Chapter 5

Strategy
Miles and Snow’s Organizational Strategies
 Strategic Types

 Prospectors

 Aggressively pursuing new market opportunities

 Willing to take risks
 Develop new product and market opportunities
 Strategic Types

 Defenders

 protection oriented
 Seeking stability by maintaining current market positions
 focus on improving the efficiency
 Strategic Types

 Analyzers

 Between prospectors and defender

 Balancing the opportunity
 Maintain their position in the marketplace
 Strategic Types

 Reactors
 Reactors do not have a distinct strategy
 Merely react to environmental changes
 Reactor strategy is not considered a viable one
 Prospector

• When an organization falls into the category of Prospector, they

are expected to consistently be on the forefront of innovation and
development.
• Rather than sitting still with products that have been previously
developed and taken to market, prospecting organizations are
always seeking to create the ‘next big thing’.

• Apple is a commonly cited example of what would be considered

a company with a Prospector strategy, with launches such as the
iPhone and Apple Watch.
 Defender

• As the name would indicate, this is an organization that is

satisfied with their current place in the market – and they are
going to work hard to defend it as the years go by. Instead of
investing time and money into trying to develop new products
to take to the market, this kind of an organization is going to sit
back and reap the rewards of what they have already created.

• BIC Corporation used defender strategies despite its history as

an innovative
 Analyzer

• These tend to be some of the biggest companies around,

as they have the capacity to both develop new
technologies and products as well as defend the market
for those they have already created.

• IBM and Procter & Gamble

 Reactor

• They really have no one specific approach to their

business.
• They are simply trying to catch up with the market as
things change over time.
 Exercise
In the field of home appliances kindly mention 2
examples regarding prospectors, analyzers and
defenders
 Strategies (CBF)
• Corporate ……. Directional /Grand strategies
• Business ……… competitive /cooperative strategies
• Functional
Directional / Grand strategies
 Strategies
• Grand strategies
• Competitive strategies
• Blue ocean strategy
• Entry strategies
• FMA strategy
 FMA strategy
• A first-mover advantage can be simply defined as a firm’s
ability to be better off than its competitors as a result of
being first to market in a new product category
• Sarmady communications a Cairo based digital media
company was the first to specialize in creating content and
selling advertisement
• After struggling to attract advertisers to its websites for a
few years it is now a leader in the field

• Apple has always been a good example of a first mover firm.

 Entry strategies

• Exportation
• Franchising and licensing
• Turnkey operations
• BOT
• Joint venture
• FDI
• Green-Field Development
 Franchising versus licensing

• Franchising is similar to licensing except it is

common in the service industry while licensing
is common in manufacturing
 Example of a Licensing Agreement

• In May 2018, Nestle and Starbucks entered into a

$7.15 billion coffee licensing deal. Nestle (the
licensee) agreed to pay $7.15 billion in cash to
Starbucks (the licensor) for exclusive rights to sell
Starbucks’ products (single-serve coffee, teas,
bagged beans, etc.) around the world through
Nestle’s global distribution network.
• Additionally, Starbucks will receive royalties from
the packaged coffees and teas sold by Nestle.
 Turnkey operations

• A company constructs an entire project (a dam or

high way) for the host country organization

• ABB was awarded a turnkey contract to design ,

supply and install and commission three 110
Kilovolt substations that will serve the growing
power in Mecca region
 BOT model
• Under a build-operate-transfer (BOT) contract, an entity—
usually a government—grants a concession to a private
company to finance, build and operate a project for a period
of 20-30 years, hoping to earn a profit.

• After that period, the project is returned to the public entity

that originally granted the concession.
 Greenfield Investment Strategy
• Greenfield Investment Strategy is a getting/investing
Foreign Direct Investment (FDI) in the target country.

