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  1. 1. logging in or signing upStrategic Management sadada2008DownloadPost to : http://w w w .auURL :Related Presentations :Share Add to Flag EmbedCopy embed code: (To copy code, click on the text box) <div><h3 styleEmbed: http://w w w .auURL: <a href=http:/Thumbnail: WordPress Embed Customize EmbedViews: 18Category: Business & Fin..License: All Rights ReservedPresentation DescriptionThis is an introduction to strategic management course
  2. 2. CommentsPresentation TranscriptPowerPoint Presentation:MASENO UNIVERSITY BACHELOR OF BUSINESS AND ADMINISTRATIONDEPARTMENT : BUSINESS ADMINISTRATION TOPIC: STRATEGIC MANAGEMENTClass: BBA Lecturer: Samson ADADA, MBATHE NATURE AND VALUE OF STRATEGIC MANAGEMENT :THE NATURE AND VALUE OF STRATEGIC MANAGEMENT The most significantimprovement in management process came in the 1970s, when “long-range planning”, “newventure management”, “ planning, programming, budgeting”, and business policy” wereblended. - Increased emphasis was placed on environmental forecasting and externalconsiderations in formulating and implementing plans. 2PowerPoint Presentation:This all- encompassing approach is known as strategic management. Strategic management, isdefined as the set of decisions and actions that result in the formulation and implementation ofplans designed to achieve a company‟s objectives. It comprises nine critical tasks: (1). Formulatethe company‟s mission, including broad statements about its purpose, philosophy, and goals. (2).Conduct an analysis that reflects the company‟s internal conditions and capabilities. 3PowerPoint Presentation:(3). Assess the company‟s external environment including both the competitive and the generalcontextual factors. (4). Analyze the company‟s options by matching its resources with theexternal environment. (5). Identify the most desirable options by evaluating each option in lightof the company‟s mission. (6). Select a set of long-term objectives and grand strategies that willachieve the most desirable options. 4PowerPoint Presentation:
  3. 3. (7). Develop annual objectives and short-term strategies that are compatible with the selected setof long-term objectives and grand strategies. (8). Implement the strategy choices by means ofbudgeting resource allocations in which the matching of tasks, people, structures, technologies,and reward systems is emphasized. (9). Evaluate the success of the strategic process as an inputfor future decision making. 5Dimensions of Strategic Decisions :Dimensions of Strategic Decisions Strategic Issues Require Top-Management DecisionsStrategic Issues Require Large Amounts of the firm‟s Resources. Strategic Issues often affect theFirm‟s Long-Term Prosperity. Strategic issues are future oriented Strategic issues usually havemultifunctional or multibusiness consequences. Strategic issues require considering the Firm‟sExternal Environment. 6Levels of Strategy:Levels of Strategy 3 Levels can be identified The decision-making hierarchy of a firm typicallycontains three levels. At the top is the corporate level Composed principally of a board ofdirectors and the chief executive and administrative officers. - Here the emphasis is onstockholders interests and the society at large. 7PowerPoint Presentation:- They determine what business a firm should be involved. - They also set objectives andformulate that span the activities and functional areas of the business. - In the middle of thedecision-making hierarchy is the business level. Composed principally of business and corporatemanagers - These managers must translate the statements of direction and intent generated at thecorporate level into concrete objectives and strategies for individual business divisions or SBUs.8PowerPoint Presentation:- At the bottom of the decision-making hierarchy is the functional level Composed principally ofmanagers of product, geographic and functional areas They develop annual objectives and short-term strategies in such areas as production, operations research and development, procurement,finance and accounting, marketing, and human resources. 9Benefits of Strategic Management :Benefits of Strategic Management Enhance the firm‟s ability to prevent problems Group-basedstrategic decisions are likely to be drawn from the best available alternatives - The strategic
  4. 4. management process results in better decisions because group interaction generates a greatervariety of strategies. Gaps and overlaps in activities among individuals and groups are reduced asparticipation in strategy formulation clarifies differences in roles. Resistance to change isreduced 10PowerPoint Presentation:THE STRATEGIC MANAGEMENT PROCESS A comprehensive strategic management model11 Develop Mission Statement Perform External Audit Allocate Resources Establish PoliciesAnd Annual Objectives Generate Evaluate And Select Strategies Establish Long- TermObjectives Perform Internal Audit Measure And Evaluate Performance Strategy FormulationStrategy Implementation Strategy EvaluationPowerPoint Presentation:This model is widely accepted and comprehensive Significant improvement in sales, profits andproductivity Allows for identification, prioritization and exploitation of opportunities Providesan objective view of management problems Creates a framework for internal and externalcommunication It gives encouragement to forward thinking. It gives a degree of discipline andformality to the management of a business. 12PowerPoint Presentation:Identification on organizations existing mission, objectives, and strategies is the logical startingpoint for strategic management Every organization has a mission, objectives, and strategy, evenif these elements are not consciously designed, written or communicated. The strategic-management process is dynamic and continous. A change in any one of the major components inthe model can necessitate a change in any or all of the other components 13PowerPoint Presentation:Strategists do not go through the process in lock step fashion. Many organizations conductformal meetings semiannually to discuss and update the firm‟s mission, opportunities/threats,strengths/weaknesses, strategies, objectives, policies, and performance. These meetings arecommonly held off-premises and called retreats. The rationale for periodically conductingstrategic-management meetings away from the work site is to encourage more creativity andcondor among participants 14PowerPoint Presentation:
  5. 5. Good communication and feedback are needed throughout the strategic management process. Anumber of different forces affect the formality of strategic management in organizations suchas:- Size of an organization is a key factor; Smaller firms are less formal in performing strategic-management tasks. Management styles Complexity of production process Nature of problemsPurpose of planning system 15STRATEGY FORMULATION:STRATEGY FORMULATION Guides executives in defining the business their firm is in, theend it seeks, and the means it will use to accomplish. The strategy formulation process beginswith definition of the company mission. This is a declaration of an organisation‟s reason forbeing. It answers the pivotal question, ”what is our business” 16STRATEGY FORMULATION cont…:STRATEGY FORMULATION cont… Sometimes called A creed statement A statement ofpurpose A statement of philosophy A statement of beliefs A statement of business principals Avision statement Characteristically, it is a statement, not of measurable targets but of attitude,outlook and orientation 17STRATEGY FORMULATION cont…:STRATEGY FORMULATION cont… In general terms, the mission statement addresses thefollowing questions: Why is this firm in business? What are our economic goals What is ouroperating philosophy in terms of quality, company image, and self-concept? What are our corecompetencies and competitive advantages? 18STRATEGY FORMULATION cont…:STRATEGY FORMULATION cont… What customers do and can we serve? How do we viewour responsibilities to stockholders, employees, communities, environment, social issues, andcompetitors A good mission statement describes an organisation‟s purpose, customers, productsor services, markets, philosophy, and basic technology 19IMPORTANCE OF A CLEAR MISSION:IMPORTANCE OF A CLEAR MISSION High performing companies have got a morecomprehensive mission statement than low performers Organisations carefully develop a writtenmission statement for the following reasons To ensure unanimity of purpose within theorganisation To provide a basis, or standard, for allocating organisational resources To establisha general tone or organisational climate 20
  6. 6. IMPORTANCE OF A CLEAR MISSION:IMPORTANCE OF A CLEAR MISSION To serve as a focal point for individuals to identifywith the organisation‟s purpose and direction; and to deter those who cannot from participatingfurther in the organisations activities To facilitate the translation of objectives into a workstructure involving the assignment of tasks to responsible elements within the organisation Tospecify organisational purposes and translation of those purposes into objectives in such a waythat cost ,time, and performance parameters can be assessed and controlled 21VISION VERSUS MISSION:VISION VERSUS MISSION Some organisations develop both a mission statement and a visionstatement. Wherereas the mission statement answers the question, ”what is our business” Thevision statement answers the question, ”what do we want to become” 22The process of developing a mission statement:The process of developing a mission statement A clear mission statement is needed beforealternative strategies can be formulated and implemented It is important to involve as manymanagers as possible in the process of developing a mission statement, because throughinvolvement, people become committed to an organisation. A widely used approach is to selectseveral articles about mission statements and ask managers to read these as backgroundinformation Then ask managers to personally prepare a mission statement for the organisation 23The process of developing a mission statement:The process of developing a mission statement A facilitator, or a committee of top managers,should merge those statements into a single document and distribute this draft mission statementto all managers A request for modifications, additions, and deletions is needed next, along with ameeting to revise the document The process of developing a mission statement represents a greatopportunity for strategists to obtain needed support from all managers in the firm During theprocess of developing a mission statement, some organisations use discussion groups ofmanagers to develop and modify the mission statement 24The process of developing a mission statement:The process of developing a mission statement Some organisations hire an outside consultant orfacilitator to manage the process and help draft the language. 25
  7. 7. Fundamental factors to be incorporated in a mission statement :Fundamental factors to be incorporated in a mission statement Basic product or service, primarymarket; principal technology Company goals: Survival, Growth, Profitability Companyphilosophy (beliefs, values, aspirations etc.) Public image Company self-concept (how it relatesto its external environment) Customers Quality 26CORPORATE SOCIAL RESPONSIBILITY:CORPORATE SOCIAL RESPONSIBILITY In defining the company mission, strategicmanagers must recognize the legitimate rights of the firm‟s claimants These include,stakeholders and employees and outsiders affected by the firms actions . Customers SuppliersGovernments Unions Competitors Local Communities General Public 27A CONTINUUM OF CSR:A CONTINUUM OF CSR Strategic managers can use a continuum that encompasses four typesof social commitment Economic Legal Ethical Discretionary social responsibility EconomicResponsibilities This is the most basic CSR of a business 28A CONTINUUM OF CSR:A CONTINUUM OF CSR The CSR is assured to be providing goods and services to society at areasonable cost In discharging the economic responsibility; the company also emerges as sociallyresponsible by providing productive jobs for its workforce, and tax payments for its local, stateand federal governments 29A CONTINUUM OF CSR:A CONTINUUM OF CSR Legal responsibilities Reflects the firms obligations to comply withthe laws that regulate business activities The consumer and environmental movements focusedincreased public attention on the need for social responsibility in business by lobbying for lawsthat govern business in the areas of pollution control and consumer safety 30A CONTINUUM OF CSR:A CONTINUUM OF CSR Ethical responsibility Reflect the company‟s notion of right or properbusiness behaviour Some actions that are legal might be unethical The manufacture anddistribution of cigarettes is legal But in light of the often lethal consequences of smoking, manyconsider the continued sale of cigarettes to be unethical 31
