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  • Marketing Management With Dr. Rizwan Ali The University of Lahore

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    Aqib Latif
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    This document discusses four strategic planning activities: 1) defining the corporate mission by clarifying business, customers, and value, 2) establishing strategic business units with separate competitors and managers, 3) assigning resources to each SBU, and 4) assessing growth opportunities through intensive growth of existing products and markets, integrative growth through acquisitions, diversification into new products and markets, and potential downsizing. The corporate mission focuses goals and policies. SBUs are customer-satisfying processes rather than goods-producing processes. Assessing growth uses tools like product-market expansion grids to evaluate market penetration, development, product development, and diversification.

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    Final Term slides 4

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    This document discusses four strategic planning activities: 1) defining the corporate mission by clarifying business, customers, and value, 2) establishing strategic business units with separate competitors and managers, 3) assigning resources to each SBU, and 4) assessing growth opportunities through intensive growth of existing products and markets, integrative growth through acquisitions, diversification into new products and markets, and potential downsizing. The corporate mission focuses goals and policies. SBUs are customer-satisfying processes rather than goods-producing processes. Assessing growth uses tools like product-market expansion grids to evaluate market penetration, development, product development, and diversification.

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    12 views15 pages

    Marketing Management With Dr. Rizwan Ali The University of Lahore

    Uploaded by

    Aqib Latif
    This document discusses four strategic planning activities: 1) defining the corporate mission by clarifying business, customers, and value, 2) establishing strategic business units with separate competitors and managers, 3) assigning resources to each SBU, and 4) assessing growth opportunities through intensive growth of existing products and markets, integrative growth through acquisitions, diversification into new products and markets, and potential downsizing. The corporate mission focuses goals and policies. SBUs are customer-satisfying processes rather than goods-producing processes. Assessing growth uses tools like product-market expansion grids to evaluate market penetration, development, product development, and diversification.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 15

    Marketing Management

    with Dr. Rizwan Ali

    Lahore Business School (LBS)


    The University of Lahore
    Ph,D (Management Science), China
    rizwan.ali1@lbs.uol.edu.pk
    0300-8888916
    Corporate & Division Strategic Planning
    Activities


    Four Planning Activities
    1. Defining the Corporate Mission
    2. Establishing Strategic Business Units
    3. Assigning Resources to each SBU
    4. Assessing Growth Opportunities

    2
    Corporate & Division Strategic Planning
    1. Defining the Corporate Mission


    Peter Drucker’s classic questions

    What is our business?

    Who is the customer?

    What is of value to our customer?

    What will our business be?

    3
    Corporate & Division Strategic Planning
    1. Defining the Corporate Mission (…contd.)


    Mission Statements

    Focus on LIMITED goals

    Stress company’s major policies & values

    Define the major competitive:
     Industry (in which company operates)
     Products & Applications
     Competence
     Market Segment
     Geographical

    4
    Corporate & Division Strategic Planning
    2. Establishing SBUs


    A business is?

    Customer-satisfying process

    NOT: Goods-producing process
    Company Product Market
    Missouri-Pacific Railroad We run a railroad We are a people-and-
    goods mover
    Standard Oil We sell gasoline We supply energy

    Columbia Pictures We make movies We entertain people

    5
    Corporate & Division Strategic Planning
    3. Assigning Resources to each SBU

     A SBU:
     Single business or collection of related
    businesses which can be planned from the rest
    of the company
     It has its own set of competitors
     It has a manager who is responsible for
    strategic planning and profit performance and
    who controls most of the factors affecting profit

    6
    Corporate & Division Strategic Planning
    4. Assessing Growth Opportunities


    Strategic Planning Gap

    7
    Corporate & Division Strategic Planning
    4. Assessing Growth Opportunities (…contd)


    Intensive Growth

    Product-Market Expansion Grid

    8
    Corporate & Division Strategic Planning
    4. Assessing Growth Opportunities (…contd)


    Intensive Growth (Market Penetration)

    The firm seeks to achieve growth with existing
    products in their current market segments,
    aiming to increase its market share.

    Effective when the market is growing.

    9
    Corporate & Division Strategic Planning
    4. Assessing Growth Opportunities (…contd)


    Intensive Growth (Market Development)

    The firm seeks growth by targeting its existing
    products to new market segments.

    Effective when a local business looks to wider its
    market, new market segments are emerging due
    to changes in consumer lifestyle/demographics.

    10
    Corporate & Division Strategic Planning
    4. Assessing Growth Opportunities (…contd)


    Intensive Growth (Product Development)

    The firms develops new products targeted to its
    market segments

    Effective when the firm has a core of strong
    brands

    11
    Corporate & Division Strategic Planning
    4. Assessing Growth Opportunities (…contd)


    Intensive Growth (Diversification)

    The firm seeks growth by targeting its new
    products to new market segments

    Diversification is utilized so that the firm does
    not become overly dependent on one product
    line.

    12
    Corporate & Division Strategic Planning
    4. Assessing Growth Opportunities (…contd)


    Integrative Growth

    ‘Integrations’

    Backward: Acquire Suppliers

    Forward: Acquire distributors

    Horizontal: Acquire Competitors

    13
    Corporate & Division Strategic Planning
    4. Assessing Growth Opportunities (…contd)


    Diversification Growth

    When good opportunities can be found outside
    new business

    New line of business


    Downsizing

    Pruning current portfolio

    14

    Thanks

    15

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