Lt1--CorpStragPlanning

8/7/2019 Lt1--CorpStragPlanning

1/24

Corporate StrategicCorporate Strategic

PlanningPlanning Asia Asia--Pacific Marketing FederationPacific Marketing Federation

Certified Professional MarketerCertified Professional MarketerCopyrightCopyrightMarketing Institute of SingaporeMarketing Institute of Singapore


2/24

OutlineOutlineIntroductionIntroduction

Meaning & Role of StrategicMeaning & Role of StrategicPlanningPlanningCorporate MissionCorporate Mission

Strategic Business Units (SBU)Strategic Business Units (SBU)Marketing Audit Marketing Audit


3/24

Strategic PlanningStrategic Planning

is the managerial process of developingis the managerial process of developingand maintaining a strategic fit betweenand maintaining a strategic fit betweenthe organization's objectives andthe organization's objectives andresources and its changing market resources and its changing market opportunities.opportunities.

Org Objectives Resources

Changing Environment

Strategic Fit


4/24

Th e Role of StrategyTh e Role of Strategy

CorporateMission &Objectives

Strategy:CorporateBusinessFunctional

OperatingPlans


5/24

Sun TzeSun Tze on Strategyon Strategy

Know your enemy, know yourself, and your Know your enemy, know yourself, and your

victory will not be threatened. Know thevictory will not be threatened. Know theterrain, know the weather, and your victoryterrain, know the weather, and your victorywill be complete.will be complete.


6/24

Strategic MarketingStrategic Marketing

M arketing Strategy is a series of M arketing Strategy is a series of integrated actions leading to aintegrated actions leading to asustainable competitive advantage.sustainable competitive advantage.

John Scully John Scully


7/24

Corporate MissionCorporate MissionBroad purposes of the organizationBroad purposes of the organizationGeneral criteria for assessing the longGeneral criteria for assessing the long- -term organizational effectivenessterm organizational effectivenessDriven by heritage & environment Driven by heritage & environment Mission statements are increasinglyMission statements are increasingly

being developed at the SBU level as wellbeing developed at the SBU level as well


8/24

Ex amples of Corporate MissionEx amples of Corporate Mission

SINGAPORE AIRLINES is engaged in airSINGAPORE AIRLINES is engaged in air

transportation and related businesses. It transportation and related businesses. It operates worldoperates world- -wide as the flag carrier of wide as the flag carrier of the Republic of Singapore, aiming to providethe Republic of Singapore, aiming to provideservices of the highest quality at reasonableservices of the highest quality at reasonable

prices for customers and a profit for theprices for customers and a profit for thecompanycompany


9/24

Ex amples of Corporate MissionEx amples of Corporate Mission

(contd)(contd)

MARRIOTT S Mission Statement:MARRIOTT S Mission Statement:We are committed to being the best We are committed to being the best lodging and food service company in thelodging and food service company in theworld, by treating employees in ways that world, by treating employees in ways that

create extraordinary customer service andcreate extraordinary customer service andshareholder valueshareholder value


10/24

Corporate C ultureCorporate C ulture

The most abstract level of managerialThe most abstract level of managerial

thinkingthinkingHow do you define culture? How do you define culture? What is the significance of culture toWhat is the significance of culture toan organization? an organization? How does marketing affect culture inHow does marketing affect culture inthe organization? the organization?


11/24

Corporate Obj ectives & GoalsCorporate Obj ectives & Goals An objective is a long An objective is a long- -range purposerange purpose

Not quantified and not limited to a time periodNot quantified and not limited to a time period

E.g. increasing the return on shareholders equityE.g. increasing the return on shareholders equity

A goal is a measurable objective of the A goal is a measurable objective of thebusinessbusiness

Attainable at some specific future date through Attainable at some specific future date throughplanned actionsplanned actionsE.g. 10% growth in the next two yearsE.g. 10% growth in the next two years


12/24

W h at is a StrategicW h at is a Strategic

Business Unit? (SBU)Business Unit? (SBU)

A set of products or product lines A set of products or product lines

With clear independence from otherWith clear independence from otherproducts or product linesproducts or product linesfor which a business or marketing strategyfor which a business or marketing strategyshould be designedshould be designed


13/24

Ch aracteristics of a via ble SBUCh aracteristics of a via ble SBU

Unique business missionUnique business mission

Definable set of competitorsDefinable set of competitorsIntegrative planning done independentlyIntegrative planning done independentlyResponsible for resource management in allResponsible for resource management in allareasareasLarge enough but not so large as toLarge enough but not so large as tobecome bureaucraticbecome bureaucratic

( Source: Subhash Jain, Marketing Planning & Strategy, 6 th Ed.)


