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30 strategic marketing: decision making and planning

i)r, Mo*eFDriven Monogement: lJsing the NewMotketing Concept to Crte o CustametoientedWiley & Sons, New york, 1994.S. Doy, ,The copobiltties of morkeftions', Journol of Morkelng, vol 59,pp.37-5225 A K Kohli ond Bl joworskt, ,Mo&et orjeniotion:-he.co"shuct, resrch prposillo-s, ono rorqgg.6Jinolicotions', Journol of Md*eting. vol. 5, Apil1990, pp. t-8./ I L No,vero.d S F Slo.e.,,T\eelectolo morkerorientofon on busines profitobi iry,, Journol ofMorketing, vol.54, Ocrober I 990, pp 20-3577 Far urther inlarmofo efer to.] Doroch, M.pMiles, A. jordine ond E.F. Cooke, ,-lhe 2OO4 AMAdefinifion of morketing ond its relot onship b o morkerorienloton: An extension of Cooke, Royburn ondAbercombe { I 9921,, Jo urnal of Morketing fheory,vol I 2, no 4,2004, pp 29-3878 P Koile Pin.ipls af Mo&etng, prentce.l-lqll,Englewood Cliffs, Nl, l9gO, p t.29 t Deshoono , J.U Forey ond c E Weoste.J,,gO'porole crllL.e, c-slo-er orieltotiol, ondinnovolivene$ n Joponese firms: A quodrod onolysis,,

lournol of Morketing, vol. 57, 1993, p. 2780 ond A. Sohoy, ,MorkeFdrivenlournol of the Acadeny of.28,no.1,2AOO,pp 46_78 I Jowoski, Kohli ond Sohoy, ,Morledrive- versusdriving morkets', p 45

82 R. McKemo 'Morketing is every.(ing', tlorvordusrness (evieq loruory-Februory 1 99 I , p. g83 morketing, no. ,t fhe outhorond he new84 Americo Morkeiing Assocotiont defiition ofmorkefing lirst published in Moletr'ng News, I MorchI 985.85 orkefingtaber 2OO7

ocodemiProcess.strotegy',Numb-^r

a7

slrolegy' , laurnol o[ Economics & MonagementSrotegy,1996. vor 5. no. , pp 5_4

Strategic thinking andHenry ftlintzbergl

strategic decision makingStrtegic thinking . . . is about synthesisftinvolves intuition and creatvity.

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As wos discussed n chopter r, the role of morketng hos chonged considerobly overlhe lost severol decodes. lt wos concluded thot morketng should ploy o moior role increoling, communicoting, derivering ond sustoining vorue to the orgonisotion's customersond ils oTher slokeholders. A key roe for morketng is to emphosise the importonce of theSCs (cuslomers, competitors, compony, colloborotors ond context) in underpinning onorgonisotion-wide skotegy development process.This choplrer therefore ploys o pivotolrole in +hs book os il presents o model of the strotegic morketing monogement processas o port of on orgonisotion-wide opprooch to strotegc monogement.

IIIIIII

chaptet 2 strategic thnkng and strategic decision making 33Strategy planning and strategicmanagement - an overvew

The genesis of the concept and practice of strategic planning can be traced back roancient times The term 'strategy' derives from the ancient Greek worcl strategos men'ing the art of the general In this sense the term was used o describe the deploymentof military forces by a commande. The word had disappeared from usage until theeighteenth cenrury, when it was revived by military theoreticians such as the prussiangeneral Carl von Clausewitz (1780-1831), Clausewitz's famous book Vom Kriege (On'war) became the bible of straregy and has signicantly affected military thinking sincethe time of its publicaton He defined strategy as the employment of batcles to gain theend of war Late in the nineteenth centrry, as society had grown to be more complex,lhe concept of strategy was broadened to describe the management of national policyTems such as 'grand strategy' and 'higher strtegy' were used in the early Nvenriethcentlrry to describe the art of employing national resources for the achievement ofnational aims or objectivesThe term 'plan' originates fom the Latin word planus meanine plane, Ievel or flatsurface It was adopted into the English language during the seventeenth century inrelerence to maps, drafs, blueprints and drawings on flat surfacesHowever, while it can be seen that the terms ,strategy, and ,planning, were com_monplace many years ago it was nor until the late 1950s and early 1960s thar strate-gic planning evolved as a b'siness process Drrring the second orld var planningbecame a highly developed eld of endeavour and this experrise was rransfered robr:siness in America in rhe form of annual budgeting during the 1950s. This formof planning provided a means for control whereby all faces of an organisation'soperations were reduced to rhe level of a frnancial problem The focus for thesecompanies was towards projected earnings growth rate and ocher frnancial objec-tives. The nexr phase was the exrension of annual budgeting to long-range forecast-ing; frve-year planning was popularised. Like budgering, forecast-based planning(also referred ro as long-range planning) was essentially n extrapolation of pasttrends. lnitially these forecasrs were internally focused, bur by the 1960s advancedforecasting techniques such as trend analysis and regression models were increas-ingly being usedAt about the same time managers were becoming increasingy aware of the impactof external foces on organisational performance. In 1957 philip Selznick, in a bookthat was to become the forerunner of strategic planning, introduced the notion oldistinclive comPetence ancl also he neecl for organisations to match their internal stateswith exernal expectarions This concept was furrher popularisecl in the early 1960s byLearned, Andrews and other academics associated wirh rhe Haward, Business Schoolwith the introdrLction of rhe famous swoT model (strengrhs, weaknesses, opportuni-ties and threats), wl]ich was to become a key platform in the evollrtion ol strategicplanning practicesIn rhe same period the worcl 'strategy' came inro the vocabulary of btrsiness with thepr-rblication of A D Chandler's seminal book, StrateEg ancl Struchtre, in 1962 At thatpoint of time various business functions were concluctecl more or less independentlyfrom one another. chandler argued that these functions neecled o be inregrated and thatorganisations would need to adopt a long-term coordinated strategy to provide struchrre,

