Fast Food
Chapter Three
Situational Analysis
-is an important step in the strategic marketing planning process, used to summarize all of the important aspects of a firm’s internal and external environment
Internal Analysis
-involves an assessment of a firm’s resources and capabilities to indentify its strengths and weaknesses
Strengths – areas that can be used as sources of competitive advantage
Weaknesses – areas in which the organization is deficient and are sources of competitive disadvantage
Marketing sensing – entails all the activities needed to understand customers’ needs and competitor behaviour
Customer relating - involves creating relationships with valuable customers
Management – refers to part of company’s org and human resources; org resources are those companywide variables such as structure, culture, policies , systems and controls; human resources consist of skills, knowledge, and expertise of employees
Production – business success requires firms have strong production and operation capabilities and excellent quality control procedures to ensure product quality, low defect rates and customer satisfaction
Finance – include cash reserves, financing from a parent company, borrowing ability, ability to raise capital, debt levels
Research and Development – essential part of internal analysis is to examine firms research and development capabilities, including technological research, product design, and innovation skills; important for firms that compete on product innovation and are seeking first mover advantages
Strengths and Weaknesses
-purpose of internal analysis is to assess the organization’s resrouces and capabilities and draw up list of strengths and weaknesses
-an objective evaluation of s and w is necessary for company that wants to grow and compete effectively
-evidence says that managers rarely agree on s and w of org
-another common mistake is defining s relative to past performance instead of...
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