TARGET COMPANY STRATEGIC PERFORMANCE
CRITICAL LONG RANGE FORECASTS
1. Long Term Market & Product Forecast
2. Overall Market Forecast for the Industry
3. A Long Range Forecast
4. Long Term Product Growth for the Company
THE PRODUCTS
1. Life Cycles & Stages in the Life Cycle
& Gompertz Analysis
Market Share & the product life cycle - Quality & the product life cycle - Product
range & introduction or dynamic Stage life cycles - Product Range & Capital
Intensiveness - Market Share & selling customized or specified products -
Profitability, market share & Product uniqueness
2. Relative Pricing
3. Quality
Value Scale - Relative Product Quality - Profitability & Quality Products &
Services - Relative Product Quality & Levels of Profitability - Quality Profits &
Concentrated Markets - Product Quality & Relative Market Share - Product Quality,
Profitability & Growth
4. New Products
Profitability, growth markets & new products - New product introductions, pricing
& profitability - New product introductions, investment & profitability - Levels
of new products, product quality & profitability.
COMPETITION
1.The Market Share
Market share & profitability - Profitability & relative market share - Company
Market Shares
2. Relative Market Shares
3. Nature of the Competitive Situation
Entry & exit of competitors - Relative Strengths of competitors
4. Perfectness of the Market
THE INDUSTRY
1. Long Term Industry Growth
2. Physical Process Considerations
Costs & market shares - Capacity Utilization & market shares - Productivity &
profitability in growth markets - Levels of labour Unionisation & market shares -
Unionisation, profitability & growth - Unionisation, profitability & concentration
- Unionisation, profitability & harvesting strategies - Profitability, processes &
market shares.
3. Capital Structure & Investment
Intensity
Profitability & investment intensity - Net margins & investment - Gross margins
& investment - Profitability, market share & capital intensity - Productivity,
profitability & investment intensity - Capacity Utilization, profitability &
capital intensity - Inventories level, profitability & capital intensity.
4. Physical Process & Vertical Integration
Profitability, market share & vertical integration - Profitability, diversification
& vertical integration - Profitability, vertical integration & numbers of
customers - Profitability, vertical integration & product quality - Profitability,
vertical integration & inventory value - Profitability, vertical integration &
employee productivity.
5. Marketing & Sales Costs
Profitability, market share & marketing costs - Profitability, capital intensity &
marketing costs - Profitability, numbers of customers & marketing costs -
Profitability, product quality & marketing costs - Profitability, new products &
marketing costs.
6. R&D + Process Development Costs
Profitability, R&D expenditure & market cycle - Profitability, R&D expenditure
& product quality - Profitability, R&D spend & marketing costs - Profits,
R&D spend & market share - Profitability, R&D spend & Unionisation.
7. Distribution of the Company's Products
8. Market Penetration & The Right Tools
for the Job
9. Market Share & the Company
The relationship between market share & profitability
a) Market share, profit/sales & investment. The relationship between market share
& added value / Vertical integration & investment/sales - Conclusions for the
Company
b) The relationship of market share & sales ratios / investment/sales ratio &
integration - Conclusions for the Company
c) Marketing costs/sales ratio & market penetration
d) Market leadership, pricing & product quality
e) Market leadership, customers & product advances
f) Purchase frequency & Market Share
g) Customer base fragmentation & Market Share
MEDIUM + LONG TERM STRATEGIES
Building, Holding and Harvesting Strategies:-
1. When to Build Market Share - Building strategies for the Company
2. When to Hold Market Share - Holding strategies for the Company
3. When to Harvest Market Share - Harvesting Strategies for the Company
MEDIUM + LONG TERM CHECKLIST
This section recommends a working plan or
document for the critical factors which influence the Company in strategic terms. The data
is given as a matrix by Subsidiary, Division, Unit or Market sector.
