Professional Documents
Culture Documents
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Strategic Planning
Strategic Planning is the process of developing and maintaining a Strategic fit between the organizations goals and capabilities and its changing marketing opportunities. Strategic Planning involves1. Defining the corporate mission 2. Setting objectives 3. Designing business portfolio 4. Coordinating functional efforts
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Corporate Headquarters Planning Activities Define the corporate mission Establish strategic business units (SBUs) Assign resources to each SBU Assess growth opportunities
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Table 2.3
Product vs. Market Oriented Mission Company
Missouri-Pacific Railroad Xerox Standard Oil Columbia Pictures
Product
We run a railroad We make copying equipment We sell gasoline We make movies
Market
We are a peopleand-goods mover We improve office productivity We supply energy We entertain people
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Characteristics of SBUs
It is a single business or collection of related businesses It has its own set of competitors It has a manager responsible for strategic planning and profitability
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Boston Consulting Group (BCG) Approach The growth-share matrix is divided into four cells based on market growth rate and relative market share.
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SBU Strategies
1.Build/Invest- Question Marks 2. Hold/Maintain- Stars and strong Cash cows 3. Harvest- Weak Cash Cows 4. Divest- Dogs
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General Electric (GE) Approach The General Electric Business Screen was originally developed to help marketing managers overcome the problems that are commonly associated with the Boston Matrix (BCG). The GE approach introduces a three by three matrix. It utilizes industry attractiveness as a more inclusive measure than BCG's market growth and substitutes competitive position for the original's market share.
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Existing markets
1. Market penetration
3. Product development
New markets
2000 Prentice Hall
2. Market development
4. Diversification
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SWOT Analysis
Strengths Weaknesses Opportunities Threats
2-23 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
Differentiation
Focus
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