Chapter 8 - SECRETS TO BUILDING A WORLD-CLASS BUSINESS THROUGH LEADERSHIP MAR...VINCE FERRARO
Do you dream of winning? Are you In It To Win It? There is an old saying that states:To the victor go the spoils. This saying originated from wars fought in ancient days - and meant that the victor got all the goodies! In today's competitive society, our desires and intentions are to be the best at what we do to win the prize - tangible or intangible. In fact, even the US Army used the slogan Be all that you can be as a motivator for recruits to join and excel.
Tom Hopkins, Author of How To Master The Art Of Selling & states that if you're going to do anything-small or large-why not do it to the best of your ability? Being the 'best' connotes drive, perseverance, leadership, success - factors that are valued by our culture, by which we are judged, and which make us feel good. Where does this take us? Well, we all want to be successful in our endeavors.
The Celebrity Expert® authors in this book have earned 'Blue Ribbons' in their respective fields of endeavor. They have succeeded in attaining their goals. Are you aspiring to be the best in your field? Are you planning to succeed? These Celebrity Experts® have blazed a trail that will show you the way and make it easier for you to succeed. They will show you how to avoid the pitfalls they encountered and, if you take advantage of their experiences, they will coach you to attain your desired goals. Experience suggests that readers of this book will be...In It To Win It.
If you have your own business, small or big, and are wondering how to build your growth plan along with your brand and marketing strategy, then you can find clear, guided steps in this presentation. You can see the steps for both strategy and execution.
Not sure whether you even need a brand and marketing plan? What benefits you can get out of investing in it? Read this presentation to find your answers!
A marketing plan is a comprehensive document or blueprint that outlines a business advertising and marketing efforts for the coming year.
Visit now: https://goo.gl/y2apLQ
Chapter 8 - SECRETS TO BUILDING A WORLD-CLASS BUSINESS THROUGH LEADERSHIP MAR...VINCE FERRARO
Do you dream of winning? Are you In It To Win It? There is an old saying that states:To the victor go the spoils. This saying originated from wars fought in ancient days - and meant that the victor got all the goodies! In today's competitive society, our desires and intentions are to be the best at what we do to win the prize - tangible or intangible. In fact, even the US Army used the slogan Be all that you can be as a motivator for recruits to join and excel.
Tom Hopkins, Author of How To Master The Art Of Selling & states that if you're going to do anything-small or large-why not do it to the best of your ability? Being the 'best' connotes drive, perseverance, leadership, success - factors that are valued by our culture, by which we are judged, and which make us feel good. Where does this take us? Well, we all want to be successful in our endeavors.
The Celebrity Expert® authors in this book have earned 'Blue Ribbons' in their respective fields of endeavor. They have succeeded in attaining their goals. Are you aspiring to be the best in your field? Are you planning to succeed? These Celebrity Experts® have blazed a trail that will show you the way and make it easier for you to succeed. They will show you how to avoid the pitfalls they encountered and, if you take advantage of their experiences, they will coach you to attain your desired goals. Experience suggests that readers of this book will be...In It To Win It.
If you have your own business, small or big, and are wondering how to build your growth plan along with your brand and marketing strategy, then you can find clear, guided steps in this presentation. You can see the steps for both strategy and execution.
Not sure whether you even need a brand and marketing plan? What benefits you can get out of investing in it? Read this presentation to find your answers!
A marketing plan is a comprehensive document or blueprint that outlines a business advertising and marketing efforts for the coming year.
Visit now: https://goo.gl/y2apLQ
Developing a marketing plan that delivers low budget and high impact marketingChris Houchens
Does your organization have a marketing plan? Or does your current marketing strategy need to be revisited? In this session, marketing speaker Chris Houchens will take you through the essential steps of creating an effective, long-term strategic marketing plan. You will learn what marketing elements get the best ROI and how to maximize the effectiveness and efficiency of any size marketing budget.
The Benefits of having a Marketing PlandiannaGreford
The benefits of having a marketing plan is essential for a small business owner and there are many benefits that you will enjoy when you develop and commit to an integrated approach to your business marketing that is only possible when you consistently implement the actions in your marketing plan.
Anyone who does not include “profit” in their definition of brand likely has never run a brand before. To me, a product is the basic commodity you sell but a brand creates a bond, with the intention of achieving a power and profit beyond what the product alone could achieve. The only reason you would ever add more investment to create a brand is because you believe you can get more back from that investment than just selling the product. If you wish to succeed in Brand Management, you have to understand brand finance. After all, you are running a business. If you started your brand to fulfill a personal passion or promise, I will tell you that a profitable brand will allow you to fulfill a lot more promises. If you just like the activity of Marketing, then you should become a subject matter expert, not in charge of a branded business.
