Hide Notes 

Slide 1: 150 Business Diagrams... Powered by www.drawpack.com. All rights reserved.
Slide 2: 150 Business Diagrams Drawpack.com offers these premium Business Diagrams for students and professionals around the globe for their personal use for free. Please enjoy these Business Diagrams. You can send these slides to your personal contacts who might be interested in Business Diagrams. For further information about our service please contact us: info@drawpack.com Please find our membership offer on www.drawpack.com
Slide 3: Key Words... Break-even – Financing Life Cycle – Economies of Scale – Elasticity – Sales Cycles – Market Potential – Portfolio Matrix – Product Model – Four P’s – Push/Pull Strategy – Marketing Mix – PDCA Cycle – SWOT – Value Chain – Ansoff Matrix – BCG Matrix – 7-S Model – Core Competencies – GE Business Screen – Nine Cell Industry – Risk/Reward Diagram – Porter’s Five Forces – Industry Competition – Generic Strategies – Geobusiness Model – Porter’s Diamond – Matrix Design – PIMS – Leavitt’s Diamond – Belbin’s Team Roles – Theory X/Y – Maslow’s Hierarchy – Herzberg’s Theory – Cultural Web – Pareto Curve – CIM Concept – Value Drivers Powered by www.drawpack.com; All rights reserved.
Slide 4: Markets and Structure of Flow Resources Money Resource markets Resources Money Taxes, goods Services, money Taxes, goods Services, money Manufacturer markets Government markets Taxes Services Consumer markets Services, money Taxes, goods Money Goods and services Middlemen markets Money Goods and services Powered by www.drawpack.com; All rights reserved.
Slide 5: A Company‘s Macroenvironment gi Le MACROENVIRONMENT ti o sl a og y Te c IMMEDIATE INDUSTRY & COMPETITVE ENVIRONMENT Suppliers Substitute n ol an hn d gu re lat io ns COMPANY Powered by www.drawpack.com; All rights reserved. Po The Economy at large pu la t io n de New Entrants m og ra ph ic s Rival Firms Buyers So ci al V u al es an d fe Li le s ty s
Slide 6: Break-even Point Value $ Sales Profit Break-even Point Variable costs Total costs Current sales level Fixed costs 0 0 Units sold Powered by www.drawpack.com; All rights reserved.
Slide 7: Break-even Chart 1200 Total revenue Dollars (in thousands) 1000 800 600 400 Target profit Total cost Fixed cost 200 0 10 20 30 40 50 Sales Volume in Units (in thousands) Powered by www.drawpack.com; All rights reserved.
Slide 8: Break-even Volume 35 30 25 $ Millions 20 15 10 5 0 Total Revenue Total Costs Fixed Expenses* 50 Powered by www.drawpack.com; All rights reserved. Profit Loss * Fixed Expenses = Marketing Expenses and Other Direct Expenses 100 Break-even Volume (90,000) 150 200 Units Sold (‘000)
Slide 9: Break-even Regions Cash flow Returned capital break-even Cash flow breakeven $ EVA break-even Opportunity cost based on capital risk assumed Cumulative revenue P&L break-even Powered by www.drawpack.com; All rights reserved.
Slide 10: Financing Life Cycle FFF & Angels Venture Capitalist Investment Banks & Banks Seed Capital & Early Stage Enterprise Cash Flow Early Growth Later Growth Enterprise Financing Mezzanine 3rd 2nd 1st Public Market Initial Public Offering Valley of Death Break-even point Time Emerging Growth Powered by www.drawpack.com; All rights reserved.
Slide 11: Demand and Supply S D F G Price E A S B 0 D Quantity Powered by www.drawpack.com; All rights reserved.
Slide 12: Economies of Scale Average cost LACs* Output *Long-run average costs (LACs) Increasing returns to scale, or economies of scale Powered by www.drawpack.com; All rights reserved.
Slide 13: Elasticity Price e=e = 0 (total inelastic demand) e=(total elastic demand) Price 8 e<-1 e=-1 e>-1 8 Quantity Quantity (-) P2 Price P1 P1 e=0 Price (+) (-) (+) P2 0 Quantity 0 Quantity Demand is elastic and expenditure increases when price falls from P1 to P2 Demand is inelastic and expenditure increases when price falls from P1 to P2 Powered by www.drawpack.com; All rights reserved.
Slide 14: Inelastic and Elastic Demand P2 Price P1 P’2 P’1 Q2 Q1 Quantity Demanded per Period (a) Inelastic demand Q’2 Q’1 (b) Elastic demand Quantity Demanded per Period Powered by www.drawpack.com; All rights reserved.
Slide 15: Sales and Profit Life Cycles Sales Sales and Profits ($) Profit Introduction Growth Maturity Time Decline Powered by www.drawpack.com; All rights reserved.
Slide 16: Market Potential, Market Volume, Market Share Volume or value Market potential Market volume Market share Time Powered by www.drawpack.com; All rights reserved.
Slide 17: The Product Life Cycle I Sales over profits Sales Profits Introduction Growth Maturiy Shake-out Decline Stages over Time Powered by www.drawpack.com; All rights reserved.
Slide 18: The Product Life Cycle II Unit Sales Volume Introduction Growth A B C Maturity Commodity or Decline Time Note: A = Moderate Growth, B = Commodity, C = Decline Powered by www.drawpack.com; All rights reserved.