strategic planning is arguably one of the most controversial and misunclerstood man-agement concepts of all. strategic planning was introcluced in the 1g60s and during rhe1970s it became a 'musr have' business process for most leacling uS b'siness organi-sations Hov/ever, during the 1980s srrategic planning fell our of favour The periodof post-Second vorld \l'ar growth anc American inclusrr.ial clominance had corne roan end and the much-vaunted American mrnagemenr stylc was being blamecl for thecollnrry's economic downfall ith the aclvantage of hinclsight it can be observed thatthe American sryle of management ti'om the 1950s ro the 1970s was primarily based onthe r''ilitary model of 'commancl ancr conrro| strategic planning wa.s rargely a top,crownprocess whereby the job fb senior managers was ro set a nurber oi objectives for tireorgnnisation to achieve ancL lormulate strategies for the next .layers of managernent toimplementThe deveopment of the concepr and practice of straregic pranning during thet960s and 1970s coincided wirh the growing popr,rlarity of h markeing .oi."p,(as was discussed in chapter 1) As a conseqllence during the 1960s the processof '-rarketing became eevared in importance as more and more organsationsattempted to become 'customer oriented, However, marketing,s moment of gloryprovecl to be shorlived as testified by two pre-eminent marketing acadeics,George Day and Robyn rx/ensley rn a 7983 arricre in the Journar of Mrketing, Dayancl \ensley observed:In retrospect, the 1960s was the ea of markering,s gretest influence and promise, whena marketing orienttion was accepted as an essential element of profitable progress incrowing rnar*ets During the 1970s the influence of marketing noticeably wanecl, whilestr arc. 'ic planing was in ascendance Increasngry, the marketing pran was restricrecrto r tlctical suppon role at rhe band level (Hopkins 19g1), ancl thereby lost its earlierslrrtegic tbcLrs 2l)trring rhc l9t0s marketing's rore was increasingly seen to be twoford: strategic (longer-term ancl holistjc cLccisions concerning the fuure direction for an organisation) nd taccal(short term, such xs quaferly or annual decisions). In mlny organisations this meant that

higherlevel url(cting clecisions sr-Lch as prodr,rct 'ix consiclerations, brond positioning,market segmenhtion ncr trrgeting were macre eier by strtegic pranners or y a seniormanagement ream Marketing cLcptments were requirccl to provicle specialist ltrnctionalexpenise in areas such as markcring col.nnLrniction ancl market research Marketing plan-ning increasingly came to be seen to play a zrcricar support rore rather than u"t tg " *reforefron of providing srrategic diecion for the organisarionGiven that higherlevel marketrng decision making and strategy developmenr is nolonger regarded to be the exclusive domain of marketer.s, this chapter discusses the roreof markecing q/ithin the context of the broader discipline of strategic plann.ing or, as itis often referred to, strategic management

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34 strategic mrketng: decision making and planningdirection and focus He caprured this rgument succincdy with three words thar havebecome one of he most quoted business manrras: 'srructure follows strategy,

function in large conglomeratethe stralegies devised by theseto managers of newly formedeloped during rhe lare 1960s by

Box 2.1 Strategic business unit definedA srategic business unir was defined a ree-standing business within a rarger organisarion meeringrhe following crireria:

ro have a unique business missionco be independenr ofocher SBUsto have a cleuly definable set of comperjtos who ue competing in qtenal markercto be able ro carry our integrative planning processes reratively independen ofoher SBUsro be able to manage resources in key areto be large enough ro jusri$, senior managcmenr artcnrion, buc small enough ro serve as a useltocus for resource allocarion.JIn practice ir was Found that the.designarion ofa SBU ws quire subjecrive and subsequenrlymany organisations simply described their dvisions or branches'as SBUs.

chapter 2 strategic thinking and strategic decson making 351 Rational processcs of strategy formation. A starting point for what became a long-running debate about how strategies are developeci is Charles Lindblom,s often-citedarticle, 'The science of muddling through', published .in 1959 Lindblom argued rhatrationalltechnical approaches ro organisational decision making were not possibleand that, alternatively, strategic decisions were made by 'baby steps, or by ,muddlingthrough' He contended that, in most circumstances, decisions were evolutionaryrather than revolutionary. This issue was reignited two decades later by James BrianQuinn in his 1978 journal article, 'Srrategic change: logical incremenralism, euinnargued that external or internal events, over which management hd no control,would often precipitte urgent piecemeal decisions o be made that would havemajor impacts on the futLre direction of the organisation He contended that:The processes used to arrive al the total sttegy are typically fragmenred, evolurionary, ancllargely intuitive real saregy tends ro euolue as internal decisions and external evenrsflow together to ceate a new, wiclely shared consensus for accion among key membes ofthe top management team 4

The arguments put foruard by Lindblom and Quinn were sr.Lpported by a number ofIongirudinal case stlrdies and other research investigations during tl-re 1970s and 19gOs 52 The organisational structure. It was argued that stmtegy planning was structured as alop-down plonning process controlled by strategy panners who were often consicl-ered to have the following characteistics: afiog flt and remote from he real workof running the organisation's business; lacking in business experience - particularlyIine-management experience; lacking in industry-specifrc knowledge; over-reliant on

analy'tical techniques; and lacking in creative skillsIt was also argued that centralised strategy planning emanating from a conglom_erate head ofce was roo remore and detached from the day',to'-day activities andrealities of the various businesses (sBUs) for which rhe plans were being developed,Line managers, who were given the responsibility to implement strategic plans developed by strategic planners, had lirtle if any inpur inro rhe srrregy formarion processAccordingly, they often felt alienated or at least without a sense of commitment tothe strategic plans handed down to them That is, strategy planners were contentto set a number of objectives and stlategies for line managers ro achieve wih littleconsideration given to the pracricalities of implementation straregic plans invariablylacked consideration of rhe spects of implementation and performance evaluation3 conceptual foundations. At the heart of strategic planning is a premise that e futureis predicrable Economic and market forecasts provide a fo.nd.ation upon whichstrategies are developed but as Mintzberg argues, 'The evidence, in fact, poinrs to thecontrary 'ihile certain repetitive ptterns, such as seasons, may be preclictable, theforecasting of disconinuities, such as technological innovation or a price increase, isvirtually impossible'.6This point was emphasised b1. Porter who pointed out that techniques rrsecl forstrategic planning such as the experience curve, product life cycle theory and porlfolio planing were based on oversimplified concepts of cornpetirion and quick-xsolutions.T He also contencled that many of the imporrant determinants for corporaresuccess were often left out of consideration4 creative thinking. A most damning criricism s/as that the process of strategic planning didnot promote strategic thinking This was a major rhrust of a highly publicised anicle, 'The

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36 strategic marketing: decision making and planninglall ancl rise of strregic planning,, by Henry Mintzberg. He argued rhar ,srnategic pln_ning, as it has been practicecl, has real been strategicprogrammirg, e artict;on ofstlztegies, or visions, thar already exisf I That is, a cliitinction needs to be made betweenplanning and srraregic thinking He conrend.ecr that planning is based on analysis-whrrestrtegic thrnkmg is basecr on synthesis The grand falracy of those who "drro.rr a formarapproach o strategic planning, he argtLeci, is that they fail to recognise tl-re essentia.l dif-ferences between the two processes. As he stated:Becau.se alysis is not synthsis, strtegic planning is not strategy fotraion llolcLemphasis as per originall Analysis may precede and support synthesis, by clefining theparts thr can be conbinecr iro whores Analysis may fotow and eraborate synthlsis,by decomposng and formalizing its consequences Bur anarysis cnnot slLbstitute forsynthesis No amount of elabomtion w'l ever enabre formal procedures to forecasr dis-continuities, to inform manages who ae detachecl fom their operadons, to ceate novelstrategies Ultimately, the tem ,sategic planning, has provecl to be an oxymoron 9Given t.e above criticsms it was no wonder that strategy pranning fe, orrt offashion. ln 1983cipline, clismanrlhe 1980s was, iA nrmber of evinrerest in rhe di