Marketing, such a loosely used word in the business world and a treacherous task to undertake as a business owner. Businesses make or break on their strategies and developing a thorough marketing strategy is essential to any businesses success, small or large. So many questions arise when developing a marketing strategy. Where do I spend my money? How do I differentiate myself from my competitors? How much should I spend on online assets? Do I need to hire a marketing director? The questions could go on forever but one must know marketing basics and how to leverage not only a well-defined marketing budget but time, energy, and creativity to stand out of the crowd when trying to communicate with their target audiences.
The 4 P’s of Marketing: Confessions of a Guerrilla Marketer presented by the Innovation Center will address the very fundamentals to building a marketing strategy that encompasses understanding product/service, price, place, and promotion, the four p’s of marketing. The training session will also provide insight on how to become a guerrilla marketer and to stay top-of-mind when consumers are ready to make a purchasing decision. Guerrilla marketing was founded by Jay Conrad Levinson and was developed to help provide a system for businesses that don’t possess large marketing budgets like big brands, McDonald's or Nike, to market themselves in unique methods to earn the attention of their audiences and to increases sales revenue.
View the Upcoming Workshops page to see when and where the workshop will be held next. If you are interested in hosting a 4 P's of Marketing: Confessions of a Guerrilla Marketer workshop session in your community please contact the Innovation Center's Lynn Wilson, 918-343-7622, or by email, lwilson@rsu.edu.
How to create a successful marketing plan Uzzal Hossain
Reading "How to Create a Successful Marketing Plan" is Step One of Developing a Great Marketing Strategy that Helps Your Business Succeed
Marketing plans are an imperative part of starting any business. They are used as a blueprint for mapping out the manner in which you will be able to achieve your business goals.
A marketing plan is not only necessary for new businesses, as it can be used to help existing programs incorporate the strengths their company currently enjoys in an effort to implement necessary changes or improvements. A marketing plan can be implemented for a new product or service in which case it is meant to pull together all of the needed elements for an effective marketing start. It is important to have a marketing plan so that you can determine where you are, where you are headed, and how you will get there. It is especially important to have a marketing plan so that you can submit it for things such as loan considerations.
As a whole, you should see your marketing plan as a process for which you have a team whole goal is keeping it simple, developing a time-frame, providing feedback, implementing necessary revisions, and remaining consistent with the mission statement.
Sandpaper – advice to shape your businessBen Sandman
Business development publication put together for the Australian marine industry (early 2011).
A collection of whitepaper-style articles offering branding, communications and media advice.
CRAVE Your Goals! by Corporate Leadership Speaker and Author Tricia MolloyTricia Molloy
This is a condensed version of Tricia Molloy’s “CRAVE Your Goals!” talk, workshop and webinar for organizations that want their people to reduce stress, and be more positive, proactive and productive. All programs are customized and can focus on goals related to sales, women’s career advancement and conferences.
Learn more at www.triciamolloy.com or contact Tricia Molloy at tricia@triciamolloy.com or 770-565-1231.
Developing a marketing plan that delivers low budget and high impact marketingChris Houchens
Does your organization have a marketing plan? Or does your current marketing strategy need to be revisited? In this session, marketing speaker Chris Houchens will take you through the essential steps of creating an effective, long-term strategic marketing plan. You will learn what marketing elements get the best ROI and how to maximize the effectiveness and efficiency of any size marketing budget.
The Benefits of having a Marketing PlandiannaGreford
The benefits of having a marketing plan is essential for a small business owner and there are many benefits that you will enjoy when you develop and commit to an integrated approach to your business marketing that is only possible when you consistently implement the actions in your marketing plan.
Anyone who does not include “profit” in their definition of brand likely has never run a brand before. To me, a product is the basic commodity you sell but a brand creates a bond, with the intention of achieving a power and profit beyond what the product alone could achieve. The only reason you would ever add more investment to create a brand is because you believe you can get more back from that investment than just selling the product. If you wish to succeed in Brand Management, you have to understand brand finance. After all, you are running a business. If you started your brand to fulfill a personal passion or promise, I will tell you that a profitable brand will allow you to fulfill a lot more promises. If you just like the activity of Marketing, then you should become a subject matter expert, not in charge of a branded business.
Marketing, such a loosely used word in the business world and a treacherous task to undertake as a business owner. Businesses make or break on their strategies and developing a thorough marketing strategy is essential to any businesses success, small or large. So many questions arise when developing a marketing strategy. Where do I spend my money? How do I differentiate myself from my competitors? How much should I spend on online assets? Do I need to hire a marketing director? The questions could go on forever but one must know marketing basics and how to leverage not only a well-defined marketing budget but time, energy, and creativity to stand out of the crowd when trying to communicate with their target audiences.
The 4 P’s of Marketing: Confessions of a Guerrilla Marketer presented by the Innovation Center will address the very fundamentals to building a marketing strategy that encompasses understanding product/service, price, place, and promotion, the four p’s of marketing. The training session will also provide insight on how to become a guerrilla marketer and to stay top-of-mind when consumers are ready to make a purchasing decision. Guerrilla marketing was founded by Jay Conrad Levinson and was developed to help provide a system for businesses that don’t possess large marketing budgets like big brands, McDonald's or Nike, to market themselves in unique methods to earn the attention of their audiences and to increases sales revenue.
