1 Implementing Strategies

IMPLEMENTING
STRATEGIES:
MARKETING, FINANCE/
ACCOUNTING, R&D, AND
MIS ISSUES
PROF. ELIZABETH MARTINEZ

LEARNING OBJECTIVES
 Explain marketing segmentation and

product positioning as strategy-
implementation tools.
 Discuss procedures for determining the
worth of a business.
 Explain why projected financial statement
analysis is a central strategy-
implementation.
LEARNING OBJECTIVES
 Explain how to evaluate the attractiveness of

debt versus stock as a source of capital to
implement strategies.
 Discuss the nature and role of research and
development in strategy implementation.
 Explain how management information
systems can determine the success of strategy
implementation efforts.
MARKETING ISSUES
MARKET SEGMENTATION
 Market Segmentation is widely used
in implementing strategies,
especially for small and specialized
firms.
 Two variables are of central
importance to strategy
implementation: market
segmentation and product
positioning.
GEOGRAPHIC
DEMOGRAPHIC
MARKET
PSYCHOGRAPHIC
SEGMENT
BASIS BEHAVIORAL
MARKET SEGMENTATION
Importance of Market Segmentation

It is required to successfully implement market
development, product development, market penetration,
and diversification strategies.
It allows a firm to operate with limited resources.
It enables small firms to compete with large firms.
Market Segmentation
decisions directly affect
marketing mix variables.
PRODUCT POSITIONING
 After markets have been segmented

so that the firm can target particular
customer groups, the next step is to
find out what customers want and
expect.
PRODUCT POSITIONING
Importance of Product Positioning
Positioning helps your product distinguish itself from
competitors, highlighting what makes it unique.
 It ensures you're reaching the right audience by understanding

their needs and preferences.
Effective positioning shapes how customers perceive your

product's worth, influencing buying decisions and brand
loyalty.
PRODUCT POSITIONING STEPS:
DEVELOP
MARKETIN
LOOK G PLAN
FOR
PLOT
NICHES
COMPETITOR
S’ PRODUCTS
DIAGRAM
MAP
SELECT
KEY
CRITERIA
MARKET SEGMENTATION AND PRODUCT
POSITION
AS STRATEGY-IMPLEMENTING TOOL
Market segmentation involves dividing a broad target
market into smaller, more manageable segments based on
various factors. Once these segments are identified,
product positioning comes into play by determining how
the product will be perceived relative to competitors within
each segment. By understanding the unique needs and
preferences of each segment and crafting a distinct image
and value proposition for the product, businesses can
effectively target specific customer groups, increasing
relevance and resonance, and ultimately gaining a
competitive advantage in the market.
MARKET SEGMENTATION AND PRODUCT POSITION
AS STRATEGY-IMPLEMENTING TOOL
Market segmentation involves dividing a broad target market into

smaller, more manageable segments based on various factors. Once these
segments are identified, product positioning comes into play by
determining how the product will be perceived relative to competitors within
each segment. By understanding the unique needs and preferences of each
segment and crafting a distinct image and value proposition for the product,
businesses can effectively target specific customer groups, increasing
relevance and resonance, and ultimately gaining a competitive
advantage in the market.
FINANCE/ACCOUNTING ISSUES
1. Acquiring needed capital
2. Developing projected financial

statements
3. Preparing financial budgets
4. Evaluating the worth of a business

1. ACQUIRING NEEDED CAPITAL
COMMON STOCK
EQUIT
DEBT
Y
-BONDS
-BORROW FROM LENDER
DEBT vs. EQUITY Decisions
EPS/EBIT analysis
An Earnings Per
This method involves
Share/Earnings Before
an examination of the
Interest and Taxes analysis is
impact that debt versus
the most widely used method
stock financing has on
for determining whether debt,
earnings per share
stock, or a combination of
under various
debt and stock is the best
assumptions as t o
alternative for raising capital
EBIT.
to implement strategies.
2. DEVELOPING PROJECTED
FINANCIAL STATEMENTS
PROJECTED FINANCIAL STATEMENT ANALYSIS
STEPS IN PREPARING PROJECTED FINANCIAL

STATEMENTS:
1. Prepare income statement before balance sheet (forecast sales).
2. Use percentage of sales method to project CGS & expenses.
3. Calculate projected net income.
4. Subtract dividends to be paid from net income and add
remaining to retained earnings.
3. PREPARING FINANCIAL
BUDGET
• Details how funds will be

obtained and spent for a
specific period of time.
TYPES OF BUDGETS
CASH BUDGETS EXPENSE BUDGETS

