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Chapter 3:Market-Oriented Strategic

Planning

Chapter 3:Market-Oriented Strategic

Planning

Otterbein CollegeOtterbein College

Winter 2000Winter 2000

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ObjectivesObjectives

Corporate and division strategic planingCorporate and division strategic planing

Business unit planningBusiness unit planning

The marketing processThe marketing process

Product level planningProduct level planning

The marketing planThe marketing plan



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Objectives

Skills

Resources

Opportunities

Market-Oriented Strategic PlanningMarket-Oriented Strategic Planning



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Objectives

Skills

Resources

Opportunities

Profitand

Growth

Market-Oriented Strategic PlanningMarket-Oriented Strategic Planning



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Corporate Headquarters PlanningCorporate Headquarters Planning

Define the corporate missionDefine the corporate mission

Establish strategic business units (SBUs)Establish strategic business units (SBUs)

Assign resources toAssign resources to SBUsSBUs

Plan new businesses, downsize older onesPlan new businesses, downsize older ones



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Measuringresults

Diagnosingresults

Takingcorrective

action

ImplementationImplementationPlanningPlanning

Corporateplanning

Divisionplanning

Businessplanning

Productplanning

Organizing

Implementing

ControlControl

Strategic Planning, Implementation, & Control ProcessStrategic Planning, Implementation, & Control Process



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Limited number of goals

Stress major policies & values

Define competitive scopes

Good Mission StatementsGood Mission Statements



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3 ?Question marks

?2

1

Cash cow

6

Dogs

8

710x 4x 2x 1.5x 1x10x 4x 2x 1.5x 1x

Relative Market Share.5x .4x .3x .2x .1x.5x .4x .3x .2x .1x

Stars

5

4

Boston Consulting Groups Growth-Share MatrixBoston Consulting Groups Growth-Share Matrix

20%20%--

18%18%--

16%16%--

14%14%--

12%12%--

10%10%--8%8%--

6%6%--

4%4%--

2%2%--

00MarketGro

wthRate

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Market Attractiveness: CompetitivePosition Portfolio Classification

Market Attractiveness: CompetitivePosition Portfolio Classification

MARKETATTRACTIV

ENESS

MARKETATTRACTIV

ENESS

5.005.00

3.673.67

2.332.33

1.001.00LowLow

Medium

Medium

H

igh

H

igh

Reliefvalve

Flexiblediaphragms

Fuelpumps

Aerospacefittings

Clutches

Hydraulicpumps

Joints

StrongStrong MediumMedium WeakWeakBUSINESS STRENGTHBUSINESS STRENGTH

1.001.002.332.333.673.675.005.00

Invest/growInvest/grow Selectivity/earningsSelectivity/earnings Harvest/divestHarvest/divest



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Sales

Sales

10105500Time (yearsTime (years)

Desiredsales

Desiredsales

Integrative growth

Intensive growth

Current

portfolio

Current

portfolio

StrategicStrategic--

planningplanning

gapgap

DiversificationDiversification growthgrowth

The Strategic-Planning GapThe Strategic-Planning Gap



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4. Diversification2. Marketdevelopment

Newmarkets

1. Market

penetration

Existing

markets

Existingproducts

3. Product

development

Newproducts

Intensive Growth Strategies:Ansoffs Product/Market Expansion Grid

Intensive Growth Strategies:Ansoffs Product/Market Expansion Grid



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1

4

2

3

HighHigh

LowLow

HighHigh LowLow

Attractiven

ess

Attractiven

ess

Success ProbabilitySuccess Probability OpportunitiesOpportunities

Opportunity MatrixOpportunity Matrix

1.1. Company develops a moreCompany develops a morepowerful lighting systempowerful lighting system

2.2. Company develops a deviceCompany develops a device

for measuring the energyfor measuring the energyefficiency of any lightingefficiency of any lightingsystemsystem

3.3. Company develops a deviceCompany develops a devicefor measuring illuminationfor measuring illuminationlevellevel

4.4. Company develops aCompany develops asoftware program to teachsoftware program to teach

lighting fundamentals to TVlighting fundamentals to TVstudio personnelstudio personnel



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Threat MatrixThreat Matrix

1.1. Competitor develops aCompetitor develops asuperior lighting systemsuperior lighting system

2.2. Major prolongedMajor prolongedeconomic depressioneconomic depression

3.3. Higher costsHigher costs

4.4. Legislation to reduceLegislation to reduce

number of TV studionumber of TV studiolicenseslicenses

1

4

2

3

HighHigh

LowLow

HighHigh LowLow

Seriousness

Seriousness

Probability of OccurrenceProbability of Occurrence ThreatsThreats



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SkillsSkills

Sharedvalues

Sharedvalues

StaffStaff

StyleStyle

StrategyStrategy

StructureStructure

SystemsSystems

The McKinsey 7-S FrameworkThe McKinsey 7-S Framework



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