View the Upcoming Workshops page to see when and where the workshop will be held next. If you are interested in hosting a 4 P's of Marketing: Confessions of a Guerrilla Marketer workshop session in your community please contact the Innovation Center's Lynn Wilson, 918-343-7622, or by email, lwilson@rsu.edu.
How to create a successful marketing plan Uzzal Hossain
Reading "How to Create a Successful Marketing Plan" is Step One of Developing a Great Marketing Strategy that Helps Your Business Succeed
Marketing plans are an imperative part of starting any business. They are used as a blueprint for mapping out the manner in which you will be able to achieve your business goals.
A marketing plan is not only necessary for new businesses, as it can be used to help existing programs incorporate the strengths their company currently enjoys in an effort to implement necessary changes or improvements. A marketing plan can be implemented for a new product or service in which case it is meant to pull together all of the needed elements for an effective marketing start. It is important to have a marketing plan so that you can determine where you are, where you are headed, and how you will get there. It is especially important to have a marketing plan so that you can submit it for things such as loan considerations.
As a whole, you should see your marketing plan as a process for which you have a team whole goal is keeping it simple, developing a time-frame, providing feedback, implementing necessary revisions, and remaining consistent with the mission statement.
Sandpaper – advice to shape your businessBen Sandman
Business development publication put together for the Australian marine industry (early 2011).
A collection of whitepaper-style articles offering branding, communications and media advice.
CRAVE Your Goals! by Corporate Leadership Speaker and Author Tricia MolloyTricia Molloy
This is a condensed version of Tricia Molloy’s “CRAVE Your Goals!” talk, workshop and webinar for organizations that want their people to reduce stress, and be more positive, proactive and productive. All programs are customized and can focus on goals related to sales, women’s career advancement and conferences.
Learn more at www.triciamolloy.com or contact Tricia Molloy at tricia@triciamolloy.com or 770-565-1231.
A company is only as good as its workforce. A company does not generate ideas, does not give service, and by itself is neither efficient nor productive. People make all of those things happen. In that sense, employees are the most important component in the quest to improve business results. It makes sense to treat employee-related expenses as an investment in the workforce. Like any other investment, this critical company investment must yield a healthy return. At Sage, we call that the Return On Employee Investment or ROEI.
These are not easy times for HR managers. Like other executives, they must do more with less. A viable approach to the consequences of an economic downturn is tighter “strategic alignment” of HR processes to the company’s overall competitive strategy. One way that HR managers might adapt to doing more with less is to develop initiatives that designate HR as a strategic partner to revenue-generating business units and to the executive team.
References:
Mathis, Robert L. Jackson, John H (2010). Human Resource Management 13th Edition. South-Western Cengage Learning. ISBN 9780538453158
Employee Retention. Retrieved from: http://www.whatishumanresource.com/employee-retention
Seven Steps for Revitalizing Your BrandR. Jay Olson
If the time has come to re-energize your brand, follow this proven framework to get your CEO and executive team behind you to mobiliize your initiative, and ensure your company's investment drives profitable long-term growth and asset valuation.
The Integrated marketing communication plans of Vitamin W.docxarnoldmeredith47041
The Integrated marketing communication plans of Vitamin Water
Name: Rodney Wheeler
Institution: Rasmussen College
Title: PowerPoint Presentation For Sales And Marketing
profile
Date: 09/16/19
*
Marketing review
Despite of it being new in the market it have the following market reviews:
The size of the market for Vitamin water in USA is estimated to be 22%
The market growth for the brand always ranges from 40% on estimated yearly basis
The leader player in the market for the new brand in USA is red bull with almost constitute 60% of the market share.
Today youths’ are the targeted market for the new brand based on the fact that they are faced with a lot of responsibility
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It is very important to review the marketing review for the new brand at least once or twice in a year. This act really helps an organization to meet its objectives and marketing activities that firmly fits an organization. If the business operations do changes frequently setting more interval frequent review will definitely help the product to be stabilized in the market.
Competitor analysis Coca cola – 25%Pepsi – 10%Red bull – 60%Other – 5%
*
For the new brand to prosper and do well in the market areas, competitor analysis must be well taken. This is majorly because it is the act of assessing the weaknesses and the strengths of the business competitors. The above is the greater depth analysis of Vitamins water industry competitors, which can literally help in identifying possible opportunities for improvement of the new brand in the market.
Real competition for the new brand These two are considered to be the main competitor, whereby they are the multi dimensional companies that are the major market leaders in several sectors in USA. The corporations are also considered to have ability to advertise infinitely simply because they have estimated substantial budget and quality brand leadership. For the new brand to have a swift pace in the market it must also have quality brand leadership and the company should have substantial budget.
