ABSTRACT
Firms use this tool perform a detailed analysis of each and every aspect its functions. On one end of the spectrum, such an evaluation takes into account production-related elements such as costs, plant location and design, production processes, facilities management over their full lifecycle, and supplier-related issues. At the other end, marketing and the way the firm interfaces with its customers both need to be thoroughly evaluated. This evaluation must go beyond the 4 Ps (product, price, place, promotion) to include service, market research (the consumer and the nature of the perceived benefits derived from the firm’s offer) and – of course – a full audit of how distribution channels are managed. These combined efforts need to be financed, thus, the financial side of the firms’ operations need to be examined to find out about its cash position and its cash cycle, its financial structure, insurance, financial planning and budgeting issues. But a firm cannot create value without having the right person at the right place, and thus the human resources function also needs to be analyzed. How employees meet objectives, their qualifications, experience and work practices are to be taken into account. Staffing processes and issues related to pay and collective bargaining in general are also important. Finally, since the future is an important preoccupation for all firms, research and development activities need to be examined in light of their contribution to future value creation. Processes that underpin the design of exciting products and services as well and engineering and future technologies and facilities also require special attention.
