STRATEGIC PLANNING:

Strategic planning is the managerial process of developing and maintaining a strategic fit
between the organization’s objectives and resources and its changing market opportunities.
WHAT DO WANT TO DO?
HOW DO WE BEST EXCEL?
WHERE DO WE WANT THE COMPANY TO BE?
IMPLEMENTATION AND CONTROL:
Implementation control is aimed at assessing whether the plans, programmers and policies are
actually guiding the organization towards its predetermined objectives or not.
If the resources that are committed to a project at any point of time would not benefit an
organization as envisaged, corrective steps should be undertaken immediately.

CORPORATE AND DIVISION STRATEGIC PLANNING:

 All corporate headquarters undertake some planning activities:
 Defining the corporate mission
 Establishing strategic business units [SBU’S]
 Assigning resources to each SBU
 Planning new business & downsizing older business
 Marketing plays a critical role in corporate strategic planning within successful countries.
Marketing oriented strategic planning is the managerial process of developing and maintain a
viable fit among the organization’s objectives, skills, and resources and its changing marketing
opportunities.
 A viable marketing strategy planning
 Must have clearly defined market
 Must have a good match between corporate strengths and market needs
 Must have significant positive differentiation in the key success factors of the business

The aim of Strategic planning is to shape the company’s business and products.
Strategic planning calls for the action in three areas;
 Managing a Companies’ portfolios
 Assessing each business’ strength by considering the market’s growth rate and the
company’s position fit in the market.
 Formulating a game plan for each of its business to achieve long-term objectives.
DEFINING CORPORATE MISSION
 A good mission statement provides employees with a shared sense of purpose, direction
and opportunity.
 Mission statements are at their best when they are guided by a vision and almost
impossible dream.
 Good mission statements have 3 major characteristics:
1) Should focus on a limited number of goods.
2) Stress the major policies & values that the company wants to honor.
3) define major competitive scopes within which the company will operate
o Industry scope
o Product & applications scope
o Market segment scope
o Competence scope
o Vertical scope
o Geographical scope

ESTABLISHING STRATEGIC BUSINESS UNITS.

Establish customer satisfying not good producing process. A business can be defined in 3 terms
of dimensions:
Customer groups
Customer needs
Technology

An SBU has 3 features:

It is a single business or collection of related business than can be planned separately from the
rest of the company.
It has its own set of competitors
It has a manager who is responsible for strategic planning & profit performance.

ASSIGNING RESOURCES TO EACH SBU’S

We call this model as business portfolio evaluation models.
BCG MODEL (Boston consulting group Model)
GE MODEL (General electric model)
Growth-share matrix
The companies next task is to determine what objectives, strategy & budget to assign to each
SBU. Four strategies can be determined.
1. BUILD (cash cows)
2. HOLD (Stars)
3. Harvest (Question marks)
4. DIVEST (Dogs)
GENERAL ELECTRICS MODEL:
o Developed by McKinsey & Company in 1970’s
o GE is a model to perform business portfolio analysis on the SBU’S.
o GE is rated in terms of ‘MARKET ATTRACTIVENESS & BUSINESS STRENGTH’
o It is an Enlarged & Sophisticated version of BCG.

The matrix is divided into 9 cells, it has 3 zones,

 ONE AT THE UPPER LEFT (represents business that are most important to the
company)
 ONE AT THE LOWER RIGHT (represents business that are least important)
 AND ONE CENTRAL DIAGONAL (represents businesses that are medium in their
importance)
 USING THE RATINGS IN THE MATRIX, THE FIRM CAN APPROPRIATELY SET
ITS OBJECTIVELY AND STRATEGIES IN RESPECT OF EACH OF ITS
BUSINESSES.

PLANNING NEW BUSINESS & DOWN SIZING OLDER BUSINESS

Planning new business:
Intensive growth opportunities (Ro identify the opportunities to achieve future growth)
Integrative growth opportunities
Diversification growth opportunities (to identify opportunities, attractive business that are
unrelated to companies’ current business)
Downsizing older business:
To reduce the cost business should carefully prune, harvest or divest tried old businesses in order
to release needed resources.

BUSINESS STRATEGIC PLANNING (PROCESS).

GOAL FORMULATION:
Probability, sales, growth, risk containment, innovation, reputation, market share improvement
are the objectives.
 Objectives must be arranges hierarchically.
 Objectives must be stated quantitatively.
 Goals should be realistic.
 The company’s objectives must be consistent.
Objectives can be:

o Short term profit/long term profit.

o Deep penetration of existing market v/s developing new markets.
o Profit goal v/s non-profit goal.
o High growth v/s low risk.

STRATEGY FORMULATION:
Every business must tailor a strategy for achieving its goals consisting of a marketing strategy,
compatible technology strategy & sourcing strategy, compatible technology strategy & sourcing strategy.

STRATEGIC ALLIANCES:
 Product or service alliance
 Promotional alliance
 Logistic alliance
 Pricing alliance

IMPLEMENTATION:

Mc. Kinsey’s 7’s frame work

 Strategy, systems, structure are hardware of success.

 Style, skills, staff & shared values are software of success.
 Feedback & control-efficiency & effectiveness

MARKETING PROCESS:

1. The value delivery sequence.

2. Segmentation, Targeting, Positioning (STP strategy)
3. Zero customer feedback time.
4. Zero product improvement time
 5. Zero purchasing time
6. Zero set up time
7. Zero defects

STEPS IN THE MARKETING PROCESS:

1) Analyzing market opportunities

2) Developing market strategies
3) Planning the marketing effort
4) Marketing the marketing effort
 Annual plan control
 Profitability control
 Strategic control

STEPS IN THE MARKETING PROCESS:

1. Executive summary & table of the

5. Marketing strategy
contents
2. Current marketing situation 6. Action programmers (planning)

3. Opportunities & issue analysis 7. Projected profit & loss statements

4. Objectives 8. Controls (marketing)