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How is Strategic Planning carried out at
different Levels of
the Organization?
These slides are based on Chapter 2 of ‘Marketing Management’ by Kotler Keller
All corporate headquarters undertake 4 Planning Activities
1. Defining the corporate mission
2. Establishing strategic business units
3. Assigning resources to each strategic business unit
4. Assessing growth opportunities
1. Defining the Corporate Mission
Mission statements - Reflects a vision, an almost “impossible dream” that provides direction for the next 10 to 20 years
Characteristics of Good Mission Statements
Focus on a limited number of goals
Stress the company’s major policies and values
Define major competitive spheres within which the company will operate
Take a long-term view
As short, memorable, and meaningful as possible
2. Establishing Strategic Business Units
Single business, or collection of related businesses, that can be planned separately from the rest of the company
Has its own set of competitors
Has manager responsible for strategic planning & profit performance, who controls most of the factors affecting profit
4. Assessing Growth Opportunities
# Intensive Growth
# Integrative Growth
# Diversification Growth
# Downsizing And Divesting Older Business
# Integrative Growth
Company can increase sales and profits through backward, forward, or horizontal integration within its industry
# Diversification Growth
When good opportunities exists outside the present business , then company may look forward to starting a new business
# Downsizing And Divesting Older Business
Companies carefully prune, harvest, or divest tired old businesses to release needed resources for other uses and reduce costs
Business Unit Strategic Planning
# The Business Mission
# SWOT Analysis
# Goal Formulation
# Strategic Formulation
# Program Formulation &Implementation
# Feedback and Control
# The Business Mission
Each business unit needs to define its specific mission within the broader company mission
# Goal Formulation
Arranged hierarchically, from most to least important
Objectives should be quantitative whenever possible
Goals should be realistic
Objectives must be consistent
# Strategic Formulation
Overall Cost Leadership – Lowest Production & Distribution Cost
Differentiation – Superior Performance
Focus – Concentrate on Narrow Market Segments
# Program Formulation and Implementation
Strengthen R&D Department
Gather Technological Intelligence
Develop Leading-Edge Products
Train Technical Sales Force
Communicate to Technological Leadership
# Feedback and Control
Organisation should examine the changing environment and adopt new goals and behaviours
Organization fails to respond to a changed environment, it becomes increasingly hard to recapture its lost position
Thus,
Once,
R E F E R E N C E Shttp://blogs-images.forbes.com/work-in-progress/files/2011/05/Bullseye-Red-Red.jpg
http://www.activategroupinc.com/wp-content/uploads/2011/11/business-management1.jpg
http://stratdevint.com/images/globe.jpg
http://www.vindhyavasinigroup.com/images/vision-mission-big.jpg
http://www.catdi.com/wp-content/uploads/2013/08/banner-mission.jpg
http://www.thecbg.it/images/sustainable-future2.jpg
http://worldpayment-solutions.com/images/images/iStock_000009804777Large.jpg
http://www.smsgconsulting.com/_img/qualifications.jpg
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