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Approach Value Tree When To Apply When it is necessary to develop a comprehensive list of potential value creation drivers Begin with a standard value tree consisting of benefit type, first-order drivers, and second-order drivers Determine third-order drivers, i.e., those specific activities which constitute the second-order drivers, based on ones industry knowledge and any company-specific information Use the available information and insights from other tools (e.g. Dupont Analysis, Enterprise Diagnostic, and Lean Producer Chart) to determine which benefit drivers might be the specific areas of company concern “Run the numbers” to model potential profit improvement Citations - Client and Industry Experience Value Tree Compaq/Technology/Vasu Krishnamurthy Strategic Change MBA Training Source List Provide Technical Support Deliver Goods Relation Management Varied performance in 1996 Not flexible due to campaign structure Start-up problems with NN Some problems with labeling Some problems with wrapping Overall, strong on delivery performance Good on urgent delivery Consignment stocks are well received Strong technical competence Speed of response - reactive Joint RD with few selected companies Some positive signs towards closer co-operation Very good with selected clients Very good when going gets tough Reactive, not proactive Do not bring technical staff to meetings/not structured Technical issues not always dealt with by technical staff Attitude to pricing is short-term Lack of initiative/ not spontaneous Not open about market information and strategy Too dependent on one key person Unclear about strategic direction No unity of approach Confusing account handling Easy to get hold of Tech. competence Continuity of representatives Frequency of visits Openness, sharing information Honesty, integrity, trust Availability Complaints handling Technical knowledge Process knowledge Speed of response Solution o
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