• Under this, the investing company establishes a new

operating facility or expands its existing facility in a
foreign country. Here the word Green resembles an
altogether 'New' investment.
Grand strategies
 Grand strategies 4x3
1. Integration
2. Intensive
3. Diversification
4. Defensive
 Types of Strategies

Forward
Integration

Vertical Backward
Integration Integration
Strategies

Horizontal
Integration
 Integration strategies
• Vertical : forward or backward

• Horizontal : merge or acquisition / Joint venture

Supplier (OEM) Supplier

3
Manufacturer Manufacturer

4
Distributor
Distributor
 Forward integration
-Franchising is an effective way of implementing forward
integration

-Al Futtaim is a franchisee for many brands like:

 Ikea
 Toys R Us
 Marks and Spencer
 Toyota
 Chrysler
 Volvo
 Types of Strategies

Market
Penetration

Intensive Market
Strategies Development

Product
Development
 Trade agreements Egypt
• QIZ
• CO M E S A
• GAFTA
• Aghadir
• Euro 1
• RORO
Types of Strategies

Concentric
Diversification

Diversification Conglomerate
Strategies Diversification

Horizontal
Diversification
 Types of Strategies

Retrenchment

Defensive Divestiture
Strategies

Liquidation
Retrenchment
 Divestment Strategy/sell out
• If the corporation has multiple business lines and it chooses to sell
off a division with low growth potential, this is called divestment.
• This was the strategy Ford used when it sold its struggling Jaguar
and Land Rover units to Tata Motors in 2008 for $2 billion. Ford had
spent $10 billion trying to turn around Jaguar after spending $2.5
billion to buy it in 1990.
• In addition, Ford had paid $2.8 billion for Land Rover in 2000.
Ford’s management hoped to use the proceeds of the sale to help the
company reach profitability in 2009.
• General Electric’s management used the same reasoning when it
decided to sell or spin off its slow-growth appliance business in
2008.
 Stability strategies
Strategies are the

- Pause/proceed-with-caution

-No-change

-Profit strategies.

-They are very popular with small business owners who have found a
niche and are happy with their success and the manageable size of their
firms.

-Stability strategies can be very useful in the short run, but they can be
dangerous if followed for too long.
 Pause/Proceed with Caution Strategy
A pause/proceed-with-caution strategy is, in effect, a timeout—an opportunity to rest before
continuing a growth or retrenchment strategy. It is a very deliberate attempt to make
only incremental improvements until a particular environmental situation changes. It is
typically conceived as a temporary strategy to be used until the environment becomes more
hospitable or to enable a company to consolidate its resources after prolonged rapid growth.

This was the strategy Dell followed after its growth strategy had resulted in more growth than
it could handle. Explained CEO Michael Dell, “We grew 285% in two years, and we’re
having some growing pains.” Selling personal computers by mail enabled Dell to underprice
competitors, but it could not keep up with the needs of a $2 billion, 5,600-employee company
selling PCs in 95 countries.

Dell did not give up on its growth strategy; it merely put it

temporarily in limbo until the company was able to hire new managers, improve the structure,
and build new facilities.60 This was a popular strategy in late-2008 during a U.S. financial
crisis when banks were freezing their lending and awaiting a rescue package from the
federal government.
 No-Change Strategy
• A no-change strategy is a decision to do nothing new—a choice to
continue current operations and policies for the foreseeable future.
Rarely articulated as a definite strategy, a no change strategy’s success
depends on a lack of significant change in a corporation’s situation.

• The relative stability created by the firm’s modest competitive position

in an industry facing little or no growth encourages the company to
continue on its current course, making only small adjustments for
inflation in its sales and profit objectives. There are no obvious
opportunities or threats, nor is there much in the way of significant
strengths or weaknesses.

• Few aggressive new competitors are likely to enter such an industry.

The corporation has probably
 Profit Strategy
• The profit strategy is an attempt to artificially support profits when a
company’s sales are declining by reducing investment and short term
discretionary expenditures.

• Rather than announce the company’s poor position to shareholders and the
investment community at large, top management may be tempted to follow
this very seductive strategy.

• The profit strategy is useful only to help a company get through a temporary
difficulty. It may also be a way to boost the value of a company in
preparation for going public via an initial public offering (IPO).

• Unfortunately, the strategy is seductive and if continued long enough it will

lead to a serious deterioration in a corporation’s competitive position. The
profit strategy is typically top management’s passive, short-term, and often
self-serving response to a difficult situation.
Business strategies
 Business strategies
Either
1-Competitive

2-Cooperative :collusion or strategic alliance

 keiretsu
• keiretsu is a group of organizations, each of which owns shares in
the other organizations in the group, and all of which work together
to further the group’s interests.
• Japanese companies employ two basic forms of keiretsu. Capital
keiretsu are used to manage input and output linkages.
• Toyota is the most profitable car company in the world. Its vehicles
are consistently ranked among the most reliable, and the company
enjoys strong customer loyalty.
• Interdependencies with its customers are not problematic because
Toyota has a good reputation.
 Strategic alliance.. Renault Nissan
• The two companies had just decided to a most important
strategic alliance in which Renault would take for granted
$5.4 billion of Nissan’s Debt in return for a 36.6% equity
share in the Japanese company.