From doom and gloom to renewal

chapter 2 strategic thinking and strategc decison making 37American rnanagemenr, especially in the two decades after' ?orld \ar II, was universallyaclmirecl for irs shikingly effecrive performance Bur mes change An approach shapeclaod efinecL during stable decades rlay be ill suied to a w.orlcl chaacterized by rapicl ancLunpreclictabje change, scarce energy, global competirion for markets, and a consrant needfo innovation This is he world of rhe 1980s ancl, probably, rhe resr of rhis centrLryThe concltLsion is painlul bLrt must be faced Responsibility for this compettive listlessnessbelongs not Jusr to a set of extern condirions but also to e aftitudes, preoccupations,ancL practices of American manage By their preference for seruicing existing marketsrther than crearing new ones and by their devotion to short-term re[ums and. ,manage,ment by rhe nurlbers', many of them have eflecdvely forsworn long-term cechnologicalstLperiority as I comperitive wepon In consequence, they havc bdicatcd their strategicresponsibilities.lo'Managing our way to economic clecline' served as a wake-up call for uS indLrstrylith the problem of inappropriate management practices identiecl, arrention wasnow fr'nly focused on frnding a solution The scene had now been set and in avery short time two management books hit the market to become best sellers Twoof these books, pubished in 1981, set out to explain why rhe Japanese had beenso successful and as a corollary why the us was slipping so fa,r behinc) TlteoryZ: How American Business can Meet tbe Jaanese cbattenge, written by professor'william ouchi, proposed hat a nodifrecl approach ro management was callecl lorthat combinecl the bes characreristics of Japanese and uS management practicesouchi arg.ed rhat the Japanese styre of management that focused on a srongcompany philosophy, a distinct corporte culture, long-range staff cevelopment,and consensus decison making should be incorporared into us management prac-tices. He contencled that a stronE homogeneous culture was the secret of successfor Japanese companies and he advisecl corporate America to redirect atention rothe htrman relarions side of business, Ttce ArT ofJapanese Managemen, by RichardPacale and Anrhony Achos, also pointed out thar he main reason forJapan's successwas their superior managemenr techniques. This included an emphasis on develop-ing shared values, a holistic approach rowards manging people and a rong-termvision for the direction of he business.In 1982 Deal and Kennedy built on rhis theme in their book co?porate culture, andin the same yezt 7he Minl of tbe strttegisr, written by Kennichi ohmae, rhe head of

top-selling management books of alr me captured the artention of corporate America.In Searcb oJ Excellence: Lessons from America's Best Run companes, written by tw()McKinsey & co ssociates, Tom peters and Robet waterman, was basecl on resczrrchstudy of 43 of the besr run companies in the us. The strength ote book was rat ir wasinspirational as it showecl tlut, clespite the overall criticism of us managerncnt pr:rctices,there were many companies that coulcl be consi

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38 slralegic marketng: decison making and planning

Bo' .2 Eight attributes that characterise excellent companiesI A bias for action Getting on wirh ic - active decision making.2 Close ro the customer. Lean from the people you serue3 Autonomy md enrrepreneurship. Fostering innovarion and encouraging practical risk raking.4 Productiviry through people. The rank and file re che rooc source ofqualicy and producriviry.5 Hands-on, value-diven. Company values guide everyday practice.6 Stick co the knitting. Stay close to the busin*s you know.7 Simple form, lean staff Simpli$, organisational structues and minimise top-level sraff8 Simulaneous loose-tight properties. Push auronomy down ro the shop floor (loosc control) bucfocus on core valuet (ttttt tttnl]",, xnd R \(hrernxn, ITt.rerLh (tl \ceLrtcL,: Lesst,^ Iir)m 4m(tica s BcstRuD Q)mpdili6,Iflrpcr& R()q, Ne Y()rk, 198-

BPR, JIT, TQM, and clstomer seruce delivery all encouraged a more integrative or holisticapproach to management including the removal of rigid hierarchical organisational strlrc-tures Decision making started to become decentrlised in line wih a notion that becameknown as a 'hierarchy of strategies'11 Il was contended that in large and complex organi-sations (conglomerates), decision rnaking and planning should be made at three distinctorganisational hierarchical levels: (1) the total organisational level (usually described as thecorporate level); (2) rhe SBU level; and (3) the functional level wittrin each SBUTable 2.7 summarises the different areas of decision making and planning for eachof these hierarchical levels.As a consequence of these organisational changes managers down the line were nowgiven mLrch more responsibility and authorry for developing and implementing sategiesfor rheir business units The concept of strategic planning was extended to become stra-tegic management in ecognition that there was a need for a more holistic approach tostrategy development and strategy implementation As Gluck and Kaufman argued in their7980 Haruard Business ReuieLD article, 'Stmtegic management for competitive advaotage':As the economic system becomes more complex ancl the inlegalion of single businessunits into national, diverse organizations continues, ways mlrst be found to restore the

entreprcneLLrial vigor of a simpler, more individually oriented company slructure Strategicmanaaetncnt, linking the rigor for formal planning to viSorous operational execution, mayprove to be the an.swer.I2These changes that were taking place emoved some of the major problems that hadled to the widespread disillusionment with strategic plzrnning that had surfaced towadsthe end of the 1970s, Howeve a most significant problem remained The conceptualfoundations of stralegic planning sr-rcl'r ru S9OT analysis and Chandler's strategy andsr,cture framework Iacked a substantive analltical foundation This paved the wayfor lhe enlrance of Michael Porter who burst onto the business scene in 1980 wih thepnblication of the st of his epic works, Conxpetitiue Strategy: TecbniquesforAnazingIndLtries and Competitots Pone extended the earlier concept of SWOT analysis in thisbook by providing a detailed description of the steps involved in indr-rstry and competitor

chapter 2 strategic thinking and strategic decision making 39Decision making ortre hie orgnsational hierarchical levelsABLE 2.1

