Group 4

+ANSOFF MATRIX

STAKEHOLDER

MANAGEMENT

ANALYSIS

SWOT ANALYSIS TOWS MATRIX

STRATEGIC

MANAGEMENT

ANALYSIS TOOLS

+ 1. Ansoff Matrix

PRODUCT MARKET

How to grow business /

organization through existing or

new products OR in existing or

new markets.

Help to assess and analyze

different degree of risk

associated with moving the

organization forward

4 growth strategies

i. Market Penetration

ii. Market Development

iii. Product Diversification

iv. Product Development

Example:

A business that operates in an

expanding market can grow

through market penetration.

A business in a mature, stable

market may choose to grow either

through market development or

product development depending

on its internal strengths.

If neither of these offers sufficient

potential, a business may consider

diversification to achieve further

growth

+ 1. Ansoff MatrixIncreasing risk

Increasing risk

Based on recommended strategies identified using SPACE matrix, IE Matrix

+ Strategic planning tool that provides a framework to help executives,

senior managers, and marketers devise strategies for future growth.

4 growth strategies alternative:

1. Market Penetration – An organization tries to grow using its

existing offerings (products and services) in existing markets. In

other words, it tries to increase its market share in current market

scenario.

2. Market Development – An organization tries to expand into new

markets (geographies, countries etc.) using its existing offerings.

3. Product Development – Organization tries to create new

products and services targeted at its existing markets to achieve

growth.

4. Diversification - In diversification, an organization tries to grow

their introducing new offerings in new markets. It is the most risky

strategy because both product and market development is

required.

1. Ansoff Matrix

+EXAMPLES

Penetration:

Existing product to the existing customers - changing pricing, adding minor

features , changing packaging (size), highlighting alternative uses (eg.

Chocolate as a seasonal gift)

Product Development:

New/improved product in existing market – Burger with salads (Mcdonald),

new variety of chocolate (Kitkat Rubies), Go Shop service (ASTRO)

Market Development:

Existing product in different markets - Mcdonald (opening new outlet), CIMB

– Indonesia branch,

Diversification:

Requires product and market development – Mcdonald (McCafé), iPod touch

(itunes)

1. Ansoff Matrix

+ 5

Background :

SWOT analysis was created in the 1960s by business gurus Edmund P.

Learned, C. Roland Christensen, Kenneth Andrews and William D. Book. SWOT,

which stands for Strengths, Weaknesses, Opportunities and Threats, is an

analytical framework that can help your company face its greatest challenges and

find its most promising new markets.

What is the purpose:

SWOT analysis enables organizations to identify both internal and external

influences. Outside of business, other organizations have found much use in the

method's guiding principles.

SWOT's primary objective is to help organizations develop a full awareness of all

the factors, positive and negative, that may affect strategic planning and decision-

making. This goal can be applied to almost any aspect of industry.

2. SWOT Analysis

+ 6

When to use SWOT :

SWOT is meant to be used during the proposal stage of strategic planning.

It acts as a precursor to any sort of company action, which makes it appropriate for

the following moments:

• Exploring avenues for new initiatives

• Making decisions about execution strategies for a new policy

• Identifying possible areas for change in a program

• Refining and redirecting efforts midplan

Internal factors

The first two letters in the acronym, S (Strengths) and W (Weaknesses), refer to

internal factors, which means the resources and experience readily available to

you. Examples of areas typically considered include:

• Financial resources, such as funding, sources of income and

investment opportunities

2. SWOT Analysis

+• Physical resources, such as your company's location, facilities & equipment

• Human resources, such as employees, volunteers and target audiences

• Access to natural resources, trademarks, patents and copyrights

• Current processes, such as employee programs, department hierarchies

and software systems

External factors

External forces influence and affect every company, organization and individual.

Whether these factors are connected directly or indirectly to an opportunity or

threat, it is important to take note of and document each one. External factors

typically reference things you or your company do not control, such as:

• Market trends, like new products and technology or shifts in audience

needs

• Economic trends, such as local, national and international financial trends

• Funding, such as donations, legislature and other sources

• Demographics, such as a target audience's age, race, gender and culture

• Relationships with suppliers and partners

• Political, environmental and economic regulations

2. SWOT Analysis

SWOT Analysis - Sample2012- Maybank Auto Finance SWOT analysis to become No#1 Financer

OPPORTUNITIESCross-sell products and services as most

customers acquired from dealers are N2B.

Diversify to C&I, equipment finance, CVs and non -

prime used car market.

Revisit TOM to be more lean, efficient and effective.

Invest in HPS modernization/ platform and

processes re-engineering with more advanced

capabilities

THREATSHighly competitive business environment with

declining spread/ NII, some segments below

ROCA.

Maturing business. High market penetration and

vehicle population density.

New competitors from in-house finance

companies and offer new market entrants.

STRENGTHS Reputation & brand. A well - respected and

recognizable BOB brand in Auto finance.

