Reference no: EM132407404
STRATEGIC TOOLS AND KPIs
Strategic Planning Strategic Tools
Porter’s 5 Forces Model
Questions:
Discuss and summarize a plan to address the following concerns:
1. Consider each of these principles as they relate to your proposed business. Who are your direct competitors and how can you compete against them? (use Porter’s Grand Competitive model to define your strategy)
2. What are the chances of other donut shops entering your market over the next year? Two years? Five years? How can you minimize the threat?
3. What risks exist of someone entering your market with a substitute product? What substitute products could be offered that would compete with your product? What strategy can you use to minimize the threat?
4. How can you maintain leverage over both your suppliers? How can you maintain your customer base?
PESTLE Toolkit
In order to begin accumulation of basic information, you will utilize the PESTLE tool and perform a basic PESTLE analysis, covering specific areas that are of strategic concern.
Your team assignment is to discuss and prepare a list of topics that should be considered from a strategic business point of view, listing topics of concern under each of the PESTLE categories:
Political, Economic, Social, Technological, Legal, and Environmental
Net Promoter Score (NPS)
Exercise 1:
A company surveyed 1,000 customers with the question: “How likely would you be to recommend the product from this company to a friend?” A likert scale was used to record responses which was labeled as:
0 = Not likely at all
5 = Neutral
10 = Very likely
The responses of customers were recorded as follows:
|
Scores
|
Counts
|
|
0
|
1
|
|
1
|
2
|
|
2
|
0
|
|
3
|
0
|
|
4
|
2
|
|
5
|
5
|
|
6
|
10
|
|
7
|
110
|
|
8
|
170
|
|
9
|
400
|
|
10
|
300
|
Calculate the percentage of net promoters, net passive, and net detractors and discuss the results of NPS calculations.
Exercise 2:
Discuss the interrelationship between Net Promoter Score and organizational strategy? How can NPS values depict the success or failure of an organization’s strategy?
Non-Financial KPIs
Exercise 1:
List and describe at least 5 non-financial KPIs for a hotel business.
Exercise 2:
Differentiate between financial and non-financial KPIs.
Operating Profit Margin (OPM)
Exercise 1:
If Christie’s Jewelry Store sells custom jewelry to celebrities all over the country. Christie reports the follow numbers on her financial statements:
• Cost of Goods Sold: $500,000Net Sales: $1,000,000
• Rent: $15,000
• Wages: $100,000
• Other Operating Expenses: $25,000
Calculate the OPM of the store and interpret the results.
Exercise 2:
A company has gross sales of $20 million, and cost of goods sold plus operating expenses of $15.4 million. What will be the OPM for this company?
Attachment:- KPI Strategic Planning.rar