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Market-Oriented Strategic
                              Planning


                       Objectives             Resources

                                     Profit
                                      and
                                    Growth
                         Skills          Opportunities


          APO - TES Bangladesh
                           Furniture Manufacturing    1
©2000 Prentice Hall
Strategic-Planning, Implementation,
                              and Control Process

            Planning            Implementation            Control
             Corporate                                   Measuring
             planning             Organizing              results
               Division
               planning                                  Diagnosing
                                                           results
              Business           Implementing
              planning
                                                          Taking
               Product                                   corrective
               planning                                    action
          APO - TES Bangladesh
                           Furniture Manufacturing   2
©2000 Prentice Hall
Good Mission Statements:


                       Limited number of goals


                       Stress major policies & values


                       Define competitive scopes
          APO - TES Bangladesh
                           Furniture Manufacturing   3
©2000 Prentice Hall
The Boston Consulting Group’s
                              Growth-Share Matrix
                     20%-
Market Growth Rate



                                    Stars              Question marks
                                            4
                                                          ?       ?
                     18%-
                     16%-                             3                  1
                     14%-
                     12%-           5                             2   ?

                                                    ?
                     10%-
                      8%-       Cash cow                       Dogs
                      6%-                                                8
                      4%-
                      2%-      6
                       0
                                                            7
                          10x    4x 2x 1.5x 1x             .5x .4x .3x .2x .1x
                     APO - TES Bangladesh
                                      Furniture Manufacturing 4
©2000 Prentice Hall                 Relative Market Share
The Strategic-Planning Gap

             Desired
             Desired
              sales
              sales
                            Diversification growth
                                                              Strategic-
                                                              planning
                              Integrative growth                 gap
 Sales




                               Intensive growth

                                         Current
                                          Current
                                         portfolio
                                         portfolio

         0                      5                        10
         APO - TES Bangladesh (years)
                          Furniture Manufacturing
                        Time                         5
©2000 Prentice Hall
Three Intensive Growth Strategies:
                      Ansoff’s Product/Market Expansion
                                     Grid
                           Existing                    New
                           products                  products


          Existing          1. Market           3. Product
          markets           penetration         development



           New              2. Market
          markets           development     4. Diversification

          APO - TES Bangladesh
                           Furniture Manufacturing    6
©2000 Prentice Hall
The McKinsey 7-S Framework
                                Structure
                                Structure

          Strategy
          Strategy                                       Systems
                                                         Systems


                                 Shared
                                 Shared
                                 values
                                 values
              Skills
              Skills                                      Style
                                                          Style


                                  Staff
                                  Staff
          APO - TES Bangladesh
                           Furniture Manufacturing   7
©2000 Prentice Hall
The Value-Delivery Process
            (a) Traditional physical process sequence
           Make the product            Sell the product
        Design Procure Make    Price Sell Advertise/ Distribute Service
        product                            promote


             (b) Value creation & delivery sequence


   Choose the Value Provide the Value Communicate the Value



  Strategic marketing FurnitureTactical marketing
      APO - TES Bangladesh     Manufacturing 8
©2000 Prentice Hall
The Marketing Plan
         Executive Summary & Table of Contents
                Current Marketing Situation
                      Opportunity & Issue Analysis
                       Objectives
                           Marketing Strategy
                               Action Programs
                                    Projected Profit-and-loss

          APO - TES Bangladesh
                                        Controls
                           Furniture Manufacturing   9
©2000 Prentice Hall
Marketing                                  Strategy
                                             Marketing
                                           intermediaries
        Demographic/                                     M                        Technical/
          economic                                      pl ark                     physical
                                                       sy ann etin



                               st at ng
        environment                                                              environment


                                       n
                                 em io
                             sy rm eti
                                                          st i n g
                                                            em g
                              fo r k
                            in Ma            Product


                Suppliers          Place      Target Price                       Publics
                                            customers




                                                                   tio nd
                                                              en ion g

                                                                      n
                                                                ta a
                            M ga yst




                                                           em at tin
                            or s
                             ar ni em




                                           Promotion


                                                         pl niz ke
                               ke z a




                                                       im ga ar
                                 tin tio




      Political/                                        or M                   Social/
                                     g n




        legal                                                                  cultural
    environment                                                              environment
                                           Competitors
          APO - TES Bangladesh
                           Furniture Manufacturing                          10
©2000 Prentice Hall

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Strtegic mkt

  • 1. Market-Oriented Strategic Planning Objectives Resources Profit and Growth Skills Opportunities APO - TES Bangladesh Furniture Manufacturing 1 ©2000 Prentice Hall
  • 2. Strategic-Planning, Implementation, and Control Process Planning Implementation Control Corporate Measuring planning Organizing results Division planning Diagnosing results Business Implementing planning Taking Product corrective planning action APO - TES Bangladesh Furniture Manufacturing 2 ©2000 Prentice Hall
  • 3. Good Mission Statements: Limited number of goals Stress major policies & values Define competitive scopes APO - TES Bangladesh Furniture Manufacturing 3 ©2000 Prentice Hall
  • 4. The Boston Consulting Group’s Growth-Share Matrix 20%- Market Growth Rate Stars Question marks 4 ? ? 18%- 16%- 3 1 14%- 12%- 5 2 ? ? 10%- 8%- Cash cow Dogs 6%- 8 4%- 2%- 6 0 7 10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x APO - TES Bangladesh Furniture Manufacturing 4 ©2000 Prentice Hall Relative Market Share
  • 5. The Strategic-Planning Gap Desired Desired sales sales Diversification growth Strategic- planning Integrative growth gap Sales Intensive growth Current Current portfolio portfolio 0 5 10 APO - TES Bangladesh (years) Furniture Manufacturing Time 5 ©2000 Prentice Hall
  • 6. Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid Existing New products products Existing 1. Market 3. Product markets penetration development New 2. Market markets development 4. Diversification APO - TES Bangladesh Furniture Manufacturing 6 ©2000 Prentice Hall
  • 7. The McKinsey 7-S Framework Structure Structure Strategy Strategy Systems Systems Shared Shared values values Skills Skills Style Style Staff Staff APO - TES Bangladesh Furniture Manufacturing 7 ©2000 Prentice Hall
  • 8. The Value-Delivery Process (a) Traditional physical process sequence Make the product Sell the product Design Procure Make Price Sell Advertise/ Distribute Service product promote (b) Value creation & delivery sequence Choose the Value Provide the Value Communicate the Value Strategic marketing FurnitureTactical marketing APO - TES Bangladesh Manufacturing 8 ©2000 Prentice Hall
  • 9. The Marketing Plan Executive Summary & Table of Contents Current Marketing Situation Opportunity & Issue Analysis Objectives Marketing Strategy Action Programs Projected Profit-and-loss APO - TES Bangladesh Controls Furniture Manufacturing 9 ©2000 Prentice Hall
  • 10. Marketing Strategy Marketing intermediaries Demographic/ M Technical/ economic pl ark physical sy ann etin st at ng environment environment n em io sy rm eti st i n g em g fo r k in Ma Product Suppliers Place Target Price Publics customers tio nd en ion g n ta a M ga yst em at tin or s ar ni em Promotion pl niz ke ke z a im ga ar tin tio Political/ or M Social/ g n legal cultural environment environment Competitors APO - TES Bangladesh Furniture Manufacturing 10 ©2000 Prentice Hall