Strategic Planning

STRATEGIC MANAGEMENT & STRATEGIC MARKETING

• Strategic Management---creates a fit between an organization’s resources, objectives & skills

• Strategic marketing--- develop strategies to achieve the corporate goals

STRATEGIC PLANNING

A prerequisite to Strategic Marketing would be to plan the effort, known as Strategic Planning

• The process of developing and maintaining a strategic fit between the organization's goals and capabilities and it’s changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio and coordinating functional strategies

The Strategic-Planning, Implementation, and Control Process

Corporate and Division Strategic Planning

• All corporate headquarters undertake four planning activities– Defining the Corporate Mission– Establishing Strategic Business Units (SBUs)– Assigning resources to each SBU– Planning new businesses, downsizing, or

terminating older businesses

Corporate and Division Strategic Planning

• Defining the Corporate Mission– Mission statements define which competitive

scopes the company will operate in• Industry scope• Products and applications scope• Competence scope• Market-segment scope• Vertical scope• Geographical scope

Corporate Mission Statement

Marketing goals & objectives are therefore drawn from the Corporate Mission statement.

• Goals of BA:– To be a safe & secure airline --Product– To secure a leading share of air

travel business worldwide with significant presence in all major geographical markets -- Market/Segment

- To provide overall superior service& good value for money in everymarket segment -- Differentiator

Mission of Café Coffee Day

• To be the best Café Chain by offering a world class coffee experience at affordable price

• Base line: a lot can happen, over coffee

Corporate and Division Strategic Planning

• Three characteristics of a SBU– Single business or collection of related businesses

that can be planned for separately– Has its own set of competitors– Has a manager who is responsible for strategic

planning and profit