Eva cau 1: The success of this decision depends on, should they made that decision, is it better to do something else or to not do it, did that decision have any impact on other aspects of the business

Eva câu 2: rank different option, depends on…

Eva level 3 là dùng application in context, ghi application vào rồi connect đến ý eva

Ana level 3 là opposite argument của một ý mình vừa nói trên. Like what other things is also needed to make this plan have advantages.

Increase profit margin: Attract future investor

Increase profit: pay higher dividend, increase dividend yield, increase share price, attract future investor

Increase sale: increase demand, use short term revenue gain to invest in expansion, economies of scale, more profitable

Training: more productivity, more bonus, motivated, better customer service, more sales, revenue gained reduce employee salary cost as fixed cost (contribution per unit). Low labor turnover

CSR: Increase brand loyalty

USP: Premium prices, high sales when price or income elastic

Improve productivity:

1. Better motivation

2. Training

3. Use machine

4. Increase worker involvement

Increase motivation:

• Use different contracts to suit their needs

• Leadership style (decentralization)

• Teamworking, employees involvement

• Bonus

• Job enrichment, job rotation

• Maslow (recognition)

• Training

Operation strategy

Outsourcing

CAD CAM

ERP

Lean production

1. JIT

2. Kaizen

3. Cell production

4. Quality circle

5. Simultaneous engineering

CPA

Offshoring/reshoring

Economies of scale/diseconomies of scale

Quality

Benchmarking

Quality control (inspection at the end)

Quality assurance (establish quality baseline, apply to all stages) + TQM

Human resources strategy

Benchmark with competitor to compare labor turnover, productivity

Measure employee performance with productivity and absenteeism

Increase pay (satisfy physical needs, hygiene needs)

MBO

Change leadership style (democratic to get job enrichment)

Change job contract

Invest in capital equipment

Give training (to manager to better acknowledge equality and handle issues)

Consultant with employees to make them agree to change introduced

Recruit manager internally to create career path for employee => less turnover organizational structure:

1. Delegation

2. Centralization, decentralization

3. Functional, hierarchy, matrix, geographical

Improve productivity:

1. Better motivation

2. Training

3. Use machine

4. Increase worker involvement

Increase motivation:

• Use different contracts to suit their needs

• Leadership style (decentralization)

• Teamworking, employees involvement

• Bonus

• Job enrichment, job rotation

• Maslow (recognition)

• Training

Financial strategy

Financial report

Gearing

Profitability

• Gross/operating profit margin

• ROCE

Investment

• Dividend yield

• Dividend cover

• Price/earning ratio

Financial efficiency

• Inventory turnover

• Trade receivable/payable turnover

Liquidity

• Current/acid test

Eva: Accuracy, qualitative factor needed, suggest ways to improve some ratio and evaluate the weakness of that solution (link to context for level 3 eva), can’t compare ratio with different firm and different time

Marketing strategy

Coordinated strategy: Effectively combine marketing objective, plan, budget and marketing mix

4 marketing mix

Market research

Interview customer to change marketing mix

Pan global or localization

Use of IT or AI

Ways to enter a new country market

Export product via international trade agents

Trade agents have knowledge about local market (sell more)

Pay commission

International franchising

Inefficiency communication - Training and communication for different franchises in countries can be complex

Joint venture

Shared costs & risks

Get more resources

Conflict

Working cultural clash

All partners pay for a mistake 1 partner makes

Licensing

Sell the rights to produce a product in another country

Same with franchise, but have more freedom in how you sell it (does not follow licensee rule)

unethical production by licensee bring bad publicity to licensor

Direct investment in foreign subsidies

Instead of takeover a local business, buy shares of a local business and let them do their work

Keep all profit

Easy operation - parent company has full control over subsidiary

Expensive (senior staff need to visit those countries)

Foreign operations can be banned with changes in local law

If subsidiary so something wrong, the parent company will have bad publicity

Strategic analysis

SWOT

Subjectivity, 2 managers might not come up with the same report

If do SWOT in new market, not have enough info for Opportunities and Threats

PEST

Need constant update

Porter five forces

Competitiveness

1. Buyer

2. Suppliers

3. Barrier to entry

4. Threat of substitutes

Analyze current market, to leave or not

Environment change, need constant update

Complex industry with joint venture or different market segment will have multiple Porter 5 forces

Core competencies

Something business good at that competitor can’t copy

Some core competencies can not be transfer into a new market

Strategic choice

Scenario planning

Analyse and consider uncertainties in each market

But lack info for new market

Decision trees

Decide on different strategies

Hard to obtain numerical value and probability of success

Force field analysis

Identify what to do to reduce constraining forces

Fail to identify all forces, especially in new market

Judgement of forces are subjective

Ansoff’s Matrix

Analyze risk of each strategy

1. Market penetration

2. Product development (new product, old market)

3. Market development

4. Diversification

Reason for diversification

• Economies of scope: Put unused resources into use

• Spread risk on multiple product, however, shareholders often invest in specific business and buy multiple shares to diversify themselves, so plc doesn’t need to diversify, but a ltd should

Help organize multiple strategy into categorize, to choose the one that match the business aim

Blue ocean

Blue: High value to customer = low cost

Product differentiation and low cost

Red: High value to customer = high cost

Product differentiation or low cost

Consider if blue ocean is necessary if focus on current market is better

Blue ocean diversify, spread risk across multiple product

Strategic implementation

Culture change

5 corporate culture

1. Power culture: Autocratic

2. Role culture: Less creativity, defined role in business

3. Task culture: Matrix structure, creative

4. Person culture: Most creative

5. Entrepreneurial culture: Encourage to take risk

Transformational leader + informal leader

Contingency planning

Help keep operation running

Respond fast to accidents => public image

Need employee training + constant update