This document provides an overview of strategic planning and marketing concepts. It discusses various strategic planning frameworks including the BCG matrix, GE/McKinsey multifactor matrix, and Ansoff's growth vector matrix. It also covers topics like corporate, business, and marketing strategy, strategic-planning processes, Porter's five forces model, and approaches to turnaround strategies, restructuring, and entry strategies like acquisitions and joint ventures.

1. Strategic and Marketing Planning

2. Benefits of Planning Consistency Commitment Responsibility Communication Benefits of Planning Direction

3. #1: Top Down #2: Bottom Up #3: Goals Down, Plans Up Approaches to Planning

6. Strategic-Planning, Implementation, and Control Process Planning Measuring results Diagnosing results Taking corrective action Implementation Corporate planning Division planning Business planning Product planning Organising Implementing Control

9. Porter’s five forces model SUBSTITUTES INDUSTRY COMPETITORS Rivalry among Existing Firms BUYERS POTENTIAL ENTRANTS Threat of entry Bargaining power of suppliers Bargaining power of buyers Threat of Substitute Products or Services SUPPLIERS

10. Porter’s five-forces model (2) Bargaining power o f suppliers Threat of new entrants Competitive r ivalry Threat of substitutes Bargaining power o f buyers Where there are numerous or equally balanced competitors, there is slow industry growth, lack of differentiation, low buyer switching costs, high fixed costs, overcapacity, perishable products (and services) and high exit barriers.

11. Porter’s five-forces model (3) Bargaining power of suppliers Threat of new entrants Competitive r ivalry Threat of substitutes Bargaining power of buyers When there are only a few large buyers in the market , the buying volume is large , there is low differentiation between competitive products , the value of the industry product is low, the seller’s quality is relatively unimportant to the buyer, there are low switching costs for the buyer or high switching costs for the seller, the buyer is a low profit earner, the buyer has access to full market information or the buying company could forward integrate and become a competitor.

13. Porter’s five-forces model (5) When there are only a few large suppliers , the supplier’s product is highly differentiated or unique , t he supplier sells the same product to other industries or a supplier could forward-integrate and enter the market as a competitor. Bargaining power o f suppliers Threat of new entrants Competitive r ivalry Threat of substitutes Bargaining power of buyers

14. Porter’s five-forces model (6) Bargaining power o f suppliers Threat of new entrants Competitive r ivalry Threat of s ubstitutes Bargaining power o f buyers When substitute products are close in performance and price to the industry’s product , there are low switching cost s and switching is a commonplace occurrence .

15. Business Portfolio Analysis

19. The BCG Matrix (Log Scale)

21. The BCG Matrix High Low High Low Market Growth Rate Relative Market Share

28. Example of a BCG Matrix for a Engineering company in India High Low High Low Product Sales Growth Rate Relative Market Share Lighting Switchgear Transformer Fan Pumps Motor

30. Three Paths to Success (cont’d) High Low High Low Market Growth Rate Relative Market Share

32. Three Paths to Failure (cont’d) High Low High Low Market Growth Rate Relative Market Share

36. GE Multifactor Portfolio Matrix Business Strength Industry attractiveness High High Medium Medium Low Low Invest/Grow Selectivity /earnings Harvest /Divest Protect Position Invest to Build Build selectively Build selectively Selectively manage for earnings Limited expansion or harvest Protect & refocus Divest Manage for earnings

37. GE Multifactor Portfolio Matrix (Cont’d) Invest/Grow Selectivity /earnings Harvest /Divest Business Strength Industry attractiveness High High Medium Medium Low Low

39. Ansoff’s Growth Vector Matrix Market penetration Market development Diversification Product / Service development Present New Present New MARKET PRODUCTS / SERVICES

40. Using the Ansoff Matrix in the Objective-setting Process Market penetration (1) Market development (3) Diversification (4) Product / Service development (2) Established New Established New MARKET PRODUCTS / SERVICES High Risk

41. The Strategic-Planning Gap Sales 10 5 0 Time (years ) Desired sales Integrative growth Intensive growth Current portfolio Strategic- planning gap Diversification growth

42. Integrative Growth Backward Integration Forward Integration Horizontal Integration

62. Successful Planning Successful marketing planning requires: Commitment Time Understanding

63. The McKinsey 7-S Framework Skills Shared values Staff Style Strategy Structure Systems

65. Extended Marketing Mix 1. PRODUCT & SERVICE Variety Quality Design Features Brand name Packaging Sizes Add-ons Warranties Returns 7. PROMOTION Advertising Sales Promotion Personal selling Direct marketing Public relations 6. PLACEMENT for customer service Channels Coverage Locations Inventory Logistics management 2. PRICE List price Discounts Allowances Settlement and credit terms 3. PEOPLE People interacting with people is how many service situations might be described. Relationships are important in marketing 4. PROCESS In the case of ‘high-contact’ services, customers are involved in the process. Technology is also important in conversion operations and service delivery 5. PHYSICAL EVIDENCE Services are mostly intangible. Thus the meaning of other tools and techniques used in measures of satisfaction are important TARGET CUSTOMERS INTENDED POSITIONING

66. The Marketing Environment Target Consumers Product Place Price Promotion Marketing Implementation Marketing Planning Marketing Control Marketing Analysis Competitors Marketing Channels Publics Suppliers Demographic- Economic Environment Technological- Natural Environment Political- Legal Environment Social- Cultural Environment