#1 dealer finance position that provides strategic

advantages and strong retail market position

among dealers.

Strong performance with lowest GIL rates and

highest growth in the industry.

Strong and hungry marketing and processing team

(MOPO) who are focus on delivery excellence

services to the dealers.

WEAKNESSESRising CIR due to lower margin and higher cost.

High Fixed cost structure.

Limited fee-based income opportunities and

business regulated by HP Act.

Managing non-performer (10%), increasing staff

complacency and lack of staff diversity.

Old HPS system and business processes.

8

S W

O T

2. SWOT Analysis – Example 2012- Maybank Auto Finance SWOT analysis to become No#1 Financer

+

TOWS is simply SWOT spelled backwards.

The TOWS matrix is used for strategic planning and helps to identify

opportunities and threats and measure them against internal strengths

and weaknesses.

How to use tool:

To carry out a TOWS Analysis, consider the following combinations:

Strengths/Opportunities:

Consider all strengths one by one listed in the SWOT Analysis with

each opportunity to determine how each internal strength can help to

capitalize on each external opportunity.

Strength/Threats:

Consider all strengths one by one listed in the SWOT Analysis with

each threat to determine how each internal strength can help to

avoid every external threat.

3. TOWS Matrix

+

Weaknesses/Opportunities:

Consider all weaknesses one by one listed in the SWOT Analysis

with each opportunity to determine how each internal weakness can

be eliminated by using each external opportunity.

Weaknesses/Threats:

Consider all weaknesses one by one listed in the SWOT Analysis

with each threat to determine both can be avoided

3. TOW’S Matrix

+

Strengths (S) Weakness (W)

Opportunities (O)

SO

"Maxi-Maxi" Strategy

Strategies that use

strengths to maximize

opportunities.

ST

"Maxi-Mini" Strategy

Strategies that use

strengths to minimize

threats.

Threats (T)

WO

"Mini-Maxi" Strategy

Strategies that minimize

weaknesses by taking

advantage of

opportunities.

WT

"Mini-Mini" Strategy

Strategies that minimize

weaknesses and avoid

threats.

Internal

Factors

External

Factors

3. TOW’S Matrix

+TOW’S MatrixTo generating strategic options

12

Strengths (S)

1. Strong R & D and Engineering

2. Strong sales and service network

3. Efficient production/automation

Capabilities

Weaknesses (W)

1. Heavy reliance on one product

(Although Several Less

Successful Models were

Introduced)

2. Rising costs in Germany .

3. No experience with U.S. labor

unions if building plant in the U.S.

Opportunities (O)

1. Growing affluent market demands

more luxurious cars with many

option.

2. Attractive offers to build an

assembly plant in U.S.

3. Chrysler and American Motors

need small engines.

(O1S1S2) Develop and produce

multiproduct line with many options, in

different price classes (Dasher,

Scirocco, Rabbit Audi Line)

(O1W1) Develop compatible models

for different price levels (Ranging from

Rabbit to Audi Line)

Threats (T)

1. Exchange Rate - Devaluation of

Dollar in relation to Deutshe Mark

(DM).

2. Competition from Japanese and

U.S. Automakers.

3. Fuel shortage and price

(T3S1) Improve fuel consumption

through, fuel injection and develop fuel

efficient diesel engines

(T2,W1) Reduce threat of competition

by developing flexible product line.

Internal

Factors

External

Factors

3. TOW’S Matrix

+

What are the purpose:

Using the opinions of the most powerful stakeholders to shape the projects at an

early stage.

Gaining support from powerful stakeholders can help to win more resources

Anticipating what people's reaction to project

Identifying all persons, groups and institutions who may have an interest in a

project and taking steps to manage their interests and expectations so that the

project runs as smoothly as possible

When to use :

Needs to be done in the early stages of a project so that any risks and required

communication can be included in the overall project plan

4. Stakeholder Management

+Who to use :

Being used by aid agencies, governments or consultant groups:

1. Imperial College London

2. Office of Government Commerce UK 2003

3. Aubrey L. Mendelow, Kent State University, Ohio 1991

How to use the tool:

Step 1. Identify Your Stakeholders

Who are stakeholders?

Involved in the development of the product

Managing the development of the product

Working with the product

Owner of the product

Affected by the development of the product.

Directly or indirectly involved in rules and regulations of the product usage

4. Stakeholder Management

+

Step 2. Prioritize Your Stakeholders

Specifies how each stakeholder

influences the organization

Decides what the organization needs from

each one of them

Rank them with respect to their influence

and importance

Analyse on the power versus interest grid

and which defines the power of these

stakeholders in implementing any

changes versus interests of them in order

to implement these changes.

4. Stakeholder Management

+

Step 3. Understand Your Key

Stakeholders

Need to know more about key

stakeholders.

Need to know how they are likely to feel

about and react to the project

Need to know how best to engage them

in the project and how best to

communicate with them.

4. Stakeholder Management

+ and Happy Valentines Day

Thank You