corporate stragy planning
TRANSCRIPT
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Corporate Strategic Corporate Strategic PlanningPlanning
Asia-Pacific Marketing Asia-Pacific Marketing FederationFederation
Certified Professional MarketerCertified Professional MarketerCopyrightCopyright
Marketing Institute of SingaporeMarketing Institute of Singapore
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OutlineOutline
IntroductionIntroduction Meaning & Role of Strategic Meaning & Role of Strategic
PlanningPlanning Corporate MissionCorporate Mission Strategic Business Units (SBU)Strategic Business Units (SBU) Marketing AuditMarketing Audit
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Strategic PlanningStrategic Planning
……is the managerial process of is the managerial process of developing and maintaining a developing and maintaining a strategic fit between the strategic fit between the organization's objectives and organization's objectives and resources and its changing market resources and its changing market opportunities.opportunities.
Org Objectives Resources
Changing Environment
Strategic Fit
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The Role of StrategyThe Role of Strategy
CorporateMission &Objectives
Strategy:•Corporate•Business•Functional
Operating Plans
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Sun TzeSun Tze on Strategy on Strategy
““Know your enemy, know yourself, Know your enemy, know yourself, and your victory will not be and your victory will not be threatened. Know the terrain, know threatened. Know the terrain, know the weather, and your victory will the weather, and your victory will be complete.”be complete.”
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Strategic MarketingStrategic Marketing
““Marketing Strategy is a series Marketing Strategy is a series of integrated actions leading to of integrated actions leading to a sustainable competitive a sustainable competitive advantage.”advantage.”
John ScullyJohn Scully
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Corporate MissionCorporate Mission
Broad purposes of the organizationBroad purposes of the organizationGeneral criteria for assessing the long-General criteria for assessing the long-
term organizational effectivenessterm organizational effectivenessDriven by heritage & environmentDriven by heritage & environmentMission statements are increasingly Mission statements are increasingly
being developed at the SBU level as being developed at the SBU level as wellwell
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Examples of Corporate MissionExamples of Corporate Mission
SINGAPORE AIRLINES is engaged in air SINGAPORE AIRLINES is engaged in air transportation and related businesses. transportation and related businesses. It operates world-wide as the flag It operates world-wide as the flag carrier of the Republic of Singapore, carrier of the Republic of Singapore, aiming to provide services of the aiming to provide services of the highest quality at reasonable prices for highest quality at reasonable prices for customers and a profit for the companycustomers and a profit for the company
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Examples of Corporate Mission Examples of Corporate Mission (cont’d)(cont’d)
MARRIOTT’S Mission Statement:MARRIOTT’S Mission Statement:
We are committed to being the best We are committed to being the best lodging and food service company in lodging and food service company in the world, by treating employees in the world, by treating employees in ways that create extraordinary ways that create extraordinary customer service and shareholder customer service and shareholder valuevalue
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Corporate CultureCorporate Culture
The most abstract level of The most abstract level of managerial thinkingmanagerial thinking
How do you define culture?How do you define culture?What is the significance of culture to What is the significance of culture to
an organization?an organization?How does marketing affect culture in How does marketing affect culture in
the organization?the organization?
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Corporate Objectives & GoalsCorporate Objectives & Goals
An objective is a long-range purpose An objective is a long-range purpose Not quantified and not limited to a time periodNot quantified and not limited to a time period E.g. increasing the return on shareholders’ E.g. increasing the return on shareholders’
equityequity
A goal is a measurable objective of A goal is a measurable objective of the businessthe business Attainable at some specific future date through Attainable at some specific future date through
planned actionsplanned actions E.g. 10% growth in the next two yearsE.g. 10% growth in the next two years
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What is a Strategic What is a Strategic Business Unit? (SBU)Business Unit? (SBU)
A set of products or product lines A set of products or product lines With clear independence from other With clear independence from other
products or product lines products or product lines for which a business or marketing for which a business or marketing
strategy should be designedstrategy should be designed
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Characteristics of a viable SBUCharacteristics of a viable SBU
Unique business missionUnique business missionDefinable set of competitorsDefinable set of competitors Integrative planning done Integrative planning done
independentlyindependentlyResponsible for resource management Responsible for resource management
in all areasin all areas Large enough but not so large as to Large enough but not so large as to
become bureaucraticbecome bureaucratic(Source: Subhash Jain, Marketing Planning & Strategy, 6th Ed.)
