Chapter 2

Corporate Strategy
Decisions and Their
Marketing Implications

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Component of a well-defined corporate
strategy
1. Overall scope and mission of the
organization
2. Company goals and objectives
3. The source of competitive advantage
4. A development strategy for future growth
5. The allocation of corporate resources across
the firm’s various businesses
6. The search for synergy via the sharing of
corporate resources, competencies or
programs across business or product lines.
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 Corporate Scope - Mission Statement

• Guides managers to identify which market

opportunities to be pursued and which falls
outside the firm’s strategic domain
• Helps instill a sense of direction, relevance, and
achievement amongst employees, customers
and other stakeholders
• Defines the organization’s strategic scope –
What is our business? Who are our customers? What
are their specific needs and how can we create value
for them?
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Component of an effective mission
statement (in general)
1. Customers—Who are the firm’s customers?
2. Products or services—What are the firm’s
major products or services? – However, should
not be affected by Marketing Myopia
3. Markets—Geographically, where does the firm
compete?
4. Technology—Is the firm technologically
current?
5. Survival, growth, and profitability—Is the firm
committed to growth and financial soundness?
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Component of an effective mission
statement (Continued)
6. Philosophy—What are the basic beliefs,
values, aspirations, and ethical priorities of
the firm?
7. Self-concept (distinctive competence)—What
is the firm’s major competitive advantage?
8. Public image—Is the firm responsive to
social, community, and environmental
concerns?
9. Employees—Are employees a valuable asset
of the firm?
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Example
PepsiCo
• We aspire to make PepsiCo the world’s premier
consumer products company, focused on
convenient foods and beverages. We seek to
produce healthy financial rewards for investors
as we provide opportunities for growth and
enrichment to our employees, our business
partners and the communities in which we
operate. And in everything we do, we strive to
act with honesty, openness, fairness and
integrity.
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Example
PepsiCo
• We aspire to make PepsiCo the world’s (3)
premier consumer products company, focused
on convenient foods and beverages (2). We
seek to produce healthy financial rewards for
investors (5) as we provide opportunities for
growth and enrichment to our employees (9),
our business partners and the communities (8)
in which we operate. And in everything we do,
we strive to act with honesty, openness, fairness
and integrity (6).
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Examples

• Amazon's vision statement is “to be

Earth's most customer-centric company,
where customers can find and discover
anything they might want to buy online,
and endeavors to offer its ...
• Amazon's mission statement is to “serve
consumers through online and physical
stores and focus on selection, price, and
convenience.”
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 Mission Statement - Example

American
Red Cross

“Provide for victims of disaster”

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Social Values and Ethical Principles

• Important to craft mission statements

specifying explicit social values, sustainability
goals and programs
• Ethics: Development of moral standards by
which actions and situations can be judged
• Proactive than the law

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Almarai’s mission analysis
• Almarai - Our mission is to provide high
quality, nutritious food and beverages that
enrich consumers’ lives every day. Focused on
quality, we are the consumer’s preferred
choice for superior products that meet their
needs. We maintain market leadership across
our core product categories by leveraging
consumer insights and through our
dedication to delivering high quality products
and services.
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SABIC’s Mission Analysis

• SABIC - Our mission is to responsibly

provide quality products and services
through innovation, learning and
operational excellence while sustaining
maximum value for our stakeholders.

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Corporate Objectives

• Discuss the examples of corporate objectives

from students ……..

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Corporate Objectives

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Corporate Objectives

• Must be SMART
• Specific
• Measureable
• Attainable
• Relevant
• Time bound

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 Gaining Competitive Advantage

• Sometimes, it is based on company resources

that:
• Other firms do not have, which take a long time to
develop, and are hard to acquire
• Requires developing a:
• Competitive strategy for each division
• Strategic marketing program for each product
• Should provide one or more superior benefits
• Should be effectively communicated to potential
customers
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 Characteristics of Core Competencies

Core
CoreCompetencies
Competencies

Applicable to Superior to the

Multiple Competition
Competition
Situations

Difficult to
Duplicate
Source: George S. Day, Journal of Marketing, October 1994, 49.
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 Corporate Growth Strategies

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Allocation of corporate resources

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 Sources of Synergy

• Knowledge-based synergies
• Function of the corporation’s scope and mission
• Corporate identity and the corporate brand
• Flows from the communications, impressions, and
personality projected by an organization
• Inherent in sharing operational resources,
facilities, and functions across business units
• Helps increase economies of scale or
experience-curve effects
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 Corporate Branding Strategy

• Company’s own name and logo serves as the

brand name of all or most of the firm’s products
• Dual branding strategy - Each offering carries a
corporate identifier and an individual product
brand
• Each product offering might be given a unique
brand and identity

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