
Strength Weakness
S1 b
rand
imag
e
S2 b
road
pro
duct
line
S3 in
nova
tive
prod
ucts
S4 d
istr
.cha
nnel
s
W1
relia
nt o
n ex
istin
g lin
e
O1 growing population
O2 less regulation
O3 more democracy
O4 progress in techn.
T1 competition
T2 health awareness
T3 ongoing econ.crisis
T4
W2
relia
nt o
n sp
ec.te
chn.
W3
…...
W4
+ + +
+
Opportunity
Threat
Internal and external analysisTOWS analysis: strategic options
Export Planning, Joris Leeman © 2010
Internal and external analysiSExample SWOT analysis of PepsiCo
Export Planning, Joris Leeman © 2010
External opportunities (O) 1. 2. 3. 4.
External threats (T) 1. 2. 3. 4.
Internal etrengths (S) 1. 2. 3. 4.
SO ‘Maxi-maxi’ strategy
Strategies that use strengths to maximize opportunities.
ST ‘Maxi-mini’ strategy
Strategies that use strengths to minimize threats.
Internal weaknesses (W) 1. 2. 3. 4.
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 and external analysisTOWS analysis: strategic options