PROJECT TWO WORKBOOK 031314.doc

STRATEGY WORKBOOK- Strategy Development and ReviewsManagement 350 SPRING 2014Professor William E. RothschildRequirements This assignment must be submitted on APRIL 30, 2014 and accounts for 50% of your total grade All papers must be typed in BLACK (NO RED) and submitted in hard copy.no emails, handwritten entries will not be graded. All questions must be answered Please use the spell checker and make sure that the grammar is correct. Must describe the sources of the datathis includes name of publication, author and date.Your Name:Name of Your Venture: Defining the Venture (Chapter III)USE THE BUSINESS DEFINITIONS FROM PROJECT #1NOTE CHANGES YOU HAVE MADE AND THE REASONS FOR THE CHANGESWhat you plan to sell? Specify the type of products, services, or solutions that you intend to offer. Should be same as Project #1, if you mad changes explain what they are and why you made them. Describe any CHANGES from Project #1 Explain why you made changes.To whom you plan to target your sales? Specify whether they are consumers, business, regulated or government customers. . Should be same as Project #1, if you mad changes explain what they are and why you made them. Describe any CHANGES from Project #1 Explain why you made changesSpecify the demographics of the key type of customers (page 31). Should be same as Project #1, if you mad changes explain what they are and why you made them.NOTE describe any CHANGES from Project #1 Explain why you made changes Where do you plan to sell? Specify the city, state; region and country that you plan to initiate the business. . Should be same as Project #1, if you mad changes explain what they are and why you made them.NOTE: Describe any CHANGES from Project #1 Explain why you made changesHow you plan to make money? Indicate how you plan to make money. (Pages 32-33). Should be same as Project #1, if you mad changes explain what they are and why you made them.NOTE: Describe any CHANGES from Project #1 Explain why you made changesDescribe the SEGMENT you have selectedIt must be the same as from Project # 1SEGMENTATIONCreate a Segmentation grid reflecting you venture and select the segment that you wish to analyze in depth. (See page 49) List the major targeted customer groupsList the major products or servicesProcessLeadership Factors are those SPECFIC abilities and resources required to be the leader in the segment you selected.List the four ways that you can determine the leadership factors for your venture1. 2. 3. 4. Determining Your ventures Leadership Factors and Competitive Position Use these listing and check those abilities which are critical to becoming a leader in the selected SEGMENT. Ability to Conceive and Design Critical Moderate Not Important Patents and Copyrights Unique technical skills or talents Ability to license, partnership, ally. Unique, consistent funding Ability to Produce/ Outsource Critical Moderate Not Important Facilities- size/ location Automation Unique equipment Unique talents or skills Key suppliers Logistical skills Inventory levels Just in time capabilities Funding size and consistencyAbility to Market and Sales Critical Moderate Not Important Branding Retail locations Retail features Unique sales skills Size of sales force Distribution network Advertising and promotion Pricing Payment systems Guarantees and Warrantees Consistency of funding Critical Moderate Not Important Lines of credit Cash flow Inventory turns Ability to forecast Ability to collect payments Currency exchangeAbility Lead and Manage Critical Moderate Not Important Risktaker Caretaker Surgeon Undertaker Style Ability to make decisions Speed of decision making Ability to build external relationships Ability to keep turnover low Global skills Ability to lobby and create relationshipUsing lists developed select the TEN Most Critical leadership factors. (BE SPECIFIC and NOT GENERAL)1. 2. 3. 4. 5. 6. 7. 8. 9. 10. -ProcessCOMPETITIVE POSITION EVALUATIONS.Describe the process used to evaluate competitors and your venture. Step one- Step two Step three Your Ventures Competitive Position EvaluationLEADERSHIPFACTORSWEIGHTSCOMPETITORSCOREWEIGHTEDSCORECOMPETITORSCOREWEIGHTEDSCOREYOUR VENTURESCOREWEIGHTEDSCORE12345678910TOTALTwo Sources used to evaluate the two key competitorsSOURCE 1Name of Competitor being evaluated:Publication or article:Author if anyDate of PublicationREVENUES NET INCOME RETURN ON SALES MARKET SHAREDescribe their overall businessDescribe their major strengthsDescribe their major limitationsSOURCE 2Name of Competitor being evaluated:Publication or article:Author if anyDate of PublicationREVENUES NET INCOME RETURN ON SALES MARKET SHAREDescribe their overall businessDescribe their major strengthsDescribe their major limitations Top of Form Top of FormUSING THE ATTRACTIVENESS/ COMPETITIVE POSITION EVALUATIONS PLOTTO DETERMINE THE INVESTMENT PRIORITIES AND DEGREE OF AGGRESSIVENESSAttractiveness from PHASE ONE EVALUATIONCompetitive PositionFrom Competitive Leadership EvaluationHIGHMEDIUMLOWSTRONGMEDIUMWEAKPROCESSUse the attractiveness/ competitive position matrix to determine the strategic priorities and the strategic direction of the investment strategy. HIGH ATTRACTIVENESS/ STRONG POSITIONo WHAT IS THE PRIORITY?o WHAT SHOULD THE STRATEGIC DIRECTIONS BE?MEDIUM ATTRACTIVENESS/ MEDIUM POSITION WHAT IS THE PRIORITY? WHAT SHOULD THE STRATEGIC DIRECTIONS BE?LOW ATTRACTIVENESS/ WEAK POSITION WHAT IS THE PRIORITY? WHAT SHOULD THE STRATEGIC DIRECTIONS BE?The Strategic Direction is BASE ON THE ATTRACTIVENESS/ COMPETITIVE POSITION EVALUATION ABOVE DETERMINE THE INVESTMENT PRIORITY/ STRATEGIC DIRECTION. STRATEGIC DIRECTION OPTIONSReasons you selected this alternative.AGGESSIVE GROWTH( )SELECTIVE GROWTH ( ) HOLD DEFEND ( ) HARVEST ( ) EXIT ( ) SELL ( )PROCESSCreating a Competitive Difference and AdvantageList and describe THREE WAYS you can determine the best way to differentiate your products or services.1. 2. 3. PROCESSLIST THE ALL DIFFERENTIATORS AND SUB CATEGORIESPRODUCT/SERVICE DIFFERENTIATORS1. 2. 3. 4. 5. 6. 7. 8. -MARKETING AND SALES DIFFERENTIATORS1. 2. 3. 4. 5. 6. 7. PRICING, TERMS OR FINANCING DIFFERENTIATORS1. 2. 3. 4. 5. 6. 7. 8. -PRODUCTION AND OUTSOURCING DIFFERIENTIATORS1. 2. 3. 4. 5. 6. 7. 8. -GOVERNMENT DIFFERENTIATORS1. 2. 3. 4. 5. -VENTURE APPLICATIONSelect a key differentiator in FIVE of the key categories and see if they blend and provide uniqueness.YOUR PRODUCT DIFFERENTIATORYOUR SALES/ MARKETING DIFFERENTIATOR:OTHER DIFFERENTIATOR:-IF APPROPRIATEFINANCIAL DIFFERENTIATOR:YOUR PRODUCTION DIFFERENTIATOR:Explain why you selected EACH differentiator:PRODUCT DIFFERIENTIATORMARKETING AND SALES DIFFERENTIATORPRODUCTION AND OUTSOURCING DIFFERENTIATORPRICING AND FINANCIAL DIFFERENTIATOROTHER DIFFERENTIATOREXPLAIN why and how the combination of these differentiators will provide a sustainable competitive advantage.Implementation/ Execution Strategies (Chapter XV (15)PROCESSList all of the major implementation strategy categories1. 2. 3. 4. 5. 6. -VENTURE APPLICATIONProduct/ Services Strategies Selectivity and Scope (pages 196-197) How broad and deep will your product/ service offerings be?Breadth of Line- Complete Full ( ) Selective ( ) Minimum ( )Depth of Line- Many Variations ( ) Limited Variations ( ) One Type ( )Describe the products/ services you plan to offer. This should include the breadth of your offering and now many models or variations of each type of product you will offer.Product/ Service Positioning (page 197)Real leader ( ) Perceived leader ( ) Follow Quickly ( ) Follow only if necessary ( ) Dont Follow ( )Describe what you will SPECIFICALLY do to achieve your product position.Product/ Service Research and DevelopmentIndicate the type of product or service research you plan to do.Basic ( ) Development ( ) Applications ( ) NO R&D required ( )Own R&D ( ) Contract R&D ( ) License R&D ( ) Joint R&D ( ) Copy Legally ( )Describe what types of Product research and development will be done and WHY?WHO will you do this research and development?Where you will do the product or services research and development and explain why.Intellectual Rights Protection- this means defending your patents, copyrights or trade secrets. Page 198Aggressive Protection ( ) Selective Protection ( ) Litigate Aggressively ( ) Litigate when required ( ) Ignore Infringement ( ) NOTHING TO DEFEND ( )Explain how you will implement the strategy you selectedPRELIMINARY R&D COST ESTIMATES FOR FIRST YEAR. PAGE 199It is recommended that you think about the financial implications of the strategies you select as you proceed with the process and not wait the end. These estimates will be used when you create your “pro-forma income statement”. Research and Development/ product development funding required in the first year. The size and timing of the investment will depend on the option you select and the timing required: Record the estimated funding required $_ Review competitors expenditurescan us Percentage of sales to estimate the amount required Licensing fees. If you plan to license the technology from someone else. Indicated estimated fees $_Market/ Customer/ Competitive Research PAGE 199Market Research Own Primary ( %) Secondary ( %) None ( ) If you plan to use secondary market researchlist two key sources that you will use.Can be firms, publications, case studies, government publications etc Pages 147-149 How much will you spend on Market Research in the first year $_ProcessProvide an advantage of using primary/proprietary research1. -Customer Research Own Primary ( %) Secondary ( %) None ( ) If you plan to use primary researchlist