In other words, the analysis keep focusing on the past performance evaluation in terms of profitability, liquidity, growth potentiality and operational efficiency. Apart from this the size and the reputation of the companies that are already operating in the market also play an important. Such may include the supply chain efficiency, value chain maintenance, technology or other factors, that offer value to the company and in return allows the organization to offers similar value to the customer. An upper performance quantile can be the most appropriate performance standard (D’Aveni, 2007), The Making Stickk Stick The Business Of Behavioral Economics assessment of the operational efficiency in the initial stage as a whole for business or any of the business sub-division is likely performed through a percentage analysis of income statement. Strength is a characteristic that adds value to something by making it more special, unique and advantageous when compared. It defines the characteristics and situations of an organization which makes it more effective and efficient when compare with its competitors. The return on equity likely measures the profit amount that had generated by assets. In mature markets the profitability is often stable but the market potential is less as most of the players have already taken market share based on the segment they are serving. Also, the purpose of the problem statement is to describe the external environment and its effect on the overall organization in short and long-term. Strategic Marketing Analysis of Making stickK Stick: The Business of Behavioral Economics case study written by Leslie K. John, Michael I. Norton, Michael Norris will comprise following sections –, Order Now - Making stickK Stick: The Business of Behavioral Economics Marketing & Sales Case Study Solution For the purpose of maximizing the benefits of such analysis, it is important that it should be used on regular basis so that an organization would be able to identify the trends. Within the industry the businesses profitability is dependent upon the following forces: The competition among the firms help in identifying the lucrativeness of an industry where companies are competing hard in order to maintain their power within the industry. stickK currently has two lines of business - consumer facing website and a private label for corporates. This will not only help in assessing the strengths and weaknesses of the competitors but also help in defining and positioning of the product. The Basic idea of the Making Stickk Stick The Business Of Behavioral Economics VRIO model is to analyze the factor that are valuable for the organization. In addition, it also analyze the factors that are Rare within the organization. Mr Karlan and the co-founders of stickK, Ian Ayres, a law professor, and a young student entrepreneur, Jordan Goldberg, have already raised $1.2m from an angel investor. The particular section deals with the different ways the problem can be resolved. stickK.com is the product of three Yale University economists who believed that using contracts could be an effective way to help people accomplish their objectives. The business-to-consumer model is the best solution for stickK right now. stickK.com, a website that uses behavioral economics to help users achieve their goals, must choose between a direct-to-consumer or business-to-business model.The case includes a discussion of how principles of behavioral economics can be used to influence behavior, and how an understanding of behavioral economics can inform managerial decisions about product … It identifies the issues or gap between the current and desired type of the organization, and thus requires to be stated in order for the management to look for change. It is noteworthy that the gross margin reflect the relationship of volume, price and cost. Step 3. Current asset turnover:it measures the current asset level that is require for supporting sales. At Fern Fort University, we use Harvard Business Review (HBR) marketing principles and framework to analyze Making stickK Stick: The Business of Behavioral Economics case study. Additionally, the macro environment includes legal and political factors, sociocultural forces, economic forces and technological factors. Etc. It is effectively used in building strategies for the organization to maintain its competitiveness in the market. In short, it provides the basis to company’s executive, analysts and manager of making the company profitable in forthcoming years (Helfert, 2017). The ability of the option is considered while the alternative generation process, so gauge if the option will remains table, if the given situation and markets changes. Build to order. Untapped market sizes and barriers to both enter the market and serving the customers. This is important as it allows the organization in meeting the ultimate goals and addressing the problem effectively. Normally, I would classify this under the bundling business model. It is a strategic planning framework that is commonly used to evaluate the organization, a plan, business or any other project. The sales’ common base permitting a ready comparison between key expenses from time to time against industry databases and competitors in the market over longer stretches of time. In this model, five forces have been identified which play an important part in shaping the market and industry. It is the process that is widely used for identifying the financial weaknesses and strengths of the corporations, this can be done by building the relationship between items of the profit & loss account and balance sheet. It can be a skill, a resource, image, market leadership, relation with buyer or supplier or any other advantage relative to its competitors that fulfill the needs of the market by providing the organization with a comparative advantage. Order custom Harvard Business Case Study Analysis & Solution. Until& unless, the organization critically examine the attributing factors, the analysis’s findings does not seem to be of greater value or consideration. Because adopting or proposing an alternative that is difficult to implement or takes a lot of resources with no definite outcomes is vain. This determination of organization allow to the company to understand what additional things or function is required to be in place, or needs to be improvised in t=long term. For instance, lower price, special offer, and money back guarantee etc. Liquidity: it is the ability of an organization satisfying immediate obligations, maintaining positive cash flows and it most likely based on the balance sheet of