  8. 8. A CONTINUUM OF CSR:A CONTINUUM OF CSR Discretionary responsibilities These are voluntarily assured bybusiness organisations Include public relations activities Good citizenship approach (supportongoing charities, public service campaigns, or issues in the public interest) 32Summary:Summary A commitment to full corporate responsibility requires strategic managers to attacksocial problems with the same zeal in which they attack business problems 33CSR’s Effect on mission statement:CSR‟s Effect on mission statement In developing mission statements, managers must identify allstakeholder groups and weigh their relative rights and abilities to affect the firms success Somecompanies are proactive in their approach to CSR, making it an integral part of their missionstatement. Others are reactive, adopting socially responsible behaviour only when they must. 34Social Audit:Social Audit A social audit attempts to measure a company‟s actual social performance againstthe social objectives it has set for itself. This may be conducted by the company itself Sometimesoutside consultant is preferred since he brings credibility to the company To make sure it ismaking good progress on its CSR promises, a company may conduct a social audit of itsperformance 35Social Audit:Social Audit Once the social audit is complete, it may be distributed internally or both internallyand externally, depending on the firms goals and situation Some firms include a section in theirannual report, devoted to social responsibility activities, others publish a separate periodic reporton their social responsiveness. The CSR may also be used to scan the external environment,determine the firms vulnerabilities, and institutionalize CSR within the firm 36Social Audit:Social Audit Companies themselves are not the only ones who conduct social audits; publicinterest groups and the media watch companies who claim to be socially responsible very closelyto see if they practice what they preach These organizations include consumer groups andsocially responsible firms that construct their own guidelines for evaluating companies 37
  9. 9. The External Environment:The External Environment This is determined by conducting an external strategic managementaudit (sometimes called environmental scanning or industry analysis). This audit focuses onidentifying and evaluating trends and events beyond the control of a single firm. An externalaudit reveals key opportunities and threats confronting an organisation so that managers canformulate strategies to take advantage of the opportunities and avoid or reduce the impact ofthreats. 38Key external forces:Key external forces External forces can be divided into five broad categories: Economic forcesSocial demographic, and environmental forces; political, governmental, and legal forces;technical forces; competitive forces . 39Relationships Between Key External Forces and an Organisation:Relationships Between Key External Forces and an Organisation 40 Economic forces Social,cultural, demographic, and environmental forces Political, legal and governmental forcesCompetitive forces Competitors Suppliers Distributors Creditors Customers EmployeesCommunities Managers Stockholders Labour unions Governments Trade associations Specialinterest groups Products Services Markets Natural environment AN ORGANIZATIONSOPPORTUNITIES AND THREATSPowerPoint Presentation:External trends and events affect all products, services, markets, and organizations in the worldHow to conduct an external audit Managers and employees must be involved This will lead tounderstanding and commitment from organizational members-so as to avoid resistance to changeIntelligence Information about social, cultural, demographic, environmental, economic, political,legal, governmental, and technological trends is critical upfront. 41How to conduct an external audit:How to conduct an external audit Sources of information Key magazines Trade journalsNewspapers Collection of primary data through questionnaires Suppliers Distributors CustomersCompetitors Universities Libraries 42How to conduct an external audit:
  10. 10. How to conduct an external audit Periodic scanning reports can be submitted to the departmentconcerned, normally strategic planning department or the relevant department Once theinformation is gathered, it should be assimilated and evaluated for decision making 43Technological forces:Technological forces This is very rapid Includes the internet W.W.W, EDI, money transfer,etc… Help to identify opportunities as well as threats in business Competition, products, market,customers, pricing etc… Facilitates efficiency and effectiveness in business transaction Theorganisation must effectively utilize the opportunities availed by the technological forces andminimize the threats The organisation must change with the changing technology to remaincompetitive 44Key questions to ask in assessing the Technological environment:Key questions to ask in assessing the Technological environment What are the technologieswithin the organization Which technologies are utilized in the firms business? products andparts? How critical is each technology to each of these products and businesses? What have beenthe firms investments in critical technologies over time? What is the cost and value addedstructure of these parts, components, products, and businesses? What are the applications of thefirms technologies? What technological resources are required for the firm to achieve its currentbusiness objectives? 45Economic Forces:Economic Forces Key economic variables to be monitored Inflation Unemployment Availabilityof Credit Level of disposable income Propensity of people to spend Interest rates Economies ofscale Value of Kshs in world markets Foreign countries economic conditions 46SOCIAL,CULTURAL,DEMOGRAPHIC,AND ENVIRONMENTAL FORCES:SOCIAL,CULTURAL,DEMOGRAPHIC,AND ENVIRONMENTAL FORCES Social cultural,demographic, and environmental changes have a major impact upon virtually all products,services, markets, and customers Small, large, for-profit and non profit companies are affectedby threats and opportunities created by the above factors Managers must understand thedynamics of this environment and make decisions which will enable the organisations attain theirgoals and objectives 47SOCIAL,CULTURAL,DEMOGRAPHIC,AND ENVIRONMENTAL FORCES:
  11. 11. SOCIAL,CULTURAL,DEMOGRAPHIC,AND ENVIRONMENTAL FORCES In Kenya thescourge of AIDS/HIV pandemic on the productivity of the workforce must be addressed.Cultural practices in certain communities must be eliminated Tribalism has to be reduced to bareminimum/cohesive nation a must for prosperity Population explosion needs to be curbed Povertylevels should be monitored Shelter Literacy levels/Education institutions should be improved andquality education 48SOCIAL,CULTURAL,DEMOGRAPHIC,AND ENVIRONMENTAL FORCES:SOCIAL,CULTURAL,DEMOGRAPHIC,AND ENVIRONMENTAL FORCES InfrastructureHealth facilities should be improved Number of marriages Number of divorces Number of birthsImmigration and emigration rates Social security programmes Life expectancy rates Per-capitaincome attitudes towards business Lifestyles 49SOCIAL,CULTURAL,DEMOGRAPHIC,AND ENVIRONMENTAL FORCES:SOCIAL,CULTURAL,DEMOGRAPHIC,AND ENVIRONMENTAL FORCES Trafficcongestion Trust in government Attitudes toward government Attitudes toward work Ethicalconcern (corruption) Sex role Attitudes towards investing Government regulation Attitudestoward leisure time Attitudes toward product quality Attitudes toward customer service Socialresponsibility Etc………. 50POLITICAL, GOVERNMENTAL, AND LEGAL FORCES :POLITICAL, GOVERNMENTAL, AND LEGAL FORCES Central government, local andforeign governments are major regulators, deregulators, subsidizers, employers, and customers oforganisations Political, governmental, and legal factors can therefore represent key opportunitiesor threats for both small and large organisations 51Observable variables:Observable variables Government regulations and deregulations Change in tax laws Votersparticipation rates Level of defense expenditures Legislation on equal employment East AfricanCommunity Relationship between Kenya, Tanzania, Uganda Movement of people across theborders Size of government budgets Location and severity of terrorist activities General electionimpact on the people, policy and economy. 52COMPETITIVE FORCES:COMPETITIVE FORCES An important part of an external audit is to identify rival firms and todetermine their strength, weaknesses, capabilities, opportunities, threats, objectives, and