Slide 19: The Life Cycle Portfolio Matrix THE BUSINESS UNIT‘S COMPETITIVE POSITION Strong Average Weak Development A C Growth B D F E THE INDUSTRY‘S STAGE IN THE EVOLUTIONARY LIFE CYCLE Competitive shakeout Maturity Saturation G Decline H Powered by www.drawpack.com; All rights reserved.
Slide 20: Patterns of Strategic Change Continuity Incremental Flux Global Powered by www.drawpack.com; All rights reserved.
Slide 21: The Whole Product Model Potential Product Augmented Product Expected Product Generic Product Powered by www.drawpack.com; All rights reserved.
Slide 22: The Product-Positioning Map High quality E A Low price B High price C D Low quality Powered by www.drawpack.com; All rights reserved.
Slide 23: The Four P‘s of McCarthy I Environment Environment Environment Product Place Price Promotion Environment Powered by www.drawpack.com; All rights reserved.
Slide 24: The Four P‘s of McCarthy II High quality Marketing Mix Product variety Quality Design Product Features Brand name Packaging Sizes Services Warranties Returns Channels Coverage Assortments Locations Inventory Transport Place Target Market Price List price Discounts Allowances Low quality Payment period Credit terms Promotion Sales promotion Advertising Salesforce Public relations Direct marketing Powered by www.drawpack.com; All rights reserved.
Slide 25: Push versus Pull Strategy Marketing activities Push Strategy Manufacturer Demand Intermediaries Demand End users Marketing activities Demand Pull Strategy Manufacturer Intermediaries Demand End users Powered by www.drawpack.com; All rights reserved.
Slide 26: The Expanded Marketing Mix Product Promotion Price Customer Service Place People Processes Powered by www.drawpack.com; All rights reserved.
Slide 27: The 6 – Step Marketing Plan 1 Situation (SWOT) firm market industry competition environment Action plan budget allocation product promotion price distribution 4 2 Objectives sales market share market expansion leadership satisfaction Strategy segment – target price / quality product positioning differentiation diversification Marketing Plan Forecasts quantify: costs sales profits market share Control 5 3 6 organization structure measurement tools check frequency => Corrective actions Powered by www.drawpack.com; All rights reserved.
Slide 28: The PDCA Cycle Plan Performance Act Check Do Path of continous improvement Time Powered by www.drawpack.com; All rights reserved.
Slide 29: Enterprise Management Process Decision Process Enterprise Structure Mission & Strategy Customer Satisfaction Value Improvement Benchmarking Enterprise Learning Powered by www.drawpack.com; All rights reserved.
Slide 30: SWOT Analysis Diagram Numerous environmental opportunities Cell 3: Supports a turnaroundoriented strategy Critical internal weaknesses Cell 4: Supports a defensive strategy Cell 1: Supports an aggressive strategy Substantial internal strengths Cell 2: Supports an diversification strategy Major environmental threats Powered by www.drawpack.com; All rights reserved.
Slide 31: SWOT Analysis I Strengths Weaknesses Opportunities Threats Powered by www.drawpack.com; All rights reserved.
Slide 32: SWOT Analysis II STRENGTHS / WEAKNESSES Firm, Organization • Market share • Key account share • Growth rate • Supply diversity • Influence • On market • Purchasing / selling deadline • New products cycles • Negotiation power - firm suppliers - customers • Firm competitivity - Product, service - Profitability, H.R., … • Segments invested in • Firm’s integration level • High-tech vulnerability OPPORTUNITIES / THREATS Environment, Market, Industry MARKET • Market size • Key account size • Annual growth rate • Market diversity • Price sensitivity • Seasonality • Cycles • Negotiation power - suppliers - consumers COMPETITION Powered by www.drawpack.com; All rights reserved. • Competitor types • Concentration level • Intrants / extrants • Market share evolution • Vertical / horizontal integration • Technology substitution
Slide 33: SWOT Analysis III STRENGTHS / WEAKNESSES Firm, Organization • Firm margins • Economies of scale • Barriers • Production capacity level OPPORTUNITIES / THREATS Environment, Market, Industry FINANCE / BUSINESS • Global benefits • Economies of scale • Barriers • Production capacity level • Adaptability to change • Expertise / Know-How • Patent ownership • Production technology TECHNOLOGY • Maturity / volatility • Complexity • Differentiation • Patents and copyrights • Production technology • Reactivity / Flexibility level • Adaptability • Agressiveness • Working relationships SOCIO - POLITICAL • Attitudes / Social trends • Laws and regulations • Pressure groups • Trade union activities Powered by www.drawpack.com; All rights reserved.
Slide 34: The Generic Value Chain I Support activities Human resource management Technology development Procurement Inbound logistics Operations Outbound logistics Marketing and sales Service gin Mar Firm infrastructure Primary activities Powered by www.drawpack.com; All rights reserved. Mar gin
Slide 35: The Generic Value Chain II FIRM INFRASTRUCTURE HUMAN RESOURCES MANAGEMENT TECHNOLOGY DEVELOPMENT PROCUREMENT MARGIN INBOUND LOGISTICS OPERATIONS OUTBOUND LOGISTICS MARKETING & SALES SERVICE Marketing Management Advertising Sales Force Administration Sales Force Operations Technical Literature Promotion Powered by www.drawpack.com; All rights reserved.
Slide 36: The Generic Value Chain III Firm infrastructure Human resources management Technology development Procurement Mar gin Mar gi Inbound logistics Operations Outbound logistics Marketing and sales Service n Primary Activities Powered by www.drawpack.com; All rights reserved.