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The beverage industry is considered to be very competitive, therefore for the new brand to be successful into the market, there are some task that a business must take. First ensuring that the budget set for the brand is enough and that the leadership for the brand is appropriate. By doing this the brand will be able to navigate in the market area despite of having bigger brands in the market that fights this new brand.
Targeting
The new brand targets individual of age group 10-40
It is also recommend to athletes based on the fact that it can also be considered as an energy drink.
*
The new brand is a soft drink that can be consumed with people of all ages. It is also considered as an energy drink that will help increase the energy of a person, therefore athletes are best recommended to drink during their practice time.
Marketing objective
The brand to earn more sales in the next three years.
To identi.
Strategic intent is an aspirational plan which is helpful to achieve the vision of the organization.
It inspires winning: winning of customers, winning against competitors, winning over the broader market.
It focuses on firm’s taking initiatives to change the strategy of the firm that will lead to competitive advantage.
Whatever the case, strategic intent turns strategy from a “fit” exercise to a “stretch” exercise.
Example: An intent retailer does not think about how to match a competitor’s operation, but to create even a better operation.
The specific features of strategic intent can be easily explained with the help of hierarchy or pyramid of the organization from the top-bottom.
Example: “Toyota motors” use quality circle (QC) and Just In Time (JIT) to get competitive advantage.
Example: When “Honda” entered the motorcycle market competitors thought there was no threat as it did not imitate Harley Davidson or Yamaha. But it chose to start with products that were internationally different. Then by carving out new, white space it developed a customer base & strong brand image.
The strategic intent of Reliance is to being a global leader of the lowest cost producer of polyester products by focusing on vertical integration & operational effectiveness.
strategic pyramid or hierarchy of strategy can be broadly categorized in the following manner.
Corporate level
Business level
Functional level
Corporate level strategy is a comprehensive plan which is developed by the top management for the company as a whole whether the firm is a small one product or large multinational corporation. on a continuous basis.
In a large multinational company corporate strategy is also about managing various product lines & business units for value maximization.
For example: corporate headquarters must play the role of “organizational parent” in that it must deal with various product & business unit as “children”. Even though each product line or business unit has its own competitors & it has to obtain its own competitive advantage in the market. The cooperation among different units as a whole succeed the “family”.
The Corporation’s directional Strategy is composed of three general orientations towards growth such as: Growth strategy expands the company’s activities.
Stability strategies make no change to company’s current activities.
Retrenchment strategies reduce the company’s level of activities
The growth strategy can be achieved by Integration. Integration can be horizontal & vertical.
Horizontal Integration is the degree to which a firm operates in multiple geographic locations at a time and increases the range of product & services offering to the current customers.
SBU: The corporations are responsible for creating value through their business. They do so by managing their portfolio of business, ensuring that the businesses are successful over long-term by developing Business Units & focusing on the compatibility of those.
growth_vs_scaling_how_to_achieve_it.pdfsarah david
growth and scaling both necessitate long-term thinking, close monitoring, and flexibility. Scaling is the process of improving an organization’s ability to meet rising demand while growth is the process of growing the firm itself. Sustainable growth and long-term success can be achieved when growth methods are combined with scaling endeavours.
Strategic intent is an aspirational plan which is helpful to achieve the vision of the organization.
It inspires winning: winning of customers, winning against competitors, winning over the broader market.
It focuses on firm’s taking initiatives to change the strategy of the firm that will lead to competitive advantage.
Whatever the case, strategic intent turns strategy from a “fit” exercise to a “stretch” exercise.
Example: An intent retailer does not think about how to match a competitor’s operation, but to create even a better operation.
The specific features of strategic intent can be easily explained with the help of hierarchy or pyramid of the organization from the top-bottom.
Example: “Toyota motors” use quality circle (QC) and Just In Time (JIT) to get competitive advantage.
Example: When “Honda” entered the motorcycle market competitors thought there was no threat as it did not imitate Harley Davidson or Yamaha. But it chose to start with products that were internationally different. Then by carving out new, white space it developed a customer base & strong brand image.
The strategic intent of Reliance is to being a global leader of the lowest cost producer of polyester products by focusing on vertical integration & operational effectiveness.
strategic pyramid or hierarchy of strategy can be broadly categorized in the following manner.
Corporate level
Business level
Functional level
Corporate level strategy is a comprehensive plan which is developed by the top management for the company as a whole whether the firm is a small one product or large multinational corporation. on a continuous basis.
In a large multinational company corporate strategy is also about managing various product lines & business units for value maximization.
For example: corporate headquarters must play the role of “organizational parent” in that it must deal with various product & business unit as “children”. Even though each product line or business unit has its own competitors & it has to obtain its own competitive advantage in the market. The cooperation among different units as a whole succeed the “family”.
Corporation’s directional Strategy is composed of three general orientations towards growth such as: Growth strategy expands the company’s activities.