  12. 12. strategies Collecting and evaluating information on competitors is essential for successfulstrategy formulation Seven characteristics can best describe the most competitive companies inKenya e.g. 53COMPETITIVE FORCES:COMPETITIVE FORCES Safaricom Celtel Kenya Airways Barclays Barclays EABL KCBNation Media Group Mumias Sugar ETC…… 54COMPETITIVE FORCES:COMPETITIVE FORCES Market share Understanding the business you are in Whether itsbroke or not, fix it - make it better, not just products, but the whole company if necessary;Innovate or evaporate; particularly in technology-driven business, nothing quite recedes likesuccess; Acquisition is essential to growth People make a difference; tired of hearing it? too bad;There is no substitute for quality and no greater threat than failing to be cost competitive on aglobal basis 55Key questions about competitors:Key questions about competitors What are the major competitors strengths? What are the majorcompetitors weaknesses? What are the major competitors objectives and strategies? How will themajor competitors most likely respond to current economic, social, cultural, demographic,geographic, political, governmental, technological, and competitive trends affecting ourindustry? How are our products or services positioned relative to major competitors? What keyfactors have resulted in our present competitive position in this industry? How have the sales andprofit rankings of major competitors in the industry changed over recent years? why have theserankings changed that way? 56COMPETITIVE ANALYSIS:COMPETITIVE ANALYSIS The most common model and widely used is the PORTERS FIVE-FORCES MODEL Questions to ponder: Will new technologies or market demands enablecompetitors to minimize the impact of traditional economies of scale in the industry? Willconsumers accept our claims of product or service differentiation? Will potential new entrants beable to match the capital requirements that currently exist? How permanent are the costdisadvantages (independent of size) in our industry? 57Questions to ponder:
  13. 13. Questions to ponder Will potential new entrants be able to match the capital requirements thatcurrently exist How permanent are the cost disadvantages (independent of size) in our industry?Will conditions change so that competitors have equal access to marketing channels? Isgovernment policy toward competition in our industry likely to change? According to Porter, thenature of competitiveness in a given industry can be viewed as a composite of five forces: 58PowerPoint Presentation:Rivalry among competitive firms Potential entry of new competitors Potential development ofsubstitute products Bargaining power of suppliers Bargaining power of consumers 59Strategic brand management ppt — Presentation Transcript 1. Strategic Brand Management 2. Brand Value Chain & Evaluating the Mayo Clinic Testing 600k + in- and out- patients/yr Founded in 1800 by Dr William Woral Mayo & two sons. Pioneered “group practice” = Two heads are better than one Two “extension” facilities in 1980s (Scottsdale,Jacksonville) Mayo Graduate School of Medicine – one of largest graduate education centers 3. Brand Value Chain & Evaluating the Mayo Clinic Testing Worldwide leader in patient care, research and education Renowned for world class specialty care Earned a reputation as world class specialty care Most medical staff participate in research 1950 Nobel Prize winners, Drs Kendall and Hench discovered Cortisone 4. Brand Value Chain & Use The Brand Value Chain to determine Testing Measurement Tactics and Resulting Marketing StrategiesValue Marketing Customer Market ShareholderStages Program Mindset Performance Value Investment -Product - Awareness -Price Premiums -Stock Price -Communication -Associations -Price Elasticities -P/E Ratio -Trade -Attitudes -Market Share -Market -Employee -Attachment - Expansion Success Capitalization -Other -Activity -Cost Structures -Profitability 5. Brand Value Chain & Evaluating the Mayo Clinic „96 Brand Testing Equity Study Awareness 84.3%, 90+% among 45+ Specialty ranking Top ranked at 15.4% (next at 5.3%) “..go anywhere in US for serious condition which required highly specialized care..” Strongest Brand Associations 1) Scientific Research, 2) Cancer Treatment, 3) Cardiac Care 6. Brand Value Chain & Evaluating the Testing Mayo Clinic „96 Brand Equity Study Associations (Thoughts & Feelings) Integrity (longevity, heritage, wisdom of staff, trust in institution), Leadership (modernity, premium quality, international prestige) Professionalism (staff held high standards, were intellectually sophisticated and efficient)
  14. 14. Commitment to health & healing (reputation for medical discoveries, preventativemedicine, tangible results) Exclusivity No Negative Associations7. Brand Value Chain & Evaluating the Mayo Clinic „96 Brand Equity Testing StudyProduct Perception ISSUE Outside Midwest perception of “only for rich/famous”Known for Tertiary Care (Not primary family care) Thus, “not like me”8. Brand Value Chain & Use Testing The Brand Value Chain to determineMeasurement Tactics and Resulting Marketing StrategiesValue Marketing CustomerMarket ShareholderStages Program Mindset Performance Value Investment ProgramMarketplace InvestorMultipliers Quality Conditions Sentiment -Clarity -MarketDynamics -Relevance -Competitive reactions -Growth Panel -Distinctiveness -ChannelSupport -Risk Profile -Consistency -Customer size & Profile -Brand Contributions9. Brand Value Chain & Use The Brand Value Chain to determine TestingMeasurement Tactics and Resulting Marketing StrategiesValue Marketing CustomerMarket ShareholderStages Program Mindset Performance Value Investment -Product -Awareness -Price Premiums -Stock Price -Communication -Associations -PriceElasticities -P/E Ratio -Trade -Attitudes -Market Share -Market -Employee -Attachment -Expansion Success Capitalization -Other -Activity -Cost Structures -Profitability10. Brand Value Chain & Evaluating Testing the Mayo Clinic „96 Brand Equity StudyCommunication Word of Mouth is influential in selecting specialty care 1/3 know atleast one Mayo patient11. Brand