Identification of critical success factor(CSF’s)

4. Identification of critical success factor(CSF’s)

Critical success factors (CSF’s) is a activity which helps in ensuring the success in business. It is some thing, which is used by many smallest companies. However, during analysis pragmatic approach is needed most.

Basically, the companies to identify some key factors that organization should mostly focus on to be successful by using critical success factor.

Identifying critical success factor is important in business is that to focus on their efforts on building there capacities to meet the CSF’s.

There is very simple idea “There will be certain critical success factor in any organizations and if the objectives are not achieved then the organization will fail”.

The Examples are:

  1. New product Development
  2. Good distribution
  3. Effective advertising etc.

Some principles of writing good critical success factors are:

–       By ensuring a good understanding of environment.

–       By building knowledge of competitors in industry.

–       By developing CSF’s which results observable difference.

Moreover, critical success factor has along impact on the organization’s performance. It itself is a critical factor of a organization.

Reference:

RAPIDBI, (2014). Critical Success Factors CSF – Analysis | RAPIDBI. [online] Available at: http://rapidbi.com/criticalsuccessfactors/[Accessed 27 Jul. 2014].

Identify Tows/Swot Analaysis

 

  1. TOWS / SWOT Analysis

TOWS and SWOT are acronyms for different arrangements of the words Strength, Weakness, Opportunities, and Threats.

SWOT analysis is a strategic planning tool, which involves company strength, Weakness, Opportunities and threats.

However, TOWS also involve the same process Strength, Weakness, Opportunities and Threats but in TOWS analysis threat and opportunities are examined first then that of other.

We can think about the strategy of organization by analyzing external environment (Threats and opportunities) and internal environment (Weakness and strengths). The main difference between TOWS and SWOT are Tows emphasizes the external environment where swot emphasizes the internal environment.

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According to Michael Watkins of a ‘Harvard Business Review’

“ Focusing on threats and opportunities first helps lead to productive discussions about what is going on in the external environment rather than getting bogged down in abstract discussions about what a company is good at or bad at ”

  • SWOT/TOWS Matrix

It is a strategic planning, which helps marketers identify OPPORTUNITIES and THREAT and measure them agents internal strength and weakness.

Basically, TOWS matrix identifies external opportunities and threat and compares them to companies internal STRENGTH and WEAKNESS.

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  • S-O strategies

Pursue Opportunities that fit well the company’s strengths.

  • W-O strategies

Overcome Weakness to pursue opportunities.

  • S-T strategies

Identify the ways that the firm can use its strengths to reduce external threats.

  • W-T strategies                

Make a defensive plan to prevent the Firms Weakness for making it susceptible to external threats.

 

Reference:

Mindtools.com, (2014). The TOWS Matrix: Developing Strategic Options from an External-Internal Analysis. [online] Available at: http://www.mindtools.com/pages/article/newSTR_89.htm[Accessed 27 Jul. 2014].

Slideshare.net, (2014). SWOT/TOWS analysis. [online] Available at: http://www.slideshare.net/aokanahassi/swottows-analysis#btnNext[Accessed 27 Jul. 2014].

net, (2014). SWOT/TOWS analysis. [online] Available at: http://www.slideshare.net/aokanahassi/swottows-analysis[Accessed 27 Jul. 2014].

 

Identify Micro Analysis

 

  1. Micro Analysis

Microenvironment has a direct impact on the business operation and its success. The Actors in the Micro environmental forces are:

Actors in the Micro Environment (Armstrong, Kotler et al 2012)

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  • Customers

In all the business customers is equally important part and the business should be oriented towards customers. The marketing plan of the firm should aim the customer’s wants and needs and best customers’ service.

  • Company

The entire department with in the organization has a positive and negative impact customer’s satisfaction they work to provide goods and service to the general publics.

  • Competitors

All the competitors are related to your business. Competitor’s analysis and monitoring is most important in an organization.

  • Suppliers

Suppliers provide a material needed to the company for business activities. A behavior of supplies does direct effect on the supply of the business.

  • Marketing intermediaries

The business has a direct relation to different sources like Bank, Finance operation, Warehouse, wholesale, retailers all of these are directly or indirectly related to the business.

  • Publics

Publics are a group of a people who are generally affected by the business (directly or indirectly). Publics are the main marketing formulator they are one of the main source of marketing.

Reference:

Learnmarketing.net, (2014). Micro Environment. [online] Available at: http://www.learnmarketing.net/microenvironment.htm[Accessed 27 Jul. 2014].

Small Business – Chron.com, (2014). What Is Microenvironment in Marketing?. [online] Available at: http://smallbusiness.chron.com/microenvironment-marketing-22920.html [Accessed 27 Jul. 2014].  

Identify Macro Analysis

  1. Macro analysis

Macro analysis is a review of all the factors that a company is unable to control. Business conduct analysis to stay away form issues in current business environment. And the common tools to conduct the Macro environment analysis are the pestle analysis, which includes PoliticalEconomicSocialTechnologicalEnvironmental and Legal aspect in the business environment. By which the company would be able to make a marketing planning, product development and strategic planning.