Stability strategies make no change to company’s current activities.
Retrenchment strategies reduce the company’s level of activities.
Growth strategy is widely pursued by the corporations or industries those are designed to achieve growth in sales, profit & assets.
It can be achieved by both concentration & diversification.
Concentration within one product line or industry & diversification into other product line & industries.
It can use investing for new product or new market development internally or through mergers, acquisitions or strategic alliances.
Concentration strategies are very sensible as they try to compete successfully only within single industry.
Examples: McDonald’s, Starbucks
This will go into the minute details of growth and scaling, examining its unique features, advantages, and considerations.
Successful start-ups that grow and scale quickly are known as “unicorns” or “billion-dollar companies” .
In this dynamic business landscape, crafting strategies that withstand uncertainties is paramount. Explore the art of developing resilient strategies that adapt to changing conditions while maintaining focus on long-term goals.
growth_vs_scaling_how_to_achieve_it.pptxsarah david
growth and scaling both necessitate long-term thinking, close monitoring, and flexibility. Scaling is the process of improving an organization’s ability to meet rising demand while growth is the process of growing the firm itself. Sustainable growth and long-term success can be achieved when growth methods are combined with scaling endeavours.
Page 72-73Company’s ObjectivesStatement of MissionMan.docxkarlhennesey
Page 72-73
Company’s Objectives/Statement of Mission
Many, if not most, successful large companies describe the main goal of their internal planning process as articulating and clarifying their “philosophy” or “mission.” The best, most effective Mission Statements are not mere empty words, but principles and objectives that guide all other aspects and activities of the business.
“We are a mission-driven business. We are democratizing organic and fair trade.”
Seth Goldman
Cofounder, Honest Tea
You should be able to sum up the basic objectives and philosophy of your company in just a few sentences. One statement should encapsulate the nature of your business, your business principles, your financial goals, your “corporate culture,” and how you expect to have your company viewed in the marketplace.
A Statement of Mission provides focus for your company and should be the defining concept of your business for at least the next few years. It should be the result of a meaningful examination of the foundations of your company, and virtually every word should be important.
A finished Mission Statement might be: “AAA, Inc., is a spunky, imaginative food products and service company aimed at offering high-quality, moderately priced, occasionally unusual foods using only natural ingredients. We view ourselves as partners with our customers, our employees, our community, and our environment, and we take personal responsibility in our actions toward each. We aim to become a regionally recognized brand name, capitalizing on the sustained interest in Southwestern and Mexican food. Our goal is moderate growth, annual profitability, and maintaining our sense of humor.”
The Statement of Mission worksheet on pages 72–73 helps you outline your company’s objectives.
Statement of Mission
Describe your company’s philosophy in terms of the areas listed below.
· Range/Nature of Products or Services Offered
· Quality
· Price
· Services
· Overall Relationship to Customer
· Management Style / Relationship to Employees
· Nature of Work Environment
· Relationship to Rest of Industry
· Incorporation of New Technology
· Growth/Profitability Goals
· Relationship to Community/Environment/Other Social Responsibility Goals
· Other Personal/Management Goals
Pages 148-149
Risk
Every business involves risk. Only the most naive and inexperienced entrepreneurs believe their business “just
can’t fail.” Use this section to sit down and think through the various risks facing your new endeavor.
This task might seem daunting. So why shake your enthusiasm? Because risk assessment helps you prepare for
and prevent threats to your success. If, for instance, you identify a major risk as the possibility that a well-
funded competitor will enter the market, you will want to take steps to quickly secure key customer contracts or
line up significant funding yourself.
Evaluating your risks isn’t meant to be an exercise in fear (although if you are intimidated by the risks ...
1. CORPORATE OBJECTIVES AND STRATEGY
Corporate objectives are the goals that the whole organisation is trying to achieve. The corporate
aims, which are often set out in a mission statement, form the basis upon which these targets are
developed.
Corporate strategy is the organisation’s plan of action which, when implemented, will lead to
the achievement of the corporate objectives. Strategy cannot therefore be considered before the
firm’s goals are clearly established.
The larger the group, the more difficult it is to coordinate its actions towards a common goal. When
a business is small its manager has personal contact with every employee. The long-term direction of
the firm will be communicated clearly from day to day. Motivating the workforce to act together will
be an easier task than in a large company. Objectives will be understood informally rather than
written down. As the firm grows the job of coordinating the actions of every employee becomes
harder. A mission statement may be needed to provide a shared vision of the company’s
future. This may be needed to motivate the workforce. It is also the basis for developing corporate
objectives. These represent the goals of the whole enterprise. These can take any form, but a
number of targets are widely adopted:
In practice, profit maximisation is usually the principal target only when the firm’s survival is
threatened in the short run. It will govern decision making until the point at which the financial
health of the organisation is restored. In the long run, if a business is functioning efficiently and
healthily, alternative objectives will be of more importance such as growth or diversification. In
large public limited companies the owners of the firm (the shareholders) are not the decision makers
(the management). A board of directors is elected to run the company on behalf of the shareholders.
