Analyze Market Structure

The market size is defined through the market volume and the market potential. The market volume exhibits the totality of all realized sales volume of a special market. Analysis of the market includes several stages. This study: 1)goods or services; 2)supply and demand; 3)potential and actual behavior of consumers; 4)market conditions; 5) price dynamics for optimal promote their offerings on the market

Analysis of the industry markets its object implies a set of companies with interests in the same sector. The so-called economic sector. It covers the production, distribution and consumption of specific goods or services. Methods of analysis of the market:

• Statistical analysis of the data; • Multi-dimensional;

• Simulation; • The theory of statistics;

• Regression; • Correlation;

• Hybrid; • Deterministic

The most popular programs of these studies are:

• SWOT-analysis. Initially, this type of study is a collection and subsequent structuring of information on current trends and situation. To date, the result of the SWOT-analysis is a table with four graphs that reflect the strengths and weaknesses, threats and opportunities. This type of strategy is aimed at the formation of the behavior of the enterprise market.

• PEST-analysis. This type of analysis is designed to determine the location of the enterprise in the industry and consistent functioning of it. PEST-analysis is designed to determine which factors (political, economic, social, technological, or other) impact on the business of a particular subject field.

• PESTLE-analysis. This is an extended version of the PEST-analysis. It also takes into account the natural, geographical and legal factors.

• «Porter's Five Forces." The most powerful tool for marketing analysis. This technique identifies five major factors that lead to competition and, therefore, determining tactics and strategy of the company. The most popular method among professionals. But its drawback is that it does not consider all the particulars and exceptions.

39. Analyze Outcomes & Inputs

Input - output analysis is a technique that is used to discover how changes in one or more than one output flow in a static or dynamic supply and demand network are shared over the various users (input flows). A static system is a system whose levels and flows do not vary from period to period. In a dynamic system the levels and flows vary with time. Explanation:The first phase of the technique is concerned with building a matrix of the flows of resources, expressed in money values, between the main sectors of the network being considered. The following ultra-simplified example indicates the form of the matrix :

The second phase consists of the development of a set of equations representing inter-sectoral flows based upon the transactions established in the original matrix. In the third phase the equations can be used to estimate the effects of any given set of changes in outputs or inputs upon all elements of the system. Illustration:

The main applications of the technique have been at the level of macro-economics in which the flows of product between the main sectors in an entire national economy are considered, e.g. the usage of the products of the iron and steel industry, in the chemical industry. In objective setting there is a difference between the inputs to, outputs from and the outcomes of a particular objective. It is important to know the distinction between these and exactly what is being assessed.For example, if car parking is a particular problem a local objective might be:“To reduce the number of illegally parked cars within a three mile radius of the Town Hall” The monitoring of this objective would be via:

• INPUTS = The number of traffic warden hours employed
• OUTPUTS= The number of parking tickets issued

• OUTCOMES= The number of illegally parked cars

40. Describe the Expectancy Theory.

Expectancy theory is about the mental processes regarding choice, or choosing. It explains the processes that an individual undergoes to make choices. In the study of organizational behavior, expectancy theory is a motivation theory first proposed by Victor Vroom of the Yale School of Management. The Expectancy Theory of Motivation explains the behavioral process of why individuals choose one behavioral option over another. The theory explains that individuals can be motivated towards goals if they believe that: there is a positive correlation between efforts and performance, the outcome of a favorable performance will result in a desirable reward, a reward from a performance will satisfy an important need, and/or the outcome satisfies their need enough to make the effort worthwhile. Vroom introduces three variables within the expectancy theory which are valence (V), expectancy (E) and instrumentality (I). The three elements are important behind choosing one element over another because they are clearly defined: effort-performance expectancy (E>P expectancy), performance-outcome expectancy (P>O expectancy). Three components of Expectancy theory: Expectancy, Instrumentality, and Valence:

1. Expectancy: Effort → Performance (E→P)
2. Instrumentality: Performance → Outcome (P→O)
3. Valence: V(R) Outcome → Reward

In order to enhance the performance-outcome tie, managers should use systems that tie rewards very closely to performance. Managers also need to ensure that the rewards provided are deserved and wanted by the recipients.^[9] In order to improve the effort-performance tie, managers should engage in training to improve their capabilities and improve their belief that added effort will in fact lead to better performance.^[9]

- Emphasizes self-interest in the alignment of rewards with employee's wants.

- Emphasizes the connections among expected behaviors, rewards and organizational goals

Expectancy Theory, though well known in work motivation literature, is not as familiar to scholars or practitioners outside that field.

Date: 2015-12-18; view: 635