The Strategic Marketing Audit: Culture and Operations

Internal Analysis

Culture and Leadership

Operational analysis

Analysis of specific internal marketing activites and Portfolio Models

What guides the organisation?

Strategy

LeadershipCulture

Employees

‘Strategic fit’

Values

Style

Business EthicsCorporate Governance

Organisational purposes

Stakeholders Cultural context

Who should the organisation serve?How should purposes bedetermined?

Which purposes should be prioritised?

Why?

MissionObjectives

Which purposes are prioritised?Why?

Whom does the organisation serve?

Influences on organisational purposes

‘Organisational structure follows strategy’

Organisation structures are skeletons that define the general shape of: activities information flows responsibilities & accountabilities

They may facilitate or constrain the performance of those activities

Types of organisation structure

Simple No formal structure. E.g. small company

Functional Activities organised by function. E.g. Finance, marketing, operations, distribution and HR

Product (or divisional)

Activities organised by product, category or, in a much larger company, division or SBU. E.g. domestic and business services groups

Matrix A structure combining functional and product structures, often with a geographic dimension

Hybrid A structure combining any of the other forms

Virtual An organisation with little formal structure that works through loose mechanisms such as partnership, collaboration and networking

What is organisational culture?

‘The deeper level of basic assumptions and beliefs that are shared by members of an

organisation, that operate unconsciously ad define in a basic taken-for-granted fashion an

organisation’s view of itself and its environment’

E. Schein (quoted in Johnson & Scholes)

Representing assumptions: The ‘cultural web’

Symbols

Control systems

Organisat-ional

structures

Stories

Rituals & routines

Power structure

s

Theparadig

m

Source:Johnson & Scholes

LEADERS

L - look and listen with your eyes, mind and soul

E - empowerment of yourself and groupA - awarenessD - doing, being action orientedE - expansion of consciousnessR - responsibilityS - synchronicity, the ability to create your

own ‘luck’Selection based on accent, looks and how

‘sexy’ they are, that’s why dysfunctional (Chopra)

Leadership Qualities

Clear Vision – Core competences, market opportunities

Strong Communications – Convey direction of the company to stakeholders

Decisive follow up – Targets and goalsStamina – 80 hour weeks, staff, customers and

stakeholdersEthical Standards – no supportNetworking skills - relationshipsSource: Hill & Jones (2002)

INTERNAL POSITIONING

Assumption - creating competitive advantage- need for investment in physical and human

resources- need to manage interface between internal

environment, technology and people- opportunity through adaptability; lower costs;

product quality; enhanced service.Adopting “inside out “approach- what

capabilities/Resources/Core Competencies Sustainability

Operational Analysis

All processes in an organisation including raw material sourcing, purchasing, production and distribution logistics, service delivery:

the contribution of the production function to the organisations ability to add value to its goods and services.

Resource-based viewof the organisation

The organisation is an unique bundle of resources which have certain capabilities

Its competitive performance is dependent on these historically developed resource endowments (its legacy), including capabilities & skills organisational assets organisational processes information & knowledge

Successful strategy depends on understanding & applying these capabilities

Identifying Value/Potential Value

The value chain - an attempt to identify key activities within the organisation, their relationships and how the creation of core competence's (skills/knowledge) deliver synergistic benefits.

The flow of products and services within the organisation - the chain or links between primary and secondary activities.

Add it as cheaply as possible and capture the value

Firm infrastructureHuman resource management

Technology developmentProcurement

Inbound logistics

OperationOutbound logistics

Marketing & sales

Service

margin

Primary Activities

Support Activities

The Value Chain

Adopted from Porter M. 1985

R&D Production

Outputs

Axioms of Value

Customers determine the value of a product ; Importance of research

Expectations are formed by considering alternatives; importance of competitive advantage

Expectations vary over time; importance of research and customer orientation

An integrated approach is required in the delivery of value; importance of managing the organisations value chain

Management Commitment

Ref: “Consumer Perception of perceived value and satisfaction in marketing” Vranesevic, T.,Vignali,C.,Vignali,D.(2004)

Journal of food product marketing, 10(3) pp. 61 -87

Work shop Activity

Read Journal article “Culture in Defining Consumer Satisfaction in Marketing

Highlight the Key issues related to the creation of culture

Workshop Activity 1: Strategic Analysis

Continue working on strategic analysis for Lidl