LECTURE 2 - WHAT IS STRATEGIC PLANNING

Question 1

Importance of strategic planning

Answer 1

• ensures alignment between an organization’s goals and capabilities with evolving market opportunities
• focuses on long-term planning (5+ years), including functional areas like marketing, finance and R&D

Question 2

define company mission

Answer 2

• defines purpose and direction
• example: Disney’s mission focuses on leading in entertainment by delivering innovative experiences
• McDonald’s Values: customer experience, ethical operations, community involvement etc

Question 3

define company goals and objectives

Answer 3

• translate mission into actionable goals, like expanding brands or maximizing earnings
• objectives might include protecting and acquiring new brands, like Disney’s goal or brand diversification

Question 4

define business portfolio

Answer 4

• a mix of strategic business units (SBUs) that represent different areas or products within the company
• Disney’s SBUs: Media networks, parks and resorts, studio entertainment, consumer products, and Disney Interactive

Question 5

define designing marketing strategy

Answer 5

• segmenting the market, targeting customers, positioning products, and developing the marketing mix (4 Ps: product, price, place and promotion)

Question 6

describe the strategic planning tool - Boston Consulting Group (BCG) Matrix

Answer 6

• analyzes SBUs based on market growth and market share
  Categories:
• stars: high market share, high growth
• cash cows: high market share, low growth
• question marks: low market share, high growth
• dogs: low market share, low growth

Question 7

describe the strategic planning tools - product-market expansion grid

Answer 7

Future-oriented tool to identify growth opportunities through:
- market penetration: increase sales in existing markets
- market development: expand into new markets
- product development: develop new products for current markets
- diversification: enter new markets with new products

Question 8

Explain the case study: Disney’s diversification strategy

Answer 8

• purpose: expanding content and capabilities while managing risk
• example acquisitions: Pixar, marvel, Lucasfilm, 21st century fox
• benefits: risk spread and resource utilization
• challenges: complexity and risk in managing diverse businesses

Question 9

Explain the case study: Dell Technologies

Answer 9

• mission: to drive human progress through technology
• vision: empowering individuals and organizations to thrive with technology
• core values: customer focus, teamwork, innovation, accountability, and integrity
• hypothetical product launch: dell considering entering the portable monitor market to leverage existing expertise and meet new consumer demands