Slide 37: The Ansoff Matrix I Current Products New Products Current Markets Market penetration Product development New Markets Market development Diversification Powered by www.drawpack.com; All rights reserved.
Slide 38: The Ansoff Matrix II PRODUCTS AND/OR SERVICES Existing New Existing Market penetration New product development MARKETS New Market development Diversification Powered by www.drawpack.com; All rights reserved.
Slide 39: The Customer Growth Matrix PRODUCTS AND/OR SERVICES Existing New Existing Customer loyalty Customer extension CUSTOMERS New Customer acquisition Customer diversification Powered by www.drawpack.com; All rights reserved.
Slide 40: Product-Market Diversification Broad Product Diversification Moderate Narrow Narrow Moderate Market Diversification Broad Powered by www.drawpack.com; All rights reserved.
Slide 41: BCG’s Growth-Share Matrix I RELATIVE MARKET SHARE High Low High MARKET GROWTH RATE Low Star Question Mark Cash Cow Dog Powered by www.drawpack.com; All rights reserved.
Slide 42: BCG’s Growth-Share Matrix II RELATIVE MARKET SHARE High A High B MARKET GROWTH RATE Low C D Star Low Question Mark E Divest F G Cash Cows Dog Present position in the corporate portfolio Divest Targeted future position in the corporate portfolio Powered by www.drawpack.com; All rights reserved.
Slide 43: BCG’s Growth-Share Matrix III RELATIVE MARKET SHARE 10x High 1.0x Low 0.1x Low MARKET GROWTH RATE Star businesses Question marks 10% High Cash generating businesses Dog businesses Powered by www.drawpack.com; All rights reserved.
Slide 44: BCG‘s Growth-Share Matrix IV 22% 20% 18% Stars 4 Question Marks 1 3 2 Market Growth Rate 16% 14% 12% 10% 8% 6% 4% 2% 10 x 1x 5 Cash Cows 6 7 Dogs 8 0.1 x Relative Market Share Powered by www.drawpack.com; All rights reserved.
Slide 45: The New BCG Matrix Many NUMBER OF APPROACHES TO ACHIEVE ADVANTAGE Few Fragmented Specialization Stalemate Volume Small SIZE OF ADVANTAGES Large Powered by www.drawpack.com; All rights reserved.
Slide 46: Underlying Relationship Between ROI and Market Share in the New BCG Matrix SIZE OF THE ADVANTAGE Small Stalemate ROI ROI Large Volume Few Market share Market share NUMBER OF WAYS TO ACHIEVE COMPETITVE ADVANTAGE ROI Fragmented ROI Specialization Many Market share Market share Powered by www.drawpack.com; All rights reserved.
Slide 47: McKinsey‘s Seven ‚S‘s Framework Structure Strategy Systems Superordinate Goals Skills Style Staff Powered by www.drawpack.com; All rights reserved.
Slide 48: Disruption and the New 7-S’s VISION PLANNING Vision for Disruption Identifying and creating opportunities for temporary advantage through understanding • Stakeholder Satisfaction • Strategic Soothsaying directed at identifying new ways to serve existing customers better or new customers that no one else serves now. Capability for Disruption Sustaining for momentum by developing flexible capacities for • Speed • Surprise that can be applied across many actions to build a series of temporary advantages Market Disruption Tactics for Disruption Seizing the initiative to gain advantage by • Shifting the Rules • Signaling • Simultaneous and Sequential Strategic Thrusts with actions that shape, mold, or influence the direction or nature of the competitors‘ responses. RESOURCE PLANNING PUNCH-COUNTERPUNCH PLANNING Powered by www.drawpack.com; All rights reserved.
Slide 49: Core Competencies I Banner Brand Business Units Core Products (Platforms) Core Competencies Powered by www.drawpack.com; All rights reserved.
Slide 50: Core Competencies II Processes Core Competencies Technologies Capabilities Powered by www.drawpack.com; All rights reserved.
Slide 51: Core Competencies III Low Company View High Competency 1 High Competency 5 Competency 4 Market View Competency 6 Competency 2 Low Competency 3 Powered by www.drawpack.com; All rights reserved.
Slide 52: The General Electric Business Screen COMPETITIVE POSITION Strong Average Weak Low INDUSTRY ATTRACITVENESS Medium High Powered by www.drawpack.com; All rights reserved.
Slide 53: Attractiveness/Competitive Position Strategies COMPETITIVE POSITION Strong Average Weak • Specialize • Seek niches • Consider acquisitions • Evaluate potential for •Grow leadership via •Seek dominance Segmentation •Maximize • Identify investment weaknesses • Build strengths • Identify growth segments • Specialize • Invest selectively High INDUSTRY ATTRACTIVENESS • Identify growth segments Medium • Invest strongly • Maintain position elsewhere • Maintain overall position • Seek cash flow • Invest at maintenance levels • Specialize • Seek niches • Consider exit Low • Prune lines • Minimize investment • Position to divest • Trust leader‘s statesmanship • Sic on competitor‘s cash generators • Time exit and divest Powered by www.drawpack.com; All rights reserved.