company depicting the financial condition of organization. Management capabilities, Facilities, financial resources, marketing skills and the weak brand image can be the sources of weakness. Identifying the market share drivers relevant to Making stickK Stick: The Business of Behavioral Economics market. Organic audience. You start by defining your Goal explicitly! The business model for Stickk is currently a B2C model wherein Stickk has commitment contracts with individual customers. The usual or common procedure for pestle analysis is presenting a simple list of the environmental factors affecting the project. And when there is no close substitute available for the products being supplied by the suppliers. b. B2B model. The matric can be adjusted for thepurpose of reflecting the average equity amount being employed during the span of year, giving the more accurate and realisticpicture of how the organizationhas been performing throughout the year. How does stickK make money? All the environmental factors are consider as a threat to an organization that could affect the efficiency and effectiveness of the organization. To conclude, PESTLE analysis is considered as an effective tool of planning and it offers viable and effective technique foranalyzing and scanning the operating environment of an organization. It is noteworthy, that the charities needs to be included where a government are not willing services and goods to be provided. Alternative are the different ways of achieving a same end goal through two or more different methods. Apart from this it also affect the growth potentials of the industry as a whole but reducing the profitability margins. The Making Stickk Stick The Business Of Behavioral Economics VRIO analysis is basically the extension of the Making Stickk Stick The Business Of Behavioral Economics PESTEL analysis, which allows the oragnation to understand the resources, competitive edge, value proposition and its value in the market. Financial leverage multiplier: it is the connection between return on equity and return on assets of an organization. Commit, achieve, support, discover - explore a social network that dares you to change. The external factors are dynamic and can be change at a rapid pace. Combining all of these lasting inevitable impact on the expectations of market regarding the cash flow generation and future success of the company. It is a factor that contribute positively towards the growth of the organization. The users of the financial statement are listed below; Significantly, creating the financial ratio add meanings to the accounting and financial data of the business. In addition, the imitable factor also outlines the factors that are inimitable by the other organization. The better the insight more are the chances of connecting with the potential customers. It is significant to consider these factors. Not only this, it also indicates that an organization has a lot unproductive assets for instance inventory, receivables, equipment and plant for its current sales’ level. Making Stickk Stick The Business Of Behavioral Economics Weakness refer to the situation in which the existing capabilities and the resources the company holds are weaker or not sufficient compared to others organizations in the market. The analysis of the financial statement involves the methods use in interpreting and assessing the outcome of the current and past financial position or performance since they associate to particular interest factors in investment decisions. Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage. Shattering these assumptions, B2B Business model introduces us to a concept wherein businesses act like customers too.B2B is a type of business model where exchange of goods and services take place between Once the options are developed and evaluated, the recommendation is made, on the basis of the best suited option that offers the maximum value to the company and address the problem succinctly. Does the company have a viable business model? The barriers can be both industrial and legal. The reliability factor includes if the option developed is successful or has the successful track record in the past or with the pats companies. Initial and periodic payments. All in all, the recommendation include, what, why, how and whom factors. Which areas are in need of immense attention? We make beautiful, dynamic charts, heatmaps, co-relation plots, 3D plots & more. Nonetheless, the analysis needs to be conjunction with other frameworks such as S-W-O-T analysis in order to get a more realistic picture. The Making Stickk Stick The Business Of Behavioral Economics economic factors or forces involves interest rates, inflation, and growth of economy, cost of living, working hours, wage rate and exchange rates. Porter’s Five Forces is a strategic Making Stickk Stick: The Business Of Behavioral Economics analytical tool that’s used to evaluate the degree of intensity of competition in the business. All rights reserved. By creating superior customer value, the organization can create highly satisfied customers who stay loyal and buy more. Also, there are many questions that can be bets answered by comparing the figures in Making Stickk Stick The Business Of Behavioral Economics percentages. it only incorporates the aspects of the present day and only incorporate the events that took place within the short term period. Such products prevail due to the technological and innovative advancement. The collection time is measured by days receivables on credit sales.With increasing day’s receivable, the company would need more working capital. In this element of SWOT the abilities and the key properties of organization are discussed that gives an organization an advantage over other organizations by making it more competitive. The B2C model is proven to have rapid acquisition growth, minimal product and labor requirements, and most importantly, it will give the company less direct competitors. Nobody get fired for buying our Business Reports Templates. It fills the gaps of people having a goal and achieving a goal. Segment Attractiveness Analysis – Our analysis will work out which are the most attractive segments and which are the one the firm should go ahead and target. We appreciate your business and look forward to serving you in the future. In addition to this, the careful and deep consideration is given to the political, economic, social and other porter 5 forces and pestel model so to understand the alignment of right alternative with maximum value and weightage in resolving the problem. Such factor analysis is important in order to avoid any resistance implementation and also save the resources and efforts. Also it likely reveals about the organization’s expense. Therefore choosing clients often become crucial for the organizations as to avoid the situation of being highly depended on the buyers. Thus is important as to allow the organization. Order Now - Making stickK Stick: The Business of Behavioral Economics SWOT & PESTEL Analysis. Current debt to equity ratio: it is the mix if the debt of an organization. Days of inventory: it is the indication of how the company efficiently managing inventory. Kotler explains - Marketing is a process by which organizations can create value for its potential and current customers and build strong customer relationships in order to capture value in return. 