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Organizational Marketing LevelsOrganizational Marketing Levels
Hofer and Schendel suggested that Hofer and Schendel suggested that organizations develop strategies at organizations develop strategies at three structural levels:three structural levels:
Corporate level—(corporate Corporate level—(corporate marketing)marketing)
SBU level—(Strategic Marketing)SBU level—(Strategic Marketing) Product/Market level—(Functional Product/Market level—(Functional
Marketing)Marketing)
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Marketing at the SBU Level—Marketing at the SBU Level—Strategic MarketingStrategic Marketing
Strategic Marketing requiresStrategic Marketing requiresDetailed understanding of market needs, and Detailed understanding of market needs, and Proactive use of competitive intelligence at the Proactive use of competitive intelligence at the
corporate as well as SBU’s levelscorporate as well as SBU’s levels
Strategic Marketing Strategic Marketing Focuses on what the firm do best at the SBU levelFocuses on what the firm do best at the SBU levelTo secure and maintain a sustainable competitive To secure and maintain a sustainable competitive
advantageadvantage
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What is Competitive Advantage?What is Competitive Advantage?
““Competitive advantage is a Competitive advantage is a company’s ability to perform in one company’s ability to perform in one or more ways that competitors or more ways that competitors cannot or will not match.”cannot or will not match.”
Philip KotlerPhilip Kotler
““If you don’t have a competitive If you don’t have a competitive advantage, don’t compete.”advantage, don’t compete.”
Jack Welch, Jack Welch, GEGE
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Other Characteristics of Competitive Other Characteristics of Competitive AdvantageAdvantage
SubstantialitySubstantiality Is it substantial enough to make a difference?Is it substantial enough to make a difference?
SustainabilitySustainability Can it be neutralized by competitors quickly?Can it be neutralized by competitors quickly?
Ability to be leveraged into visible Ability to be leveraged into visible business attributes that will influence business attributes that will influence customerscustomers
(Source: Strategic Marketing Management, Aakers)
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Seeking Competitive AdvantagesSeeking Competitive Advantages Positions of advantagePositions of advantage
Superior customer valueSuperior customer value Lower relative total costLower relative total cost
Performance advantagesPerformance advantages Customer satisfaction, Loyalty, Market
Share, Profit
Sources of advantagesSources of advantages Superior skills & knowledge, Superior
resources, Superior business process
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Key Elements of Marketing Strategy Key Elements of Marketing Strategy FormulationFormulation
The strategic 3 Cs The strategic 3 Cs Customers, Competitors & the CorporationCustomers, Competitors & the Corporation
Environment analysis -- PESTEnvironment analysis -- PEST Strategic Marketing DecisionsStrategic Marketing Decisions
Where to competeWhere to competeHow to competeHow to competeWhen to competeWhen to compete
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Must have a clearly defined market Must have a clearly defined market Must have a good match between Must have a good match between
corporate strengths and market needscorporate strengths and market needsMust have significant positive Must have significant positive
differentiation in the key success differentiation in the key success factors of the businessfactors of the business
A Viable Marketing StrategyA Viable Marketing Strategy
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Situation AnalysisSituation Analysis
Internal Analysis—Internal Analysis—company; capability etc.company; capability etc.
External Analysis—External Analysis—customers, market definition, industry structurecustomers, market definition, industry structure
SWOT AnalysisSWOT Analysis SStrengths, trengths, WWeaknesses, eaknesses, OOpportunities & pportunities & TThreatshreats Identify & prioritize major problems and opportunities: selection of Identify & prioritize major problems and opportunities: selection of
key issueskey issues Based on the firm’s core competencies, decide on future Based on the firm’s core competencies, decide on future
optionsoptions
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Marketing AuditMarketing Audit
““Marketing audit is a comprehensive, Marketing audit is a comprehensive, systematic, independent, and periodic systematic, independent, and periodic examination of a company’s—or business examination of a company’s—or business unit’s—marketing environment, unit’s—marketing environment, objectives, strategies, and activities with objectives, strategies, and activities with a view to determining problem areas and a view to determining problem areas and opportunities and recommending a plan opportunities and recommending a plan of action to improve the company’s of action to improve the company’s marketing performance”marketing performance” Philip Philip KotlerKotler
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Characteristics of Marketing AuditCharacteristics of Marketing Audit
ComprehensiveComprehensive Must cover all marketing areasMust cover all marketing areas
SystematicSystematic Sequential diagnostic stepsSequential diagnostic steps
IndependentIndependent Internal & external auditorsInternal & external auditors
PeriodicPeriodic Performed at regular intervalsPerformed at regular intervals
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Marketing Audit ProcedureMarketing Audit Procedure Marketing environment auditMarketing environment audit Marketing strategy auditMarketing strategy audit Marketing organization auditMarketing organization audit Marketing system auditMarketing system audit Marketing productivity auditMarketing productivity audit Marketing function auditMarketing function audit Marketing excellence reviewMarketing excellence review Ethical and social responsibility reviewEthical and social responsibility review