This group may develop aims for the business which recognise a wider group of stakeholders than
just owners. As a result, the firm may not set profit maximisation as its key goal, even in the short
run.
Share prices reflect the present value of the dividends the company is expected to pay out in the
future. As a result this objective means taking actions which maximise the price of the
organisation’s shares on the stock market.
The managers of a business may choose to take decisions with the objective of making the
organisation larger. The motivation behind this goal could be the natural desire to see the business
achieve its full potential. It may also help defend the firm from hostile takeover bids. If your firm is
the biggest, who could be big enough to take you over?
Spread risk: In other words, to reduce dependence on one product or market. Such as
Cadbury’s developing soft drinks (Schweppes and 7-Up) to provide sales success in hot
weather to counteract the fall in chocolate sales. In this way the long-term survival prospects of the
business are improved. A firm may also diversify if it has a key product in the decline phase of the
product life cycle; for example, cigarette manufacturers. Diversification will allow movement into
‘growth’ markets.
An increasing number of managers identify the key strengths which lie within their organisation,
such as talent for innovation. Then focus the resources of the firm on developing the skills into
profitable products.
2. Market standing: If a business has a good reputation with its suppliers, distributors and customers
then this will make it easier to launch new products.
In order to be effective, corporate objectives must be measurable. A target which is directional but
with no given value, such as ‘increasing market share’, will not have the desired
impact on employee motivation.
GROWTH BY DIVERSIFICATION CREATES DANGERS FOR VIRGIN During the mid-1990s, Richard
Branson’s Virgin Group made a series of bold strategic moves. Each was launched in a wave
of favourable press and TV publicity. From its twin base in the music business and in air travel,
Virgin moved into:
the soft drinks market, with Virgin Cola
the alcoholic drinks market, with Virgin Vodka
the financial services market, with Virgin Direct
rail travel, by taking a 17% stake in Eurostar and winning the privatised contract for West Coast
Inter-City services
Brand SEO are a Northampton located company who use several offline and online business
advertising tactics like leaflet promotion Search engine marketing, and Pay per click solutions.
Leaflet Marketing and advertising is a tried and tested direct strategy which is certainly very
affordable and is readily scaleable .
Start here: Inevitably, an effectual brochure or leaflet is going to do several tasks: draw the target's
curiosity, as well as get the person to take action.
Artwork: When considering style, it’s a good idea to leave more fancy concepts to ones
internet sites and embrace a conventional tactic regarding printed media. Too many photos, color
styles and written messages could diminish your vital business sales strategy. If you'd like something
eye-catching, create a potent or attention seeking trade mark but keep the remaining portion of the
subject material supportive.
Measurement: With regards to the size of your leaflet or flyer, take into account your logistics
channel. Regarding flyers that can be given out on a face to face basis, for instance, A6 paper size
will generally be reliable because it's sufficiently small enough for the person to place in their
handbag or read right away. They tend to be printed on shiny cardstock. Leaflets which might be
distributed through the letterbox are generally A6 or A5 sized and in most cases produce the
maximum reaction from potential customers when dispatched in labeled envelopes. This is a really
good method to test out client base reaction for the business venture. The large majority of flyers
and leaflets are produced making use of a shiny silky finish delivering an exceptional overall look
and feel.
The concept: Keep your written text tight and benefits centered.
Circulation: When understanding your customers and prospects on a personal level, you will be able
to define the absolute best dissemination avenue for the promotional materials. There are lots of
options to consider: you may choose to distribute them on their own, with other leaflets, inserted in
3. a magazine or newspaper, to passer’s-by on the street, on cars or door-to-door.
Overseeing reaction: Promotional offers which are leaflet structured are unquestionably invaluable
in keeping tabs on the ROI and ultimate economic success of your advertising and marketing
campaign and are a terrific approach to deliver reaction and participation. A small company will not
lose any money in making customers aware of your organization's offer and definately will reap
benefits through new business when your receivers act on it. In case that you are expecting to
reduce initial expenditure and yet get to as many customers as is practical, leaflets and flyers are a
smart promotions option. However, they happen to be more productive when run over a longer
period of time based upon participation levels. If leaflets are a key component of the advertising
agenda, then make sure you look towards dissemination frequently.
the cosmetics market, through Virgin Vie.
By 1998, however, it was becoming clear that Virgin had expanded too far and in too many different
directions. Bad publicity about the poor performance of Virgin trains was compounded by the
weakening market position of Virgin Cola and Vodka. The Economist reported that these two brands
had made losses of more than £4.5 million in the 1996/97 financial year. After several years
boasting about new ventures, Virgin’s corporate affairs director said ‘We are going to
consolidate around our core areas. We don’t plan to extend the brand much further’.
