The Strategic Marketing Audit: Culture and Operations

Internal AnalysisCulture and Leadership

Operational analysis

Analysis of specific internal marketing activites and Portfolio Models

What guides the organisation?StrategyLeadershipCultureEmployeesStrategic fitValuesStyle

Business EthicsCorporate GovernanceOrganisational purposesStakeholdersCultural contextWho should the organisation serve?How should purposes bedetermined?Which purposes should be prioritised?Why?MissionObjectivesWhich 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 flowsresponsibilities & accountabilitiesThey may facilitate or constrain the performance of those activities

Types of organisation structure

SimpleNo formal structure. E.g. small companyFunctionalActivities organised by function. E.g. Finance, marketing, operations, distribution and HRProduct (or divisional)Activities organised by product, category or, in a much larger company, division or SBU. E.g. domestic and business services groupsMatrixA structure combining functional and product structures, often with a geographic dimension HybridA structure combining any of the other formsVirtualAn 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 organisations view of itself and its environmentE. Schein (quoted in Johnson & Scholes)

Representing assumptions: The cultural webOrganisat-ional structuresSource:Johnson & Scholes

LEADERSL - look and listen with your eyes, mind and soulE - empowerment of yourself and groupA - awarenessD - doing, being action orientedE - expansion of consciousnessR - responsibilityS - synchronicity, the ability to create your own luckSelection based on accent, looks and how sexy they are, thats why dysfunctional (Chopra)

Leadership QualitiesClear Vision Core competences, market opportunitiesStrong Communications Convey direction of the company to stakeholdersDecisive follow up Targets and goalsStamina 80 hour weeks, staff, customers and stakeholdersEthical Standards no supportNetworking skills - relationshipsSource: Hill & Jones (2002)

INTERNAL POSITIONINGAssumption - 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 AnalysisAll 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 organisationThe organisation is an unique bundle of resources which have certain capabilitiesIts competitive performance is dependent on these historically developed resource endowments (its legacy), includingcapabilities & skillsorganisational assetsorganisational processesinformation & knowledgeSuccessful strategy depends on understanding & applying these capabilities

Identifying Value/Potential ValueThe 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 managementTechnology developmentProcurementInbound logisticsOperationOutbound logisticsMarketing & sales ServicemarginPrimary ActivitiesSupport ActivitiesThe Value ChainAdopted from Porter M. 1985R&DProductionOutputs

Axioms of Value

Customers determine the value of a product ; Importance of researchExpectations are formed by considering alternatives; importance of competitive advantageExpectations vary over time; importance of research and customer orientationAn integrated approach is required in the delivery of value; importance of managing the organisations value chainManagement 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 ActivityRead 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

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