Strategic Planning

Strategic Planning Process of communicating and sharing data between different departments of an organization to collectively formulate future strategies and implement them with maximum efficiency The vision and mission of an organization form the basis for formulating a particular strategy. * .

Corporate and Divisional Strategic Planning

Scan the environment Develop vision/mission statement Define long-term and short-term objectives Plan strategies to realize these objectives Five basic activities in corporate planning 1. Define the corporate mission 2. Establish SBUs 3. Allocate resources 4. Plan new business activities 5. Down size existing businesses

Corporate and Divisional Strategic Planning Corporate Mission

Corporate mission defines the purpose of business It should be in accordance with core values of the organization Should be as authentic as possible. No fancy words/phrases. Should differentiate the organization from other companies (stand out from the crowd)

Mission and Vision

A Vision statement outlines what the organization wants to be. It concentrates on the future. It is a source of inspiration. E.g NOKIA:Connecting People A Mission statement tells you the fundamental purpose of the organization. It concentrates on the present. It defines the the various activities that need to be carried out to achieve the objective
E.g eBay We help people trade practically anything on
earth.

Corporate and Divisional Strategic Planning

Establishment of SBUs
Strategic Business Unit-A separate and self-sufficient business unit operating in the market E.g.-Tube Investments of India Ltd has the following SBUs Precision Tubes and Cr strips (TPI) TI Diamond chains TI Cycles TI Metal Forming Each SBU is an individual business entity with an individual business planning process

Corporate and Divisional Strategic Planning

Resource allocation to SBUs
BCG product portfolio matrix Market growth rate Vs relative market share -Question marks

-Stars -Cash cows -Dogs

Draw back-Too simplistic

BCG Matrix

Michael Porters Value Chain

Corporate and Divisional Strategic Planning

GEs nine- cell planning grid
Industry attractiveness Vs Business units strength -Invest/grow -Selective presence -Divest

GEs Nine Cell Grid

Corporate and Divisional Strategic Planning

Planning new businesses
Growth strategies Intensive growth Integrative growth Diversification growth Intensive growth- Ansofs product-market expansion grid -Market penetration -Product development -Market development -Diversification

Downsizing Older Businesses

Business process reengineering Technology up gradation? Layoffs -Affect employees morale -If done repeatedly sends wrong signals to the market

Strategic Business Planning

Should be proactive .Not reactive Business mission SWOT analysis Strategies Strategic alliances Implementation Feedback and control

Marketing Process
Value delivery sequence Product or customer? Customer based strategic marketing process involves 1.Segmentation 2.Targeting 3.Positioning 4.Product development 5.Pricing 6.Distribution 7.Promotion 1-3:Strategic marketing 4-7:Tactical marketing

Marketing Planning Process

Steps involved Analyzing the opportunities Product development Developing marketing strategies Planning marketing programs Managing the marketing effort

Marketing Plan

Contents Executive summary Opportunity and issue analysis Marketing strategy Action plans Financial projections Control

Marketing implementation
Implementation: Process that translates plans into actions for achieving the stated objectives Strategy-What and why Implementation-Who, where, when and how MRM-Marketing Resource Management (standard software package)

Marketing Evaluation and Control

1.Annual Plan Control-Sales analysis,
market share analysis, expense ratio analysis etc 2.Profitability Control-Product, Territory, Customer, Segment 3.Efficiency/Effectiveness Control-Sales force, advertising, sales promotion 4.Strategic Control-Marketing effectiveness audit, marketing excellence review, CSR review *