Week 5 - Objectives & HLS

Question 1

What are 4 critical decisions used at the beginning of the strategic developmental process

Answer 1

1. Mission and Strategic Intent
   Does the current mission and vision statement reflect the reality of the situation faced? Determine
2. Does it fit their current business practices?
3. Does it reflect the situation facing the organisation? (based off
   situation analysis)
4. Is their mission and vision of best fit for the organisation?
5. Does their current mission and vision need to be changed?
6. Strategic Analysis
   Determine the most important factors to exist
7. Analyse findings of situation analysis
8. SWOT
9. How to harness the assesment
10. Corp Strategies
    Develop at high level of org
11. To create and dev high level sustainable long-term value
12. Foster development of strategies that deliver greater value than individual BUs
13. SBU Strategy
    The way BUs compete in industry
    - Nature of existing markets
    - Competitive position in markets
    - Sources of Comp position
    - Organisational Culture

Question 2

Describe the 3 frameworks used to help marketers conduct strategic positioning

Answer 2

1. PLC
   - Access Market Growth Projections
   - Access Past Strategies
   - Useful for strat dev
2. Portfolio BCG matrix
   - Access balance of market/product
   - Helps maintains a balanced portfolio
   - Useful for determining objectives and strats
3. GE/McKinsey Model

Question 3

What are some Key Marketing Performance Objectives?

Answer 3

Performance objectives
- Profitability
- Market Share
- Growth

Question 4

What are some key frameworks to guide marketers in setting marketing objectives?

Answer 4

• 3 Cs ( Customer / Company / Competitor )
• Sustainable Corp Advantage (SCA)
• Critical Success Factors (CSF)

Question 5

What are the 5 steps to setting Marketing Objectives?

Answer 5

1. Look at your problem and opportunities statement
2. Consider corporate/business unit objectives
3. Past marketing objectives may be a precedent
4. Judgmental and forecasting methods are used

Note: Objectives are not set in stone and often change during the
strategic planning cycle

Question 6

What are the 2 types of marketing objectives?

Answer 6

Sales activation (Short Term)
Brand Building (Long Term)

Question 7

How should marketers write Marketing Objectives?

Answer 7

1. Always make it SMARTT with numerical/quantitative values and
   set within a timeframe
   Specific
   Measurable
   Achievable
   realistic
   Targeted
   Timed
2. Always provide a rationale (referencing situation analysis,
   forecasting, past objectives, etc.)

Question 8

What makes High Level Strategies so special?

Answer 8

1. They are MECE (mutually exclusive, comprehensively exhaustive)
   - No overlap in data
   - covers all possible data sets
2. Each alternative is a unique combination
   - Applying different strategies to the same problem provides a different and unique perspective

Question 9

Describe Generic Strategy as a HLS

Answer 9

The concept of Generic Strategies comes from Michael Porter’s work on competitive strategy. It provides a high-level framework that companies can use to establish a competitive position within their industry.

The main premise is that a company’s competitive advantage arises primarily from either cost leadership, differentiation, or focus.

Cost Leadership (Compete on price)
- Sales V increase for firm
- Cheaper for consumers

Differentiation (Compete on Product)
- Increase Profit Margins for firm
- Better product for consumers

Focus (Finding most Profitable customer segment)
- Increase profit margins
- More products for customer

Question 10

Describe Competitive Strategy as a HLS and list the 3 different ways firm engage with it.

Answer 10

Competitive strategy, at its core, refers to the plan an organization develops to achieve a sustainable competitive advantage over its rivals in the marketplace.

A. Market Signalling (No Direct Confrontation)
- Any action by competitor or you that provides direct or indirect indication of interactions, motives, goals.
Example: Public Discussions or announcement of moves

B. Offensive Strategies
- Frontal Attack (Attack where comp is strong)
- Flanking attack (Identify less obv lines of attack)
- Encirclement Attack (Multiple Directions)
- Bypass Strategy (Attack easier territories and dev there)
- Guerrilla Tactics (Small Intermitent Attacks)

C. Defensive Strategies
- Position defence (Reinforce of the fort)
- Mobile Defence (Shifting Resources to new fields)
- Pre-Emptive Strike (Attack before being attacked)
- Flanking Defence (Defend flanks against attacks)
- Counter Offensive Defence (Attack Response)

D. Product Market Strategy
Ansoff Product Matrix Draw Diagram
- Purpose: Identify where business opp are
- How to Use: Dev strategic ideas for each combination (Existing/New)
- 4 elements to analyse

1. Market Penetration (Existing M Existing P)
   - Increase pri and secondary demand
   - Increase usage of products
2. Market Development (New M Existing P)
   - New Geo Markets
   - New Market Segments
3. Incremental Innovation (Existing M New P)
   - Product Line Extension
   - Product Modifications
4. Radical Innovation (New M New P)
   - Pioneering Marketing Startegies
   - Market follower strategies (Innovative Imitation)

Question 11

Describe Consolidation Strategy as a HLS

Answer 11

To focus business on a smaller set of markets
- Divestment (Selling off biz or product line)
- Pruning (Reduce number of products or services in market)
- Retrenchment (Withdraw from a certain market)