Chapter 4 Strategic Planning, Human Resource Planning, and ...
Chapter 7 Strategic Planning
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Transcript of Chapter 7 Strategic Planning
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Chapter 7Strategic Planning
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Marketing
• Globalization reflects a business orientation which believes that:• •
• Companies need to globalize their international strategies by formulating them across markets to:•
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Globalization drivers• Market factors • Reasons for the similarity in the consumers’
demand are: • • • • •
• Cost factors –
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Globalization drivers
• Environmental factors –
• ____________ or “born globals” are taking advantage of today’s more open trading regions and newer technologies
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Globalization drivers
• Competitive factors •
•
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The Strategic Planning Process
• Formal strategic planning contributes to both financial performance as well as nonfinancial objectives such as: • • • •
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The Strategic Planning Process
• Three broad dimensions need to be kept in mind are:• • •
• Soft power:
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The Strategic Planning Process
• Understanding and adjusting the core strategy•
• The strategic business unit represents groupings organized around market similarities based on:• • • •
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The Strategic Planning Process
• Market and competitive analysis• Provides global marketers with tools to:
• • • •
• Key is to understand the structure of the global industry:•
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The Strategic Planning Process
• Internal analysis•
•
• Formulating a global marketing strategy• • •
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The Strategic Planning Process
• Country-market choice• ______________ involve two measures:
• •
• Market expansion policy determines the allocation of resources among various markets•
•
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The Strategic Planning Process
• Segmentation • Allows global marketers to take advantage of
the benefits of standardization:•
•
•
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The Strategic Planning Process
• Developing the global marketing program - Marketing-related decisions will have to be made in four areas: • • Marketing approach
• Glocalization:
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The Strategic Planning Process• Location and extent of value-adding activities• Competitive moves
• Cross-subsidization:
• Challenges of global marketing•
•
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The Strategic Planning Process• Not-invented-here syndrome (NIH): Leads
to decline of global program when:•
• Localizing global marketing – • • Globalization enhances the flow of information
leading to:•
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The Strategic Planning Process• Encourage personnel interchange to gain
experience abroad•
•
• NIH syndrome can be avoided by:•
•
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The Strategic Planning Process• Maintaining a product portfolio that includes local as
well as regional and global brands•
• Localizing global marketing - Organization structures•
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The Strategic Planning Process• Matrix structure is considered more effective
in today’s global marketplace• Execute global account management
programs:• •
• Localizing global marketing –
• Affects and is affected by:
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The Strategic Planning Process• •
• The management development system has to be transparent wherein:•
• Implement compensation and mobility policies to avail the best talent regardless of job location
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The Local Company in the Global Environment
• Degree and strength of globalization in an industry determines the pressure that the local marketer will be under
• Extent to which the company’s assets are transferable determines the opportunity dimension
• Multiple strategies are available to local marketers when global markets and marketers challenge them
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The Local Company in the Global Environment
• The following six-part strategy for success has been proposed:• • • • • •