Developing a Strategic Plan

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Developing a Strategic Plan I. LOOKING AHEAD: PREVIEWING THE CONCEPTS The hard task of selecting an overall company strategy for long-run survival and growth is called strategic planning. II. STRATEGIC PLANNING Each company must find the game plan that makes the most sense given its specific situation, opportunities, objectives, and resources. Strategic planning: The process of developing and maintaining a strategic fit between the organization’s goal and capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies. Strategic planning sets the stage for the rest of the planning in the firm. Companies usually prepare annual plans, long range plans, and strategic plans. The strategic plan involves adapting the firm to take advantage of opportunities in its constantly changing environment. Marketing planning occurs at the business-unit, product, and market levels, supporting company strategic planning with more detailed planning for specific marketing opportunities. A. Defining a Market-Oriented Mission Mission statement: A statement of the organization’s purpose – what it wants to accomplish in the larger environment. A clear mission statement acts as an “invisible hand” that guides people in the organization. Mission statements should be market oriented; a market-oriented mission statement defines the business in terms of satisfying basic customer needs. A mission should be realistic, specific and the mission should fit the market environment. The organization should base its mission on its distinctive competencies. Finally, mission statement should be motivating. B. Setting Company Objectives and Goals * This mission leads to a hierarchy of objective, including business objectives and marketing objectives. * Marketing strategies must be developed to support these marketing objectives. * Each broad marketing strategy must then be defined in greater detail. C. Designing the Business Portfolio Guided by the company’s mission statement and objectives, management now must plan its business portfolio. Business portfolio: the collection of businesses and products that make up the company. The best business portfolio is the one that best fits the company’s strengths and weakness to oppor... ... middle of paper ... ...markets, and channels. 2. Strategic control: involves looking at whether the company’s basic strategies are well matched to its opportunities. Marketing strategies and programs can quickly become outdated, and each company should periodically reassess its overall approach to the marketplace. a. marketing audit Marketing audit: A comprehensive, systematic, independent, and periodic examination of a company’s environment, objectives, strategies, and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company’s marketing performance. F. The Marketing Environment The company operates in a complex marketing environment, consisting of uncontrollable forces to which the company must adapt. The environment produces both threats and opportunities. The company must carefully analyze its environment so that it can avoid the threats and take advantage of the opportunities. VI. LOOKING BACK: REVIEWING THE CONCEPTS The hard task of selecting an overall company strategy for long run survival and growth is called strategic planning. Strategic planning sets the stage for the rest of the company’s planning, including marketing planning.
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