Slide 54: Company Position/Industry Attractiveness Screen Industry attractiveness Low Medium High HARVEST HOLD BUILD HARVEST HARVEST HOLD Powered by www.drawpack.com; All rights reserved. Low Medium Business unit strengths HOLD BUILD BUILD High
Slide 55: A Representative Nine-Cell Industry Attractiveness-Competitive Strength Matrix COMPETITIVE STRENGTHS/BUSINESS POSITION Strong Average Weak High Business F Business A LONG-TERM INDUSTRY ATTRACTIVENESS Medium Business C Business B Low Business E Business D High priority for investment Medium priority for investment Low priority for investment Powered by www.drawpack.com; All rights reserved.
Slide 56: GE / McKinsey Multifactor Portfolio Matrix INDUSTRY ATTRACTIVENESS Invest Invest Manage Selectively for Earnings BUSINESS STRENGTH Invest Manage Selectively for Earnings Harvest or Divest Manage Selectively for Earnings Harvest or Divest Harvest or Divest Powered by www.drawpack.com; All rights reserved.
Slide 57: Portfolio Positions and Defensive Strategic Market Plans Very Attractive Protect Market Attractiveness Protect Protect or Harvest Protect or Focus Protect or Focus Harvest or Divest Very Unattractive Very Weak Harvest or Divest Protect or Harvest Competitive Advantage Very Strong Powered by www.drawpack.com; All rights reserved.
Slide 58: Market Attractiveness – Portfolio Classification and Strategies BUSINESS STRENGHT 5.00 Strong Medium Joints High Weak Invest / grow Selectivity / earnings MARKET ATTRACTIVENESS 3.67 Hydraulic Pumps Clutches Medium 2.33 Flexible Diaphragms Relief Valves Fuel Pumps Aerospace Fittings Harvest / divest Low 1.00 5.00 3.67 2.33 1.00 (a) Classification Powered by www.drawpack.com; All rights reserved.
Slide 59: The Risk-Reward Diagrams High RISK Low High REWARD (NPV) Low Powered by www.drawpack.com; All rights reserved.
Slide 60: Contrasting Characteristics of Upstream and Downstream Companies Supply stages in a manufaturing industry (supply chain) Raw materials Primary manufacturer Product producer Consumer marketer Fabricator Retail Consumer Supply flow UPSTREAM ORGANIZATIONS Centre of gravity of a manufacturing industry DOWNSTREAM ORGANIZATIONS Contrasting characteristics of upstream and downstream companies Upstream Commodity Standardize Maximize end users Low-cost producers Sales push Line-driven organization Process innovation Capital budget Capital-intensive Technological know-how Supply and trading/manufacturing and engineering Downstream Proprietary Customize Target end users High margins Marketing pull Line/staff Product innovation R & D/advertising budget People-intensive Marketing skills Product development/marketing Powered by www.drawpack.com; All rights reserved.
Slide 61: Porter‘s Five Forces I Potential Entrants Threat new entrants Bargaining power of suppliers Suppliers Industry competitors Bargaining power of buyers Buyers Rivalry among existing firms Threat of substitute products Substitutes Powered by www.drawpack.com; All rights reserved.
Slide 62: Porter‘s Five Forces II Firms in other industries offering Substitute Products Suppliers of raw materials, parts, components or other resource inputs RIVALRY AMONG COMPETING SELLERS Buyers Potential New Entrants Powered by www.drawpack.com; All rights reserved.
Slide 63: Forces Driving Industry Competition Potential Entrants Threat of new entrants Suppliers Bargaining power of suppliers Industry competitors Bargaining power of buyers Buyers Rivalry among existing firms Threat of substitute products or services Substitutes Powered by www.drawpack.com; All rights reserved.
Slide 64: Barriers and Profitability EXIT BARRIERS Low High Low PROFITS=LOW RETURNS=STABLE PROFITS=LOW RETURNS=RISKY ENTRY BARRIERS PROFITS=HIGH RETURNS=STABLE PROFITS=HIGH RETURNS=RISKY High Powered by www.drawpack.com; All rights reserved.
Slide 65: Four Routes to Strategic Advantage Business/Product Offered Old/Existing KFS Compete (wisely) Route 1 Intensify funtional differentiation New/Creative Aggressive initiatives Route 3 Ask „why-why‘s“ Avoid head-on competition Route 2 Relative superiority Strategic degrees of Freedom Route 4 Exploit competitor‘s weakness Maximize user benefit Powered by www.drawpack.com; All rights reserved.
Slide 66: The Generic Strategies I Differentiation Cost Leadership Focus Powered by www.drawpack.com; All rights reserved.
Slide 67: The Generic Strategies II COMPETITIVE ADVANTAGE Lower Cost Differentiation Broad Target COMPETITIVE SCOPE Narrow Target Cost Leadership Differentiation Cost Focus Differentiation Focus Powered by www.drawpack.com; All rights reserved.
Slide 68: Five Modified Competitive Strategies TYPE OF COMPETITVE ADVANTAGE BEING PURSUED Lower Cost A Broad Cross-Section of Buyers Overall Low-Cost Leadership Strategy Best-Cost Provider Strategy Focused Differentiation Strategy Differentiation Broad Differentiation Strategy MARKET TARGET A Narrow Buyer-Segment (or Market Niche) Focused Low-Cost Strategy Powered by www.drawpack.com; All rights reserved.
