Planning Techniques

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8/26/2011

PLANNING TECHNIQUES
1. 2. 3. 4. 5. 6.

SEVEN PLANNING TECHNIQUES
A Framework/Methodology

7.

Stages of growth Critical Success Factors Competitive Forces Model Value Chain Analysis Internet Value Matrix Linkage Analysis Planning Scenario Planning

STAGES OF GROWTH


CRITICAL SUCCESS FACTORS
1977 Jack Rockart, Center for Information Systems Research (CISR), Sloan School of Management, MIT  A method for defining executive information systems needs  Focuses on individual managers and their current information system needs  

It was observed that organizations go through 4 stages in the introduction and assimilation of a new technology:      

Stage 1: Early Successes Stage 2: Contagion Stage 3: Control Stage 4: Integration Stage 5: Data Administration Stage 6: Maturity

CRITICAL SUCCESS FACTORS: SOURCES
 Few

CRITICAL SUCCESS FACTORS
 One

key areas where things must go right for the organization to flourish  Fewer than 10 (to be monitored)  Time sensitive and time dependent (reexamined often)  Has four sources of these factors    

way to use CSF : use current corporate objectives and determine which factors are critical for accomplishing the objectives  Discovering measures is the most time consuming part  

Industry Company itself Environment Temporal organizational

Some are hard, factual data – quickly identified Softer measures – opinions, perceptions

 IS

can then be developed based on these CSFs

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COMPETITIVE FORCES MODEL
Michael Porter, Harvard Business School (in the book Competitive Strategy)  He believes companies must contend with five forces as shown in the diagram 

FIVE COMPETITIVE FORCES
Threat of new entrants into one’s industry Bargaining power of buyers  Bargaining power of suppliers  Substitute products or services  Intensity of rivalry among competitors  

THREAT OF NEW ENTRANTS


BARGAINING POWER OF BUYERS
 Buyers

Many new entrants = decrease profitability (for all firms in the industry ) 

Perfect competition =profit rate moves towards zero



Most attractive segment = entry barriers are high and exit barriers are low. 

Few new firms can enter and non-performing firms can exit easily.

are the people / organisations who create demand in an industry  Buyers seek lower prices and higher quality  The bargaining power of buyers is greater when:     



Industry profitability - the more profitable the industry the more attractive it will be to new competitors 

i.e. High entry barriers exist in some industries (e.g. shipbuilding) whereas other industries are very easy to enter (e.g. estate agency, restaurants)

There are few dominant buyers and many sellers in the industry Products are standardised Buyers threaten to integrate backward into the industry Suppliers do not threaten to integrate forward into the buyer's industry The industry is not a key supplying group for buyers

BARGAINING POWER OF SUPPLIERS
The power of suppliers tends to be a reversal of the power of buyers  Customers are fragmented (not in clusters) so that they have little bargaining power e.g. Gas/Petrol stations in remote places  Power is high where the brand is powerful e.g. Microsoft 

BARGAINING POWER OF SUPPLIERS
 The
  

bargaining power of suppliers will be high when:
There are many buyers and few dominant suppliers There are undifferentiated, highly valued products Suppliers threaten to integrate forward into the industry (e.g. brand manufacturers threatening to set up their own retail outlets) Buyers do not threaten to integrate backwards into supply The industry is not a key customer group to the suppliers

 

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THREAT OF SUBSTITUTES
The presence of substitute products can lower industry attractiveness and profitability because they limit price levels  The threat of substitute products depends on: 

THREAT OF SUBSTITUTES
 Where...
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