• Before the alliance it was concluded that the combined

company would be the world’s largest car-maker.
 Strategic alliance.. Renault Nissan
• Synergy however, is vital for alliance. Alliance would be
more rational when the two firms look for further synergy in
their financial, technological aims.
• This synergy between two companies was the key element for
choosing Nissan-Renault alliance. According to
Carlos Ghosn, the manager of the Renault-Nissan alliance:
“we said from the beginning that we were not looking for a
merger, but rather to get greater value from synergy between
the two companies”.
• According to Ghosn, the reason for choosing alliance rather
then merger was that both companies were looking for
“turnaround”
Michael Porter’s Generic Strategies

Cost Leadership Strategies

(Low-Cost & Best-Value)

Differentiation Strategies

Focus Strategies
(Low-Cost Focus &
Best-Value Focus)
 Focus strategy
Cost focus
• Very small segment
• Price sensitive customers

Differentiation focus
• Very small segment
• Price insensitive customers
 Cost focus
• A good example of this strategy is Potlach Corporation, a
manufacturer of toilet tissue. Rather than compete directly against
Procter & Gamble’s Charmin, Potlach makes the house brands for
Albertson’s, Safeway, Jewel, and many other grocery store chains.

• It matches the quality of the well-known brands, but keeps costs low
by eliminating advertising and promotion expenses.
 Cooperative strategy
• British Airways has followed a cooperative strategy by forming an
alliance with American Airlines in order to provide global service.

• Cooperative strategy may thus be used to provide a competitive

advantage. Intel, a manufacturer of computer microprocessors, uses
its alliance (cooperative strategy) with Microsoft to differentiate
itself (competitive strategy) from AMD, its primary competitor.
 Cooperative strategy
• Dell and HP have had a rather interesting relationship
as well.

• Dell used to resell HP printers, but after HP bought

Compaq, the firms went to war
 Joint ventures

Joint ventures are the most popular form of strategic alliance. They
often occur because the companies involved do not want to or cannot
legally merge permanently.

Joint ventures provide a way to temporarily combine the different

strengths of partners to achieve an outcome of value to all
 Proctor & Gamble
• Proctor & Gamble formed a joint venture with Clorox to produce
food-storage wraps.

• P&G brought its cling-film technology and 20 full-time employees

to the venture, while Clorox contributed its bags, containers, and
wraps business
Red versus blue ocean strategies
 Creativity versus innovation
For example, Xerox developed many of the concepts
associated with the modern day PC but failed to make
a commercial proposition out of them.
Innovation leads to survival
 How Netflix Took Down Blockbuster

• Technological Advances
• Cost
• Customer Relationship
• Netflix Innovation
 Value innovation

Value innovation = value creation + innovation

 The Profit and Growth Consequences of
Blue Oceans
Launches With Red Oceans
Launches With Blue Oceans

Business Launch 86% 14%

revenue impact 62% 38%

Profit Impact 39% 61%

 Strategy Canvas
high

low

Industry Variables
 Four Actions:
Eliminate/Reduce/Raise/Create

• Which of the factors that the industry takes for

granted should be eliminated?
• Which should be reduced?
• Which should be raised well above standard?
• Which factors should be created that have not
existed before?
 Four Actions Framework: Key to Value Curve
Reduce
The key to discovering a What factors should
new value curve lies in be reduced well
answering four basic below the industry
questions standard?

Eliminate Create/Add
Creating
Creating
What factors that the new What factors that the
new markets:
markets:
industry has taken for A industry has never
A new
new value
value
granted should be curve offered should be
curve
eliminated? created or added?

