IMH 11.01 Developing Global Strategic Plans

1. IMH 11.01Developing Global Strategic Plans Goals • Explain the role of strategic planning in international marketing. • Discuss the strategic planning process. • Describe the role of a strategic business unit.

2. Types of planning • Strategic Planning • http://www.youtube.com/watch?v=azrUt008Uf0 • the process of determining how to move to a desired future state • Used by businesses to ensure all parts of the organization are heading in same direction • By evaluating the marketing environment, identifying long term objectives and developing the plans to reach those objectives. • Takes a wide view of the business • Tactical planning • http://www.youtube.com/watch?v=SY8dM3JW0Bs • narrowly focused • short term • http://www.youtube.com/watch?v=TCei7oChf9I • Tactical and strategic real life example

3. Significance of strategic planning in global markets • Requires businesses to analyze the whole organization and the environments it will operate in. • McDonalds global strategies video • Allows businesses to respond better to problems arising in changing environments. Ex: Ms Donald's designing special menu items to suit the culture/environment while keeping the theme consistent across all countries. • Focuses all business energy towards common goals. • It allows for a proactive planning approach as to reactive planning approach

4. Types of approaches to Planning • proactive • taking action before international pressure forces a strategy • Ex: apple proactively entering the global market with i-tunes before international competitors were ready to enter global markets. • reactive • being forced to react to international pressure. • Ex: McDonalds separating vegetarian and non vegetarian cooking process under same roof in Indian markets to attract majority of the population there.

5. As businesses globally expand... • SBUs(Strategic business unit) are established by parent companies to implement strategic plans. • SBU: The smallest unit around which a business develops a strategy . Example Phillips has an European division, North American division and an Asian division. Each of these are examples of SBUs and Phillips will develop country specific strategies for each of these SBUs. • SBUs do the tactical planning but are ultimately controlled and strategically planned by their parent units.

6. STATEGIC PLANNING PROCESS • Strategic planning follows the following six step process: • 1. Develop a mission statement • 2. Conduct a situation analysis (SWOT) analysis • 3. Develop alternative goals and strategies • 4. Develop the strategic plan • 5. Specify action plans • 6. Evaluate and control the plans

7. IMH 11.01 Activity #1Which type of planning approach will the below steps require ?proactive planning(p),Reactive planning (R ) or both (B) • 1. Develop a mission statement _______ • 2. Conduct a situation analysis (SWOT) analysis _____ • 3. Develop alternative goals and strategies ________ • 4. Develop the strategic plan_______ • 5. Specify action plans_______ • 6. Evaluate and control the plans________

8. Step 1. Mission Statements • mission statement • defines a market oriented purpose of an organization • provides direction • commits resources • inspires individuals • establishes a focus for activities

10. IMH 11.01 Activity #2 – mission statements • http://www.missionstatements.com/fortune_500_mission_statements.html • Examine samples of mission statements of Fortune 500 companies found in the above link • Explain why they have selected the mission statement • Explain if the statement is product or market oriented and support your answer with reasons • If you were in charge what would you do to change the statement and why – note, you must change the statement

11. IMH 11.01 Activity #3 • Merge with another IBP team • Generate a mission statement for the international business selected for one of the teams IBP • Adopt criteria for an effective mission statement for an international business of your choice. Refer to the “questions to ask” list for what to consider as you answer each question. Gather ideas and suggestions from your team mates. Idea-generating techniques include: • Open brainstorming: any thought or idea is welcome. • Go around the group two or three times asking for the one word that must be in the mission statement. • Each group member finishes the sentence, “The mission should be…” • Teams nominate the “best” new mission statement. • Teams will do a 3 minute presentation justifying the mission statement they developed.

12. Questions to Ask: • · What is our business and what are we trying to accomplish on behalf of our customers? • · What is our company’s reason for existing? • Criteria for Evaluating a Mission Statement • · Is our mission statement focused on satisfying customer needs rather than being focused on the product? • · Does our mission statement tell who our customers are? • · Does our mission statement explain what customer needs our company is trying to satisfy? • · Does our mission statement explain how our company will serve its customers? • · Does our mission statement fit the current market environment? • · Is our mission statement based on our core competencies? (A core competency is a company strength.) • · Is our mission statement motivating and does it inspire employee commitment? • · Is our mission statement realistic? • · Is our mission statement specific, short, sharply focused and memorable. • · Is our mission statement clear and easily understood? • · Does our mission statement say what we want to be remembered for?

13. Step 2 - SWOT Analysis • strengths • weaknesses • opportunities • threats. A SWOT provides the information necessary for developing global strategic plans. Strengths and weaknesses have a internal focus on factors a business can control. Opportunities and threats evaluate external factors that the environment brings. Strengths and opportunities are the positives and weaknesses and threats are negative http://www.youtube.com/watch?v=qmgF0rqWpAw

14. Step 3 - Develop alternative plans • After developing a mission statement and conducting a SWOT analysis, a business must develop a set of alternative goals and strategies. • Evaluate advantages and disadvantages • Focusing on just one alternative can increase risks • Alternatives may involve: • Pursuing a variety of products • Evaluating alternative markets • Possible abandonment of certain markets or products

15. Step 4 - Develop the strategic plan • The business must set specific action plans • Assign responsibilities • Establish measurable goals • Establish deadlines and due dates • This helps insure the plan is actionable and will be followed

16. Steps 5 & 6 – Establish action plan & Evaluation & follow-up • The plan needs on-going evaluation to monitor its progress.

17. IMH – 11.01 Activity #4 Work with a partner and take a US company that sells mostly within USA as an example. Consider expanding it to another country of your choice. Perform a SWOT analysis to assess the decision (whether your company should move forward with it or not). Write a 1-2 page recommendation arguing/supporting your decision.

18. IMH 11.01 Activity #5 Individually, write 3 to 5 facts/ characteristics on each of the following: • strategic planning • tactical planning • strategic business unit • mission statement • SWOT analysis