Gap Analysis

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ESP Educational Class
Mrs.ET Sopheak
Tel: 012289363 /0976469625

Gap Analysis

Gap Analysis is a high order analysis that seeks to identify the difference between the organization's current strategy and its desired strategy. This difference is known as the strategic gap. For example, Mintzberg identifieds 2 types of strategy such as deliberate strategy and inadvertent strategy. The deliberate strategy represents the firm's strategic intent or its desired path while the inadvertent strategy represents the path that the firm may have followed as it adjusted to environmental, competitive and market changes. The presence of a large gap may indicate the organization has become stuck in the middle and a recipe for strategic mediocrity and potential failure.

First step, performing a GAP analysis is to closely examine the company's core goal and vision. This helps in setting targets accordingly. These targets are the ideal business positions where the business wants or expects to be in the future. Second step, it is to examine what is currently happening in the business to preparation of the current allocation of resources, performance, and processes. All the current allocation get an evaluation through several sources including company records, taking employees' interviews and observing business activities, so the business can compare its current performance with the goals it has already set by examining the business' vision.

All tools for bridging the GAP analysis includes SWOT analysis, PEST analysis and McKinsey 7S Framework and so on. GAP analysis examples can actually help business use the right combination of tools.

Thanks,

Mrs.ET Sopheak

Lecturer in Economics

Category & Brand development index

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ESP Educational Class
Mrs.ET Sopheak
Tel: 012289363 /0976469625

The category/brand development index

The category/brand development index is a method used to assess the sales potential for a region or market and identify market segments that can be developed (i.e. high CDI and high BDI). In addition, it may be used to identify markets where the category or brand is under-performing and may signal underlying marketing problems such as poor distribution (i.e. high CDI and low BDI).

BDI and CDI are calculated as follows:

BDI = (Brand Sales (%) in Market A/ Population (%) in Market A) X 100

CDI = (Category Sales (%) in Market/ Population (%) in Market A) X 100

Thanks,

Mrs.ET Sopheak

Lecturer in Economics

PEST Analysis

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ESP Educational Class
Mrs.ET Sopheak
Tel: 012289363 /0976469625

PEST Analysis

Strategic planning begins with a scan of the business environment, both internal and external. An understanding of the external operating environment, including political, economic, social and technological which includes demographic and cultural aspects for the identification of business opportunities and threats is called PEST analysis. For STEER analysis is social, technological, economics, environmental and regulatory. For PESTLE analysis is to identify opportunities and threats in the wider operating environment on political, economical, social, technological, Legal and environmental. STEEPLE analysis is PESTLE analysis with adding ethics. For STEEPLED analysis is PESTLE analysis with adding ethics and demographics.

Thanks,

Mrs.ET Sopheak

Lecturer in Economics

SWOT Analysis

Welcome to all my beloved readers!
ESP Educational Class
Mrs.ET Sopheak
Tel: 012289363 /0976469625

SWOT analysis.

SWOT analysis (or SWOT matrix) is a strategic planning technique used to help a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning.

A SWOT analysis identifies:

• Strengths: distinctive capabilities, competencies, skills or assets that provide a business or project with an advantage over potential rivals; internal factors that are favourable to achieving company objectives.
• Weaknesses: internal deficiencies that place the business or project at a disadvantage relative to rivals; or deficiencies that prevent an entity from moving in a new direction or acting on opportunities. internal factors that are unfavourable to achieving company objectives
• Opportunities: elements in the environment that the business or project could exploit to its advantage；external factors of the organization including: new products, new markets, new demand, foreign market barriers, competitors' mistakes, etc.
• Threats: elements in the environment that could erode the firm's market position; external factors that prevent or hinder an entity from moving in a desired direction or achieving its goals.

Typically the firm will attempt to leverage those opportunities that can be matched with internal strengths; that is to say the firm has a capability in any area where strengths are matched with external opportunities. It may need to build capability if it wishes to leverage opportunities in areas of weakness. An area of weakness that is matched with an external threat represents a vulnerability, and the firm may need to develop contingency plans.

Thanks,

Mrs.ET Sopheak

Lecturer in Economics