Raise
Cirque du Soleil example
What factors should
be raised well above
the industry
standard?
Functional strategies
Functional strategy- the approach a functional area takes to
achieve corporate and business unit objectives and
strategies by maximizing resource productivity

8-70
 Marketing strategy

Marketing strategy deals with pricing, selling and distributing

a product

8-71
 Marketing strategy
• a company or business unit can choose between “push” and “pull”
marketing strategies.
• Many large food and consumer products companies in the United States
and Canada follow a push strategy by spending a large amount of money
on trade promotion in order to gain or hold shelf space in retail outlets.
Trade promotion includes discounts, in-store special offers, and advertising
allowances designed to “push” products through the distribution system.
• The Kellogg Company decided a few years ago to change its emphasis from
a push to a pull strategy, in which advertising “pulls” the products through
the distribution channels.
• The company now spends more money on consumer advertising designed
to build brand awareness so that shoppers will ask for the products.
Research has found that a high level of advertising (a key part of a pull
strategy) is beneficial to leading brands in a market.
• Strong brands provide a competitive advantage to a firm because they act
as entry barriers and usually generate high market share.
Market development strategy- provides the ability to:
• Capture a larger market share
– Market saturation
– Market penetration
• Develop new uses and/or markets for current products
Product development strategy- provides the ability to:
• Develop new products for existing markets
• Develop new products for new markets

8-74
• Line extension- using a successful brand name to
market other products

• Push strategy- promotions to gain or hold shelf space

in retail outlets

• Pull strategy- advertising to “pull” products through the

distribution channels

8-75
• Skim pricing- offers the opportunity to “skim the
cream” from the top of the demand curve with a high
price while the product is novel and competitors are
few

• Penetration pricing- attempts to hasten market

development and offers the pioneer the opportunity to
use the experience curve to gain market share with low
price and then dominate the industry

8-76
 RYANAIR marketing strategy
The marketing strategy is perhaps the most obvious and significant
functional strategy of Ryanair. Low fares are designed to stimulate demand,
attracting fare-conscious travelers, those who may have used alternative forms of
transportation or even those who may have not traveled at all.

Penetration pricing as it is called helps gain market share and simply, more
customers equals more revenue. Tickets are almost solely sold on their website
‘www.ryanair.com’ which very importantly keeps sales costs to a minimum since
very few phone operators are employed and computers are able to cheaply handle all
functions of sales.

With ever increasing accessibility of the internet globally anybody with internet
access can buy airline tickets from Ryanair, so distribution practically takes care of
itself through this medium. Ryan Air relies on low cost promotions and in recent
times has concentrated on their ‘One million seats at one pound’ which is usually
advertised through their internet site, national press and bulletin boards.

It is the simplicity of this promotion which helps keep costs low since expensive
advertising agencies can be entirely avoided and advertising can be dealt with in
house.
Financial Strategy- examines the financial implications of
corporate and business-level strategic options and
identifies the best financial course of action

Financial strategy includes the management of:

• Dividends
• Stock price
• Sales of company patents

8-78
Research and Development Strategy- deals with
product and process innovation and improvement

• Technological leader- pioneers innovation

• Technological follower- imitates the products of
competitors
• Open innovation- use of alliances and connections with
corporate, government, academic labs and consumers
to develop new products and processes

8-79
 Research and Development Strategy
• Kodak engineer Steve Sasson actually invented
the digital camera in the company’s R&D labs in
the 1970s

• The reactionary antibodies within Kodak’s

leadership rejected the digital camera, fearing it
would cannibalise existing business
 Research and Development Strategy
• One example of an effective use of the leader R&D functional
strategy to achieve a differentiation competitive advantage is Nike,
Inc.
• Nike spends more than most in the industry on R&D to differentiate
the performance of its athletic shoes from that of its competitors.

• As a result, its products have become the favorite of serious athletes

Operations Strategy- determines how and where a
product or service is to be manufactured, the level of
vertical integration in the production process, the
deployment of physical resources and relationships
with suppliers
Manufacturing Types include

• Job shops •Mass production systems

• Connected line batch flow •Continuous improvement
•Modular manufacturing
• Flexible manufacturing systems
•Mass customization
• Dedicated transfer lines

8-82
Mass production .. Mass customization….. Customization
 CAD / CAM

-CAD stands for Computer-Aided Design and CAM stands for

Computer-Aided Manufacturing, both of which are used to make
things.

-CAD/CAM software is used to design and manufacture

prototypes, finished products, and production runs of products.
 Purchasing Strategy
It deals with obtaining raw materials, parts and supplies
needed to perform the operations function

Options include:

• Sole suppliers (Deming)

• Multiple
• Parallel sourcing

8-85
 Purchasing Strategy
• Under multiple sourcing, the purchasing company orders a
particular part from several vendors.
• Multiple sourcing has traditionally been considered superior
to other purchasing approaches because it forces suppliers to
compete for the business of an important buyer, thus reducing
purchasing costs, and if one supplier cannot deliver, another
usually can, thus guaranteeing that parts and supplies are
always on hand when needed.
• So long as suppliers can provide evidence that they can meet
the product specifications, they are kept on the purchaser’s
list of acceptable vendors for specific parts and supplies.
• Unfortunately, the common practice of accepting the lowest
bid often compromises quality.
 Parallel sourcing
• In parallel sourcing, two suppliers are the sole suppliers of
two different parts, but they are also backup suppliers for
each other’s parts.

