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Lt1 -corp stragplanning


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Lt1 -corp stragplanning

  1. 1. Corporate Strategic Planning<br />Asia-Pacific Marketing Federation<br />Certified Professional Marketer<br />Copyright<br />Marketing Institute of Singapore<br />
  2. 2. Outline<br />Introduction<br />Meaning & Role of Strategic Planning<br />Corporate Mission<br />Strategic Business Units (SBU)<br />Marketing Audit<br />
  3. 3. Strategic Fit<br />Resources<br />Org Objectives<br />Changing Environment<br />Strategic Planning<br />…is the managerial process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing market opportunities.<br />
  4. 4. Strategy:<br /><ul><li>Corporate
  5. 5. Business
  6. 6. Functional</li></ul>Corporate<br />Mission &<br />Objectives<br />Operating Plans<br />The Role of Strategy<br />
  7. 7. Sun Tze on Strategy<br />“Know your enemy, know yourself, and your victory will not be threatened. Know the terrain, know the weather, and your victory will be complete.”<br />
  8. 8. Strategic Marketing<br />“Marketing Strategy is a series of integrated actions leading to a sustainable competitive advantage.” <br /> John Scully<br />
  9. 9. Corporate Mission<br />Broad purposes of the organization<br />General criteria for assessing the long-term organizational effectiveness<br />Driven by heritage & environment<br />Mission statements are increasingly being developed at the SBU level as well<br />
  10. 10. Examples of Corporate Mission<br />SINGAPORE AIRLINES is engaged in air transportation and related businesses. It operates world-wide as the flag carrier of the Republic of Singapore, aiming to provide services of the highest quality at reasonable prices for customers and a profit for the company<br />
  11. 11. Examples of Corporate Mission (cont’d)<br />MARRIOTT’S Mission Statement:<br /> We are committed to being the best lodging and food service company in the world, by treating employees in ways that create extraordinary customer service and shareholder value<br />
  12. 12. Corporate Culture<br />The most abstract level of managerial thinking<br />How do you define culture?<br />What is the significance of culture to an organization?<br />How does marketing affect culture in the organization?<br />
  13. 13. Corporate Objectives & Goals<br />An objective is a long-range purpose <br />Not quantified and not limited to a time period<br />E.g. increasing the return on shareholders’ equity<br />A goal is a measurable objective of the business<br />Attainable at some specific future date through planned actions<br />E.g. 10% growth in the next two years<br />
  14. 14. What is a Strategic Business Unit? (SBU)<br />A set of products or product lines <br />With clear independence from other products or product lines <br />for which a business or marketing strategy should be designed<br />
  15. 15. Characteristics of a viable SBU<br />Unique business mission<br />Definable set of competitors<br />Integrative planning done independently<br />Responsible for resource management in all areas<br />Large enough but not so large as to become bureaucratic<br />(Source: Subhash Jain, Marketing Planning & Strategy, 6th Ed.)<br />
  16. 16. Organizational Marketing Levels<br />Hofer and Schendel suggested that organizations develop strategies at three structural levels:<br />Corporate level—(corporate marketing)<br />SBU level—(Strategic Marketing)<br />Product/Market level—(Functional Marketing)<br />
  17. 17. Marketing at the SBU Level—Strategic Marketing<br />Strategic Marketing requires<br />Detailed understanding of market needs, and <br />Proactive use of competitive intelligence at the corporate as well as SBU’s levels<br />Strategic Marketing <br />Focuses on what the firm do best at the SBU level<br />To secure and maintain a sustainable competitive advantage<br />
  18. 18. What is Competitive Advantage?<br />“Competitive advantage is a company’s ability to perform in one or more ways that competitors cannot or will not match.”Philip Kotler<br />“If you don’t have a competitive advantage, don’t compete.”Jack Welch, GE<br />
  19. 19. Other Characteristics of Competitive Advantage<br />Substantiality<br />Is it substantial enough to make a difference?<br />Sustainability<br />Can it be neutralized by competitors quickly?<br />Ability to be leveraged into visible business attributes that will influence customers<br />(Source: Strategic Marketing Management, Aakers)<br />
  20. 20. Seeking Competitive Advantages<br />Positions of advantage<br />Superior customer value<br />Lower relative total cost<br />Performance advantages<br />Customer satisfaction, Loyalty, Market Share, Profit<br />Sources of advantages<br />Superior skills & knowledge, Superior resources, Superior business process<br />
  21. 21. Key Elements of Marketing Strategy Formulation<br />The strategic 3 Cs <br />Customers, Competitors & the Corporation<br />Environment analysis -- PEST<br /> Strategic Marketing Decisions<br />Where to compete<br />How to compete<br />When to compete<br />
  22. 22. A Viable Marketing Strategy<br />Must have a clearly defined market <br />Must have a good match between corporate strengths and market needs<br />Must have significant positive differentiation in the key success factors of the business<br />
  23. 23. Situation Analysis<br />Internal Analysis—company; capability etc.<br />External Analysis—customers, market definition, industry structure<br />SWOT Analysis<br />Strengths, Weaknesses, Opportunities & Threats<br />Identify & prioritize major problems and opportunities: selection of key issues<br />Based on the firm’s core competencies, decide on future options<br />
  24. 24. Marketing Audit<br />“Marketing audit is a comprehensive, systematic, independent, and periodic examination of a company’s—or business unit’s—marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance” Philip Kotler<br />
  25. 25. Characteristics of Marketing Audit<br />Comprehensive<br />Must cover all marketing areas<br />Systematic<br />Sequential diagnostic steps<br />Independent<br />Internal & external auditors<br />Periodic<br />Performed at regular intervals<br />
  26. 26. Marketing Audit Procedure<br />Marketing environment audit<br />Marketing strategy audit<br />Marketing organization audit<br />Marketing system audit<br />Marketing productivity audit<br />Marketing function audit<br />Marketing excellence review<br />Ethical and social responsibility review<br />