Value Chain & Testing Evaluating the Mayo Clinic „96 Brand Equity StudyCONCLUSIONS Mayo‟s Brand Equity is Powerful and Precious As perceived bypatients and consumers, Mayo‟s Essence: Excellence The best medical, personal andtechnical expertise in patient care and education Care Compassionate patient care andeducation resulting in physical, mental and emotional well-being Cooperation Care andeducation in cooperative and inclusive relationships among colleagues and with thepatient, the patient, the patient‟s family and consumers Enlightenment (Wisdom)Commitment to pioneering knowledge, insight, and truth through research and education12. Brand Value Chain & Testing Evaluating the Mayo Clinic „96 Brand Equity StudyCONCLUSIONS Mayo‟s Brand Equity is Powerful and Precious “By living out thesestandards fully and consistently, the Mayo clinic had engendered in patients andconsumers a sense of confidence, safety, hope and serenity”13. Brand DevelopmentConsumer Driven Marketing Cycle Succeed And Map theImprove Marketspace Select Most Assess Valuable Performance Customers ActionsStrategies Execute the Choose a Tactical Plan Winning Positioning Tactics •Brandsaturation •High Cost Define Performance Create the Build Tactical Plan MeasuresOperational Mark Kerback, Kerback & Company Capabilities14. Brand Value Chain & Evaluating the Mayo Clinic „96 Brand Equity Study TestingCONCLUSIONS A Satisfied national patient base is VITAL to maintaining preferenceVital to developing guidelines that protected the brand 1999 created “Office of BrandManagement” Responsible for the protection & enhancement of the Mayo Clinicbrand (+ monitoring) Developing Brand Management Guidelines & a Positioningstatement Implementing a Branding System (include education) Build awareness ofBrand Management within the organization Research extension opportunities & risks
  15. 15. 15. Brand Value Chain & Testing Evaluating the Mayo Clinic „96 Brand Equity StudyCONCLUSIONS Example of Brand Management Guidelines: Each new/existingMayo Clinic branded product, service or business relationship meets 4 criteria: Usingname must be owned by Mayo or under full control Use to solely assure success ofservice/product not appropriate Not to be used in a manner that trivalizes thename/institution Not shared or sold16. Brand Value Chain & Get to the Consumer Insight/Core Value Testing byLaddering up to it Is Mayo Keep asking “WHY”, “WHY”, “WHY” Resonatingwith Consumers Central What Consumer Beliefs/Core Values? Insight might theycenter their equity on?17. Strategic Brand Management FINAL GROUP CASE STUDY PROJECT DueNovember 15th18. Strategic Brand ManagementNew Brand Development Project (due WK10) Workin Four Groups of 2 and select from product categories provided Develop a new brandmarketing plan in an existing category (Use Develop the key insight,concept framework attached) & positioning Ensure the following are ALSO included: Your VISION Launch Rationale Business analysis (Competitive and marketanalysis, SWOT etc) Target audience, Key Competitive insights and Core Values (useCBBE Pyramid) Projected share and financials (supported, P&L examples to beprovided) Proposed Marketing Objectives, Strategies and Tactics19. Strategic Select groups and categories Brand ManagementRECOMMENDEDTIMETABLE Oct18th (data up Oct 20th); assign group tasks; conduct research Oct25th: Out line marketing plan to share with the group; searches Nov 1st: Havingreviewed available data; hypothesize financials, consumer insights, positioning andconcepts (can turn in roughs to prof Nov 8th: Draft marketing plan deck and beginconversion for feedback) to power point Nov 15th: Turn in completed planand presentation One 10-15 Minute presentation conduct presentations.FINISHEDPRODUCT: One marketing plan document (main (docked a grade if over 15 minutes!!)text to be NO MORE than 5 pages.. Appendix with charts, graphs, data Visualsencouraged. and research encouraged)20. Your Purpose Marketing Plan Define your core objectives, strategies and tacticsin concise summary Management selling tool for brand investment Document and sellor acknowledge results Provide solid, focused direction to corporation and brandsupport Define Brand evaluation objectives Live Working Document21. Measuring To guarantee assets/liabilities are nurtured Brand Equity Objective: andmanaged (loyalty, awareness, perceived quality, propriety brand Create Long termStrategic Develop Focused Master Plan assets) Orientation22. Brand Marketing Process Measure Brand Equity Market & Financial CompetitiveHealth Trends BusinessAnalysis & Long Term Marketing Analysis Consumer InsightsMix SWOTsStrategy Strategic Implications & Strategy Development CoreCompetencies, External Opportunities Brand Vision Brand Strategy Strategic RoleEstablish Positioning Concept Three Year and ANNUAL Objectives What do I want toAccomplish Objectives Should be S.M.A.R.TAnnual Plan & Execution ANNUALSTRATEGIES How will the objectives be achieved? Marketing Plan Execution Market
  16. 16. Physical Product Package Research Consumer & Functional Objectives & PricingRetailer Promo Strategies And Tactical Plan Public Advertising Relations Media23. Brand Marketing Process Measure Brand Equity Market & Financial CompetitiveAnalysis & Long Term Strategy Health TrendsAnalysis & Long Term Strategy BusinessAnalysis Consumer Marketing Insights Mix SWOTs Strategic Implications & StrategyDevelopment Core Competencies, External Opportunities Brand Vision Brand StrategyStrategic Role Establish Positioning Concept24. Establish Positioning Brand Marketing Process Concept Three Year and ANNUALObjectives What do I want to Accomplish Objectives Should be S.M.A.R.T ANNUALSTRATEGIESAnnual Plan & Execution How will the objectives be achieved? MarketingPlan Execution Market Physical Product Package Research Consumer & FunctionalObjectives & Pricing Retailer Promo Strategies And Tactical Plan Public AdvertisingRelations Media25. Brand Marketing Process Measure Brand Equity Market & Financial CompetitiveHealth Trends BusinessAnalysis & Long Term Marketing Analysis Consumer InsightsMix SWOTsStrategy Strategic Implications & Strategy Development CoreCompetencies, External Opportunities Brand Vision Brand Strategy Strategic RoleEstablish Positioning Concept Three Year and ANNUAL Objectives What do I want toAccomplish Objectives Should be S.M.A.R.TAnnual Plan & Execution ANNUALSTRATEGIES How will the objectives be achieved? Marketing Plan Execution MarketPhysical Product Package Research Consumer & Functional Objectives & PricingRetailer Promo Strategies And Tactical Plan Public Advertising Relations Media26. Measuring Brand Equity Market Trends Checklist Market Conditions •HouseholdPentration •Seasonality •Regionality (CDI/BDI) Retail ConditionsVolume & Share•Channels of Distribution•Industry definition & served market •ProductSourcing/availability•Category Size & growth rates •Importance of the category