The objective of expansion through diversification had been reversed. Now Virgin was to focus on its
core capabilities.
Source: Adapted from Marketing Week, 21/2/98 and The Economist, 21/2/98
A goal of boosting market share from 6% to 9%’ provides a specific figure for individuals to
work towards. However, the objective must be achievable. Otherwise it becomes demoralising. It is
also important to provide a timescale within which the goal must be attained.
Business strategy
The managers of a business should develop a medium- to long-term plan about how to achieve the
objectives they have established. This is the organisation’s corporate strategy. It sets out the
actions that will be taken in order to achieve the goals. And the implications for the firm’s
human, financial and production resources. The key to success when forming a strategy of this kind
is relating the firm’s strengths to the opportunities which exist in the marketplace.
This analysis can take place at each level of the business, allowing a series of strategies to be formed
in order to achieve the goals already established.
Corporate strategy deals with the major issues such as what industry, or industries, the business
should compete in, in order to achieve corporate objectives. Managers must identify industries
where the long-term profit prospects are likely to be favourable. In 1998, for example, Boots decided
to pull out of the DIY market by selling its Do It All subsidiary.
Business unit (or divisional) strategy should address the issue of how the organisation will compete
in the industry selected by corporate strategy. This will involve selecting a position in the
marketplace to distinguish the firm from its competitors.
Functional (or department) strategy is developed in order to identify how best to succeed in the
market position identified in the divisional strategy.
4. If targets are established for individual employees, it is quite possible that a personal strategy for
achieving these goals may be established as part of the company’s appraisal process.
Just as the objectives of the organisation cascade down to the lowest levels of the business ensuring
consistent planning, so too do strategies. This is to establish coordinated action. If a strategy is to
achieve the objectives set, it must match the firm’s strengths to its competitive environment.
Boots decided that its strength was in running the Number 1 chemist business in the UK. Its ability
to hold on to the Number 1 position was not helpful at succeeding with Do It All -a DIY chain that
was an also-ran.
As a company develops over time its employees acquire knowledge and skills. This
‘organisational learning’ represents what the firm as a whole is good at doing, or its
core capabilities. The key products or services produced by the business will reflect these strengths.
Viagra, the anti-impotence drug developed by Pfizer, represents the company’s innovative
abilities as a result of its research and development programme and scientific expertise.
Core capabilities need not be limited to a particular market. Marks and Spencer’s move into
financial services was based on a reputation for reliability and quality. This had built up over many
years by its operation in the clothing and food markets. Corporate strategy can be shaped by
identifying new opportunities to apply the existing strengths of the organisation.
Michael Porter in his book Competitive Advantage: Creating and Sustaining Superior Performance
develops a method by which an organisation can analyse the competitive environment within which
it operates in order to create strategic policy.
Porter suggests that firms need to analyse five factors within an industry in order to understand its
nature. This will help managers understand how fierce or how favourable the competitive
environment is. Each of the ‘five forces’ provide information which can be used to help
devise an appropriate business strategy.
THREAT OF NEW COMPETITORS ENTERING THE MARKET New firms entering a market increase
the level of competition in the industry. This may result in prices and potential profit being forced
down. If barriers exist which stop new firms entering, businesses which are already operating in the
industry are more secure. Wall’s dominance of the UK ice-cream market (over 50% of
branded sales) has put it in this comfortable position.
Porter suggests a number of potential strategies are available in order to create obstacles aimed at
stopping additional businesses entering an industry:
Invest heavily in capital equipment in order to make it very expensive for firms considering entering
the industry to compete on an equal footing.
Promote products intensively to create established brand names which will make the potential
advertising costs prohibitive for firms wishing to enter the market.
Make it difficult for new firms to find retail outlets willing to sell their products by taking action
designed to gain control of distribution channels.
Patent both products and operating processes, to stop market entrants copying them and therefore
avoiding research and development costs.
5. THE POWER OF BUYERS
Buyers will clearly wish prices in the industry to be as low as possible. The more powerful this group
is, the lower profit in the industry is likely to be. For example, UK biscuit manufacturers receive
nearly 50% of their buying orders from just three companies: Tesco, Sainsbury’s and Asda.
The buyers at these three retailers have huge power over the biscuit suppliers.
A number of potential strategies are available to firms in order to reduce the power ofbuyers in the
marketplace:
Open up or acquire retail outlets in order to gain control of the sale of the firm’s output to the
customer (forward vertical integration).
Make it expensive for the buyer to switch to the output of a competitor. Many people have spent
time learning how to use Microsoft’s Windows computer software. The cost of moving to a
new company’s products would not just be financial, but would include the effort required to
master a new system. The buyer is therefore in a weaker position in this market.
THE POWER OF SUPPLIERS
Suppliers will charge as much as they can for the resources they offer to the industry. If they have
substantial market power, their high prices will hit the industry’s profits. A number of
potential strategies are available to firms in order to reduce the power of suppliers in the
marketplace:
Acquire a supplying firm in order to control the availability of raw materials to the business
(backward vertical integration).
