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System Thinking Chapter 1Causal Loop Diagrams A useful way to represent dynamicinterrelationships Provideavisualrepresentationwithwhichto communicatethatunderstanding Make explicit one's understanding of asystemstructure-Capturethementalmodel TWO BASIC PROCESSES•Reinforcing •BalancingMARKET SEGMENTA...

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System Thinking Chapter 1

Causal Loop Diagrams • A useful way to represent dynamicinterrelationships • Provideavisualrepresentationwithwhichto communicatethatunderstanding • Make explicit one's understanding of asystemstructure-Capturethementalmodel

TWO BASIC PROCESSES •Reinforcing •Balancing

CHAPTER 2 MARKETING CONCEPTS

MARKET Customers who have purchased or want to purchase a certain product or service

MARKETING PROCESS Three elements:

1. Market analysis(Who will buy?) 2. Marketing-mix planning(What? Where? How much? How?) 3. Marketing control(Have we been successful?)

MARKET SEGMENTATION Dividing the market into parts that reflect different customer needs and wants

TARGET MARKET & POSITIONING

Target Market Set of customers sharing common needs and wants that a business decides to target

MarketPositioning •Business need to decide how to compete in these segments •Valueproposition •The place a product occupies in customer minds relative to competing products

MARKET POSITIONING (MAP) Illustrates the range of “positions” that a product can take in a market based on two dimensions that are important to customers

POSSIBLE POSITIONING STRATEGIES

1. Offer more for less priceEg: Good quality at low price 2. Offer more for moreEg: High priced luxury products with prestige value 3. Offer more for the sameEg: Introduce new features & better performance for the same price 4. Offer less for much lessEg: no-frills low cost flying & hotels

MARKETING MIX PLANNING (4 P) = developing a tactics to achieve strategic aims , Aim: to make customers from the target group buy

Elements: a)Product b)Price c)Place d)Promotion

PRODUCT

 traditional economies: same things produced and consumed 

nowadays: -products have a life cycle-product range is constantly expanded-find out what target market desires

PROMOTION Aims:communicate with customersinfluence customers 4 major tools: 1.Sales force 2.Advertising 3.Sales promotion 4.Public relations

TOOL 1. SALES FORCE Representatives who advertise for and sell products they personalize the promotion  

effective at selling complex goods most expensive promotion

MARKETING ENVIRONMENT ▪ The marketing environment consists of actors and forces outside the organization that affect management’s ability to build and maintain relationships with target customers. ▪Environment offers both opportunities and threats .▪Marketing intelligence and research used to collect information about the environment.

Includes:

▪Microenvironment: actors close to the company that affect its ability to serve its customers. ▪Macroenvironment: larger societal forces that affect the microenvironment.▪Considered to be beyond the control of the organization.

THE COMPANY’S MICROENVIRONMENT ▪Company’s Internal Environment:Areas inside a company. ▪Affects the marketing department’s planning strategies. ▪All departments must “think consumer” and work together to provide superior customer value and satisfaction.

ACTORS IN THE MICROENVIRONMENT

Suppliers: ▪Provide resources needed to produce goods and services. ▪Important link in the “value delivery system.” ▪Most marketers treat suppliers like partners.

Marketing Intermediaries:

▪Help the company to promote, sell, and distribute its goods to final buyers ▪Resellers▪ Physical distribution firms▪ Marketing services agencies▪ Financial intermediaries

Customers: ▪Five types of markets that purchase a company’s goods and services •Customer Market •Business Market •Reseller Market •Government Market •International Market

Competitors: ▪Those who serve a target market with products and services that are viewed by consumers as being reasonable substitutes ▪Company must gain strategic advantage against these organizations

Publics: ▪Group that has an interest in or impact on an organization's ability to achieve its objectives ▪Financial publics▪ Media publics▪ Government publics▪ Citizen-action publics▪ Local publics ▪General public ▪Internal publics

Demographic forces:

▪The study of human populations in terms of size,density,location,age,gender,race,occupation,andotherstatistics. ▪Marketers track changing age and family structures,geographic populationshifts,educational characteristics,and population diversity.

NaturalForces: ▪Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.

Technological Forces: ▪Changes rapidly. ▪Creates new markets and opportunities .▪Challenge is to make practical, affordable products. ▪Safety regulations result in higher research costs and longer time between conceptualization and introduction of product.

CulturalForces :▪Theinstitutions and other forces that affect a society’s basic values,perceptions,preference,and behaviors. ▪Core beliefs and values are passed on from parents to children and are reinforced byschools,churches,business,andgovernment. ▪Secondary beliefs and values are more open to change.

▪Strengths-internal attributes and resources that support a successful outcome. ▪Weaknesses-internal attributes resources that work against a successful outcome. ▪Opportunities-external factors the project can capitalize on or use to itsadvantage. ▪Threats-external factors that could jeopardize theproject.

ANSOFF MATRIX

The Ansoff Matrix is the base to compare the relationship between General Strategic Direction and Marketing Strategies.

MARKET DEVELOPMENT

PRODUCT DEVELOPMENT

MARKET DIVERSIFICATION

CHAPTER 3 FINANCE AND ACCOUNTING PRINCIPLES

Refer to oringal class 2 slides pg 31 for balance sheet

CHAPTER 4 SUPPLY CHAIN MANAGEMENT

INTEGRATING TECHNOLOGY AND STRATEGY

Purpose of this Study:Help someone responsible for the overall strategic management of an organization or autonomous business unit deal with issues of technology and innovation

Key Concepts.  

Technological innovation and their interrelations Integration of technology with corporate strategy

CHAPTER 1 TECHNOLOGICAL INNOVATION •Technology is the theoreticaland practical knowledge, skillsand artifactsthat can be used to develop products and services •Technology can be embodied in people, materials, cognitiveand physical processes, plant, equipmentand tools

Invention vs Discovery

 

A discovery is recognizing something that already exists for the first time, that nobody has found before. An inventionis creating something totally new with one’s own ideas and development.

Basic Research: refers to activities involved in generating new knowledge Example: •How did the universe begin? •Discovery of chlorpromazine, a drug used in the treatment of schizophrenia •Discovery of x-rays which led to studying bone fractures •What are protons, neutrons and electrons composed of •What are the genetic code of fruit fly

•Applied Research: geared towards solving particular technical problems

Example:•improve agricultural crop production •treat or cure a specific disease •improve the energy efficiency of homes, offices, or modes of transportation

•Technological Innovation:is a concept developed within thescientific field of innovation studies which serves to explain the nature and rate of technological change. •Innovation Process:defined as the combined activities leading tonew, marketable products and services and/or new production and delivery systems. •Technological Entrepreneurship:refers to activities that createnewresourcecombinationstomakeinnovationpossible,bringing together the technical and commercial worlds in a profitableway.

A FRAMEWORK FOR DEFINING INNOVATION

CHAPTER 1 EXPLORING THE LIMITS OF THE TECHNOLOGY S-CURVE S-curve •Graph of time versus technical performance •Graph indicates technological evolution •Example: camera

S-curve •Graph of time versus technical performance •Graph indicates technological evolution

PATTERNS OF INDUSTRIAL INNOVATION

DETERMINANTS OF TECHNOLOGY STRATEGY

STRATEGIC ENTREPRENEURSHIP The use of entrepreneurial actions based on a strategic perspective

SUCCESSFUL ENTREPRENEURSHIP The key to success with entrepreneurship and innovation is moving from the invention of ideas to effective commercializationand acceptance in the marketplace...