strategic-management

FIGURE 8-2
CHAPTER 8 • IMPLEMENTING STRATEGIES: MARKETING, FINANCE/ACCOUNTING, R&D, AND MIS ISSUES 261
Examples of Product-Positioning Maps
A. A PRODUCT-POSITIONING MAP
FOR BANKS
Bank A
Personal
Aggressive Conservative
Impersonal
Very latest,
fashionable
menswear
Bank B
Bank C
Bank D
Bank E
C. A PRODUCT-POSITIONING MAP FOR
MENSWEAR RETAIL STORES
Average specialty
chain
Low price High price
Average mass
merchandiser or
discounter
Conservative,
everyday menswear
Average
department
store
Finance/Accounting Issues
B. A PRODUCT-POSITIONING MAP
FOR PERSONAL COMPUTERS
Good
customer
service
Firm 3
Firm 1
Firm 2
High capability
Low capability
High convenience
Firm 4
D. A PRODUCT-POSITIONING MAP
FOR THE RENTAL CAR MARKET
High
customer
loyalty
Firm 1 Firm 2
Firm 3
In this section, we examine several finance/accounting concepts considered to be central to
strategy implementation: acquiring needed capital, developing projected financial statements,
preparing financial budgets, and evaluating the worth of a business. Some examples
of decisions that may require finance/accounting policies are these:
1. To raise capital with short-term debt, long-term debt, preferred stock, or common
stock
2. To lease or buy fixed assets
3. To determine an appropriate dividend payout ratio
4. To use LIFO (Last-in, First-out), FIFO (First-in, First-out), or a market-value
accounting approach
5. To extend the time of accounts receivable
6. To establish a certain percentage discount on accounts within a specified period
of time
7. To determine the amount of cash that should be kept on hand
Low convenience
Bad
customer
service
Low
customer
loyalty