• If one vendor cannot supply all of its parts on time, the

other vendor is asked to make up the difference.
Logistics Strategy- deals with the flow of products into
and out of the manufacturing process

Trends include:

• Centralization
• Outsourcing
• Internet

8-88
 Human Resource Strategy

Trends include:

• Self-managed teams
• 360-degree appraisal
• Diverse workforce
 Human Resource Strategy

• Diversity in terms of age and national origin also offers benefits.

DuPont’s use of multinational teams has helped the company
develop and market products internationally.

• McDonald’s has discovered that older workers perform as well as, if

not better than, younger employees. According to Edward
Rensi,CEO of McDonald’s USA, “We find these people to be
particularly well motivated, with a sort of discipline and work habits
hard to find in younger employees.”
 Information Technology Strategy
Trends include:

• Follow the sun management

• Internet
• Extranet
• Intranet

8-91
 What is the follow the sun model?

• Multinational corporations are finding that having a sophisticated

intranet allows employees to practice follow-the-sun management, in
which project team members living in one country can pass their
work to team members in another country in which the work day is
just beginning.

• Thus, night shifts are no longer needed.

Outsourcing- purchasing from someone else a product or
service that had been previously provided internally
• Avoid outsourcing distinctive competencies

Offshoring- the outsourcing of an activity or a function to

a wholly-owned company or an independent provider
in another country
QSPM

Quantitative Strategic Planning Matrix

Technique designed to determine the relative

attractiveness of feasible alternative actions
 Market Development Product Development
Key Factors

Brand equity (S)

ROI (S)

Design (S)
Distribution (W)
Liquidity (O)
Technology (T)
Interest rate (O)
Market growth (O)
Substitutes (T)
Total
 Market Development Product Development
Key Factors Weight

Brand equity (S) 0.07

ROI (S) 0.11

Design (S) 0.05

Distribution (W) 0.065

Liquidity (O) 0.17

Technology (T) 0.12

Interest rate (O) 0.19

Market growth
(O) 0.14

Substitutes (T) 0.085

Total 1
 Market Development Product Development
Key Factors Weight

AS TAS AS TAS

Brand equity (S) 0.07 4 0.28 3 0.21

ROI (S) 0.11 4 0.44 4 0.44

0.2 0.15
Design (S) 0.05 4 3
0.195 0.195
Distribution (W) 0.065 3 3
0.51 0.51
Liquidity (O) 0.17 3 3
0.48 0.36
Technology (T) 0.12 4 3
0.76 0.38
Interest rate (O) 0.19 4 2
Market growth 0.42 0.42
(O) 0.14 3 3
0.255 0.255
Substitutes (T) 0.085 3 3

Total 1 3.54 2.92

 Steps to Develop a QSPM

1. Make a list of the firm’s key external

opportunities/threats and internal
strengths/weaknesses in the left column.
2. Assign weights to each key external and
internal factor.
3. Examine the Stage 2 (matching) matrices,
and identify alternative strategies that the
organization should consider implementing.
 Steps to Develop a QSPM

4. Determine the Attractiveness Scores.

5. Compare the Total Attractiveness Scores.
6. Compute the Sum Total Attractiveness Score.
QSPM

Limitations

Requires intuitive judgments & educated

assumptions
QSPM

Advantages

Sets of strategies considered simultaneously or

sequentially
Integration of pertinent external & internal factors
in the decision-making process
Strategy implementation
Nature of Strategy Implementation

Management Perspectives
• Shift in responsibility

Divisional or
Strategists Functional
Managers
The Nature of Strategy
Implementation

– Strategy implementation means change

The Nature of Strategy
Implementation

– Less than 10% of strategies formulated are

successfully implemented!
The Nature of Strategy
Implementation
Successful Strategy Implementation

• Market goods & services well

• Raise needed working capital
• Produce technologically sound goods
• Sound information systems
 Management Issues

Annual Objectives

Policies

Resources
Management
Issues Organizational Structure

Restructuring

Rewards/Incentives
 Management Issues (cont’d)