Slide 69: Sweeney‘s Generic Strategies Strategic change involves enhancing The operation‘s structure Marketer Emphasizes • Quality • Dependability • Range Enhanced Innovator Emphasizes • Quality • Product/service • Performance • Speed • New product/service • Development Innovator Emphasizes • Quality • Product/service • Performance • Flexibility • Speed Enhanced Caretaker Emphasizes • Price/ cost • Dependability • Quality Traditional Powered by www.drawpack.com; All rights reserved. Strategic change involves enhancing the operation‘s infrastructure Customer service criteria Basic
Slide 70: Geobusiness Model CONTROL VARIABLES MOTIVATION VARIABLES CONDITIONING VARIABLES Powered by www.drawpack.com; All rights reserved.
Slide 71: Porter‘s Diamond FIRM STRATEGY, STRUCTURE AND RIVALRY FACTOR CONDITIONS DEMAND CONDITIONS RELATED AND SUPPORTING INDUSTRIES Powered by www.drawpack.com; All rights reserved.
Slide 72: Resource Allocation at Corporate Level PERCEIVED NEED FOR CHANGE Low High Low EXTENT OF CENTRAL DIRECTION High „Formula“ Imposed priorities Free bargaining Open competition Powered by www.drawpack.com; All rights reserved.
Slide 73: PIMS Competitive Strategy Paradigm Market structure •Market differentiation •Market growth rate •Entry conditions •Unionization •Capital intensity •Purchase amount Competitive position • Relative perceived quality • Relative market share • Relative capital intensity • Relative cost Strategy and tactics • Pricing • R & D spending • New product introduction • Change in relative quality and variety of products/services • Marketing expenses • Distribution channels • Relative vertical integration • Workforce productivity Performance • Profitability (ROS, ROI, etc.) • Growth • Cash flow • Value enhancement • Stock (share) price Powered by www.drawpack.com; All rights reserved.
Slide 74: International Strategy Options High Joint venture Foreign branch Foreign subsidiary PRODUCT DIVERSITY Licensing/ Joint venture Foreign branch Export Low Licensing/ Joint venture Low MARKET COMPLEXITY High Powered by www.drawpack.com; All rights reserved.
Slide 75: The Wheel of Competitive Strategy Product Line Target Market Finance and Control Marketing GOALS Definition of how the business is going to compete Objectives for profitability, growth, market share, social responsiveness etc. R&D Sales Purchasing Labor Manufacturing Distribution Powered by www.drawpack.com; All rights reserved.
Slide 76: Generic Competitive Strategies Return on Investment Market Share Powered by www.drawpack.com; All rights reserved.
Slide 77: The Strategic Triangle I Multiple market segments Target segments Customers ue al V V al ue Corporation Cost Competitors Product/service differentiation Powered by www.drawpack.com; All rights reserved.
Slide 78: The Strategic Triangle II Customers Needs seeking benefits at acceptable prices ue al V V al ue Assets and utilization Company Cost differentials Assets and utilization Competitor Powered by www.drawpack.com; All rights reserved.
Slide 79: Trilogy Strategy - Culture - Structure nm t en v En iro En v iro nm Strategy en t Structure Culture En v iro nm en t En ro vi nm t en Powered by www.drawpack.com; All rights reserved.
Slide 80: Optimum Degree of Formal Organization Organizational effectiveness Degree of formal organization Powered by www.drawpack.com; All rights reserved.
Slide 81: The Flow of Formal Authority Powered by www.drawpack.com; All rights reserved.
Slide 82: Functional, Divisional, Multidivisional Structures CEO Controlling CEO R&D Logistics Manufacturing Sales Finance Cement Concrete Chemicals CEO CEO Europe Europe Motor Marine Fire North America Motor Marine Fire Chemicals Asia Motor Marine Concrete Cement North America Asia Powered by www.drawpack.com; All rights reserved.
Slide 83: A Matrix Design FUNCTIONAL DEPARTMENTALIZATION Marketing Department Manager PROJECT DEPARTMENTALIZATION Alpha Project Project Leader Research and Development Department Manager Purchasing Department Manager Production Department Manager E E E E Beta Project Project Leader E E E E Gamma Project Project Leader E E E E Powered by www.drawpack.com; All rights reserved.
Slide 84: Models of Virtuality The Virtual Face Star-alliance Model Co-alliance Model Value-alliance Model Powered by www.drawpack.com; All rights reserved.
Slide 85: Leavitt‘s Diamond: The Interaction of Social Forces in an Organization Task Structure People Technology Powered by www.drawpack.com; All rights reserved.
Slide 86: Action-centred Leadership TASK NEEDS INDIVIDUAL NEEDS GROUP NEEDS Powered by www.drawpack.com; All rights reserved.
Slide 87: Belbin‘s Team Roles TEAM Shaper Company Worker Chairman ato Monitor-Evalu r orker mW Tea Plan t Finisher Resource-Investigator Powered by www.drawpack.com; All rights reserved.
Slide 88: Group Development Group effectiveness Stage V Adjourning Stage IV Performing Stage III Norming Stage II Storming Stage I Forming Time Powered by www.drawpack.com; All rights reserved.
Slide 89: Theory X and Theory Y Theory X confirms following Vicious circle of theory X strong rules and control leads to no responsability, no Initiative leads to passive work attitude strenghten Theory Y following no responsability, no Initiative leads to strong rules and control allow Strenghten effect of Theory Y passive work attitude Powered by www.drawpack.com; All rights reserved.
Slide 90: Maslow‘s Hierarchy of Human Needs I Self-Actualization Needs (self-development and realization) Esteem Needs (self-esteem, recognition, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst) Powered by www.drawpack.com; All rights reserved.