Encourage the development of new suppliers by buying from multiple sources. The greater the
number of businesses prepared to provide raw materials, the less reliant it is necessary to be on any
one of them.
Minimise the quantity of information suppliers have about the industry. For example, if suppliers
find it difficult to establish the price of final products in the market they provide inputs for, they will
have limited ability to influence that industry. This strategy is in conflict with the growing desire of
organisations to build ‘supply chains’ which encourage close relationships with other
firms.
THE THREAT OF SUBSTITUTE PRODUCTS
If direct substitutes exist for the output of an industry, consumers have the option of buying an
alternative good. In this case the industry will be forced to maintain lower prices in order to
minimise the risk of buyers switching. This will reduce the profitability of the industry. For example,
if cable television could provide a viable alternative to satellite, BSkyB would have to cut its monthly
rental charges.
Two potential strategies are available to firms in order to reduce the threat of substitute products
emerging:
Undertake research and development activity to identify substitute products with the intention of
patenting them before a competitor can do so. If a new close substitute does emerge manufactured
6. by another organisation, consider buying this business to secure its patent rights.
If a substitute product is made available for sale, use spoiling tactics. Firms may cut their prices or
run huge promotions to try to prevent the competitor becoming established. For, if a new product
fails to achieve good distribution levels, customers cannot buy it easily and may not get into the
habit of buying it regularly.
RIVALRY BETWEEN ESTABLISHED COMPETITORS IN THE INDUSTRY The more intense the
rivalry between existing firms within the industry, the more likely that prices are forced down by
competitive pressure. A number of potential strategies are available to firms in order to reduce the
amount of rivalry between established competitors in the marketplace:
Develop a differentiated product. A strong brand image encourages customers to perceive a product
or service to be superior to the competition. This reduces the day-to-day threat to sales caused by
competitor actions such as price promotions or TV advertising.
Restrict output in the industry, perhaps by forming some form of’cartel’ agreement
with competitors. In order to do this firms must control a large proportion of the products produced,
and they must agree on levels of production. This strategy may not be legal under the conditions of
the 1973 Fair Trading Act. Furthermore, it is certainly not ethical. Nevertheless, prestigious firms
such as ICI have been caught and fined for cartel operations in the recent past. So there is no doubt
that such activities take place.
Acquire competitors. This strategy is also subject to the legal requirements of the 1973 Fair Trading
Act.
Any takeover giving a business in excess of a 25% market share may be subject to investigation by
the Monopolies and Mergers Commission.
When analysing a firm’s approach to establishing corporate objectives and developing
strategic policy to achieve these goals, it is useful to consider the following points:
Are the objectives of the business precisely defined? And are they understood and supported by
staff?
Is the outcome of each objective measurable so that it will be clear when it has been achieved?
Does each objective have a target date for completion in order to ensure action?
Are the organisation’s objectives focused excessively on short-run profit maximisation at the
expense of the long-term development of the business?
Do the managers of the business clearly understand its strengths and weaknesses?
Have opportunities in the competitive environment been identified?
Does the strategic policy of the organisation ‘match’ the firm’s strengths to
opportunities in the competitive environment?
Finally, and most importantly, do the strategies match the objectives? In many organisations,
particularly small businesses, the idea of stating objectives and developing strategy to achieve them
7. may seem unnecessary. Some managers may claim their firm has no explicit strategy or planning
process and yet is very successful.
The first issue here is the existence of strategy. Every organisation has a strategy. It may not be
written down, or even clearly defined, but by observing the behaviour of the business over time a
pattern will emerge in the actions which are taken. This pattern reflects the strategy adopted by the
firm’s management. Strategy in many businesses reflects a slow development towards a
position in the market which is never formally identified, but is reached through a process of
intuitive decisions. Managers shape the organisation’s strengths to fit the competitive
environment based on their knowledge and experience of that market.
A second issue is whether careful strategic planning can ever be as helpful in practice as in theory.
It will always be difficult for managers or consultants to capture a complete picture of the current
competitive environment. Especially in a global economy where change is occurring very quickly.
Even harder, of course, is to anticipate how any market will look in one, five or ten years’
time. The transformation of industries may be so rapid that assessment using a model such as
Porter’s five forces becomes almost impossible.
CORPORATE OBJECTIVES – the goals established for the whole organisation. Examples
include long-term growth and short-term profit maximisation.
MANAGEMENT BY OBJECTIVES – divides the overall aim of the business into specific goals
for each level of the organisation’s hierarchy. In this way the actions of all employees are
coordinated and individuals are motivated to behave in a way which helps the firm succeed.
BUSINESS STRATEGY – a plan devised in order to allow an organisation to achieve a specific
objective.
CORE CAPABILITIES – the strengths of the organisation, I.e. what it is good at doing.