Chapter 2 Company and Marketing Strategy
Chapter 2 Company and Marketing Strategy
Formal Planning Many companies operate without formal plans,yet these plans can provide many benefits such as: -Encouraging management to think ahead systematically. Forcing managers to clarify objectives and policies. Better coordination of company efforts. -Clearer performance standards for control. -Helping the company to anticipate and respond quickly to environmental changes and sudden developments
Formal Planning • Many companies operate without formal plans, yet these plans can provide many benefits such as: – Encouraging management to think ahead systematically. – Forcing managers to clarify objectives and policies. – Better coordination of company efforts. – Clearer performance standards for control. – Helping the company to anticipate and respond quickly to environmental changes and sudden developments
Strategic Planning Strategic Planning is the Process of Developing and Maintaining a Strategic Fit Between the Organization's Goals and Capabilities and Its Changing Marketing Opportunities
一．Strategic Planning Strategic Planning is the Process of Developing and Maintaining a Strategic Fit Between the Organization’s Goals and Capabilities and Its Changing Marketing Opportunities
Steps in Strategic Planning Business unit, Corporate Level product, and market level Planning, Defining the Setting Designing marketing, Company Company ◆ the Business Objectives and other Mission Portfolio and Goals functional Strategies
Steps in Strategic Planning Defining the Company Mission Setting Company Objectives and Goals Designing the Business Portfolio Planning, marketing, and other functional Strategies Corporate Level Business unit, product, and market level
()Defining a market-oriented Mission A Mission Statement is a Statement of the Organization's Purpose Market Oriented Characteristics of Realistic a Good Mission Statement: Specific Fit Market Environment Distinctive Competencies Motivating
Market Oriented Realistic Fit Market Environment Distinctive Competencies Motivating Specific Characteristics of a Good Mission Statement: A Mission Statement is a Statement of the Organization’s Purpose. (一) Defining a market-oriented Mission
()Setting Company Objectives and Goals Mission Statement Marketing Marketing Marketing ⊙bjective#1 Objective 2 Objective 3 Marketing Marketing Marketing Marketing Marketing Strategy Strategy Strategy Strategy Strategy
(二) Setting Company Objectives and Goals Marketing Strategy Marketing Strategy Marketing Objective # 1 Marketing Strategy Marketing Objective # 2 Marketing Strategy Marketing Strategy Marketing Objective # 3 Mission Statement
(Designing the Business Portfolio The business portfolio is the collection of businesses and products that make up the company. The company must: analyze its current business portfolio or Strategic Business Units(SBU's) decide which SBU's should receive more,less,or no investment develop growth strategies for adding new products or businesses to the portfolio
(三) Designing the Business Portfolio • The business portfolio is the collection of businesses and products that make up the company. • The company must: – analyze its current business portfolio or Strategic Business Units (SBU’s) – decide which SBU’s should receive more, less, or no investment – develop growth strategies for adding new products or businesses to the portfolio
1.Analyzing Current SBU's: Boston Consulting Group Approach Relative Market Share High Low Stars Question Marks ·High growth&share High growth,low share ·Profit potential Build into Stars or phase out ·May need heavy 。Require cash to hold investment to grow market share Cash Cows Dogs Low growth,high share 。Low growth&share 言 Established,successful Low profit potential SBU's .Produce cash
Question Marks • High growth, low share • Build into Stars or phase out • Require cash to hold market share Stars • High growth & share • Profit potential • May need heavy investment to grow Cash Cows • Low growth, high share • Established, successful SBU’s •Produce cash Dogs • Low growth & share • Low profit potential Relative Market Share High Low Market Growth Rate Low High 1. Analyzing Current SBU’ s: Boston Consulting Group Approach ?
Analyzing Current SBU's: GE's Strategic Business-Planning Grid Business Strength Strong Average Weak High Medium snpur Low
Business Strength High Medium Low Strong Average Weak A B C D Industry Attractiveness Analyzing Current SBU’ s: GE’s Strategic Business-Planning Grid
Problems With Matrix Approaches Can be Difficult,Time-Consuming,&Costly to Implement Difficult to Define SBU's Measure Market Share/Growth Focus on Current Businesses,But Not future Planning Can Lead to Unwise Expansion or Diversification
Can be Difficult, Time-Consuming, & Costly to Implement Difficult to Define SBU’s & Measure Market Share/ Growth Focus on Current Businesses, But Not future Planning Can Lead to Unwise Expansion or Diversification Problems With Matrix Approaches