  • Political Factor

Political factor determines the extent to which a government may influence the economy. This is totally external to the organization, which indirectly make influence upon the company operations like Tax policy, environmental law, and political stability. However, political factor determines the revenue increase or decrease due to some tax policies and trade restrictions.

  • Economic Factor

Economic factor impact the operation of the business and the decisions where it is an external factor of business. Company should operate staying under the rules and regulations which includes:

-Economic growth

-Interest rates

-Exchange rate

-Inflation rate

These factors does major impact on the operation of the business.

  • Social Factor

It is included in the macro environmental analysis these all factors will determine how company will interact with costumers. Which includes:

-Demographic

-Wealth distribution

-Life style &

– Education of costumers. The tend in social factor effects the demand for company products.

 

  • Technological Factor

Technological change is more important factor in the market analysis. However, the business technology change frequently where company should be more aware so that to take advantage of them. The technological factor includes:

-Automation

-Technology incentives &

-The rate of technological change

Technology is important for the competitive advantage and Further shift in technology can effect upon Cost and Quality. Moreover it is a Driver of globalization.

  • Environmental Factor

Basically environmental factor shows the natural environmental surrounding Like Energy consumption, maintaining a livable environment. A company must be mindful of changes to this law, which can change the interaction with the environment.

  • Legal Factor

Legal factor relate to the further change in law and regulations where legal factor includes

-Discrimination law

– Consumer law

– Employment law

-Health and safety law.

All there factors does effect on the operation of the company.

All these Factors are more likely to change in future or help the firm to change in different direction. Where Macro environment does impact on impact on benefit, cost and risk. Where by using different macro factors will help during market analysis.

Reference 

PESTLE Analysis, (2014). PEST Analysis: What is PESTLE Analysis? [Online] Available at: http://pestleanalysis.com/ [Accessed 27 Jul. 2014].

UK Essays, A. (2014). A PESTEL analysis of the cosmetics industry. [Online] Ukessays.com. Available at: http://www.ukessays.com/essays/economics/a-pestel-analysis-of-the-cosmetics-industry-economics-essay.php [Accessed 27 Jul. 2014].

Wise GEEK, (2014). What Is PESTEL Analysis? [Online] Available at: http://www.wisegeek.com/what-is-pestel-analysis.htm [Accessed 27 Jul. 2014].

Wise GEEK, (2014). What Is Macro Environment Analysis? [Online] Available at: http://www.wisegeek.com/what-is-macro-environment-analysis.htm [Accessed 27 Jul. 2014].

IMPORTANCE OF MARKETING AUDIT AND ITS STRUCTURE.

Importance of marketing audit.

– We can get to know the strategies of the company and how they reached there?

– The company performance would be known in term of market share, profitability and customer perception.

– Marketing audit also helps to enter new products in a market.

– It helps to start a new business in a market or lunch a new product or service.

– Marketing audit reminds a internal goal of a company so that you can adapt and succeed.

– It also helps in reintroducing your product or service in a market.

 

    Structure of Market Analysis

Where market analysis can be done in four different ways:

                                            Screen Shot 2014-07-29 at 12.46.36 PM 

Reference:

Yourarticlelibrary.com, (2014). Marketing Audit: Importance of Marketing Audit for a Company. [online] Available at: http://www.yourarticlelibrary.com/marketing/marketing-audit-importance-of-marketing-audit-for-a-company/13063/ [Accessed 27 Jul. 2014].

UNDERSTANDING MARKETING AUDIT

Marketing Audit

The definition of marketing audit according to Abe Schuchman is as follows:

“Marketing audit is a systematic, critical and impartial review and appraisal of the total marketing operation: of the basic objectives and polices and the assumptions which underline them as well as the methods, procedures, personnel and organization employed to implement the policies and achieve the objectives”

He wrote this discussion foe the American marketing association (AMA) in 1951.

 Marketing audit is a radical part of marketing planning process. Marketing audit is planned not only during the beginning phase but also throughout implementation of plan. Marketing audit thinks carefully on both marketing planning (internal and external). It helps company to evaluate the business strategies, activities, goals and results.

The meaning of marketing audit is depicted in the following chart.

Screen Shot 2014-07-31 at 10.33.07 AM

fig: marketing audit (Akrani, G. (2014))

 

Why marketing audit should be done?

-To determine whether the product or service that you are lunching would exist in market or not.

– Another one is to determine what should be further done to develop the products.

– To get assist in sale of your product.

 

Reference

Marketing Teacher, (2014). Marketing Audit – Marketing Teacher. [online] Available at: http://www.marketingteacher.com/marketing-audit/[Accessed 31 Jul. 2014].

Robbins, L. (2010). 5 Benefits of a Marketing Audit | Johnson Direct. [online] Johnsondirect.com. Available at: http://www.johnsondirect.com/2010/07/28/5-benefits-of-a-marketing-audit/[Accessed 27 Jul. 2014].

 Akrani, G. (2014). What is Marketing Audit? Definition Meaning. [online] Kalyan-city.blogspot.com. Available at: http://kalyan-city.blogspot.com/2013/01/what-is-marketing-audit-definition-and.html[Accessed 31 Jul. 2014].