Strategic Planning in Business

Question 1

Strategy?

Answer 1

Activities –> To reach objectives.

Question 2

Objectives?

Answer 2

Profitability ( rate of return on invested capital) 
Profit Growth ( % increase in profit over time)

Question 3

Approaches?

Answer 3

(For profitability) 
1. Add value
2. Lower costs
( For profit growth) 
3. Sell more in existing markets
4. Expand internationally

Question 4

Value creation

Answer 4

Differentiation : Adding value to the product such that people are willing to pay more /

Cost differentiation :
Penetration pricing / lowering price such that the customers are attracted to the rates and this creates a demand and market can be gained

Question 5

Strategic Positioning

Answer 5

Internal operations to be supported for creation of these differentiation strategies.

1. Pick viable position
2. Configure internal operations accordingly.
3. Have the right organization structure to execute strategy

Question 6

Strategies to go global

Answer 6

1. Global standardisation
2. Transitional strategy
3. localisation strategy
4. International strategy

Question 7

Global standardisation

Answer 7

low cost strategy on global scale

To be done when there are pressures for cost reduction and demands for local response are minimal (COCA COLA)

Question 8

Localization

Answer 8

To be done when substantial differences across nations with regard to consumer taste and cost pressure not intense. (eg, KFC, also true for whisky pakcaging sizes, spice tolerance etc., veg india)

Question 9

Transitional

Answer 9

Intense cost pressures and intense pressure for local response.. ( mcdonalds)

Question 10

International

Answer 10

products produced for domestic markets 0 sell them internationally.

to be done when low cost pressures and low pressures for local responsiveness.

Question 11

Strategic marketing management (SMM) process

Answer 11

Analysis ( macro env, competition, internal env)

strategy choice: orientation, direction and metod of development

implementation : tactical plans, success factors, structure org, leadership styles, corporate culture.

Question 12

SMM answers

Answer 12

where are we now
where to go
how to go
how to ensure arrival

Question 13

Where are we now

Answer 13

current position?
likely changes in market env?
key competitors?
how to differenciate offerings from them?
target customers?
needs of target customers??
type of competitive adv?
core competance?

Done through Analyse internal, micro and macro env.

Question 14

Where to

Answer 14

strategic direction?
products?
target markets?
competitive stance/
positioning stratgey?

Question 15

Strategic fit

Answer 15

int strengths and weakness to external opportunities and threats and org resources and core competance to competitive position

Question 16

HOW To get there

Answer 16

by strategic implementation. it is the translation of strategy into organization action through organizational structure ,resource planning and the management of strategic change.

Question 17

Ensure arrival?

Answer 17

1. new product success
2. market retention
3. cust satisfaction
4. cust loyalty
5. prod quality
6. Acq. of new customers
7. Repeat purchasing frequencey

Question 18

MARKETING?

Answer 18

combination of selling, promoting and targeting.

OR

management process of anticipation, identifying and satisfying customer requirements with a profitability.

Question 19

why marketing?

Answer 19

1. customer focused ( segmentation)
2. up to date market information
3. increases awareness of competitive position
4. forward planning
5. integrated management approach
6. increased surival rate

Question 20

ow to organize for marketing

Answer 20

1. centralized structure
2. Decentralized structure
3. Marketing’s role in organisation
4. the purpose of the marketing information system
5. the customer interface

Question 21

focus of marketing orientated firm?

Answer 21

focuses on delivering products designed according to customer desires, needs and requirements

1. product policy
2. customer requirement
3. channel intermediary requirements

Question 22

Controlling marketing activities

Answer 22

1. measurable
2. easily communcated
3. flexible
4. easily understood
   5, responsible
5. on- going
6. Supported by top managment

Question 23

Types of marketing

Answer 23

1. strategic marketing

2. opeartional marketing

Question 24

Strategic marketing

Answer 24

identify customer values.

keep firm on track

by doing right for customers
(Usually 3-5 years)

Question 25

Operational Marketing

Answer 25

Defining how to carry out marketing activities more efficiently.

Doing the right thing.

( Role is to produce tactical marketing plans that cove the actions to be taken during a short term planning period. ( 1 year or less )

Question 26

Ops v/s Strategic

Answer 26

Action v/s analysis oriented

Existing v/s new opportunities

stab;e v/s dynamic env

reactive v/s proactive behaviour

day to day v/s longer range managment

marketing v/s cross functional org.

Question 27

Strategic lvl

Answer 27

1. Analyse and identify customers
2. also, competitors
3. company offerings to be defined and provide better value to customer
4. position the company’s offering the market place.

Question 28

Effective Mangement

Answer 28

1. consumer behaviour analysis( what customer needs and wants – aim to satisfy)
2. Strategic analysis and choices( thorough understanding of env in which the business operates)
3. Segmentation and positioning ( directed at various customer groups and involves tjuings like ho wthe company wnts to be perceived in the eyes of its market)
4. Integration ( to be well coordinated to provide customers well)