Ch.3 Strategic Planning Flashcards
Managerial process of
Creating/maintaining a fit btw org’s objectives/resources & evolving market environment
Goal : long-run profitability & growth
Strategic planning
3 Levels of Strategic Planning
- Corporate
- Business
- Marketing
“___” takes place at the highest level of org, sets direction & scope
- mission statement
- set org goals & obj
- key business opportunities & constraints
- allocation of resources
Corporate Strategic Planning
Strategic directions incl.
SWOT analysis/ Portfolio analysis/ Growth strategy
“___” is undertaken at SBU level, addresses
- issues of when/ where/ how/ whom to compete
- Goal : gain competitive advantage
- identify core competencies
Business Strategic Planning
“___” aim at Target Market & Mktg Mix
- incl. production/ branding/ $/ communication
- identify target markets
- develop mktg mix (4p)
- mktg audits/annual review
Marketing Strategic Planning
A subgroup of business(es) which has
- specific Mission & Target Market
- control over resources/competitors
- independent plans
SBU
Strategic Business Unit
Strategic vs Tactical in
1. decision level
2. scope width
3. term length
4. impact long-run
Strategic / Tactical
1. All 3 / low operation or mktg lvl (directed by corporate level)
2. Wide / Narrow
3. Long / Short
4. Affect resource, financial /
limited profitability impact
___
- Answers “the value we provide”
- based on analysis of Cx’s benefits
- establish boundaries for decision/ obj/ strategy
Mission Statement
In business planning for Competitive Adv., completing a SWOT analysis to
- Implement strategy for SBU growth
- Achieve Competitive Adv.
- Identify Core Competencies
SWOT analysis:
Internal environment &
External environment
Strength & Weakness
Internal
Financial/ Mngt/ Mktg
Opportunities & Threats
External
Competitive/ Regulatory/ Economic/ Social/ Tech
Ansoff’s Strategic
Opportunity Matrix
Current ←Product→ New
Market Penetration
↑ Product Dev.
Market
↓ Market Dev. Diversification
New
Market Penetration
Ansoff’s strategic opportunity matrix
Increase market share among existing Cx by
selling more current products
e.g. reloadable card/ all-day brkfst
Market Development
Ansoff’s strategic opportunity matrix
Attracting new Cx
to existing products
e.g. oversea branches & localized additions
Product Development
Ansoff’s strategic opportunity matrix
New products/trends for current market
e.g. new soup/ sandwiches/ donuts
Diversification
Ansoff’s strategic opportunity matrix
New products intro into new markets
Riskiest
e.g. Indigo books→home/ fashion/ wellness
___ is a set of unique features of a company & its products perceived by target market as
significant & superior in competition
Competitive Advantage
in
- Cost
low-cost w/ satisfactory profit
- P/S Differentiation
unique & valuable benefit
- Niche Strategies
serve single market segmt
geographic / product
8 Cost Competitve Advantages
- Experience Curve
- Efficient Labour
- No-Frills G/S
- Gov Subsidies
- Product Design
- Re-Engineering
- Production Innovation
- New Srv Delivery
Advantage that cannot be copied by the competition
Sustainable Competitive Adv.
2 Sources of tomorrow’s competitive advantages
Skills & Assets
A statement of what to accomplish thru mktg activities
Marketing Objective
5 Criteria of Marketing Objective
SMART
1. Specific
no guessing
2. Measurable
unit e.g. $
3. Attainable
realistic reachable
4. Relevant
on-brand, mission-paralleled
5. Time-Bound
time window assigned
Target market strategy identifies market segmt. & begins w/ “___”
then decide how many segmts
MOA
Market Opportunity Analysis
Description & est. of size & sales potential of market segmts that are
of interest to the business &
assessment of competitors
Marketing Mix
Product
Place
Promotion
Price
4P
Heart of Marketing Mix & starting point
in Marketing Mix
Product strategies
& product offering