Slide 91: Maslow‘s Hierarchy of Human Needs II GENERAL EXAMPLES Achievement SelfActualization Needs ORGANIZATIONAL EXAMPLES Challenging Job Status Esteem Needs Job Title Friendship Belongingness Needs Friends in Work Group Stability Security Needs Pension Plan Shelter Physiological Needs Base Salary Powered by www.drawpack.com; All rights reserved.
Slide 92: Herzberg‘s Motivator-Hygiene Theory HYGIENE FACTORS MOTIVATORS •SALARY •ADMINISTRATION •SUPEVISION •COMPANY POLICY •STATUS •WORKING CONDITIONS •ACHIEVEMENT •RECOGNITION •RESPONSIBILITY •ADVANCEMENT •NATURE OF WORK Powered by www.drawpack.com; All rights reserved.
Slide 93: Parallels Among Need Theories of Motivation Herzberg‘s Two-Factor Theory Achievement Work Itself Responsibility Advancement and Growth Recognition Maslow‘s Hierarchy of Needs Self-Actualization Needs Self-Esteem Esteem Needs Respect of Others Relatedness Needs Alderfer‘s ERG Theory Other Key Needs Need for Achievement Need for Power Motivation Factors Growth Needs Supervision Interpersonal Relations Belongingness Needs Need for Affiliation Hygiene Factors Security Company Policies Interpersonal Security Security Needs Physical Security Physiological Needs Existence Needs Pay Working Conditions Powered by www.drawpack.com; All rights reserved.
Slide 94: Concern for people Managerial Grid 9 Country Club Management (1,9) Production is incidental to lack of conflict and „good fellowship“ Dampened Pendulum (5,5) 6 (Middle of the road.) Push for production but don‘t go „all out“. Give some but not all all: „be fair but firm“ Impoverished Management (1,1) Effective production is unobtainable becaus people are lazy, apathetic and indifferent. Sound and mature relationships are difficult to achieve because, (human nature being what it is) conflict is inevitable Task Management (9,1) Men are a commodity just as machines. A manager‘s responsibility is to plan, direct and control the work of those subordinate to him 8 Team management (9,9) Production is from integration of task and human requirements 1 2 3 4 5 7 1 2 3 4 5 6 7 8 9 Powered by www.drawpack.com; All rights reserved. Concern for production
Slide 95: Situational Leadership LEADER BEHAVIOUR Share ideas and facilitate in decisionmaking Explain decisions and provide opportunity for clarification S2 TE G IN LL (Supportive Behaviour) RELATIONSHIP BEHAVIOUR I IC RT PA TI PA NG G IN LL SE S3 EG AT IN G (LOW) Provide specific Turn over instructions responsibility for and closely decisions and supervise S4 implementation performance TASK BEHAVIOUR (Guidance) DE L S1 (HIGH) HIGH R4 Able and Willing or Confident FOLLOWER READINESS MODERATE R3 R2 Able but Unwilling Unable but Willing or Insecure or Confident LOW R1 Unable and Unwilling or Insecure FOLLOWER DIRECTED LEADER DIRECTED Powered by www.drawpack.com; All rights reserved.
Slide 96: Cultural Web Stories Rituals and routines Symbols THE PARADIGM Control systems Power structures Organizational structures Powered by www.drawpack.com; All rights reserved.
Slide 97: Dynamics of Paradigm Change The paradigm Development of strategy Implementation Corporate Performance if unsatisfactory Step 1 Tighter controls Step 2 Reconstruct or develop new strategy Step 3 Abandon paradigm and adopt new one Powered by www.drawpack.com; All rights reserved.
Slide 98: Four Organizational Cultures Power Culture Role Culture Task Culture Person Culture Powered by www.drawpack.com; All rights reserved.
Slide 99: Integrated Model of Strategic Management Vision, values, and expectations Strategy formulation • Alternatives • Evaluation and choice Mission Goals, objectives Policies and procedures Situation analysis • Enviromental opportunities/ threats • Organizational resources and competences Strategy implementation and planning Strategic control Why? What? How? Guidelines Powered by www.drawpack.com; All rights reserved.
Slide 100: M-O-S-T Mission WHAT Objectives an organization is seeking to do Strategy HOW Tactics an organization will achieve it Powered by www.drawpack.com; All rights reserved.
Slide 101: Network Analysis, PERT, CPA 5 2 6 A 0 1 0 B 4 4 3 4 5 KEY: Activity Critical path Event Earliest event time Event number Latest event time 5 9 F 9 5 D 1 E 5 H 3 2 C 4 8 G 4 6 12 12 7 Powered by www.drawpack.com; All rights reserved.
Slide 102: The Five Phases of Growth Large collaboration coordination "?" delegation SIZE OF ORGANIZATION red tape direction creativity leadership Young AGE OF ORGANIZATION control autonomy evolution: stages of growth revolution: stages of crisis Small Mature Powered by www.drawpack.com; All rights reserved.
Slide 103: The Chasm The Early Market The Chasm Te c En h n o l thu og s ia y st s Vi si o The Mainstream Market nar ies Pra g ma ti Co n st s se r vat Sk ive s ept ic s Powered by www.drawpack.com; All rights reserved.
Slide 104: Inventory Profile Steady and predictable demand (D) Order quantity Q Slope = demand rate Average inventory = Q / 2 Inventory level Q/D Instantaneous deliveries at rate of D / Q per period Time Powered by www.drawpack.com; All rights reserved.