to theretailer•Category Segmentation, trends, importance to category •Retailer focus on privatelabel•Share of market by brand & by segment •Retailer influence over categorymarketing activity Consumer Conditions Government •Substitute products Conditions•Regulations & Reqs. •Changes in tastes/attitudes/needs •Legislative issues Assessing 27. Measuring Brand Equity Competitive Trends Competitor IdentificationKey direct competitors • • Competitive Scope: Regional/National/Global • CompetitorFocus Competitive Financials •Importance in portfolio •P&L analysis •Level of productactivity Advantage •Cost Structure •Level of marketing focus •Spending •Financialresources •Profitability Competitive Strategy Overall mission/priorities • • • • TargetAudience Brand Turf/Positioning Class of Trade (COT) importance28. Brand Value Chain & Use The Brand Testing Value Chain to determineMeasurement Tactics and Resulting Marketing StrategiesValue Marketing CustomerMarket ShareholderStages Program Mindset Performance Value Investment -Product -Awareness -Price Premiums -Stock Price -Communication -Associations -PriceElasticities -P/E Ratio -Trade -Attitudes -Market Share -Market -Employee -Attachment -Expansion Success Capitalization -Other -Activity -Cost Structures -Profitability29. Brand Value Chain & Testing Use The Brand Value Chain to determineMeasurement Tactics and Resulting Marketing StrategiesValue Marketing CustomerMarket ShareholderStages Program Mindset Performance Value Investment ProgramMarketplace InvestorMultipliers Quality Conditions Sentiment -Clarity -Market
  17. 17. Dynamics -Relevance -Competitive reactions -Growth Panel -Distinctiveness -ChannelSupport -Risk Profile -Consistency -Customer size & Profile -Brand Contributions30. Purpose: to guide thinking and help Measuring Brand Equity SWOT distill the keyissues and opportunities facing the Brand AND the Can be done in competitiveanalysis category STRENGTH WEAKNESS Inherent source of competitive Inherentcause of competitive advantage within the Brand (of disadvantage within the Brand (ofgenuine relevance to the consumer) genuine importance to consumer) INTERNAL to thebrand Caused by the inherent nature of the Brand or our management of it31. Purpose: to guide thinking and help distill Measuring Brand Equity SWOT the keyissues and opportunities facing the Brand AND the category Can be done incompetitive analysis EXTERNAL to the brand Markets, competitors, retail, social trendsetc OPPORTUNITY THREAT Unsatisfied or poorly satisfied need Potential problemfrom external source in the marketplace which our which could undermine our Brand‟scompetitive position if not addressed. company can perform profitability32. Consumer-Based Brand Equity Pyramid THIS isWhere the Insight Lives Consumer-4 Intense, Active Loyalty Consumer Acceptance Cycle Brand Resonance ConsumerConsumer 3 Positive Accessible Reactions Judgments Feelings Brand Brand 2 Points ofDifference Performance Imagery Brand Salience 1 Deep Broad Brand Awareness33. Consumer-Based Brand Equity Pyramid Loyalty Attachment 4 Brand Relationships(WHAT About Resonance Community You AND ME?) Engagement Quality Warmth,Fun Feelings Credibility Excitement, Judgments Consideration Security, Social 3 BrandResponse (WHAT About You?) Superiority Approval, Self-RespectPerformance BrandCharacteristics & Secondary Features User Profiles Imagery Purchase and Usage ProductReliability, Situations Durability & Serviceability 2 Brand Meaning (WHAT Are You?)Service Effectiveness, Efficiency, Personality & Values & Empathy History, Heritage, &Style and Design; Price Experiences Category Identification Needs Satisfied 1 BrandIdentity (WHO Are You?) Salience34. Insight to PositioningState the thought you wish to implant in your IS THE (frameTO (core target audience), (Brand Name), target‟s mind: of reference) THAT(owned Power benefit) Positioning BECAUSE (support or reason to believe) LINKSto Consumer Insight35. Introducing (Brand Name) Succinct Consumer Insight statement insight drivenbenefits (benefit statement) Introducing New Brand. What it does (AHA not fact).(relevant core benefit to consumer). Reason to believe (how/why it does what it Repriseof positioning in closing tag. does).36. Your Fundamental Statement of Purpose Marketing Plan What do I want to do(grow X% to $$) Objectives must be SMART Specific Measurable Appropriate Realistic Timebound Long Term and Short term37. Brand DevelopmentConsumer Driven Marketing CycleConsumer Insight:Singularlyfocused need, desire or wantStrategies: Fact Based choices ActionsStrategieson who, how and whyTactics: Activities/capabilities •Brand–what, where andwhen Tactics saturation •High CostActions: Execution, feedback,assessment, andimprovement Mark Kerback, Kerback & Company38. YOUR How will your What is your Big Inspiring Vision? MARKETING PLANconsumer insight translate across ALL elements of your plan? Positioning Brand
  18. 18. Essence WHO is your Strategies and Tactics In your SWOT: What is going on target REALLY (pscyh, demo) competitively and WHY should I invest in your in the Market Place?… launch????????logging in or signing upStrategic Management faisalrehmanDownloadPost to : http://w w w .auURL :Related Presentations :Share Add to Flag EmbedCopy embed code: (To copy code, click on the text box) <div><h3 styleEmbed: http://w w w .auURL:
  19. 19. <a href=http:/Thumbnail: WordPress Embed Customize EmbedViews: 1070Category: EducationLicense: All Rights ReservedPresentation DescriptionNo description available.CommentsBy: SbKhan (15 month(s) ago)plz plz send this presentation to me on thanks........................Sarbuland Khan LodhiBy: smickle2 (15 month(s) ago)A fantastic and enlightening presentation. I trust that I can receive a copy of
  20. 20. By: VASU05 (18 month(s) ago)can u plz send me this nice presentation on my email id vasu_05@ymail.comBy: fayyazabid (19 month(s) ago)Hi Faisal, great job. Please forward the this presentation & HRM Project presentation to me I will be very grateful to you. Thanks, FayazBy: normanblack (26 month(s) ago)halo can u send this to me, the ppt, my email is, i really need these oneSee allPresentation TranscriptSlide 2:AGENDA “IN THE NAME OF ALLAH, THE MOST BENEFICIAL AND MERCIFUL” Inthis presentation we will be dealing with: 1: Concepts of Strategic Management 2: Stages ofStrategic Management 3: Marvin‟s 14 Management Processes 4: Facilities in StrategicManagementSlide 3:
