Corporate and Division Strategic Planning

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


Corporate mission
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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


for whom and the benefit. A vision statement. describes how the future will look if the organization achieves its mission. on the other hand." mission statement explains what the organization does. vision A statement describes a picture of the "preferred future. Healthy People in a Healthy World  Examples: 5/1/12 .

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. they are best thought of as being composed of a number of businesses (or SBUs). When companies become really large. 5/1/12 .

or a collection of related businesses that can be planned separately from the rest of the business. It has its own set of competitors  5/1/12 . It is a single business .

Amul .Business Model RAW MILK pasteurization Condens ed Ghee Butter Cream Packaged Milk Ice cream Beverages Dried Skimmed Milk Powder 5/1/12 .

Product Mix of Amul 5/1/12 .

Amul collects 447.000 ltrs of milk from 2.Mix… Product for every one  Amul never forgot its “primary customer” .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 5/1/12 .

Mix… Product for every one  Product for the health conscious - Amul Launched “low fat.Amul launched emmental. 5/1/12 . low cholesterol bread spreads”  Product for the price sensitive India - Low Priced Amul Ice Creams and affordable ‘sagar’ whitener  Product for the urban class .

BCG MATRIX 5/1/12 .

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.Hindustan Lever. 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 . Nestle and Britannia • Still competition from MNCs in butter • Growing price of milk and milk products • Ban on export of milk powder 5/1/12 .

Ansof matrix 5/1/12 .

Market penetration   Setting up of parlors more customers through intensive distribution trying to find place in retail stores.  5/1/12 .

long life version of milk   5/1/12 . Amul Taaza.Market development  shifting focus from urban to rural. 900 new stores capturing market of diabetic and health conscious people.

Product development     Amul Cool Amul Pizza Stamina Amul Masti 5/1/12 .

sugar free conglomerate-new product for new marketeg pizzas.Diversification strategy  concentric-new product for new product new technologyonline order   5/1/12 . Eg probiotic ice creams. sport drink horizontal. old technology.

Porter’s five forces Model 5/1/12 .

Industry Analysis : Porter’s 5 Forces 5/1/12 .