CoRPoRATE LEVELThis level concerns the overallbusiness portfolio of a diversifiedorgansation At this level ofstrategy the main emphasis is onbuilding and maintaining a portfolioof high performing businessesThis generally involves decisionsregarding the following:determination of a corporatemisson statement(management's vsion ofhow the organisaton shouldcompete n the future)setting short- and long-termperformance objectives (forthe entire group, such asprofit, return on nvestment(ROl) and earnings per share(EPS) and the profit, ROI andcash flow contributions foreach SBU)determination of strateges to

enhance performance ofexsting SBUsdetermination of strategies tomaximise synergies betweenrelated SBUsresource allocation (investmentpriorities - for existing andnew SBUs)determination of strategies forestablishing and maintaininga source of sustainablecompettve advantage forthe group (such as financialsirength)determnaton of corporatedevelopment strateges(including acquisitions,mergers and dvestments)

, SBU LEVELThs leve of strategy is primarilyconcerned with the way in whichthe business unit comoetes inits chosen industry. The mainemphasis is the development ofstrateges concerning product-market postons and theestablishment of a sustanablecompettive advantage for theSBU. Business (or SBU) strategicplans generally nclude businessmission (focusing on the product-markets the SBU should competein withn its industry), performanceobjectives (including profit,ROI and cash flow), strategiesto achieve those objectives,sources of sustainable competitiveadvantage (such as low-costleadership, differentiation or focusstrategies) nd resource allocation(to functions and product lines) Abusness strategic plan might alsoinclude strateges concernnq theestablishment of joint ventures orolher forms of strategic ailiances

OPERATING oR FUNCTIoNAL LEVELThis level concerns strategiesinvolving each of the organisation'sf unctions including production,finance, marketing, R&D andpersonnel (for a manufacturingorganisation). The strategcemphass at this level is onthe development of functional/departmental strategies to supportthe SBU level plan A distinctionneeds to be made at ths levelbetween strategic plans (longer-term) and annual or operationalplans.

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4O stralegic marketing: decision making and planninganalysis In this book he introduced his ftmousftueforces moclel, e/hich to this day is oneof he mosl wiclely usecl businens tools He also intoduced his concept of competitiveaclvantage, which he elaborated on in his 1 85 publication, Competitiue Aduanta.ge:CredTing and SLsraining Superior Performance Both of these books acred as catalystlo revive inlerest in strategic planning/management and the concepts he introduced ofinclustry analysis, generic competitive strategies and value-chain analysis were not onlywidely acclaimed and adoptecl by indrLstry, but acted as a srimulant for esearchers tosystematically investigale he links beNveen effective strategies and business performance.

The net resr-Llr of the changes thar were taking place in the early 1980s was that strategyplanning was reborn in he forrn of strategic management Senior managers of SBUs werebecoming increasingly involved in strategy development and implementation processes,and strategic managemenr was becoming a rnajor elcl of study for academics from adiverse range of disciplines inclucling psychology, economics, political science and mar-keting, in adcliion to rhose wirhin rhe broad freld of managemenr. Not surprisingly asthe cliscipline of strategic mangement flourished a rremenclous diversity of concepts andapproaclles evolved [n an effort to make sense of ille literature Mintzbe has iclenti-fred 'ten schools of rhoLLghr' concepts belonging ro eacl-r school are bouncl togerherby common underlying philosopl.ries and assumptions These 'ten schools of thought'were further categorisecl into lhree broad groups: prescriptive, clescriptive and holisticapproaches Box 2 J provides a brief summary of these ,ten schools of thought,By the 1990s srtegic mnagement hacl matr-rred as an academic discipline znd as abusiness plocess A number of new concepts were introduced cluring this decacle andKaplan and Norron's model of the balanced scorecard was argr-:ably the most prominentwhile c K Prahalad and Gary Hamel's notions of core competence, strategic intent andstrategic architectue also made a signi_cant impact 13 ln 1996 Michael porter extenciecllris concept of competitive advantage in a highly publicised Haruard Bliness Reuieloarticle, ' har is strategy?' Howeve while these conceptual developments were important,changes lhat were taking place in the external environment s/ere stating to signicantlysl-rape the way strategic management was being practised This was the era of restrucrur-ing or re-engineering as it was commonly described It was also the decade when digitaltechnologies were driving a shift from rhe indusial economy to the information age. Inthe eary to mid 1990s expectations abolt the new economy were higl-r but the dotcomcrash in April 2000 dampened much of the enrhusiasm However, rhis provecl to a shoft,lived blip on lhe radar By 2tJO4 \X/eb 2 0 applications and associared technologies (such aswikis, blogs and social netlvorking sites) were bringing about changes thar were impact-ing on society, the media and industry The new business environment had become oneof rapicl change and emerging market instability and volatility in contrast to the relarivelystable brLsiness environment in the pre 1990s (prelnternet/inclllstrial economy) era Inthis rzpidly cl-nnging business environment strategic decisions were required to be madeon a continLring basis and rs a conseqLrence forrnal apprcaches to strategic planning haclbecome problematic Tlis wrs borne out in 1 str-Lcly of stmtegic planning practices byMcKinsey & Co in 2006 In an online srrrvey of nearly 800 execrLtives it was founc that only23 per cent indicated th:Lt maior strategic clecisions were mac'le witl-rin the strategic plan-ning Process It was also found tha orly 45 per cent $/ere sasfied witl-r the strategic plan-ning process Hos/ever, on a more positive sic1e, 79 per cent of these n-anages believedthat formal straregic plarning processes played a signifrcant role in strtegy developmentDuring the early 2000s ir had become apparenr d-nt the circa 1970s problem of a dis-connection between strregy developrnent and strategy implementation had re-emerged a major concern This led to the crerion of a new position of chief straregy officer

chapter 2 strategic thinking and strategc decsion making 41(CSO) in a number of companies such as Kimberly-Clark, Motorola and Yahoo, CSOswere expectecl to enslrre that strategic decisions were effectively rnslated into actionand also to assist the CEO and the senior management team in the strategy developmentprocess 14 Howeve as was found in tl-re 2006 McKinsey suruey the role of the CSOdiffers from organisation to organisation l4rile 52 per cent of managers reported thatimpofant strategic decisions were con-ned to a small group of senior managers in theirorganisations, only 39 per cent believecl d-rat he CEO leads the organisation's strategydevelopment process, while 34 per cent were of the opinion tht the CSO or a strategygrotrp lead the process Interestingly, 46 per cent of Clevel executives consisting of boardmembers, CEOs, CFOs and other top execLrtives repofed that the CEO (or the personholding an equivalent position) leads the process

