STRATEGIC MARKETING

“Strategic Planning and Demand Measurement”
MBA (FM/HR/IT) 2009-11 III Trimester ByBalram Chaudhary

OUTLINE OF THE PRESENTATION
     

Definition of Strategic Planning Steps of Strategic Planning Levels of Strategic Planning Vision Statement Mission Statement Examples of Mission and Vision Statements

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.

Org Objectives

Strategic Fit Changing Environment

Resources

STEPS IN STRATEGIC PLANNING
1. 2. 3. 4. 5. 6. 7.

Environmental Analysis: External & Internal Developing a Mission and Vision Setting Primary Strategic Directions & Goals Crafting Strategy and Action Plans for Each Goal Implementing and Executing the Strategy Evaluating Performance Initiating Corrective Adjustments

STRATEGIC PLANNING PROCESS: ANSWERING THREE BIG QUESTIONS
1. Where are we now? 2. Where do we want to go? 3. How do we get there?

THREE LEVELS OF STRATEGIC PLANNING

Corporate Level:
 

Long term plans are made Attitude at the corporate level reflect the concern of the stakeholders and society at large

It deals with the area of business in which the company is going to operate

It works on the objective, mission and vision of the organization

CONTN’D

Business Level

It

involves

making

decisions

about

the

competitive position of a single business unit.

Managers at this level deals with the competitive advantage of the company on a specific product area

Strategy at this level focus on the generic strategies such as cost leadership, differentiation and focus to create competitive advantage.

CONTN’D

Functional Level

This

level

consists

of

managers

from

geographic, product ad functional areas.
 These

managers design short term strategies and development, finance and

and fix annual objectives in different areas such as research accounting, marketing, production, operation

and human relations
 The

functional level objectives are quantifiable

VISION AND MISSION
Vision and mission acts as guidelines for strategy formulation  The process of strategy formulation involves articulating a vision for the organization  Translating the vision into a mission that defines the organization’s purpose  Converting the mission into performance objectives  Detailing each objectives into specific goals  Formulating tactics and strategies for accomplishing the goals.

ORGANIZATIONAL DIRECTION
Founder Top Management Unit together with top management Unit manager with approval of superiors Each level, in conformity with other unit policies Individual managers, in conformity with unit policies

Source: P. Subba Rao, Business Policy and Strategic Management, (HPH), 91

VISION STATEMENT
A statement that clearly defines the firm’s “reason” for being in business
 Should

significantly stretch the resources and

capabilities of the firm
 Should

inspire people in the organization to

achieve things they never thought possible
 Should

unite people in the organization toward

the pursuit of one common goal

VISION STATEMENT

Indicates what the organization wants to become; what it sees itself as being in the future. Gives directions rather than destination. comes from the heart. It

Is inspirational and provides the energy and passion to achieve goals. Lets people know that some greater good will be accomplished for mankind.

COMPONENTS OF A VISION STATEMENT
A good vision statement comprises two main components:

Core Ideology
What we stands for  Why we exists

Envisioned Future

What we aspire to become, to achieve and create

MISSION STATEMENT
 The

Mission Statement should define:
and services provided that will be served

 Products

 Customers  How

the products and services will be

provided
 The

results that are expected

ELEMENTS OF A MISSION STATEMENT
FIGURE 2.3

“What We Do, Who We Do It For, How We Do It and
Why We Do It”.
15

 

What is defined?

Example
We sell real estate We manufacture and sell professional quality cameras We harvest, process, and distribute wood products

What we do

defines the primary product or service

Who we do it for

defines the customers and the market, who the customers are and where they are located

To customers from world-wide sources who wish to locate in Vancouver To customers in every city of the world To wholesale distributors in western Canada

ELEMENTS OF A MISSION STATEMENT
defines the principle technologies used, the ethics and business principles and the organizational philosophies By employing the highest ethical principles By treating every customer with respect By utilizing e-commerce to its fullest potential By valuing employees, their diversity and their contribution to the organization By remaining committed to continuous growth in new markets

16

How we do it

Why we do it

Defines the results expected from a variety of dimensions

Which will maximize the financial value of the organization for stockholders Which will minimize the impact of operations on the natural environment Which will ensure a solid foundation of satisfied customers for years to come Which will maintain our position as leading edge service providers

EXAMPLES: TATA MOTORS
Vision Statement:
“best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.”

Mission Statement:
“To become a world class automotive engineering and product development centre, and enable Tata Motors to become a world class automotive company.”

INFOSYS

Vision
“To help our clients meet their goals through our people, services and solutions”

Mission
     

Infosys International Inc. is dedicated to providing the people, services and solutions our clients
need to meet their information technology challenges and business goals. ·Work to understand the needs and requirements of our clients before proposing a solution ·Develop responsive proposals that provide cost-effective solutions to our clients needs ·Deploy the right mix of people and products to deliver value-added services and solutions to our clients ·Follow-up on the quality of our services and solutions to our clients Appreciate the trust that our clients put in us as we work with them to improve their business and information technology.

RELIANCE INSURANCE

Vision
Empowering everyone live their dreams.

Mission

Create unmatched value for everyone through dependable, effective, transparent and profitable life insurance and pension plans.

JAYOTI VIDYAPEETH WOMEN’S UNIVERSITY
Mission Statement:

The

University

is

committed

to

the

cause

of

women

empowerment through access to education by creating learning and work environment for greater productivity, excellence in quality and innovation along with awareness about social & ethical responsibilities.

The University aims to bridge the gaps in education prevailing in Indian Society by providing educational opportunities of global standard relevant to the corporate world to women, especially from rural background and lower socio- economic strata of society.

CONTN’D
Vision Statement:

The University aspires to become a leading centre of excellence for Education, Research, Clinical Care and Training in Technical and Medicinal Fields to educate women in technically advanced disciplines to inculcate in them the spirit of enterprise and the desire to excel. The University provides a transformational experience where highest integrity, professional commitment and ethics are inbuilt in the training mechanism itself, so that young girls may be transformed in to leaders and cultural ambassadors of tomorrow having an effective personality and ability to address social, economic and technological challenges of the global world

DIFFERENCE BETWEEN VISION AND MISSION

The mission of the organization communicates the purpose for which it is in business, whereas a vision sets the direction in which the organization intends to proceed. A vision cannot be judged as correct or wrong. It is measured in relative terms with the other alternative directions for an organization. It can only be appropriate or inappropriate, better or worse, when measured against the other alternatives. A vision is not static. It should be seen as a dynamics process and an ongoing activity of the leadership.

CONTN’D

A vision should not be used to monitor or to constrain actions. It should be used as a binding force of the organizational resources. A vision is not reality. It may not be realized as it was envisioned. It is not about reality but the alternative directions available.

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