company analysis
rt1911
Tool4CompetitiveProfileMatrix.pptxStrategic Management Tool Four
MGT 4810
Dr. Amye Melton
Tool Four
In Tool Four, we compare the Key Success Factors or criteria used by the industry to judge success to the criteria important to the company and evaluate the alignment (or lack thereof) between the two.
Key Success Factors are also known as Critical Success Factors and/or Key Performance Indicators. The evaluation of the KSF’s is called a Competitive Profile Matrix.
Relevant Questions
How is success judged in the subject industry versus by the firm?
Tool Four (continued 1)
KSF’s are the criteria the industry AND the organization use to measure success. Possible measurements are: productivity, employee morale, product/service quality, earnings per share, market share, facilities/equipment, or other specifics.
Tool Four (continued 2)
KFS’s are difficult to identify. Often reading between the lines, identifying recurring words, or themes in the various publications best serve the analyst. Press releases are often the best source.
Very subjective to the judgment of the analyst
Rank the KSF’s for the company and the industry, a high ranking for the industry and a low ranking for the company would indicate a weakness for the company. Industry criteria missing from the organization implies a weakness for the firm while KSF’s for the firm but not for the industry may imply a strength.
Tool Four (continued 3)
You will compare your company to at least two other organizations.
Key Notes
You cannot rank two organizations equally for one KSF.
Your initial weight ranking must total to 1.
You must provide a written explanation for each KSF. This explanation should be three to five sentences.
Tool Four (continued 4)