  21. 21. ____________________________ : Strategic management : concepts & definitions____________________________ Presenter: Muhammad AsgharSlide 4:Strategic Management Strategic management involves deciding what is important for the long-range success of your business & focusing on it. Strategic management asks, “How should Iposition my business to meet management and business goals?” Strategic management involvesthe “big picture” of your business. Strategic management involves planning, analyzing andimplementing a business strategy.Slide 5:Strategic management is most effective if you can step back far enough and say “all things arepossible.” Strategic management is matching business resources to market opportunities.Strategic management is based on the premise that “all businesses are not the same.” Strategicmanagement involves assessing the strengths and weaknesses of your business. StrategicManagementSlide 6:Strategic management involves looking into the future rather than dwelling on the past. Strategicthinking involves assessing how decisions made today will affect my business in the future.Strategic management is most useful for unique products, for niche, specialty or differentiatedproduct markets. A strategic plan is a “living” document that changes as your goals andresources evolve. Strategic ManagementSlide 7:____________________________ : Strategic management : STAGES & ELEMENTS____________________________ Presenter: Dr.Faisal M.B RehmanStages of a Strategic Plan :3: Evaluation Strategic Measurement 1: Formulation Strategic Planning 2: ImplementationStrategic Management Stages of a Strategic PlanStages of a Strategic Plan :
  22. 22. We will be checking out: Long-range Planning Vs Strategic Planning Types of StrategicPlanning 3 Basic questions 4 Strategic Planning Some Facts & Some Misconceptions Lets dealwith each, one by one… Formulation Strategic Planning Stages of a Strategic Plan Stage: 1Slide 10:Stage 1 – Strategic Planning Formal "strategic planning", is a top-down, proactive, vision-drivenprocess. “It is anticipatory decision-making, i.e.; the process of deciding . . . before action isrequired." STRATEGIC PLANNING It is used to develop and maintain an organizationscompetitive future value. LONG-RANGE PLANNING The “Long-range Planning”, is a bottom-up, reactive, historical data-driven process. “It is projection of historical data into the futureusing some arbitrary assumptions for projectors.” It is inherently based on the past and so, doesnot develop an organizations future value.Stage 1 – Strategic Planning :Stage 1 – Strategic Planning Types of Strategic Planning 1: INTUITIVE-ANTICIPATORYPLANNING Generally it is done in the brain of one person. It may or may not, but often doesnot, result in a written set of plans. It generally has a comparatively short time horizon andreaction time. It is based on experience, the gut feel, the judgment, and the reflective thinking ofa manager." 2: SYSTEMATIC STRATEGIC PLANNING This is characterized by a set ofprocedures and processes. It involves participation by numerous resources and stakeholders, andit is research driven. It is documented and leaves evidence that can measure the plans progressand effectiveness. STRATEGIC PLANNINGStage 1 – Strategic Planning :Stage 1 – Strategic Planning You need to conduct: SWOT Analysis GAP Analysis What‟s theenvironment? Where are you going? You need to: Evaluate & Select a Business Model AllocateResources How do you get there? You need to develop: A Mission Statement Specific Goals andObjectivesSlide 13:Stage 1 – Strategic Planning The strategic planning process is a linear & singular event. Ithappens, and then we forget about it for a while. X The strategic planning process is a cyclical &ongoing process. It should be continually reviewed and dynamically modified to respond tochanging environment. P “SOME FACTS & SOME MISCONCEPTIONS”Slide 14:
  23. 23. STRATEGIC PLANNING Stage 1 – Strategic PlanningStages of a Strategic Plan :A Support Component- It represents the method of controlled implementation of the strategicplan. A Proactive Component- It involves a shift from crisis management to a proactiveconsideration of the future. A values-driven Process- The decisions are made w.r.t the values,philosophies, principles & directions set forth in the strategic plan. A Flexible Process- Itresponds to market events, stakeholder perception, and results of the overall process. Stages of aStrategic Plan Stage: 2 Implementation Strategic ManagementStages of a Strategic Plan :The measures should: Involve only the vital few key variables. Be linked to the success factors.Be a mix of past, present, and future. Be based on the needs of stakeholders. Start at the top andflow down to all levels. Be changed as the environment and your strategy changes. Have targets /goals set, based on research rather than arbitrary numbers. Evaluation Strategic MeasurementStages of a Strategic Plan Stage: 3Slide 17:____________________________ : Strategic management : MARVIN‟S 14 PROCESSES____________________________ Presenter: Mujahid IqbalSlide 18:1: Setting Objectives 2: Planning Strategy 3: Establishing Goals 4: Generating Policies 5:Forming a Philosophy 6: Developing Procedures 7: Providing Control Information 8: PlanningOrganizational structure 9: Forming Operational Plans 10: Activating People 11: ProvidingCapital 12: Setting Standards 13: Providing Facilities 14: Providing Personnel SomeManagement ProcessesSlide 19:Marvin‟s 14 Management Processes Deciding on the business in which the company or divisionshould engage. Deciding on fundamentals that shall guide the business, such as continuousgrowth. An objective is typically enduring and timeless.Slide 20:
  24. 24. Marvin‟s 14 Management Processes Developing concepts, ideas & plans for achieving objectivessuccessfully. Establishing plans for meeting and beating competition. Strategic planning is partof the total planning process that includes management and operational planning.Slide 21:Marvin‟s 14 Management Processes Deciding on achievement targets that are: Shorter in timerange. Narrower in scope. Designed as specific sub-objectives in making operational plans forcarrying out strategy.Slide 22:Marvin‟s 14 Management Processes Establishing the beliefs, values, attitudes, and unwrittenguidelines. This adds up to "the way we do things around here." Also called the “Culture” of theorganization.Slide 23:Marvin‟s 14 Management Processes Deciding on plans of action to guide the performance of allmajor activities in carrying out the strategy. This is done while keeping in mind the company‟sphilosophy.Slide 24:Marvin‟s 14 Management Processes Developing the plan of organization; The "harness" thathelps people pull together in performing activities in accordance with strategy, philosophy, andpolicies. The organizational structure influences the effectiveness of plan execution.Slide 25:Marvin‟s 14 Management Processes Recruiting, selecting, and developing people. Keeping inmind to include an adequate proportion of high-caliber talent. To fill the positions provided for inthe organization‟s plan.Slide 26:Marvin‟s 14 Management Processes Determining and prescribing how all important andrecurrent activities shall be carried out. Procedures are sequential series of interrelated andinterdependent steps that can be used in solving well-defined problems i.e. programmed decisionmaking.
