copyright © 2007 pearson education canada 7-1 planning variables objec t ives strategies execution...

Copyright © 2007 Pearson Education Canada 7-1

Planning Variables

ObjectivesObjectives

StrategiesStrategies

ExecutionExecution

What is to be accomplished

How objectives will be accomplished

Detailed action plan


Strategic Planning

The process of determining objectives

(stating goals) and identifying strategies

(ways to achieve goals) and tactic (specific

action plans) that will help achieve

objectives.


Business Planning Process

Corporate PlanCorporate Plan

Marketing PlanMarketing Plan

ProductProduct

PricePrice

Mkt. Comm. Mkt. Comm.

DistributionDistribution


Corporate Planning

Corporate plans are long-term and broad in scope. They include an organization’s:

• Vision

• Mission

• Corporate Objectives

• Corporate Strategies


Mission Statement

“A statement of an organization’s purpose that

reflects the operating philosophy and the

direction the company will take.”


Vision and Mission

A vision statement defines plans for the future, defines what the company is and does, and where it is headed.

If a vision statement is used, the mission statement tends to focus more on the present condition of the company.


Sample Vision and Mission

Our Vision

To be the best transportation company in Canada

Our Mission

To provide high quality, low cost passenger rail service.

Via Rail


Corporate Objectives

Typical objectives include:

Sales

Profit

Return on Investment

Objectives should be quantitative in nature, growth oriented, and measurable.


Corporate Strategies

The organization must allocate adequate resources to achieve the objectives

Financial Commitment

Adequate Time

R&D Commitment


Corporate Strategies

Strategic direction varies from one company to another

• Penetration

• Acquisition

• New Products

• Vertical Integration

• Horizontal Integration

• Strategic Alliance

• Divestment


Penetration Strategy

Aggressive action to build current businesses and brands

Coca-ColaCoca-ColaCoca-ColaDiet CokeCoke Zero

DasaniFruitopiaPowerade

Coca-ColaDiet CokeCoke Zero

DasaniFruitopiaPowerade

Coca-Cola wants to be the world’s leading beverage company.


Acquisition Strategy

Some organizations find it cheaper and quicker to buy their way into a market.

Reebok

Hockey Co. Holdings(CCM, Koho, Jofa)

Reebok

Hockey Co. Holdings(CCM, Koho, Jofa)

Pepsi-Cola

Quaker Oats(Gatorade)

Pepsi-Cola

Quaker Oats(Gatorade)


New Product Strategy

New products in new markets produce new revenues and profits.

Apple ComputerApple Computer• iMac• iBook• Mac mini•Power Mac• iTunes

• iPod

Apple is now in the entertainment business.


Vertical Integration Strategy

AppleApple

Apple StoresApple Stores

George WestonGeorge Weston

LoblawsProvigoZehrs

No Frills

LoblawsProvigoZehrs

No FrillsA company operates in several levels of channel.


Horizontal Integration Strategy

CaraOperations

CaraOperations

Swiss ChaletHarvey’s

Second CupKelsey’s

Montana’sOutback

Milestones

Swiss ChaletHarvey’s

Second CupKelsey’s

Montana’sOutback

Milestones

Operates several companies at same level of channel


Strategic Alliance

A relationship between two or more companies who decide to work cooperatively to achieve goals.

Tim HortonsTim Hortons EssoEsso

Timmy’s operates 300 kiosks in 300 Esso outlets across Canada.


Divestment Strategy

A company retreats to its core business by selling unprofitable divisions or products that no longer fit strategically.

Molson sells off the Molson Centre and the Montreal Canadiens to focus on beer.


Marketing Planning

The analysis, planning, implementation,

evaluation and control of marketing initiatives

in order to satisfy target market needs and

achieve organizational objectives.


Marketing Planning Process

Evaluation andControl

Evaluation andControl

SituationAnalysis

SituationAnalysis

SWOTAnalysisSWOT

Analysis

MarketingPlan

MarketingPlan

Implementationof Plan

Implementationof Plan


Situation Analysis

Essential information is compiles and analyzed

• External Influences• Market Analysis• Brand analysis• Competitor Analysis

• External Influences• Market Analysis• Brand analysis• Competitor Analysis

The impact of past marketing strategies are evaluated.


SWOT Analysis

Critical factors from the situation analysis that will influence future marketing direction are identified

Strengths & WeaknessesStrengths & Weaknesses

Opportunities &Threats

Opportunities &Threats

Internal Factors External Factors


Marketing Plan

MarketingObjectivesMarketingObjectives

Marketing StrategiesMarketing Strategies

MarketingExecutionMarketingExecution

• Sales• Market Share• Profits

• Positioning Strategy• Target Market• Marketing Mix• Budget

• Plan Details


Marketing Objectives

Quantifiable statements identifying what will be accomplished in one year.

Sales:

To increase sales from 10,000 units to….

Market Share:

To increase market share from 20% to ….


Control and Evaluation

Measuring results and taking corrective action when necessary.

Activity ReviewActivity ReviewActual versus plan: sales, market share, and profit.

Financial ReviewFinancial ReviewEvaluation of sales forecasts, costs, and budgets.


Contingency Plan

The identification of alternative courses of action that can be used to modify an original plan when new circumstances arise.

Flexibility

Adaptability


Common Marketing Strategies

Existing Product New Product

MarketPenetration

MarketPenetration

ProductDevelopment

ProductDevelopment

MarketDevelopment

MarketDevelopment DiversificationDiversification

Existing Market

New Market


Common Marketing Strategies

Penetration

Pepsi-Cola versus Coca-Cola

Product Development

Coke Zero, Vanilla Coke, Coke C2

Market Development

Home Depot opens smaller, downtown stores

Diversification

Apple markets music products: iTunes and iPod

copyright © 2007 pearson education canada 7-1 planning variables objec t ives strategies execution...

Documents

pearson education canada

rail slide

distribution slide

mission statement

vision statement

detailed action plan

investment objectives

strategic planning