Slide 105: Economic Order Quantity Total costs Costs Holding costs Economic order quantity (EOQ) Order costs Order quantity Powered by www.drawpack.com; All rights reserved.
Slide 106: Pareto Curve for ABC-Products Cumulative % of total value Class A items Class B items % of total number of items Class C items Powered by www.drawpack.com; All rights reserved.
Slide 107: CIM-Concept CIM CAD/CAM CAD C PPS Production Programm Planning Quantity Planning CAP A Time and Capacity Planning Place Order CAM D Control Order Powered by www.drawpack.com; All rights reserved.
Slide 108: The Business Process Re-engineering Approach Micro operations Function 1 Function 2 Function 3 Function 4 Customer needs fulfilled Customer needs fulfilled Activity 1 Activity 2 Activity 3 Activity 4 Powered by www.drawpack.com; All rights reserved. Business processes Micro operations Customer needs Business processes Customer needs
Slide 109: Total Quality Management • • • • • • • • • Whole operation involved Quality srategy Teamwork Staff empowerment Involves customers and suppliers Quality systems Quality costing Problem solving Quality planning Inspection Quality control • Statistical methods • Process performance • Quality standards • Error detection • Rectification Quality assurance Total quality management Powered by www.drawpack.com; All rights reserved.
Slide 110: Supply Chain Management Second-tier suppliers First-tier suppliers First-tier customers Second-tier customers The Operation Supply side Purchasing and supply management Demand side Physical distribution management Logistics Materials management Supply chain management Powered by www.drawpack.com; All rights reserved.
Slide 111: Internal Rate of Return (IRR) Main methods of capital expenditure appraisal Return on Investment ROI Pay Back Discounted Cash Flow (DCF) Net Present Value (NPV) Internal Rate of Return (IRR) Powered by www.drawpack.com; All rights reserved.
Slide 112: Net Present Value (NPV) Main methods of capital expenditure appraisal Return on Investment (ROI) Pay Back Discounted Cash Flow (DCF) Internal Rate of Return (IRR) Net Present Value (NPV) Powered by www.drawpack.com; All rights reserved.
Slide 113: Variance Analysis Profit Variance Total Cost Variance Total Sales Variance Materials Price Variance Labour Variance Variable Overhead Variance Fixed Overhead Variance Sales Volume Variance Sales Price Variance Materials Price Variance Materials Usage Variance Wage Rate Variance Labour Efficiency Variance Powered by www.drawpack.com; All rights reserved.
Slide 114: The Link Between the Balance Sheets and the Income Statement Balance Sheet December 31, 2001 Liabilities $100 Owner‘s equity $70 Revenues $480 Income Statement Year 2002 Balance Sheet December 31, 2002 Assets $170 Assets $190 Expenses $469.8 Liabilities $113 Owner‘s equity $77 Net Profit $10.2 Retained earnings $7 Dividends $3.2 Powered by www.drawpack.com; All rights reserved.
Slide 115: Working Capital Simple cycle of operations Cash Receivables Raw materials inventory Finished goods inventory Powered by www.drawpack.com; All rights reserved.
Slide 116: Financial Strategy Framework Due dilligence process Investor Investment strategy Alternative Investments Time to close deal Risk/Reward Space Financial Strategy Opportunity Debt Entrepreneurial concerns Time to out of cash Future alternatives Burn Rate Operating Requirements Working Capital Sources and Deal Structure Equity Other Financial Requirements Business Strategy Market Strategy Asset Requirement Technological Strategy Powered by www.drawpack.com; All rights reserved.
Slide 117: Investor Perceived Risk-Return Space Angels High FFF VCs Entrepreneur PERCEIVED RETURN Moderate Realistic Investors Low Banks Low Moderate PERCEIVED RISK High Powered by www.drawpack.com; All rights reserved.
Slide 118: Du Pont Scheme Return on equity Earnings after tax ROE = Owner‘s equity Return on invested capital ROIC = Earnings before interest and tax Invested capital Financial leverage multiplier Tax effects Operating profit margin Earnings before interest and tax Sales Capital turnover Sales Invested capital Financial structure ratio Invested capital Owner‘s equity Financial cost ratio Tax effect ratio Earnings before tax Earnings after tax Earnings before interest and tax Earnings before tax Sales Operating costs Invested capital Cash Working Capital requirement Fixed assets Owner‘s equity Cost of debt Tax rate Powered by www.drawpack.com; All rights reserved.
Slide 119: The Drivers of Value Creation EBIT Operating margin = Sales Sales Capital turnover = Invested capital Tax effect = (1 – Taxe rate) Aftertax cost of debt Estimated cost of equity Percent of debt financing EBIT Invested capital (pretax ROIC) Expected after tax ROIC Return spread (ROIC – WACC) Weighted average cost of capital WACC Market Value Added (MVA) If the present value of the future stream of expected return spreads is positive, MVA is positive and the higher the growth, the more value created. If the present value of the future stream of expected return spreads is negative, MVA is negative and the higher the growth, the more value destroyed. Percent of equity financing Economic, political, and social environments Market structure Competitive advantages and core competencies Sustainability of growth Powered by www.drawpack.com; All rights reserved.