14/24

Organizational Marketing LevelsOrganizational Marketing LevelsH ofer and Schendel suggested that H ofer and Schendel suggested that

organizations develop strategies at threeorganizations develop strategies at threestructural levels:structural levels:Corporate levelCorporate level (corporate marketing)(corporate marketing)SBU levelSBU level (Strategic Marketing)(Strategic Marketing)

Product/Market levelProduct/Market level (Functional(FunctionalMarketing)Marketing)


15/24

Marketing at t h e SBU LevelMarketing at t h e SBU Level

Strategic MarketingStrategic MarketingStrategic Marketing requiresStrategic Marketing requires

Detailed understanding of market needs,Detailed understanding of market needs,

andandProactive use of competitive intelligence at Proactive use of competitive intelligence at the corporate as well as SBU s levelsthe corporate as well as SBU s levels

Strategic MarketingStrategic MarketingFocuses on what the firm do best at theFocuses on what the firm do best at theSBU levelSBU levelTo secure and maintain a sustainableTo secure and maintain a sustainablecompetitive advantagecompetitive advantage


16/24

W h at is Competitive Advantage?W h at is Competitive Advantage?Comp etitive advantage is a c ompany s Comp etitive advantag e i s a company s

a bility to p erf orm in on e or mor e w ays a bility to p erform in on e or mor e w ays that comp e titors cannot or will not that comp e titors cannot or will not match . match . Philip Kot l erPhilip Kot l er

If you don t hav e a comp e titiv eIf you don t hav e a comp e titiv e

advantag e, don t comp e t e. advantag e, don t comp e t e. Jack We l c h, GE Jack We l c h, GE


17/24

Oth er C h aracteristics of CompetitiveOth er C h aracteristics of Competitive

AdvantageAdvantage

SubstantialitySubstantialityIs it substantial enough to make a difference? Is it substantial enough to make a difference?

SustainabilitySustainabilityCan it be neutralized by competitors quickly? Can it be neutralized by competitors quickly?

Ability to be leveraged into visible business Ability to be leveraged into visible businessattributes that will influence customersattributes that will influence customers

( Source: Strategic Marketing Management, Aakers)


18/24

Seeking Competitive AdvantagesSeeking Competitive AdvantagesPositions of advantagePositions of advantage

Superior customer valueSuperior customer value

Lower relative total cost Lower relative total cost Performance advantagesPerformance advantages

Customer satisfaction, Loyalty, Market Share,Profit

Sources of advantagesSources of advantagesSuperior skills & knowledge, Superiorresources, Superior business process


19/24

K ey E lements of Marketing StrategyK ey E lements of Marketing Strategy

Form ulationForm ulationThe strategic 3 CsThe strategic 3 Cs

Customers, Competitors & the CorporationCustomers, Competitors & the CorporationEnvironment analysisEnvironment analysis -- -- PESTPESTStrategic Marketing DecisionsStrategic Marketing Decisions

Where to competeWhere to competeH

ow to competeH

ow to competeWhen to competeWhen to compete


20/24

Must have a clearly defined market Must have a clearly defined market

Must have a good match betweenMust have a good match betweencorporate strengths and market needscorporate strengths and market needsMust have significant positiveMust have significant positivedifferentiation in the key successdifferentiation in the key success

factors of the businessfactors of the business

A Via ble Marketing StrategyA Via ble Marketing Strategy


21/24

Situation AnalysisSituation Analysis

Internal AnalysisInternal Analysis company; capability etc.company; capability etc.External AnalysisExternal Analysis customers, market definition,customers, market definition,industry structureindustry structureSWOT AnalysisSWOT Analysis

SS trengths,trengths, W W eaknesses,eaknesses, OOpportunitiespportunities&& TThreatshreatsIdentify & prioritize major problems andIdentify & prioritize major problems andopportunities: selection of key issuesopportunities: selection of key issues

Based on the firm s core competencies,Based on the firm s core competencies,decide on future optionsdecide on future options


22/24

Marketing A uditMarketing A udit Marketing audit is a comprehensive, Marketing audit is a comprehensive,

systematic, independent, and periodicsystematic, independent, and periodicexamination of a company sexamination of a company s or businessor businessunit sunit s marketing environment, objectives,marketing environment, objectives,strategies, and activities with a view tostrategies, and activities with a view todetermining problem areas anddetermining problem areas andopportunities and recommending a plan of opportunities and recommending a plan of action to improve the company s marketingaction to improve the company s marketingperformance performance Philip KotlerPhilip Kotler


23/24


24/24

Marketing A udit Proced ureMarketing A udit Proced ureMarketing environment audit Marketing environment audit Marketing strategy audit Marketing strategy audit

Marketing organization audit Marketing organization audit Marketing system audit Marketing system audit Marketing productivity audit Marketing productivity audit Marketing function audit Marketing function audit Marketing excellence reviewMarketing excellence reviewEthical and social responsibility reviewEthical and social responsibility review

Lt1--CorpStragPlanning

Documents

Transcript of Lt1--CorpStragPlanning