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Corporate Strategic Planning

Marketing Institute of Singapore

Outline
Introduction Meaning & Role of Strategic Planning Corporate Mission Strategic Business Units (SBU)

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 Resources
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Changing Environment

The Role of Strategy

Corporate Mission & Objectives

Strategy: Corporate Business Functional

Operating Plans

Sun Tze on Strategy

Know your enemy, know yourself,

and your victory will not be threatened. Know the terrain, know the weather, and your victory will be complete.

Strategic Marketing
Marketing Strategy is a series of integrated actions leading to a sustainable competitive advantage. John Scully
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Corporate Mission

Broad purposes of the organization General criteria for assessing the long-

term organizational effectiveness Driven by heritage & environment Mission statements are increasingly being developed at the SBU level as well

Examples of Corporate Mission


SINGAPORE AIRLINES is engaged in air transportation and related businesses. It operates world-wide as the flag carrier of the Republic of Singapore, aiming to provide services of the highest quality at reasonable prices for customers and a profit for the company
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Examples of Corporate Mission (contd)


MARRIOTTS Mission Statement: We are committed to being the best lodging and food service company in the world, by treating employees in ways that create extraordinary customer service and shareholder value
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Corporate Culture

The most abstract level of managerial thinking How do you define culture? What is the significance of culture to
an organization?

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Corporate Objectives & Goals

An objective is a long-range purpose


Not quantified and not limited to a time period E.g. increasing the return on shareholders equity

A goal is a measurable objective of the


business
Attainable at some specific future date through planned
actions E.g. 10% growth in the next two years

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What is a Strategic Business Unit? (SBU)

A set of products or product lines


With clear independence from other
products or product lines for which a business or marketing strategy should be designed

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Characteristics of a viable SBU

Unique business mission Definable set of competitors Integrative planning done independently Responsible for resource management in all
areas Large enough but not so large as to become bureaucratic

(Source: Subhash Jain, Marketing Planning & Strategy, 6th Ed.) 13

What is Competitive Advantage?

Competitive advantage is a companys


ability to perform in one or more ways that competitors cannot or will not match. Philip Kotler If you dont have a competitive advantage, dont compete.
Jack Welch, GE

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Other Characteristics of Competitive Advantage

Substantiality
Is it substantial enough to make a difference? Sustainability Can it be neutralized by competitors quickly? Ability to be leveraged into visible business attributes that will influence customers
(Source: Strategic Marketing Management, Aakers)
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Seeking Competitive Advantages

Positions of advantage

Superior customer value Lower relative total cost Performance advantages Customer satisfaction, Loyalty, Market Share,

Sources of advantages

Profit

Superior skills & knowledge, Superior


resources, Superior business process
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Key Elements of Strategy Formulation

The strategic 3 Cs

Environment analysis PEST

Customers, Competitors & the Corporation

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A Viable Strategy

Must have a 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

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Situation Analysis Internal Analysiscompany; capability etc. External Analysiscustomers, market definition, industry structure SWOT Analysis
& Threats

S trengths, W eaknesses, O pportunities


Identify & prioritize major problems and
opportunities: selection of key issues

Based on the firms core competencies,


decide on future options
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