Medium & Long Term Checklist for the
Company:
Forecast of Profitability ~ Forecast of Productivity ~ Forecast of Market Shares ~
Recommendations on Customer Awareness ~ Recommendations on Customer Perceptions ~
Recommendations on Sales Promotion Activity ~ Recommendations on Advertising Posture ~
Recommendations on Product Availability ~ Recommendations on Technical Competence ~
Recommendations on Awareness of Products ~ Recommendations on Awareness of Product Quality
~ Recommendations on Awareness of Product Pricing ~ Recommendations on Pricing Relative to
Competitors ~ Recommendations on Quality Relative to Competitors ~ Recommendations on
Relative Product Performance ~ Recommendations on Relative Technical Superiority ~
Recommendations on Relative Service Factors ~ Forecast of Current Customer Base ~ Forecast
of Annual Sales of Products & Services ~ Forecast of Current Sales ~ Recommended Costs
& Margins ~ Recommended Distribution Channels & Networks ~ Forecast of Pre-Tax
Profit / Total Assets ~ Forecast of Pre-Tax Profit / Sales ~ Forecast of Pre-Tax Profit /
Capital Employed ~ Forecast of Pre-Tax Profit Per Employee ~ Forecast of Investment /
Sales ~ Forecast of Receivables / Sales ~ Forecast of Inventory / Sales ~ Forecast of
Physical Process Costs / Sales ~ Forecast of Total Marketing Costs / Sales ~ Forecast of
R&D Expenditure / Sales ~ Forecast of Added Value ~ Forecast of Capacity
Utilization ~
Forecast of Relative Product Quality ~ Forecast of Relative Product Pricing ~ Forecast of
Competitors ~ Forecast of Competitors' Strength ~ Forecast of New Products ~ Forecast of
Product Life Cycles ~ Forecast of New Product Horizons ~ Forecast of Relative Competitive
Sales-Force Expenditure ~ Forecast of Relative Competitive Advertising Expenditure ~
Forecast of Relative Competitive Promotional Expenditure.
NEW PRODUCT DEVELOPMENT + PRODUCT
SCREENING
The report will provide a fully developed product
screening procedure for the future use of readers when evaluating existing products and
new product opportunities for the Company.
COMMERCIAL DECISION SCENARIOS : BALANCE
SHEET + COSTS FORECASTS
1. BASE FINANCIAL +
OPERATIONAL FORECAST SCENARIO
2. MEDIAN MARKET SCENARIO
3. MARKET SEGMENTATION FORECASTS
4. PRICE INCREASE EFFECT ON FINANCIAL + OPERATIONAL FORECASTS
5. QUALITY IMPROVEMENT FORECASTS
6. NEW PRODUCT DEVELOPMENT FORECASTS
7. NEW PLANT + EQUIPMENT INVESTMENT FORECASTS
8. NEW TECHNOLOGY INVESTMENT FORECASTS
9. MARKETING EXPENDITURE FORECASTS
10. DISTRIBUTION CHANNEL IMPROVEMENT FORECASTS
11. PERSONNEL + STAFF IMPROVEMENT FORECASTS
12. COST STRUCTURE IMPROVEMENT FORECASTS
13. EXPORT SALES IMPROVEMENT FORECASTS
Each of the above scenarios contains Forecast Data
(to 2028 & 2045) for the Company which cover the following items:-
Total Sales;
Domestic Sales; Exports; Pre-tax Profit; Interest Paid; Non-trading Income; Operating
Profit; Depreciation; Trading Profit; Fixed Assets; Intangible Assets; Intermediate
Assets; Total Fixed Assets; Stocks; Debtors; Other Current Assets; Total Current Assets;
Total Assets; Creditors; Short Term Loans; Current Liabilities; Total Current Liabilities;
Net Assets; Shareholders' Funds; Long Term Loans; Long Term Liabilities; Capital Employed;
Directors' Remunerations; Employees' Remunerations; Total Employees
New Technology
Expenditure; New Physical Process Technology Expenditure; Total Research & Development
Expenditure; Plant & Equipment in Use: 0-3 years; Plant & Equipment in Use: 3-6
years; Plant & Equipment in Use: 6-9 years; Plant & Equipment in Use over 9 years
old; Plant & Equipment Investment greater than Depreciation; Plant & Equipment
Investment Less than Depreciation; Capital Expenditure on Plant & Equipment; Capital
Expenditure on Structures; Capital Expenditure on Miscellaneous Items
Return on Capital;
Return on Assets; Return on Shareholders' Funds; Pre-tax Profit Margins; Operating Profit
Margin; Trading Profit Margin; Assets Utilization; Sales as a ratio of Fixed Assets; Stock
Turnover; Credit Period; Creditors' Ratio; Working Capital / Sales; Current Ratio; Quick
Ratio; Borrowing Ratio; Equity Ratio; Income Gearing; Total Debt as a ratio of Working
Capital; Debt Gearing Ratio; Average Remuneration; Profit per Employee; Sales per
Employee; Remunerations / Sales; Fixed Assets per Employee; Capital Employed per Employee;
Total Assets per Employee; Exports as a % of Sales Materials & Energy Costs; Payroll
Costs; Total Process Costs; Sales Costs; Distribution & Handling Costs; Advertising
Costs; After-Sales Costs; Total Marketing Costs; Added Value
Capacity
Utilization as a measure of Standard Capacity; Relative output of Products of a Superior
Quality as a % of the Total; Product Pricing as a % of the Market Average; New Products as
a % of the Total Output; Index of Comparative Salesforce & Selling Expenditure; Index
of Comparative Advertising Expenditure; Index of Comparative General Promotional
Expenditure; Wholesale Customers; End User Customers; OEM & Manufacturing Customers;
Consumer & End User Customers; Governmental Customers; Non-Specific Customers.
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