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Profit Impact of Market Strategies (PIMS)

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Profit Impact of Market Strategies (PIMS)

  1. 1. PIMS (Profit Impact of Market Strategies) Yang Nur Aqilah Nurul Aqilah Muhammad Syahir Muhammad Iqmal
  2. 2. History of PIMS  The PIMS project began at General Electric in the mid-1960s. It was continued at Harvard University in the early 1970s, then was taken over by the Strategic Planning Institute (SPI) in 1975. Since then, SPI researchers and consultants have continued working on the development and application of PIMS data.
  3. 3. What is PIMS?  A comprehensive, long-term study of the performance of strategic business units in thousands of companies in all major industries.  According to the Strategic Planning Institute(SPI), the PIMS database is "a collection of statistically documented experiences drawn from thousands of businesses, designed to help understand what kinds of strategies work best in what kinds of business environments.  Example of database: quality, pricing, vertical integration, innovation, advertising
  4. 4.  The data constitute a key resource for such critical management tasks as evaluating business performance, analyzing new business opportunities, evaluating and reality testing new strategies, and screening business portfolios.  PIMS highlight the relationship between a business's key strategic decisions and its results.  The data can help managers gain a better understanding of their business environment, identify critical factors in improving the position of their company, and develop strategies that will enable them to create a sustainable advantages.
  5. 5. The PIMS Database  Companies members of Strategic Planning Institute contribute profiles of their Strategic Business Units (financial data, customers information, markets, competitors, and operations)  The strategic business units in the database are separated into eight classifications:  producers of consumer durables  consumer non-durables  capital goods  raw materials  Components/supplies  Wholesale distributors  retail distributors  providers of services.
  6. 6.  Specific companies and industries are not identified. Each Strategic Business Units profile includes financial data from the income statement and balance sheet, information about quality, price, new products, market share, and competitive tactics.  From this database of Each Strategic Business Units experiences and results, Strategic Planning Institute researchers developed a set of strategic principles and a methodology for examining business problems and opportunities.

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