Resistance to Change

Natural Environment

Supportive Culture
Management
Issues Production/Operations

Human Resources
 Management Issues
Purpose of Annual Objectives –

Basis for resource allocation

Mechanism for management evaluation
Metric for gauging progress on long-term objectives
Establish priorities (organizational, divisional, and
departmental)
Management Issues

Four Types of Resources

1. Financial resources
2. Physical resources
3. Human resources
4. Technological resources
 Management Issues

Managing Conflict
 Conflict not always “bad”
 No conflict may signal apathy
 Can energize opposing groups to action
 May help managers identify problems
Management Issues

Restructuring

Downsizing
Rightsizing
Delayering
 Delayering
• Delayering involves removing a layer of
management. Within hierarchical structures a
method that can be used to reduce costs is to
remove a layer of management, while expecting
staff to produce the same level of output.

• This can: save the company money on managerial

wages.
 Rightsizing
• Rightsizing is the process of restructuring a company so it
can make a profit more efficiently and meet updated
business objectives.

• Organizations will usually rightsize their business by reducing

their workforce, reorganizing upper management, cutting
costs, and changing job roles.
Management Issues

Reengineering

Process management
Process innovation
Process redesign
Creating a Strategy-Supportive Culture
WBS
 Tactics(action plan)
No. Action Date Budget Responsible Accountable Consulted Informed Status Outcome KPIs Notes

Status Planned
On progress
Completed
Pending
Cancelled
Postponed
Strategy evaluation and control
 Strategic Management Model
VISON

Evaluation
Environmental
Scanning
Strategy Formulation Strategy Implementation &
Control

External
Mission
Country
Analysis: Reasons Objectives
PEST Forces for
existence What Strategies
Industry results to
Analysis: accomplish Plan to Policies
Porter 5 Forces when achieve
mission & Programs
Internal Broad
objectives
guidelines
for Activities Budget
decision needed
Company making to Procedures
Cost of the
Analysis: accomplish
programs
Value Chain a plan
Sequences Performance
of steps
needed to Actual
do the job Results

125
Feedback Learning
11-126
 Primary Measures of Corporate Performance

• Return on Investment (ROI)

• Earnings per share (EPS)
• Return on equity (ROE)
• Operating cash flow
– Free cash flow

11-127
 The Management Cycle
Operating plans
and budgets

Project
management

Needs
Assessment

Performance
Measurement
EXAMPLES OF “KEY RESULT” AREAS
• Customer
• Product/service
• Public/society/natural environment
• Marketing
• Human Resources
• Production
• Maintenance
• Operations
• Finance

• Good measurement systems don’t just measure things

done according to the organizational chart. Good
systems measure things done to satisfy stakeholders.
129
 Definition of an Indicator

Specific information that provides evidence

about the achievement of planned
impacts, results and activities

Ideally indicators should be reported

quantitatively but this will not always be
possible - don’t limit M&E to
only what can be measured
 What is a Key Performance Indicator

• Gives a good indication of performance

• Commonly used in business
• Metrics to define and measure business goals
• Examples:
– GNP (Gross National Product)
– ARPU (Average Revenue Per User)
– Dow Jones Index
 Types of indicators

• Indicators are either qualitative or quantitative

criteria used to check whether planned changes have
taken place as intended.

• They (indicators) are designed to provide a standard

against which to measure or assess or even show the
success or progress of a programme against stated
targets
 Types of indicators

• Quantitative indicators
– Should be reported in terms of a specific number
(number, mean, or median) or percentage.
– Assessing the significance of an outcome requires data
on both number and percent.

• Qualitative indicators
– Qualitative statements
– Measure perceptions
– Measure attitude, behavior
 Quantitative indicators
Examples
• Number of
• Proportion of
• Percentage of
• Amount of
• The ratio of
• Length of distance
• Weight of
• Size of
• Areas of/spread of
• Value of
• etc.
 Qualitative Indicators

Examples
• Level of
• Presence of
• Evidence of
• Availability of
• Quality of
• Accessibility of
• Existence of
• Sustainability of
• Improvement of
• Ability to (e.g. skills)
• Potential of
• etc.
 Responsibility Centers
1. Cost center
2. Revenue center
3. Profit center
4. Investment center
Balanced scorecard
 Resources / financial
• Top down
• Bottom up
• Iterative
Raafat Shehata

01227765708
Thank You