Strategic planning is carried out at different levels of an organization. At the corporate level, headquarters define the mission, establish business units, assign resources, and assess growth opportunities. Each business unit then develops its own strategic plan through defining its mission, analyzing strengths/weaknesses/opportunities/threats (SWOT), setting goals and objectives, developing strategies, and implementing programs with feedback and control. The strategic planning process aims to align business units with the overall corporate mission while allowing for independent growth strategies.

1. How is Strategic
Planning carried out at
different Levels of
the Organization?
These slides are based on Chapter 2 of
‘Marketing Management’ by Kotler Keller

2. All corporate headquarters undertake 4 Planning Activities
1. Defining the corporate mission
2. Establishing strategic business units
3. Assigning resources to each strategic business unit
4. Assessing growth opportunities

3. 1. Defining the Corporate Mission
Mission statements - Reflects a vision, an almost “impossible
dream” that provides direction for the next 10 to 20 years

4. Characteristics of Good Mission Statements
Focus on a limited number of goals
Stress the company’s major policies and values
Define major competitive spheres within which the
company will operate
Take a long-term view
As short, memorable, and meaningful as possible

5. 2. Establishing Strategic Business Units
Single business, or collection of related businesses, that can be
planned separately from the rest of the company
Has its own set of competitors
Has manager responsible for strategic planning & profit
performance, who controls most of the factors affecting profit

6. 3. Assigning Resources to Each SBU
Decide how to allocate resources to each business unit

7. 4. Assessing Growth Opportunities
# Intensive Growth
# Integrative Growth
# Diversification Growth
# Downsizing And Divesting Older Business

8. # Intensive Growth
Review of opportunities for improving existing business

9. # Integrative Growth
Company can increase sales and profits through backward, forward, or
horizontal integration within its industry

10. # Diversification Growth
When good opportunities exists outside the present business , then
company may look forward to starting a new business

11. # Downsizing And Divesting Older Business
Companies carefully prune, harvest, or divest tired old businesses to
release needed resources for other uses and reduce costs

12. Business Unit Strategic Planning
Fig. :-The Business Unit Strategic-Planning Process

13. Business Unit Strategic Planning
# The Business Mission
# SWOT Analysis
# Goal Formulation
# Strategic Formulation
# Program Formulation &Implementation
# Feedback and Control

14. # The Business Mission
Each business unit needs to define its specific mission within the
broader company mission

15. # SWOT Analysis

16. # Goal Formulation
Arranged hierarchically, from most to least important
Objectives should be quantitative whenever possible
Goals should be realistic
Objectives must be consistent

17. # Strategic Formulation
Overall Cost Leadership – Lowest Production & Distribution Cost
Differentiation – Superior Performance
Focus – Concentrate on Narrow Market Segments

18. # Program Formulation and Implementation
Strengthen R&D Department
Gather Technological Intelligence
Develop Leading-Edge Products
Train Technical Sales Force
Communicate to Technological Leadership

19. # Feedback and Control
Organisation should examine the changing environment and adopt
new goals and behaviours
Organization fails to respond to a changed environment, it becomes
increasingly hard to recapture its lost position
Thus,
Once,

20. R E F E R E N C E S
http://blogs-images.forbes.com/work-in-progress/files/2011/05/Bullseye-Red-Red.jpg
http://www.activategroupinc.com/wp-content/uploads/2011/11/business-management1.jpg
http://stratdevint.com/images/globe.jpg
http://www.vindhyavasinigroup.com/images/vision-mission-big.jpg
http://www.catdi.com/wp-content/uploads/2013/08/banner-mission.jpg
http://www.thecbg.it/images/sustainable-future2.jpg
http://worldpayment-solutions.com/images/images/iStock_000009804777Large.jpg
http://www.smsgconsulting.com/_img/qualifications.jpg