Box 2.3 Mintzberg's ten schools of thoughtGroup 1 - Prescriptive schools of thoughtThe deign school. This school evolved in rhe lae 1950s and early I 960s Strategy is conside redco be a conceptual process. This school o[ choughr ryolved out oF rhc work of Selznick,Chandler and che Harvad S\llOT model ofsrraregy Formarion. Thc simple model of chedesign school gavc way ro rhe planning school.The pluning school. This school commenced in 1965 with rhe publicarion of Ansoff's bookCorporate Snategl, which was ro bccome a major catalysr For rhe developmenr ofsrraregicplanning as a management discipline. This school oFthought advocared srraregy planningas a highly formalised process bed on elaborate nodels and exrensive checklists andrechniques. Ir w he dominant school rhroughouc the 1970s bur came under srrong artackin rhe early I 980s and w largely discredited in rhe I 990s.The positioning school. This school commenced in 1980 with rhe launch oIMichael PortetCompetitiue Snteg. \X/hile rhis school ofrhought w led by Porrer, in che 1980s two orherstreams oFwok ryolved within che posirioning school: military muims (buiness strategiesbased on che milirary srraregies of Sun Tsu, Clauewirz and Liddell Hart) and consultingimperatives (models such as the Boston Consulting Group and pror impact of marketstratcgy- PIMS - dweloped in the 1960s thar prescribed srraregic behaviour).15Group 2 - Descriptive schools of thoughtThe entrrpreneurial school. AJthough his school ofchought evolved during rhe 1980s itoriginared in the much earlie work ofSchumpeter (1934), Srrauss (1944) and Cole (1959),who argued rhar ioiriacives taken by visionary leaders are rhe keys ro economic growh,l6In rhe I980s rb is ealier work became the Foundarion For conceprs such as srraregic vision l7and leadership in organisarional srarr-up and turnalound life-cycle situations.The cognitive school. This school wolved in the 1980s mainly owing to prychologically orienred

academia and pracririoners who beliwe rhar straregy Fomarion is a mental process; lorexmple, they probe rhe mind oF rhe strategisc in oder to undersrand srrategic visionThe school draws on concepts in the leld ofcognirive psychology relacing particularly toperceprion (how srrategisrs become informed), concept anainmenr (how strategy irself isformed), reconceprion (how strategy chmges or why it doesnt chmge) md scraccgic sryle(how srraregisrs dffcr in rhcir cognitivc orienracion). The 3M Company, for example, usesstraregic srories ro underpin its business-planning processes.lSThe leuning school. In rhis school, srrategy is viewed as an emergenr process. Srrategists learnove me d strategies emerge as srraregisrs, somerimes individually but more oftencollecrively, come to undersrand conrex and rheir organisation's epabiliries in dealing

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42 strategic marketing: decision making and planningwith ir. Inreest in'learning organisations'and'inrclligenr organisarions'heighrened during rhe1990s and quire clearly rhis school ofrhoughc continu., ,o ^i..""r r.rorg rripo.t.t9

The This school ofrhought evolved in the latc 1970s bed on rhe oorionassive and srraregy fomation is dicated by external condicioos rarherGroup 3 - Holistic school of thought

chapter 2 strategic thnking and strategic decsion making 43'i strategic decisions need to be made ancl implemented as the need arises and, ofnecessity, may be made outsde of rhe forma.l srrategic planning processes Thereforethe process of strategic management needs to be ongoing5 strategic thinking i.s a creative process including intuirive and other non-rationalthought processes6 strategic thinking is nor just a top-d.own process and provision needs ro be made roinclude bottom-up input into the sategy developrent process7 A model of the strategic managen-ent process shoulcl be considerecl in terms of being

a framework that provicles guidelines for strategists to consider rather than as a strait-jacket rhat inhibits creativiry and innovaion8 Marketing operates at two levels in the organisation: at the departmental or functionallevel and at the top management strategy level At rhe top management level the roleof marketing is:a to foster a marketing-oriented cultue throughout the organsation That is, afocus on establishing and maintaining a sustainable competitive advantegeemphasising the organisation's value propositionb to provide input into rhe strategic visioning process - the dererminarion of whatbusiness we are inc to provide in-depth inpLlt into key marketrng strategy consiclerations includingthe iclentification, evaluation and targeting of market segments, ancl thedevelopment of brand positioning anci marketing mL\ strategiesd to iclentify market growth oppotLrniriese to provide in-deptl-r input into the process of resource allocationf to ensure at key marketing metrics are incorporated into rhe organisation,smonitoring, evaluation and control processes

Ka Foods is rhe world's secondJargest Food company, wirh m annual rsenue in 200g ofus$42 billion. The compmy boasrs an array of some of the best known brmds in rhe world.Nne of these brmds have revenues in excess of uS$r billion - rGafr, Jacobs, LU, Maxwell House,Milka, Nabisco, oreo, Philadelphia and oscar Mayer Addirionalry, over 50 brads have revenuesin qcess of US$100 million.Twenry-ve years ago Ka was a large company bur nor che behemoth ir is today. Theprsent compmy me abour s a reulr of a series of acqusitions rhar rook place in rhe 19g0smd 1990s' staring wirh Philip Mo'is acquiring Gmeral Foods in r9g5 md I(m in 19g8.

What has been learntFrom the above review of the developments that have taken prace in he erd ofles can be determined in order to developeffective impementation of hose strategiesd techniques:1 The most meaningful level of strategy is at the business unit level of organisarion.This is consistent with the organisation-wicre t'octLs ancr intefunctionar approachadvocatecl in the concept of marke orientation.

to be clealv linked

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44 strategic marketing: decision making and planningIn 2006 lrene Rosenfeld was appoinred Chairmm and CEO and she soon cme tothe conclusion rhat a change in management process w urgendy needed. This me aboucin 2007 when a rurnaround strategy, 'Organizing for Growrh', was lauched - with rhe aimof restoring long-rerm growrh of earnings of between 7 and 9 per cenr. The existingorgmisational marrix w dismanded md a nry decenualised structure w:s put in place whichw very much in tune wir.h the orgmisational srructure qhibired inTable 2.1 of dris chaprer.New businss unirs were established and he leaders of rhese unia becme general mmagersradrer rtrm just acting as markerers as they had done previously. Business uits were givenmore direcc lines of responsibility and P&L autonomy.Commenting on trGaft's strong second quurer 2009 raults, Irene Rosenfeld itared,'The investnena we'ye rnade over rhe past three years are driving solid busines momenrumin a challenging economic envionment. \?'e're on track ro deliver song top and bouom lineresults, restore our pror margins to indusrry avemges and consistendy deliver againsr ourlong-term target of7 ro 9 per cenr.'*

Source: B$ed on 'Insde the Kf( Foods mfomalion'.slrale[Chbilsne$t Aurumn 2U09, pp. 68-79' 'Kmft-Foods rcporrs Q2 EPS from continuing operations up 27olo ro $0.56, fuelled by broad-bed opeetinggaini. Kraft Foods pres"^ release, 4 Augut 2009.

