11.1 Developing Strategic PlansINTERNATIONAL MARKETING

Types of Strategic Planning

Strategic Planning: Process of determining how to move to a desired future state.

Used by businesses to ensure all parts of the organization are heading in same direction

Evaluates the environment, identifies long term objectives, & develops the plans to reach those objectives.

Take a wide view of business

Tactical Planning: More narrowly focused

Takes a short-term view

The Difference Between Strategic & Tactical Planning:

https://www.youtube.com/watch?v=TCei7oChf9I

Approaches to Planning

International marketers will either take a proactive or reactive strategic approach

Proactive: Recognize your product potential & pursue it before being forced

Reactive: Implement a change based on the environment

What is a proactive approach to getting into your dream college?

What is a reactive approach to not getting into your dream college?

Strategic Planning Process

Strategic Planning helps lower risks.

Look at what you can do well & minimizes things from happening that could prevent you from doing well.

Strategic Planning Follows a Six Step Process:

1. Develop a mission statement

2. Conduct a situational analysis or SWOT

3. Develop alternative goals & strategies

4. Develop the strategic plan

5. Specify action plans

6. Evaluate & Control the plans

Mission Statements

A mission statement accomplishes the following: Defines a market oriented purpose of an organization Provides direction Commits resources Inspires individuals Establishes a focus for activities

Step #2: Conduct a SWOT Analysis

A SWOT Analysis is an environmental assessment of the strengths, weaknesses, opportunities, & threats that a business faces. Provides the information necessary for developing global strategic plans.

Strengths and weaknesses have a internal focus on factors a business can control.

Opportunities and threats evaluate external factors that the environment brings.

Strengths and opportunities are the positives

Weaknesses and threats are negative

Step #3: Develop Alternative Goals & Strategies

After developing a mission statement and conducting a SWOT analysis, a business must develop a set of alternative goals and strategies.

Evaluate advantages and disadvantages

Focusing on just one alternative can increase risks

Alternatives may involve: Pursuing a variety of products Evaluating alternative markets Possible abandonment of certain markets or products

Step #4: Develop a Strategic PlanStep #5: Specify Action PlansStep #6: Evaluate & Control

#4 & #5: The business must set specific action plans Assign responsibilities Establish measurable goals Establish deadlines and due dates This helps insure the plan is actionable and will be followed

Step #6: Evaluate & Control The plan needs on-going evaluation to monitor its progress.

Strategic Business Units (SBU’s)

SBUs(Strategic business unit) are established by parent companies to implement strategic plans.

SBU: The smallest unit around which a business develops a strategy Example Phillips has an European division, North American division and an Asian division.

Each of these are examples of SBUs and Phillips will develop country specific strategies for each of these SBUs.

SBUs do the tactical planning but are ultimately controlled and strategically planned by their parent units.

Ticket Out the Door

Individually, write 2 to 3 facts/ characteristics on each of the following:

strategic planning tactical planning strategic business unit mission statement SWOT analysis