Auditing

Resource audit considering how well and how badly resources have been utilised and whether the organisations system are effective and efficient Resources can be the following: Material Inputs Culture and organisational structure Human resources Management Fixed assets Working capital Financial Intangible assets -Knowledge

Auditing
Limiting Factors: Factors that may limit the activity of the organization Examples: Shortage, knowledge, distribution network, lack of money Required Actions 1. In the short term, make best use of the resources available 2. Try to reduce the limitation in the long-term However, resources need effectiveness and efficiency to be used

Core Competencies & CSF

Competency(What organisation able to do) can be gained by experience, having talent staff and high level of co-ordination. Distinctive competence: is what is does well or better than its rivals CSF: are those factors on which the strategy is fundamentally dependent for its success. (necessary thing to achieve the objectives) Key tasks: what must be done to ensure critical success factors is satisfied Prioritizing tasks
Relationship between CSD and competencies:

Competencies fulfill the CSF

OUTPUTS
Planner should assess products in three ways 1. Stage of its life cycle 2. Product remaining life 3. How urgent is the need to innovate Another techniques to examine product is Boston Matrix (BCG-Boston Consulting Group)

http://tutor2u.net/business/gcse/marketing_product_portfolio_boston_matrix.htm

Relative Market Share

High Low

Stars
High

Question Marks

Market Growth Rate

High growth & share Profit potential May need heavy investment to grow

High growth, low share Build into Stars or phase out Require cash to hold market share

Cash Cows
Low growth, high share Established, successful SBUs Produce cash

Dogs
Low growth & share Low profit potential

Low

Marketing Audit & the customer base

Size of customer base Size of individual orders Sales revenue and profitability Segments Market shares Growth Situation of Demand(stable or decline) Whether demand is price sensitive or not

Marketing Audit & the customer base

Customers Key customer analysis calls for seven main areas of investigation. 1. Customers identity(Name, Location, 2. Customer history(Order size and frequency) 3. Relationship of customer to product
Purchased to resold Part of the customer s services?

4.

Relationship of customers to potential market

Size of customers Is the customer willing to buy from another market

5.

Customer attitude and behaviour

1. 2. 3. Emotional factors Do the customer also but from competitors Purchase postponed

Customers base
6.

Financial performance of the customer

How successful in his own business

7.

Profitability of selling to customer

Contribution to the overall profits Financial consequence of losing the customer Is the customer buying in order size that are unprofitable to supply Level of inventory required to supply these customers