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Strategic Planning

Strategic PlanningProcess of communicating and sharing data

between different departments of anorganization to collectively formulate future

strategies and implement them withmaximum efficiency

The vision and mission of an organizationform the basis for formulating a particular

strategy. *.

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Corporate and Divisional StrategicPlanning

Scan the environment

Develop vision/mission statement

Define long-term and short-term objectives

Plan strategies to realize these objectives

Five basic activities in corporate planning

1. Define the corporate mission

2. Establish SBUs

3. Allocate resources4. Plan new business activities

5. Down size existing businesses

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Corporate Mission Corporate mission defines the purpose of

business

It should be in accordance with core valuesof the organization

Should be as authentic as possible. Nofancy words/phrases.

Should differentiate the organization fromother companies (stand out from the crowd)

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Mission and Vision

A Vision statementoutlines what theorganization wants to be. It concentrates onthe future. It is a source of inspiration.

E.g NOKIA:Connecting People

A Mission statementtells you thefundamental purpose of the organization. Itconcentrates on the present. It defines thethe various activities that need to be carried

out to achieve the objectiveE.g eBay We help people trade practically anything onearth.

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Establishment of SBUsStrategic Business Unit-A separate and self-sufficient

business unit operating in the market

E.g.-Tube Investments of India Ltd has the followingSBUs

Precision Tubes and Cr strips (TPI)

TI Diamond chains

TI CyclesTI Metal Forming

Each SBU is an individual business entity with anindividual business planning process

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Resource allocation to SBUs BCG product portfolio matrix

Market growth rate Vs relative market share

-Question marks-Stars

-Cash cows

-Dogs

Draw back-Too simplistic

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BCG Matrix

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Michael Porters Value Chain

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GEs nine- cell planning gridIndustry attractiveness Vs Business units strength

-Invest/grow

-Selective presence-Divest

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Planning new businessesGrowth strategies

Intensive growth

Integrative growth Diversification growth

Intensive growth-Ansofs product-market expansiongrid

-Market penetration-Product development

-Market development

-Diversification

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Downsizing Older Businesses

Business process reengineering

Technology up gradation?

Layoffs

-Affect employees morale-If done repeatedly sends wrong signals to

the market

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Strategic Business Planning

Should be proactive .Not reactive

Business mission

SWOT analysis

Strategies Strategic alliances

Implementation

Feedback and control

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Marketing Process

Value delivery sequenceProduct or customer?

Customer based strategic marketing processinvolves

1.Segmentation2.Targeting

3.Positioning

4.Product development

5.Pricing6.Distribution

7.Promotion

1-3:Strategic marketing 4-7:Tactical marketing

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Marketing Planning Process

Steps involved

Analyzing the opportunities

Product development

Developing marketing strategies Planning marketing programs

Managing the marketing effort

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Marketing Plan

Contents

Executive summary

Opportunity and issue analysis

Marketing strategy Action plans

Financial projections

Control

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Marketing implementation

Implementation: Process that translates plansinto actions for achieving the statedobjectives

Strategy-What and whyImplementation-Who, where, when and how

MRM-Marketing Resource Management(standard software package)

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