Strategic Planning

Assigning Resources to SBU,s

•BCG MODEL

•GE MODEL
 Strategic Planning

It is more important to do what is

Strategically Right
Than what is immediately
Profitable
“ How to Adapt to Continuously
Changing Market Place “

Market Oriented Strategic Planning

 Market Oriented Strategic Planning

“It is the managerial process of developing

And maintaining a viable fit between the
Organization's
Objectives, Skills and Resources
And its changing market opportunities”
 Market Oriented Strategic Planning

3 KEY AREAS

• Managing Business as an Investment

• Each Business Strength With Market

Growth

• Strategy for each Business

 Strategic Planning

Corporate Level -corporate plan

Division Level -division plan

Business Unit Plan –BU Strategic Plan

Product Level –Market Plan for each

product
 MARKETING PLAN

Strategic Market Plan Tactical Marketing Plan

Current Market Situation Specific Marketing Tactics

Advertising
Merchandising
Opportunities Pricing
Channels
Service
 Strategic Planning Process
PLANNING IMPLEMENTING CONTROLLING

Corporate
Corporate
Planning
Planning Measuring
Results
Organising
Division
Division
Planning
Planning Diagnosing
Results
Business
Business
Planning
Planning
Implementing Taking
Corrective
Product
Product Action
Planning
Planning
 Corporate
Planning

Division
Planning
4 Planning Activities Business
Planning

Product
Planning
5. Defining Corporate Mission
6. Establishing Strategic Business Units
7. Assigning Resources To each SBU
8. Planning New Business
Downsizing older Business
1 Corporate Mission

A mission is a statement of general purpose:

the reason the organization exists.
Who are we?
What do we do?
For whom we do it ?
Why do we do it?
What is a Goal ?

Goals should be directed towards a vision and

consistent with the Mission.
Something the organization wants and expects
To accomplish in the future
What is an Objective ?

An objective is: a specific measurable result

Expected within a particular time period,
Consistent with a goal and strategy. A clear
Milepost along the strategically chosen path
to the goal
What is a strategy ?

The action path the organization has

chosen to realize goals. Strategies
establish broad themes for future
actions and reflect reasoned choices
among alternative paths
Mission Statement - 3 major Characteristics

6. Focus on Limited Number Of Goals

8. Stress Major Policies & Values of company

10.Define Major Competitive Scopes

Within which company operate
Competitive Scopes

Industry Scope
Products & Application Scope
Competence Scope
Market Segment Scope
Vertical Scope
Geographical Scope
Establishing Strategic Business Unit

Dimensions

Customer Group -middle Income

Customers Needs -Cheaper Cars

Technology -fuel efficiency

3 CHARACTERSTICS OF A SBU

1. Single or collection of Related Business

3. Own Set of Competitors

5. Manager who is responsible for

St. Planning