Planning Techniques

1722 Words Sep 24th, 2011 7 Pages
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:
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email for fax Where there is substitution of need e.g. better toothpaste reduces the need for dentists.  Where there is generic substitution (competing for the currency in your pocket) e.g. Video suppliers compete with travel companies.  We could always do without e.g. cigarettes.

COMPETITIVE RIVALRY
This is most likely to be high where entry is likely; there is the threat of substitute products, and suppliers and buyers in the market attempt to control.  This is why it is always seen in the center of the diagram  The intensity of rivalry among firms varies across industries, and strategic analysts are interested in these differences.


COMPETITIVE RIVALRY
Economists measure rivalry by indicators of industry concentration  The Bureau of Census periodically reports the CR for major Standard Industrial Classifications (SIC 's)  The CR indicates the percent of market share held by the four largest firms


COMPETITIVE RIVALRY
A

COMPETITIVE RIVALRY
 If

high concentration ratio indicates that a high concentration of market share is held by the largest firms - the industry is concentrated.  With only a few firms holding a large market share, the competitive landscape is less competitive (closer to a monopoly).  A low concentration ratio indicates that the industry is characterized by many rivals, none of which has a significant market share.  These fragmented
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