46 images View gallery . The company holds its vision closely as it allows them to orientate its innovation in terms of choices regarding the investment and strategies. It is a deficiency or limitation of resources, capabilities, skills that majorly affect the organizations effective performance. If the participants in the industry have to incur high cost for switching suppliers or the firms are located adjacent to the suppliers manufacturing facilities. It significantly rely on the capabilities of the manager that how effectively it can prioritize and determine the most important element. The options developed entails and includes the maximum factor that the organization should analyze or achieve, thus offering great value. Due to which the products being produced by the companies that are already existing in the market and is using the same technology are than replaced by the other company’s products that are comparatively better in terms of price and quality and are being produced from sectors with significant profits. It can be used for examining the business operations from the variety of perspective for determining the ways that can be used to strengthen the business and understating the greater financial condition or situation. The underlying objective of the financial analysis is organizing the financial statement as well as other accounting data of an organization enabling the comparisons with other companies, also enabling to accurately evaluate raw data. SWOT analysis mainly have two dimensions internal and external dimensions. Under the evaluation of alternatives the pros and cons of the alternatives developed above are gauged based on the benefits they offer to the organization and also the strengths the carry that may help the oragnation in overcoming the problem. The case includes a discussion of how principles of behavioral economics can be used to influence behavior, and how an understanding of behavioral economics can inform managerial decisions about product adoption and diffusion. The user selects a goal—like losing weight—and pledges a certain amount of money toward achieving it. This will allow the team to develop a better solution plan addressing all the factors and considering all the risk associated with it. The clear problem statement is developed by stating the factors and the operations getting effected and its overall impact on the organization specific the areas, such as Profitability, sales or brand equity. The main idea of the problem statement is to answer the 5 w’s that include the answering who, what, where and why, to allow the organization resolve the problem, by stating it in clearly in 2 to 3 lines. The competitive rivalry is the analysis of the brands and the product, its strengths and weakness along with the strategies, competitors and the share in the market. The merit factor, outlines if the option really resolving the issue or aligned with the given situation. This, in turn, means greater long-run returns for the firm. Kotler explains - Marketing is a process by which organizations can create value for its potential and current customers and build strong customer relationships in order to capture value in return. The ratio depicts that the magnitude of the cost of services provided or cost of good manufactured or purchased in relation to gross profit or gross margin left over for operating profit and expenses. By having a closer look over the matrices used for financial analysis, it is to say that the financial statements holds notable importance because it evaluates the management performance, plans and corporate strategy for future. Such is important to analyze or else it would lead to failure. This can help in increasing the customer lifetime value. According to American Marketing Association – Marketing is a set of activities that a firm undertakes for creating, communicating, delivering, & exchanging offerings that have value for customers, clients, partners, and society at large. "If the order value goes up, it … Such type of calculation needs very selective estimate or analysis of the variables and fixed cost or expenses of the company while taking into consideration the operating leverage effect. It will require not only distribution channel analysis but also promotion mix for the product. This Teaching Note explains the theory of the case and teaching plan for the case: Making sticK Stick: The Business of Behavioral Economics (514019). The sales implications for the selling and purchasing power, economies of scale and amount of market share. Though in many cases, it is difficult to analyze the feasibility of the options especially the intangible factor, however, quantifying the maximum option is important, in order to develop a clear image and understanding of option that will address the problem. The SWOT analysis is only a one stage of the business planning process and do not provide the organization with an in-depth analysis or research that could lead to a firm decisions. The Ring Stick Up Cam Wireless Indoor/Outdoor Standard Security Camera in White is battery powered. Contribution analysis: this analysis is mainly used for the internal organization’s management, even though it is increasingly applied in broader analysis of financials, it includes relating sales to the individual product group’sor total business contribution margin. A strong Making Stickk Stick The Business Of Behavioral Economics recommendation must cover the key areas as how the organization will implement the alternatives, what benefits will it receive if it implement the when alternatives and what could be the cost, that he organization will need to overcome or address, in order to effectively implement the alternatives. Once it is done, each alternate is compared against each other and with the decision criteria develop, and are given different weigtage.