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Strategic Planning

Strategic Planning. Strategic planning is the managerial decision process that matches the organization’s resources and capabilities to its market opportunities for long-term growth Firms may become multi-product companies with self-contained divisions Strategic Business Units (SBUs)

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Strategic Planning

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  1. Strategic Planning • Strategic planning is the managerial decision process that matches the organization’s resources and capabilities to its market opportunities for long-term growth • Firms may become multi-product companies with self-contained divisions • Strategic Business Units (SBUs) • Example: The Walt Disney Company

  2. Management Levels

  3. Strategic Planning at the Corporate Level • Defining the Organization’s Mission • Establish Corporate Objectives • Allocate Resources to the SBUs

  4. Defining the Organization’s Mission • A mission may begin with these questions: • What business are we in? • What customers should we serve? • How should we develop the firm’s capabilities and focus its efforts?

  5. The Business Portfolio • For firms with different SBUs, planning also includes allocating resources among the businesses • Each SBU is a separate profit center within the larger corporation • Each SBU is responsible for its own costs, revenues, and profits

  6. BCG Matrix

  7. Evaluating the Environment: SWOT Analysis • Strengths/Weaknesses - internal issues requiring management decisions • Opportunities/Threats – external environmental events

  8. Competitive Advantage • Turn a distinctive competency into a differential benefit • Differential benefits set products apart from competitors’ products by providing something unique that customers want • Identify what a firm does really well • Distinctive competency - a firm’s capability that is superior to that of its competitors

  9. Product-Market Growth Matrix

  10. The Marketing Management Process

  11. Marketing Planning • Analyzing the Marketing Environment • Setting Marketing Objectives • Developing Marketing Strategies

  12. Developing Marketing Strategies • Selecting a Target Market • Developing Marketing Mix Programs • Product Strategies • Pricing Strategies • Promotion Strategies • Distribution Strategies

  13. Executing the Marketing Plan • Implementing the Marketing Plan • The Marketing Budget • Organizing the Marketing Function • Controlling the Marketing Plan • Trend Analysis • Marketing Research

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