I The strategic marketing managementprocess - a frameworkAt the lop level of strategic decsion making, CEOs, CSOs and other members of thesenior management team are required to consider a wide range of factors includingthose that are marketinl related It is incumbent upon the chief marketing officer(cMo) to deal with markering-related considerations appropriately clrrring rhe variousstages of strategy development end implementation Accordingly, marketing strtegiesmay therefore be developed in a numbe of ways:1 as pa of a broacler based formal strategy planning or strategic mangement processthnt culmina.tes in the preparation of a strategy planning document which may becomptehensive or in a more abbreviated format (refer to chapter 13 for discussionof the vzLrous tonnat options)2 as part of a hroacler based set of strategy deliberations tl'ar are made outside of aformal stratcgy planning pxrcess crLhninating in a or-Lnber of recommendations whichmay be articulatecl in :r pper or :r 1-eport3 as a separate strategic mrketing plan which .r:ry be presented in eithe a compre-hensive or abbreviatecl forma4 as a paper or report containing marketin{ strategy recommendationsIrrespective of these different approaches tle pocess of strategic marketing decisionmaking and implementation is part of a broader process of strategic management thatconsists of four interdependent stages

chapter 2 strategic thinking and strategic decson making 45Figure 2.1 The strategic management process

Strategy Strategydevelopment,' implementation Strategyevaluaton andcontrolt tlThis four-stage process shown in Figure 2 1 is essentially a descriptive model of thestraegic management process The model is not prescriptive and the work involved isinvariably a le/o-way process rather than a one-way linear progression from one stageto the next The model should be thollght of in terms of a continuons loop wherebyinformrtion derived at each stage is fed brck into rhe process Ir should also be thoughtof in erms of providing a framework in which key marketing concepts and techniqr,rescan be incorporated into each of the intenelated stages of the stratelic managementprocessFigure 2 2 builds on this basic mode by fleshing oLrt a nlrmber of steps that areinvolved at each of the four stages As the emphasis is on incorporating marketingconcepts and techniques into the overall process of strategic management, the modelis entled strategic marketing mnagemenr

Stage 1 - Strategic analysisThe purpose of this stage of the process is to revies/ the curent siluation facing theorganisation and most importantly to arrive at assumptions abollt the future situationStrategic analysis comprises two ma,or areas of activity: (1) conducting a situationanalysis; and (2) preparing a summary of his wok in the form of a problems andopportunity statement,Situation analysisThe situation analysis is the foundation upon which sfategic decisions can be madeIl is essentially a review of where we are now, whee we have been and where weare going The more thorongh the review, the more solid the foundation The sirjationanalysis consists of four phases of sork as depicted in Figure 2 lBefore discussing each of these phases it is useful to note that the commonly usecLacronym of SWOT (strengths, weaknesses, opportunities and theats) is argr-L:rhlymisleading as it suagests that internal analysis (strengths and weaknesses) preccclesexternal analysis (oppofiunities and hreats) This is precisely the incorrect sequence asit is necessary lo determine the challenges facing an orga.nisation as wonld be revealedin the review of the exrernal environment before an ssessmenr can be nacle of /hatinternal capabilities are required If an acronym has to be rLsecl then it my be betterro use TOWS (threats, opportLLnities, weaknesses and strengths)

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46 strategic marketng: decision making and planning-- s. - r"1;"t"s;,1e1"0 ;;;'""i p."""'

chapter 2 strategic thinking and strategic decision making 47The four phases of work involved in undertaking a situaton analysis

Review of the ueermtnatton ot Kevtew otExternal Environmentffi;r:";'.J-) GSFs ./' lnternal capabiltesDetermination of'

Business definitionand scopeStage 1Strategicanalysis

Stage 2Stategydevelopment

Stage 3lmplementation

Stage 4Evaluationand control

Critical success factors tSituation analysisBusiness definition and scope

External environment. Remote environment. Near environmentlnternalcapabilities

Problems and opportuntesstatementMarketing objectives. Topline revenue objectives. Profitabilityposition. Revenue mix strategiesMarketing strategesMarketing mix strategies. Target market segments. Product/brandpositioning. Product strategies. Pricing strategies. Distributionstrategies. lntegrated marketingcommunication strategies. People, process managementany physical asset strategies(for service providers)

Figure 2 4 shows the relationship between the external forces and internal capabilitiesFEre 2.4

Business definition and scope statementAt the outset of the strategic management process it is necessary to define what busi-ness we are in That is, what industry and what markets do we or should we compete inas a business uni From a marketing point of view the following questions need to beresolved: How should the market and the products rht service that market be defined?How is he market structured? \What are the market segments within the total market?.Whatare our existing products and potential new products that service the market? \flho are oureisting and fun:re intermediary and end-user customers? V4ro are our competitors? \X4ratis the geographic domain of our business unit and what is the plaming time frame?The business definition and scope statemenr is a starting point for strategy analysisand development The way a business is defrned determines the nature of the marketsthat the organisation will compete in, the products and substitutes that service that mar-ket or may service that market, the nature of the competirion and the capabilities rheorganisation will need to have in order to compete successfully in that industry.

Review of the externaI environmentThere are two interrelated phases of the review of the externol environment. Thepurpose of the review is to arive at a number of conclusions concerning the oppor-tunities and threats that currently face the organisation and are likely to confront

tBudgets. Submisson and approvalIMarketing program. lmplementation (action plan)tEvaluaton an control

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48 strategic marketng: decision making and planningthe organisation within the time farne of rhe stategic plan The work involvedconsists of:' analls (breaking a whole into a number of pans ro examine rhe nature and rela-tionships of the parrs). syntbesis (putting all of the parts together in a meaningful way to form a whole). dia.gnosis (identi$zing a condition that exists). prognos (determining what is likely to happen)The process co[nences with a review of the remote environment (also referred to as themocro environment) including vct as ,drivingforces of change'. These forces technologicaland the natural environment. A , sociocultualand technological) but of course this overlooks the naural environment which since the1990s has become an increasingy signi_cant force of changeThese frve remote driving forces of change impact on the neor environment (which isalso efemed to as the tosk environment or induslry environmenl). The near environmentis so named as it refers to rhe industry which the organisation operates in - as definedin the business denition and scope statement. Near envionmental forces direcrlyimpact on the way in which organisations survive, prosper or perish. The task fo themarketing srrategist is to determine the naftrre and strength of hese forces and thelikely impacr that these forces will have on rhe organisation in rhe fr:ture, once again interms ofopportunities and threats. There are frve areas ofthe near environment review:market review, customer review, competirive review, review of distribution channelsand buyers, and a review of supply factorsThe review of the external environment (remote and near) sets out the current chal_lenges facing the organisation and those that are likely to occur in the ftiture. uponcompletion of this review the strategists are then in a position to arrive at a view aboutthe caPabilities the oganisation will need to have in ord.er to meet its future challenges.This is he job for the third stage of the situation analysis, the determinarion of crilcolsuccess foctors (CSFs).

