182 CHAPTER 3: Corporate Appraisal
1. Meaning of Corporate Appraisal (TM 3-1)
2. Scope of Corporate Appraisal (TM 3-2)
B. Corporate Publics
1. Corporate Publics and Their Concerns (TM 3-3)
2. Coors’ Commitment to Its Stakeholders (TM 3-4)
C. Value System of Top Management
1. Corporate Culture of Select Companies (TM 3-5)
2. Four Catagories of Corporate Culture (TM 3-6)
3. Measuring Value Orientation (TM 3-7)
D. Corporate Resources
1. Meaning of Corporate Resources (TM 3-8)
2. Resources and Marketing Strategy (TM 3-9)
E. Key Success Factors in Difference Industries (TM 3-10)
F. Business Unit Performance (TM 3-11)
183 CHAPTER 3: Corporate Appraisal
Corporate appraisal is a measurement of the readiness of the internal culture of the corporation to
interact with the external environment.
Marketing strategists are concerned with those
aspects of the corporation that have a direct bearing
on corporate-wide strategy, which is referred to in
defining business unit mission.
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SCOPE OF CORPORATE
185 CHAPTER 3: Corporate Appraisal
CORPORATE PUBLICS AND THEIR CONCERNS
AREA OF CONCERN
Employees of all ranks
Reward of recognition
Reward of pride
Banking community and other lenders
Government (federal, state, and local)
Society at large
Repayment of principal
Security and law enforcement
Implementation of programs
Economic growth and efficiency
Employment and training
Civil rights and equal opportunities
Urban renewal and development
Conservation and recreation
Culture and arts
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Coors’ Commitment to
“Quality in all we are and all we do”
Provide them products and services of
recognizably superior quality.
Build quality relationships. Contracts and prices
should be mutually beneficial.
Improve quality of life by complying with all the
laws and the corporate code of conduct.
Consistently pay dividends and seek appreciation
in the value of capital.
187 CHAPTER 3: Corporate Appraisal
CORPORATE CULTURE OF
• International Business Machines Corporation:
Marketing drives a service philosophy that is almost
• International Telephone and Telegraph Corporation:
Financial discipline demands total dedication.
• Delta Air Lines Inc.: Focus on customer service
produces a high degree of teamwork.
• Microsoft: Emphasis on innovation creates freedom
• Toyota: Standards in efficiency, productivity, and
quality are the most important pursuits.
• GE: Conduct continuous campaigns to become the
lowest-cost producer in its area.
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FOUR CATEGORIES OF CORPORATE CULTURE
Academies (example: IBM)
Have parents who value self-reliance but put less emphasis on honesty
Tend to be less religious.
Graduated business school with high grades.
Have more problems with subordinates in their first ten years of work.
Clubs (example: United Parcel Service)
Have parents who emphasize honesty and consideration.
Have a lower regard for hard work and self-reliance.
Tend to be more religious.
Care more about health, family, and security and less about future income
Are less likely to have substantial equity in their companies.
Baseball Teams (example: accounting firms)
Describe their fathers as unpredictable.
Generally have more problems planning their careers in the first ten years
after business school and work for more companies during that period than
Include personal growth and future income among their priorities.
Value security less than others.
Fortresses (example: retailers)
Have parents who value curiosity.
Were helped strongly by mentors in the first year out of school.
Are less concerned than others with feelings of belonging, professional
growth, and future income.
Experience problems in career planning, on-the-job decisions, and job
189 CHAPTER 3: Corporate Appraisal
MEASURING VALUE ORIENTATION
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MEANING OF CORPORATE RESOURCES
Resources are distinctive capabilities and
strengths. Resources may be categorized as:
Raw material reserve
191 CHAPTER 3: Corporate Appraisal
RESOURCES AND MARKETING
1. Has ample cash on hand (financial strength).
2. Average age of key management personnel is 42
years (human resources).
3. Has a superior raw material ingredient in reserve
(raw material reserve).
4. Manufactures parts and components that go into
the final product (plant and equipment).
5. Products, if properly installed and serviced
regularly, never stop while being used (technical
6. Has a knowledge of, close relationship with, and
expertise in doing business with the grocery
chains (marketing strength).
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KEY SUCCESS FACTORS
IN DIFFERENT INDUSTRIES
KEY FACTOR OR
(economies of scale)
(quality x quantity)
193 CHAPTER 3: Corporate Appraisal
BUSINESS UNIT PERFORMANCE
Sales—dollar and/or volume
Operating profit before taxes
Sales per employee
Profits per employee
Investment per employee
Return on investment/
B. Human Resources
Use of employee skills
Ethnic and racial composition
Research and Development
Number of salespersons
Sales per salesperson
F. International Business
G. Managerial Performance
Development of personnel