  25. 25. Slide 27:Marvin‟s 14 Management Processes Providing the plant, equipment, and other physical facilitiesrequired to carry on the business. Adequate and controlled allocation of the factors of productionis essential for the success of a business.Slide 28:Marvin‟s 14 Management Processes Making sure that the business has sufficient money andcredit needed for physical facilities and working capital. Again adequate and controlledallocation is essential for the success of the business.Slide 29:Marvin‟s 14 Management Processes Establishing measures of performance that will best enablethe business to achieve its long-term objectives successfully. Actual performance is comparedwith the standards set, and in case of any deviation, corrective action is taken.Slide 30:Marvin‟s 14 Management Processes Forming plans governing activities & use of resourceswhich, if carried out in accordance with strategy, policies, procedures & standards, enable peopleto achieve particular goals. These are phases of the total planning process that includes strategicplanning.Slide 31:Marvin‟s 14 Management Processes Supplying facts and figures to help people follow thestrategy, policies, procedures, and programs; To keep alert to forces at work inside and outsidethe business; To measure their own performance against established plans and standards.Slide 32:Marvin‟s 14 Management Processes Commanding and motivating people up and down the lineto act in accordance with philosophy, policies, procedures, and standards in carrying out theplans of the company. Motivated people bring higher results in the form of improvement inquality and ultimately productivity as well.
  26. 26. Slide 33:____________________________ : Strategic management : ROLE OF FACILITIES____________________________ Presenter: Naveed ArifSlide 34:Facilities Planning & Management Facilities actually act as the linking bridge between StrategicPlanning & Organizational Value. Facilities planning and management represents theembodiment of the organizations strategic plan. Facilities Planning is a form of “Gap Analysis”that translates the Strategic Plan into Facilities Initiatives/Projects that can be measured againstthe Strategic Plan….Slide 35:Current Facilities Information Future Facilities Information Historical Facilities Information 1 32 The following CHART shows how a “Strategic Planning Process” is organized with a“Facilities Strategic Management Process”.… The Current & Historical Facilities Information isderived from computer-aided facilities management systems while the Future FacilitiesInformation comes directly from your facilities‟ users & customers. Source of FacilitiesInformationSlide 36:ANNUAL REVIEW & BENCHMARKSlide 37:Facilities Planning & Management SALIENT FEATURESSlide 38:Brown, M.G. (1996). Keeping Score: Using the Right Metrics to Drive World-ClassPerformance. New York: Productivity Inc. Drucker, P.F. (1999). Management Challenges for the21st Century. New York: Harper Collins. Goodstein, L., Nolan, T., Pfeiffer, J.W. (1993).Applied Strategic Planning: How to Develop a Plan That Really Works.Slide 39:
  27. 27. Jensen, B. (2000). Simplicity -- The New Competitive Advantage. Cambridge, Mass.: PerseusPublishing. Kaplan, R.S., & Norton, D.P. (1992, Jan-Feb). "The Balanced Scorecard -- MeasuresThat Drive Performance." Harvard Business Review, 71-79. Mintzberg, H., Ahlstrand, B.,Lampel, J. (1998). Strategy Safari. New York: The Free Press.Slide 40:Niven, P.R. (2002). Balanced Scorecard: Step-By-Step. New York: John Wiley & Sons Inc.Porter, M.E. (2001, March). "Strategy and the Internet." Harvard Business Review, 62-78.Steiner, G.A. (1979). Strategic Planning: A Step-By-Step Guide. New York: The Free Press.farhatsiddiquiDownloadPost to : http://w w w .auURL :Related Presentations :Share Add to Flag EmbedCopy embed code: (To copy code, click on the text box) <div><h3 styleEmbed: http://w w w .auURL: <a href=http:/Thumbnail: WordPress Embed Customize Embed
  28. 28. Views: 339Category: Business & Fin..License: All Rights ReservedPresentation DescriptionDefinition ,Types and everything about strategic ManagementCommentsPresentation TranscriptBy:Farhat J.Siddiqui :By:Farhat J.Siddiqui STRATEGIC ALLIANCEMeaning of Strategic Alliances :Meaning of Strategic Alliances A Strategic Alliance is a formal relationship between two ormore parties to pursue a set of agreed upon goals or to meet a critical business need whileremaining independent organizations.Slide 3:STRATEGIC ALLIANCEStages of Alliance Formation :Stages of Alliance Formation There are five stages of alliance formation- 1.StrategyDevelopment 2.Partner Assessment 3.Contract Negotiation 4.Alliance Operation 5.AllianceTerminationTypes of strategic alliances :
  29. 29. Types of strategic alliances There are four types of strategic alliances- 1.Joint venture 2.Equitystrategic alliance 3.Non-equity strategic alliance 4.Global strategic alliancesAdvantages of strategic alliance :Advantages of strategic alliance Allowing each partner to concentrate on activities that bestmatch their capabilities. Learning from partners & developing competences that may be morewidely exploited elsewhere Adequacy a suitability of the resources & competencies of anorganization for it to survive.Ten Reasons to Create a Strategic Alliance :Ten Reasons to Create a Strategic Alliance 1.You could offer your customers a larger variety ofproducts or services. This will allow you to spend less time and money developing new productsto sell.Slide 8:2.Your number of sales people will increase because youre combining with other business. Youwont have spend to time and money hiring new employees. 3.Your marketing and advertisingbudget will increase. When you form a strategic alliance with other businesses you both willshare the advertising and marketing costs. 4.You can now offer your existing customers moreback-end and up sell products. This will increase your sales and profits. 5. Your business willgain a larger number of skilled people working on the same project. You will gain the knowledgeof the other businesses employees.Slide 9:6.You will be able to beat your competition by selling to a larger target audience. You will alsoincrease the total number of existing customers you can sell your products and services to. 7.Youcan exchange endorsements with your alliance partners. Youll add more credibility to yourbusiness and gain your potential customers trust to buy. 8.You can expand your business morerapidly. You can develop new products and services faster with a larger work force. 9.Youll beable to solve your customers problems faster with a larger base of customer service people.Youll also learn new ways to improve your customer service from your alliance partners.10.Youll have a larger number of "strategic thinking" people. This will allow both businesses tocome up with profitable business ideas quicker than before.