two techniques you will use. If you plan to use secondary customer researchlist two key sources that you will use. How much will you spend on Customer Research in the first year $_Competitive Research Own Primary ( ) Secondary ( ) None ( ) If you plan to use primary researchlist two techniques you will use. If you plan to use secondary competitive researchlist two key sources that you will use. How much will you spend on Competitive Research in the first year $_Marketing and Sales Strategies Process Describe what private label branding is and when it is most appropriate. Give ONE example.Branding Strategies PAGE 201Own Exclusive Corporate Trade Mark ( ) Exclusive Corporate Brands/sub brands ( ) Private Label ( ) No Brand ( )Describe your branding strategy, including the specific brand or brands you plan to use.How much will you spend on getting trademarks and protecting your brand in the first year $_ProcessProvide one advantage and one disadvantage of using representative or agents.AdvantageDisadvantageSales Force Strategies PAGE 202Use percentages of the type of sales forcesType of Sales force- Indicate the percentage of the different types Own Proprietary ( %) Reps ( %) Agents ( %) Franchises ( %) Anyone ( %) Explain why you selected the type of sales force.Type of skills - Indicate the percentage of the different types Relationship ( %) Consultative ( %) Aggressive ( %) Order takers ( %) Explain why you selected the type of sales force.What type of TALENTS will be required to use the type of sales force you selected? (CHECK THOSE THAT ARE CRITICAL. Indicate how difficult it will be to get these skills.) DifficultyHIGHMEDIUMLOW Sales skills ( ) Negotiation skills, ( ) Presentation skills ( )Closing skills ( )Specialized product/ technical skills ( )ProcessDescribe when “high salary with no commission” is most appropriate:Pay and Total CompensationSalary Only ( ) High Salary/ Low Commission ( ) Low Salary/ High Commission ( ) Commission Only ( ) Explain why you selected the sales force PAY AND COMPENSATION plan.PRELIMINARY SALES FORCE FUNDING ESTIMATES- for FIRST YEAR. Number of sales people _ Average Salary for each sales person $_ Average Commissions or incentives per sales people $_ Average Benefits per sales people $_ Total Cost of Sales Force $_ Cost of Agents and Reps $_ Total Sales Expenses and Costs $_Sales Training and Development PAGE 205(Note this is only sales training not overall training)Who provides training? - Indicate the percentage of the different types In- House ( %) Exclusively External ( %) Public/ External ( %) Combinations ( )How Frequent?Scheduled ( ) Periodic ( ) When Needed ( ) None ( )Who participates?All Employees ( ) Only High Potential ( ) Unique subjects and skills ( ) Explain why you selected the type of training approaches. Describe your training programs. Major topics to be covered: If you are planning to use outsiders to do the training, list the key providers.Provider #1_Provider #2_PRELIMINARY SALES TRAINING ESTIMATES- for FIRST YEAR. Number of sales people trained in first year_ Average Training Costs per participant $_ Total Cost of Sales Training and Development $_Type of Sales Location/ Facilities PAGE 204Facilities - Indicate the percentage of the different types Premier ( %) Standard ( %)Low rent ( %) No sales location ( )Location Upscale malls ( %) Center City ( %) Suburban ( %) Low rent district ( )How many sales facilities will you open in the first year_? Describe the facilities and location. Explain why you selected the type of sales locations and facilities. If you are not using sales offices or stores explain WHY?PRELIMINARY SALES FACILITIES ESTIMATES- for FIRST YEAR. Number of Sales Outlets _ Average Rent per sales outlet $_ Average Operating Expenses per outlet $_ Taxes per sales outlet $_ Total Cost of Sales Outlets $_ProcessDescribe what “stock-outs” are and why they should be avoided:Finished Inventory and readiness to Serve Strategies PAGE 207In-advance ( ) Fast ( ) Just in Time ( ) Meet Competition ( ) Slow Response ( )First In First Out- FIFO ( )Last In First Out -LIFO ( ) Next In first Out- NIFO ( )Describe the where and how much inventory you must have in the first year.PRELIMINARY INVENOTRY COST ESTIMATES- for FIRST YEAR.Inventory Costs/ Finished Goods $ _ProcessDescribe the difference between “push” and “pull” and give an example of each: What is the difference between “push and pull” advertising? One example of a Push approach One example of a Pull approachPromotional and Advertising Strategies page 208Continuous ( ) Scheduled ( ) opportunistically ( ) As needed ( ) Little or none ( Pull ( ) Push ( ) Combination ( ) Co-op Promotions ( )Print ( %) Audio ( %) Visual ( %) Digital ( %)Describe your advertising and promotion strategies. Include: The message of your advertising