Slide 120: Business Design Process Economics What are the key assumptions About customers and economics? What‘s important to customers? How can profit be made? What dimensions matter the most? What are my choices now? In the future? Changing Customer Priorities Technology Which ones are best? Are the best choices internally consistens integratable? What‘s my best business design? How long will this design be valid? How can I prepare for ongoing redesign? Powered by www.drawpack.com; All rights reserved.
Slide 121: The Company Center of Gravity The Entrepreneurial Phase The Growth Phase The Success Phase The Center of Gravity The Center of Gravity The center of gravity The Company The Customers The Company The Customers The Company The Customers Powered by www.drawpack.com; All rights reserved.
Slide 122: The Traditional Value Chain The Traditional Value Chain Start with Assets, Core Competencies Assets/ Core Competencies Inputs, Raw Material Product/ Service Offering Channels The Customer The Modern Value Chain Start with the Customer The Customer Channels Offering Inputs, Raw Material Assets/ Core Competencies Powered by www.drawpack.com; All rights reserved.
Slide 123: The Modern Value Chain Truly Understanding the Customer Purchase Criteria Customer Anger Preferences Power Decision-Making Process Purchase Occasion Buyer Behavior Functional Needs Systems Economics Customer Priorities Channels Offering Inputs, Raw Material Assets/ Core Competencies Powered by www.drawpack.com; All rights reserved.
Slide 124: Customer Solutions Profit Profit 0 Powered by www.drawpack.com; All rights reserved.
Slide 125: Product Pyramid Profit Price Volume Powered by www.drawpack.com; All rights reserved.
Slide 126: Multicomponent Profit Base Business Other Components Powered by www.drawpack.com; All rights reserved.
Slide 127: Switchboard Profit Buyers Sellers Powered by www.drawpack.com; All rights reserved.
Slide 128: Time Profit $/Unit Cost Price Time Powered by www.drawpack.com; All rights reserved.
Slide 129: Blockbuster Profit $/Project Revenue Cost Project Type Powered by www.drawpack.com; All rights reserved.
Slide 130: Profit Multiplier Model Other Forms Key Asset Powered by www.drawpack.com; All rights reserved.
Slide 131: Entrepreneurial Profit Base Business Spin-Outs Powered by www.drawpack.com; All rights reserved.
Slide 132: Specialization Profit Return on Sales Generalist Specialist Powered by www.drawpack.com; All rights reserved.
Slide 133: Installed Base Profit Profit Margin Hardware/Base Product Consumables/ Follow-on Product Powered by www.drawpack.com; All rights reserved.
Slide 134: De Facto Standard Profit Profit Margin Market Share Powered by www.drawpack.com; All rights reserved.
Slide 135: Brand Profit Price/Unit Market Price Brand Price Powered by www.drawpack.com; All rights reserved.
Slide 136: Specialty Product Profit 100 % S Revenue S C C Five Years Ago Today Powered by www.drawpack.com; All rights reserved.
Slide 137: Local Leadership Profit Profitability by Region 0 Local Market Share Powered by www.drawpack.com; All rights reserved.
Slide 138: Transaction Scale Profit $/Unit Revenue Cost Size of Transaction Powered by www.drawpack.com; All rights reserved.
Slide 139: Value Chain Position Profit Powered by www.drawpack.com; All rights reserved.
Slide 140: Cycle Profit Price $/Unit Cost Utilization Powered by www.drawpack.com; All rights reserved.
Slide 141: After-Sale Profit Base Product Follow-on Products/Services Powered by www.drawpack.com; All rights reserved.
Slide 142: New Product Profit Time Powered by www.drawpack.com; All rights reserved.
Slide 143: Relative Market Share Profit Return on Sales Relative Market Share Powered by www.drawpack.com; All rights reserved.
Slide 144: Experience Curve Profit Cost/Unit Cumulative Experience Powered by www.drawpack.com; All rights reserved.
Slide 145: Low-Cost Business Design Profit $/Unit Conventional Business Design Low Cost Business Design Powered by www.drawpack.com; All rights reserved.
Slide 146: GE's Business Design: „Sell the Solution, Not Just the Box“ Sell the Box, or ... Product ... Sell the Whole Solution The Profit Zone Product Options Accessories Financing Services Powered by www.drawpack.com; All rights reserved.
Slide 147: The SMH Product Pyramid The Profit Zone Blancpain Omega, Longines, Rado Tissot, Certina, Mido, Pierre Balmain, Hamilton, Calvin Klein Swatch, Flik Flak Endura Lanco Powered by www.drawpack.com; All rights reserved.
Slide 148: Coca-Cola's Business Design: Manage the Value Chain Distribution Consumer Grocery Fountain Vending 1996 Logistics Bottling Syrup Coca-Cola Mega Brand Coca-Cola, diet CocaCola, Caff. Free, diet Caff. Free, Cherry, Diet Cherry Logistics Bottling 1980 Syrup Coca-Cola Brand Distribution Consumer Grocery Fountain Vending The Profit Zone Coca-Cola‘s participation, influence no participation Powered by www.drawpack.com; All rights reserved.
Slide 149: The Charles Schwab "Switchboard" Investors Mutual Fund Companies Investors Mutual Fund Companies The Profit Zone Schwab One Source Powered by www.drawpack.com; All rights reserved.
Slide 150: Intel's Business Design: „Two Steps Ahead“ The Profit Zone Intel $/Unit AMD Cost Price Q2 Q4 Q6 Q8 Q10 Quarters Post-Launch Powered by www.drawpack.com; All rights reserved.