Critica I success factorsCritical success factors (ot as they are alternathose relatively few factors tht are critical fortive position to our organisation, to possess inleverage phenomena that provide an ognisatican occlrr at any stage in the value chain from supply (such as having exclusive access)to the marketing and consumption of the product or service by the end consumer.lnternaI capabi[tes revewThe review of h es the c theorganisation. More success killsand resources the for ir ro Thenext step is to assess the capabilitcs of thc organisation to meet these challenges.This involves review of the internal functions including non-markering capabilities(frnancial position, management and leadership, human resources, research and dever-opment, operations managementr interfunctional coordination and responsiveness, andcompetitive position) and markering capabilities (marketing management, and market-ing strategies and perf'ormance) The main emphasis of this review is to deermine

chaptel 2 stratgic thinking and strategic decision making 49the organisation's capabilities (in terms of its strengths and weaknesses) of compet-ing sr,rccessfully in the external environment as outlined in the previous review of theremote and near environment driving forces of changeProblems and opportunities statementThe encl product of the situation analysis is a synthesis in the form of a problems andopportunities statement This statement acts as the linchpin between the processes ofanalysis and strategy development The situation analysis involves a detailed review ofa huge variety of external and internl factors that invariably has the potential to causeinformation overload Accordingly, there is a danger of'being too close to rhe trees soas not to be able to see the size or shape of the foest' The objective of the problemsand opportunity statement is to mal

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5O strategic marketing: decision making and planning

Stage 3 - lmptementationAs briefly discussed earlier the position of chief srrategy offrcer (CSO) evolved in rheearly 2000s in recognition of the increasing gp that had arisen beNveen the develop-ment of strategies and the effective implementation of those strategies Stage 3 marksthe turning point where strategy planning becomes strategic management The strategicmanagement process embraces three interrelated processes: budgeting, implementation(action planning) and evaluation and control systemsBefore strategy recommendalions can be implemented approval must be obtainedfrom top manalement and in many cases from the board of directors An essentialconsideration is therefore the frnancial ramifrcations of the strategy recommendationsas set out in a marketing budget. This includes market and sales forecasts and profit-ability/return of invesrment pro,ections As marketing accountabiity has become amaior issue for maketers over the last decade this pal of the strategic mnagementprocess invariably atracts significant attention At the heart of the process of marketingaccotrntability is t'e cause and elfect dationship of marketing expenditure ancl market-ing outcomes That is, the long-term retlrrn on investment (RoI) of marketing needs tobe clearly establishedonce approval is obtained the next step is one of implementation No matter howlhorough and well preparecl the strategy recommendations, they are useless if notimplemented effectively. Marketng sategies need o be evaluared against orgoniso-tionol fit - rhe abiliry of che SBU to effectively implement rhese straregies. Thy alsoneed to specif,i the steps that need ro be taken f'or he effective implemenration ofthose srategies This involves srating who is to be responsible fo what by when ,Thebtrck must stop somewhere' and it is essential that responsibilities and Liming are clearlyestablished and communicated to all personnel concerned An important part of rhispocess is internal marketing - the recognition that employees and other personnelexternal to the organisation, such as slategic alliance partners, need to be targeted withmarketing activity, particularly communication customer service programs ae anotherimportant aspect of the marketing implementation process.Stage 4 - Evaluation and controlThe final stage of the strategic marketing management process is to establish an evalua-tion ancl control system that provides timely information for tracking and assessing mar-keting performance. The evaluation of marketing performance needs ro be conductedon two levels The frrst is to review past perfomance to determine the effectivenessand effrciency of the marketing activiry. The metrics rLsed here are logging indicotorsthat provide information bolrt actions that have alreacly been aken The second levelof evaluation is to provide information concerning future marketing performance.These merrics are known as leoding indicotors as they measure such facrors as the lev-els of brand equiry, brand loyalty, cLrstomer satisraction and customer retention ratesthat are antecedents of future sales For example, if customer satisfaction levels havedeclined and brand switching in the product category has increased, there is a prob-ability of an impending sales declineThe system of evaluation and contol is a continuous process and includes themonitoring of information concerning the external environment (boch remote and near

chapter 2 strategc thinking and strategic decision making 51environment) in addition to internal factors It should also be noted that measues ofmarketing performance are often incorporated inlo an organisation-wide performancemeasuremen system stLcl-r as the balanced scorecard, In recent years the balancedscorecard has been extended to become a tool to facilitate the strategic implementationprocess Kaplan and Nofion, the originators of the concept of the balanced scorecard,have also proposed that an offrce of straregy management (oSM) should be establishe

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52 strategic marketing: decision making and planning

Strategy n revew R I Foyes ond WJ Abernofhy, 'Monogrng ourwoy lo economrc decline' , Horvord Busness Rewew,luy-Augusr 1980, p 8The not on ol o 'hLerorchy of srolegres woseslobl shed rn fhe slroleglc ponnrng ilerolure n lheI 970s Although nof the I rst to conce ve the 'deo,George Slerner s genero ly ossocroled wrfh sconcepl Reler lo G A Slerner, Strolegic PlonningWhot Every Monoger Musl Knaw,lhe Fee Press,New York, I 929The rm 'stroleg c monogemenl' wos populorised bySchendel ond Hofer n o book they ed ted lollowingo coference '_ le rie'd or s-o eg'c plon' ng n1977 Rele lo D E Schende ond C H |lofer (eds),Slrolegtc Monogemenl A New Vrcw of BustnessPolicy ond Plonnng, Lrttle Bown, Boslon, Moss ,I 979 Gluck ond his co eogues o so popu orsed Theconcepi of slrolegic monogemenl n FW G uck, S PKoufmon ond A S Wol eck, 'Shotegrc monogemenffor compelrhve odvonloge', Horvord Bustness Review,lulAugusr 1980, pp 154-C K Proho od ond G Homel, 'The core competenceof lhe corporohon', Horvord Bustness Rewew,l99A,pp 79-9), G IlomelondCK Prohood,Canpeltng for lhe Fuure, Hovord Busrness SchoolPress, Boslon, Moss , I 994, ond C K Proho odond G Ilome, 'Shotegrc nlent', Horvord BusinessRevrew, MoJune 1989, pp 63-76For further informot on obout e posrtron ol chrelskotegy off cer reler lo R T S Breen, P F Nunesond W E Shill, 'he chref shotegy off cei , HorvordBusrness Revew, October 2002, pp 84-93; Bree, PF Nunes od W Shil, 'Rse of the chrefskolegy officer', Ouilook, 2OA8, pp I -,'Now chrefslrolegy officers hnk obout he r role A roundloble',mck nseyquorterly com, Moy 2008 pp 40-8PMS is o reseorch p.ogrom thot nvestgolesthe flnonciol resu ts ol strotegres employed byopproxrmotely 3000 SBUs o[450 compon es nthe USA Reler to R Buzze I ond B Go e, Ihe PIMSPnnaple, fl,e Free Press, New York, I 987J A Schumpeter, Theary of Ecanontc DevelopnentA. tnquy na P,af', Copol Credi lne.es.ond Bustness Cycle, lorvord Un versrly Press,Combndge, Moss I934 SeeolsoI Il Strouss 'Theenlreprene e I rn' , Journal of Pohtrcol Economy,)une 1944, pp 1 12-27, ond A I Co e, EusrnessEnlerpnse tn s Sacnl Selttng, Horvord Un vers \rPress, Combrdge Moss, 1959lhe concepl of skolegrc v sron wos populcnsed byBennrs ond Nonus n lhe I 98Os ond loter by |lomelond Prohood w th lherr concepts ol skotegrc ntentond shotegrc orchrleclure Refer lo W Benn s ondB Nous, leoders The Strotegtes for Tokng Charge,Horper ond Row, New Yok, I 985 ond C K Proholodond G Home, 'Skoteglc nfent', Horvord BustnessRevrew Molune 989, pp 3-Z

