strategic planning

2. ©2000 Prentice Hall
Objectives
Corporate and division strategic planingCorporate and division strategic planing
Business unit planningBusiness unit planning
The marketing processThe marketing process
Product level planningProduct level planning
The marketing planThe marketing plan

3. ©2000 Prentice Hall
Market-Oriented Strategic
Planning
Objectives
Skills
Resources
Opportunities

4. ©2000 Prentice Hall
Market-Oriented Strategic
Planning
Objectives
Skills
Resources
Opportunities
Profit
and
Growth

5. ©2000 Prentice Hall
Corporate Headquarters
Planning
Define the corporate missionDefine the corporate mission
Establish strategic business unitsEstablish strategic business units
(SBUs)(SBUs)
Assign resources to SBUsAssign resources to SBUs
Plan new business, downsize olderPlan new business, downsize older
businessesbusinesses

6. ©2000 Prentice Hall
Strategic-Planning, Implementation,
and Control Process
Measuring
results
Diagnosing
results
Taking
corrective
action
ImplementationImplementationPlanningPlanning
Corporate
planning
Division
planning
Business
planning
Product
planning
Organizing
Implementing
ControlControl

7. ©2000 Prentice Hall
Good Mission Statements:
Limited number of goals
Stress major policies & values
Define competitive scopes

8. ©2000 Prentice Hall
The Boston Consulting Group’s
Growth-Share Matrix
20%-20%-
18%-18%-
16%-16%-
14%-14%-
12%-12%-
10%-10%-
8%-8%-
6%-6%-
4%-4%-
2%-2%-
00
MarketGrowthRate
3
?
Question marks
?
?
?
2
1
Cash cow
6
Dogs
8
7
10x 4x 2x 1.5x 1x10x 4x 2x 1.5x 1x
Relative Market Share
.5x .4x .3x .2x .1x.5x .4x .3x .2x .1x
Stars
5
4

9. ©2000 Prentice Hall
Market Attractiveness: Competitive-
Position Portfolio Classification
MARKETATTRACTIVENESSMARKETATTRACTIVENESS
5.005.00
3.673.67
2.332.33
1.001.00
LowLowMediumMediumHighHigh
Relief
valve
Flexible
diaphragms
Fuel
pumps
Aerospace
fittings
Clutches
Hydraulic
pumps
Joints
StrongStrong MediumMedium WeakWeak
BUSINESS STRENGTHBUSINESS STRENGTH
1.001.002.332.333.673.675.005.00
Invest/growInvest/grow Selectivity/earningsSelectivity/earnings Harvest/divestHarvest/divest

10. ©2000 Prentice Hall
SalesSales
10105500
Time (yearsTime (years)
The Strategic-Planning Gap
Desired
sales
Desired
sales
Integrative growth
Intensive growth
Current
portfolio
Current
portfolio
Strategic-Strategic-
planningplanning
gapgap
DiversificationDiversification growthgrowth

11. ©2000 Prentice Hall
Three Intensive Growth Strategies:
Ansoff’s Product/Market Expansion
Grid
4. Diversification
2. Market
development
New
markets
1. Market
penetration
Existing
markets
Existing
products
3. Product
development
New
products

12. ©2000 Prentice Hall
1
4
2
3
HighHigh
LowLow
HighHigh LowLow
AttractivenessAttractiveness
Success ProbabilitySuccess Probability OpportunitiesOpportunities
Opportunity Matrix
1.1. Company develops a moreCompany develops a more
powerful lighting systempowerful lighting system
2.2. Company develops aCompany develops a
device for measuring thedevice for measuring the
energy efficiency of anyenergy efficiency of any
lighting systemlighting system
3.3. Company develops aCompany develops a
device for measuringdevice for measuring
illumination levelillumination level
4.4. Company develops aCompany develops a
software program to teachsoftware program to teach
lighting fundamentals to TVlighting fundamentals to TV
studio personnelstudio personnel

13. ©2000 Prentice Hall
Threat Matrix
1.1. Competitor develops aCompetitor develops a
superior lighting systemsuperior lighting system
2.2. Major prolongedMajor prolonged
economic depressioneconomic depression
3.3. Higher costsHigher costs
4.4. Legislation to reduceLegislation to reduce
number of TV studionumber of TV studio
licenseslicenses
1
4
2
3
HighHigh
LowLow
HighHigh LowLow
SeriousnessSeriousness
Probability of OccurrenceProbability of Occurrence ThreatsThreats

14. ©2000 Prentice Hall
The McKinsey 7-S Framework
SkillsSkills
Shared
values
Shared
values
StaffStaff
StyleStyle
StrategyStrategy
StructureStructure
SystemsSystems

15. ©2000 Prentice Hall
Sell the product
The Value-Delivery Process
Make the product
ProcureDesign
product Make Price Sell Advertise/
promote Distribute Service
Choose the Value Provide the Value Communicate the Value
(a) Traditional physical process sequence
(b) Value creation & delivery sequence
Strategic marketing Tactical marketing

16. ©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
Controls

17. ©2000 Prentice Hall
Competitors
Marketing
intermediaries
PublicsSuppliers
Marketing Strategy
M
arketing
inform
ation
system
M
arketing
planning
systemM
arketing
organization
system
M
arketing
organization
and
im
plem
entation
Product
Promotion
Place PriceTarget
customers
Demographic/Demographic/
economiceconomic
environmentenvironment
Social/Social/
culturalcultural
environmentenvironment
Technical/Technical/
physicalphysical
environmentenvironment
Political/Political/
legallegal
environmentenvironment

18. ©2000 Prentice Hall
Review
Corporate and division strategic planingCorporate and division strategic planing
Business unit planningBusiness unit planning
The marketing processThe marketing process
Product level planningProduct level planning
The marketing planThe marketing plan