OPERATING CAPITAL DIVISIONAL VARIABLE
BUDGETS BUDGETS BUDGETS BUDGETS
SALES FACTORY FLEXIBLE FIXED

BUDGETS BUDGETS BUDGETS BUDGETS
PROFIT
BUDGETS
4. EVALUATING THE WORTH OF A
BUSINESS
• Evaluating the worth of business is
central to strategy implementation
because integrative, intensive, and
diversification strategies are often
implemented by acquiring other
firms.
BASIC APPROACHES FOR
EVALUATING THE WORTH OF
BUSINESS
 What a firm OWN?
 What a firm EARN?
 What a firm will BRING TO
MARKET?
WHY PROJECTED FINANCIAL STATEMENT ANALYSIS IS
A CENTRAL STRATEGY-IMPLEMENTATION TOOL?
Projected financial statement analysis is central to strategy implementation

as it provides a forward-looking view of a company's financial
performance, allowing for informed decision-making and resource
allocation. By forecasting future revenues, expenses, and cash flows,
businesses can anticipate potential financial challenges and
opportunities, ensuring alignment with strategic objectives. It enables
management to assess the feasibility and impact of strategic initiatives,
facilitating effective planning and execution to drive organizational success.
RESEARCH & DEVELOPMENT
 New products and
improvement of existing
products that allow for
effective strategy
implementation.
RESEARCH AND DEVELOPMENT ISSUES
CONSTRAINT
S
TECHNOLOGICAL
RESOURCE AVAILABILITY IMPROVEMENTS SHORTEN
PRODUCT LIFE CYCLES
RESEARCH AND DEVELOPMENT
APPROCHES
BE THE FIRST WITH
NEW TECHNOLOGICAL
PRODUCTS
BE AN
INNOVATIVE
BE A LOW-COST
PRODUCER
IMPORTANCE OF RESEARCH AND
DEVELOPMENT
R&D drives innovation, leading to the creation of new products,
services, and technologies.
It helps businesses stay ahead by improving existing products,
exploring new markets, and enhancing operational efficiency.
Investing in R&D ensures long-term viability by adapting to
changing market trends, customer needs, and technological
advancements.
THE NATURE AND ROLE OF R&D IN STRATEGY
IMPLEMENTATION
R&D is essential in strategy implementation, driving innovation

and ensuring competitiveness. It involves systematic
exploration and experimentation to create value, develop
new products, and optimize operations. By aligning
strategies with market demands and emerging trends, R&D
fosters growth, adaptation, and long-term success.
MANAGEMENT
INFORMATION SYSTEMS
 Having an effective
management information
system (MIS) may be the most
important factor in
differentiating successful from
unsuccessful firms.
MANAGEMENT INFORMATION
SYSTEMS (MIS) FUNTIONS
INFORMATIO COORDINATIO
ALLOWS
N KEEPING N OF
FIRMS TO
COLLECTION, MANAGERS ACTIVITIES
REDUCE
RETRIEVAL, INFORMED AMONG
COSTS
AND STORGE DIVISIONS
IMPORTANCE OF MANAGEMENT
INFORMATION SYSTEMS
MIS facilitates the efficient collection, storage, and retrieval of
data, providing valuable information for decision-making.
It aids managers in making informed decisions by providing timely
and accurate data analysis, reports, and forecasts.
MIS streamlines business processes, improves communication, and
enhances collaboration, leading to increased productivity and
competitive advantage.
HOW MIS CAN DETERMINE THE SUCCESS OF STRATEGY
IMPLEMENTATION EFFORTS?
MIS determines strategy implementation success by offering

real-time data on KPIs, aiding in tracking progress and
making informed decisions. It enables efficient
communication and coordination, ensuring strategic initiatives
are executed effectively to achieve organizational goals.
Thank you
REFERENCES
• https://useinsider.com/what-is-marketing-segmentation/#:~:text=Market%20segmentation%20is%20crucial%20for,ultimately%20increa
se%20sales%20and%20revenue
.
• https://www.slideshare.net/Ichamutiara/chapter-8-implementing-strategies-marketing-financeaccounting-rd-and-mis-issues
• https://www.mtu.edu/business/what-is-mis/
• https://www.business.qld.gov.au/running-business/growing-business/research-development
• https://www.score.org/resource/blog-post/why-projected-financial-statements-are-essential-future-success-startups

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IMPLEMENTING

PROF. ELIZABETH MARTINEZ

 Explain marketing segmentation and

 Explain how to evaluate the attractiveness of

Importance of Market Segmentation

 After markets have been segmented

 It ensures you're reaching the right audience by understanding

Effective positioning shapes how customers perceive your

Market segmentation involves dividing a broad target market into

2. Developing projected financial

3. Preparing financial budgets

4. Evaluating the worth of a business

STEPS IN PREPARING PROJECTED FINANCIAL

• Details how funds will be

CASH BUDGETS EXPENSE BUDGETS

SALES FACTORY FLEXIBLE FIXED

Projected financial statement analysis is central to strategy implementation

R&D is essential in strategy implementation, driving innovation

MIS determines strategy implementation success by offering

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