Corporate Planning and Management Strategies

Learning Objectives

• Identify key tasks for company and business unit planning.
• Describe the process of developing a market offering.
• Explain the comprehensive process of marketing planning.

Corporate and Business Unit Planning and Management

• Management approaches businesses as an investment portfolio.
• Assess market growth rates in the context of company positioning.
• Develop viable business models tailored to market conditions.

Planning Activities

• Defining the Corporate Mission: Establishes the fundamental purpose of an organization; adaptable to market changes.
• Building Corporate Culture: Consists of organization structure, policies, and shared experiences that shape workplace norms.
• Establishing Strategic Units: Implementation of strategic business units (SBUs) to focus on distinct market segments.

Resources Assignment

• Allocate resources across SBUs for effective management, including:
  • Financial Resources
  • Intellectual Property
  • Human Resources
  • Research and Development
  • Sales and Distribution
  • Technological Resources
  • Marketing and Promotion
  • Customer Service and Support
  • Supply Chain and Logistics
  • Legal and Compliance

Defining the Corporate Mission

• Mission should address key questions:
  • What business are we in?
  • Who is our customer?
  • What value do we deliver?
  • What should our business be?
• Collaboration in mission development fosters shared purpose among employees and management.
• Effective mission statements have five characteristics:
  • Focus on a limited number of specific goals.
  • Emphasize major company policies and values.
  • Define targeted major markets.
  • Maintain a long-term perspective.
  • Be concise, memorable, and meaningful.

Characteristics of Strategic Business Units (SBUs)

• SBUs operate as distinct businesses or related collections of businesses within a company.
• Each SBU has its own competitive landscape.
• A designated manager oversees strategic planning and profitability of each SBU.

Portfolio Types

• Specialized Portfolio: Involves SBUs with a narrow range of products.
• Diversified Portfolio: Comprises SBUs with broader product assortments catering to varied markets.

This quiz explores the essential strategies for corporate and business unit planning. It covers the process of developing market offerings, defining corporate missions, and managing resources effectively. Test your understanding of key management concepts and how they relate to market positioning.