Explain the meaning and significance of each of the followin

Explain the meaning and significance of each of the following and their relationship to one another?

a. driving forces
b. strategic group mapping
c. key success factors

Solution

DRIVING FORCE:- Driving force is someone or something that has a power to make things happen. in management driving forces is considered as such key forces internal as well as external that shapes the future of an organization. for example:- knowledge, economy, technology, competitors, competence of management and workforce.

Significance of driving force:- the concept of driving force is very simple. every organization either profit based or not has a fundamental driving force. significance is:-

a. it provides a framework for senior leadership to decide where and how to exercise market leadership.

b. it sets the direction of all efforts and influences the nature of all decesions of the management.

c. it provides better understanding and acknowledgment for strategy formulation to acheive the goal of the company.

generally, there are nine driving forces in the company namely

1. products offered

2. market needs

3. technology

4. production capability

5. methods of sale

6. methods of distribution

7. natural resources

8. size or growth

9. return or profit

STRATEGIC GROUP MAPPING:- it is known as a technique which is used to look at your position in the market, field or sector. it is a tool for compitition analysis. it is atechnique to find out the cluster of industry rivals that have similar market position and compititive approach.

Significance of strategic group mapping:- it includes:-

1. it helps to analyze the type and level of entry barriers which will face by the firm.

2. it also examines the number of entry barriers which a company is going to face.

3. it helps to identify the strategic group that a firm should consider before entering in the market.

4. it helps to identify the close and distant rival or competitors in the market.

5. it helps in the identification of attractive and unattractive position of the firm in the industry.

6. it may help to identify the future opportunities and strategic problems.

7. it may also help account for difference among firm\'s profitability in the industry.

KEY SUCCESS FACTOR:- it can be defined as the combination of facts that is required in order to achieve one or more desirable business goals. these factors are the key indicators or milestones which is set up to measure the success of your company. it is also defined as those functons, business practicies and activities, defined by the market not the company, and as viewed by customers that are critical to company or customer relationship.

there are mainly five key success factors. these are:-

1. people (personnel, staff etc.)

2. marketing ( sales customer relations etc.)

3. finances ( assests, facilities, equipments etc.)

4. operations ( processes, work etc.)

5. strategic focus ( management, planning, leadership etc.)

Significance of key success factors:-

a. it helps in the formation of marketing strategies that meet the needs of the customer with in the market.

b. these factors can be proved as the overall sales style of a business as it best realtes to the public offering.

c. it maintains healthy business revenues.

d. it can also be viewed in the context of successful advertising and promotions online and in the domain of public.

e. it inspires marketing and sales to a more robust business status through incentives.

f. it helps business man to gauge potential with in the target market and also in the realm of business competition.

RELATINNSHIP BETWEEN DRIVING FORCES, STRATEGIC GROUP MAPPING AND KEY SUCCESS FACTORS

they are interrelated to each other in many manners such as functioning of a factor put impact on the functioning of other factor. driving forces decides the future of a company whereas strategic group mapping tells about the competitors of the company which can effect the future of the organization. on the other hand, key success factor measures the milestones of the business success which in turns effect both the competition faced by the organization as well as achievement of the goals.

all in all we can say that these are inter relatwed to each other and can not perform its fuction in isolation in any organization.