chapter 2 slrategc thinking and strategc decision making 53I I G Show, R Brown ond P Bromrley, 'Sholegic storesNow 3M is rewrihng blsiness ponn og' , HorvordBuslness Revlew, MoJune 998, pp 4 I -50I 9 The leorn ng schoo ol thought evolved oul ol onortice byC E Lindbom,'-lhescence of muddlingtlrough' , Public Adninisttotve Revw, )959 , pp79-88, and grew to some prominece in I B Ouinn,Slroleges for Chonge Logtcol lncremenlolisn,lrwin, Homewood, ll, 1980 Poscoe provides onrnterestig occount of how skoleg es ore deve opedrncremenfoly rn R T Poscole, 'Perspeclves on sholegyThe reol story behrnd l-londo success', Co/fornroMonogemanrRevtcw. vo XXV -o 3, 198,pp 47-7220 W Ouchi, TheoryZ HowAnericonBusinessConMeel lhe.lopa nese Chol/enge, Addrson'Wesley,Reodlng, 98 , ahnae, fhe Mtnd of he SlrotegrslMcGrow-llil , New York, 19822 I Kop on ond Norlon nkoduced the concept rn 992ond s nce ot hme hove plb ished extens vey on hemodel whrch hos undergone o pTocess o[ cont nuousrmprovemenl ond modifrcohon See for exomple, R SKoplon ond D P Norton, 'The bolonced scoecordMeosures ol drve perlormonce' Horvord BustnessPey,e, -o-uory leb.uo'y 9o2 pp 7 I -80,R S Kop on ond D P Norlon, 'Using lhe boloncedscorecord os o slrolegrc monogemenl syslem'Horvord Busrness Revrew, lonuorFebruory I 99,pp Z5 85, ond R S Koplon ond D P Norton,Bolonced Scorecord T@nslong Slrclegy nlo Actian,Norvord Business School Press, 19922 Stokeholder fheory origrnoted from the work ofBornord { 938), Cyet ond Morch ( I 93) ondFreemon { I 984) I is bosed on the notion hotslokehoders represent bo he nternol ond exbrnoconsf luenc es of o firm rnc uding shoreholders,ownes, monogers, empoyees, customers, supp|ers,

I nonc eTs, government, lhe med o, lnrons, communrlygroups ond socrely os o who e Acodemrcsbe onging lo Minlzberg s po trcol, cullurol ondenv ronmenlo schools of thought o I hove nteresi nstokeholder theory wh ch teds to oct os o komeworkencompossrng oreos such os ercs, corporole socrorespons b Lrty ICSR) ond volues23 H Mrnizhe, The Rse ond Foll af iotegtc Plonnng,Prenlicelol Inbrnohonol, llemel Hempsteod, llerts,)99424 R S Koplon ond D P Norton, -lhe offLce of sfotegy

moogemenl' Horvord Busness Revew, Oclober2OA5 pp 72-8A25 Thrs pornt wos emphos sed n whot hos generollycome to be regorded cs o stroieglc p onnrngclossc H Mntberg 'Crofhng strotegy', HorvordBusrness Review,luly-August987, pp 6-75Also refe to lindblomt concept of 'boby steps' ond'mudd|ng through' ond Qu nns concept ol 'log colncemenlo sm' discussed prevrousy - see endno I 9

Prepare your own strategic marketing plan.\r7atch the CD included with the book, review Module 1: The process of develop-ing strategic marketing plan Also refer to Chapter 13 for help in choosing anappropriate format for wdting a stmtegic mrketing plan of feportComplete the activity 'Quiz on the total strategic marketing planning process' torevise your understanding of the chapter.

) ' Search me \r\ For the latest readings on strategic ttrinking and strategic| \J decision making from a wide range of wold-class jor-rmals,newspapers and e-books, explore Search me mrketing.Login to Search me using the access card at the front ofyour book and try searching for the key tenns listecl beloe/. brand positioning. top-down planning. experlence cllrve. near environment. remote environment. frve forces model

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H MrnLberg, 'The fol ond nse of slroteg c plonn ng',Horvord Busi ness Revrew, JonuorFebrtory ) 99 4,p 082 G S Doy ond R Wens ey, 'Morkei ng theory wrtho slrolegic orientof on' , lournol af Morketing, 47 ,

983, pp 29-80 Refer o so to D S Ilopkrns,fhe Morkelrng P/on, New York, ConfereceBoord. l98l3 FW Gluck, The McKinsey Quoterly, W nter 98,pp I 8-414 I B Qurnn Strotegcchonge Logrco ncrementclsm'Sloon Monogement Revtew, vol 2A, )978, p 75 See, for exomple, ong tud nol studres by IlM n2berg ond B P Woters, 'Does plonnrng nhrbrfskoleg c thrnk ng2 Trock ng lhe sfoteg es of Ar

Conodo lrom ]937 to 1976'. R B Lomb ond SL'oscuo eds), Ao"ces n S"otgcMonogemenl, lA Press, Greenwrch, I 98 ondR-l Pocole, 'Perspeclives on shoiegy The rl storybehind l-londo success', Colifornio MonogementRevrew, Spring 984, pp 83-94H M nberg, 'The fol ond nse of skolegrc p onning',p iloPorler, Coroorote slrolegy lhe slote of slrotegicihrnk ng , Ilie Ecanantst, Moy 23, 1987 p 2AH M nzberg, 'The foll ond r se o stroteg c plonning',p )O7H M nZberg, The Rse ond Foll of Slrotegc Plonntng,Heme Hempsleod Prentice-llol nternotonol (UKl,p 321