Strategic Planning

Assigning Resources to SBU,s

•BCG MODEL

•GE MODEL

It is more important to do what is Strategically Right

Than what is immediatelyProfitable

Strategic Planning

“ How to Adapt to Continuously Changing Market Place “

Market Oriented Strategic Planning

Market Oriented Strategic Planning

“It is the managerial process of developing And maintaining a viable fit between the Organization's Objectives, Skills and Resources And its changing market opportunities”

Market Oriented Strategic Planning

3 KEY AREAS

1.Managing Business as an Investment

2.Each Business Strength With Market Growth

3.Strategy for each Business

Strategic Planning

Corporate Level -corporate plan

Division Level -division plan

Business Unit Plan –BU Strategic Plan

Product Level –Market Plan for each product

MARKETING PLAN

Strategic Market Plan

Current Market Situation

Opportunities

Tactical Marketing Plan

Specific Marketing Tactics

AdvertisingMerchandising

PricingChannelsService

Strategic Planning Process

Corporate Planning

DivisionPlanning

BusinessPlanning

Product Planning

PLANNING IMPLEMENTING CONTROLLING

Corporate Planning

DivisionPlanning

BusinessPlanning

Product Planning

Organising

Implementing

MeasuringResults

DiagnosingResults

TakingCorrective

Action

Corporate Planning

DivisionPlanning

BusinessPlanning

Product Planning

4 Planning Activities

1. Defining Corporate Mission2. Establishing Strategic Business Units3. Assigning Resources To each SBU4. Planning New Business Downsizing older Business

1 Corporate Mission

A mission is a statement of general purpose: the reason the organization exists. Who are we? What do we do? For whom we do it ? Why do we do it?

What is a Goal ?

Goals should be directed towards a vision andconsistent with the Mission.Something the organization wants and expectsTo accomplish in the future

What is an Objective ?

An objective is: a specific measurable resultExpected within a particular time period,Consistent with a goal and strategy. A clearMilepost along the strategically chosen pathto the goal

What is a strategy ?

The action path the organization has chosen to realize goals. Strategiesestablish broad themes for futureactions and reflect reasoned choicesamong alternative paths

Mission Statement - 3 major Characteristics

1.Focus on Limited Number Of Goals

2.Stress Major Policies & Values of company

3.Define Major Competitive Scopes Within which company operate

Competitive Scopes

Industry ScopeProducts & Application ScopeCompetence ScopeMarket Segment ScopeVertical ScopeGeographical Scope

Establishing Strategic Business Unit

Dimensions

Customer Group -middle Income

Customers Needs -Cheaper Cars

Technology -fuel efficiency

3 CHARACTERSTICS OF A SBU

1.Single or collection of Related Business

2.Own Set of Competitors

3.Manager who is responsible for St. Planning