Chapt 2 Flashcards
What does the Strategic Planning Process involve?
Developing an overall company strategy for growth and survival.
What are the components of the Strategic Planning Process?
Defining a mission, company objectives, designing a business portfolio, and planning functional strategies.
Strategic Planning Organizational Goals and Objectives
Includes revenue, profitability, ROI (return of investment), innovation and customer relations.
Designing the Business Portfolio of the Strat. Proc.
A portfolio that fits the company’s strengths and weaknesses to the opportunities in the environment
What are the parts of the Business Portfolio?
Analyzing current strategic business units, deciding what SBU’s should receive more or less investment, and developing growth strategies for adding new products to the portfolio.
Market Growth
Overall demand for products
Relative Market Share
Strength of your company’s products in a market
Worst place to be in the Boston Consulting Growth Chart
Stars, fast growing market, demand rising, so does investment, bringing in lots of revenue, not making much money
Best place to be in the Boston Consulting Growth Chart
Cash cows, slow growth market, need for investment isn’t high, bringing in revenue.
Industry Attractiveness Factors
Market size, growth rate, competition, profit margins, technology
Business Strength Factors
Market share, product quality, brand reputation, other company resources
SWOT Analysis
strengths, weaknesses, opportunities, threats
Unfavorable qualities in the SWOT analysis
Opportunities and Threats, come from external environments
Favorable qualities in the SWOT analysis
Strength and Weaknesses, come from internal capabilities
Functions of Marketing
Buying
Selling
Storing
Financing
Standardization and grading
Risk taking
Transportation
Market Information
