Corporate and Division Strategic Planning

Defining the corporate mission Establishing SBUs Assigning resources to SBU Assessing Growth Opportunity

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Corporate mission

What do we do? For whom? What are the benefit?

Example: Centers for Disease Control Mission To promote health and quality of life by preventing and controlling disease, injury, and disability

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 vision A

statement describes a picture of the "preferred future." mission statement explains what the organization does, for whom and the benefit. A vision statement, on the other hand, describes how the future will look if the organization achieves its mission. Healthy People in a Healthy World

Examples:

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Establishing SBUs

SBU is understood as a business unit within the overall corporate identity which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets. When companies become really large, they are best thought of as being composed of a number of businesses (or SBUs).

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It is a single business , or a collection of related businesses that can be planned separately from the rest of the business. It has its own set of competitors

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Amul - Business Model

RAW MILK

pasteurization Condens ed Ghee Butter Cream Packaged Milk Ice cream Beverages Dried Skimmed Milk Powder

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Product Mix of Amul

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Mix Product for every one

Amul never forgot its primary customer

- Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate)

Product for youth

- Amul launched Chocolate milk under brand name of Amul Kool Koko targeting the youth

Product for diabetic people

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Mix Product for every one

Product for the health conscious

-

Amul Launched low fat, low cholesterol bread spreads

Product for the price sensitive India -

Low Priced Amul Ice Creams and affordable sagar whitener

Product for the urban class - Amul launched emmental, 5/1/12

BCG MATRIX

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Amul BCG Matrix

High Amul Ice-cream

Business growth Rate

Amul Cheese Amul Butter

Amul Chocolate

Low

Amul Chocolate drink High Relative Market Share 5/1/12 Low

Amul Product Portfolio

Category Butter, Ghee Milk Powder Cheese Ice-cream Sweets Chocolate Drink Chocolate Market Share 85% 40% 50% 24.75% 50% 90% 10% 5/1/12 Market Position 1 1 1 2 1 1 3

SWOT Analysis
Strengths
Largest food brand in India High Quality, Low Price World's Largest Pouched Milk Brand Annual turnover of US $1504 million Highly Diverse Product Mix Robust Distribution Network

Weaknesses
Risks of highly complex supply chain system Strong dependency on weak infrastructure Alliance with third parties who do not belong to the organized sector

Opportunities
Penetrate international markets Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc

Threats
Competitors - Hindustan Lever, Nestle and Britannia Still competition from MNCs in butter Growing price of milk and milk products Ban on export of milk powder

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Ansof matrix

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Market penetration

Setting up of parlors more customers through intensive distribution trying to find place in retail stores.

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Market development

shifting focus from urban to rural, 900 new stores capturing market of diabetic and health conscious people. Amul Taaza- long life version of milk

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Product development

Amul Cool Amul Pizza Stamina Amul Masti

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Diversification strategy

concentric-new product for new subject, old technology. Eg probiotic ice creams, sugar free conglomerate-new product for new marketeg pizzas, sport drink horizontal- new product new technologyonline order

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Porters five forces Model

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Industry Analysis : Porters 5 Forces

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