BUS 343 Lecture Notes - Lecture 2: Cash Cow, Cash Flow, Invisible Hand
17 Jan 2018
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Annual + long plan: maintain current business. Designing business portfolio: collection of b inesses make up company => fit weakness and strength to opportunities. Identify keysbu => attractiveness + support fits philosophy, competencies. Cash cow: low investment, lot of cash. Question mark: require lot of cash => decide which to star. Invest more to build share/enough to hold share/harvest: milking short term cash flow regardless long term effect/ divest by selling, phasing, using other resource. Product market expansion grid: market penetration, market development, product development, diversification. Downsizing: eliminating unprofitable units or no longer fit strategy => prune, harvest, divest. Provide inputs: attractive market opportunities and potential take advantage. Design strategies to reach unit objective and carry profitably. Value chain: carry out value-creating activities =>success depend on individual + other departments = need harmony reduce conflict and misunderstanding. Marketing strategy: logic to create value and profitable relationships. Customer driven strategy: segment, target, position, differentiation marketing mix.
