Strategic Planning in Business

What is the focus of a market-oriented definition?

What is the objective of building profitable customer relationships?

What is the term for the collection of businesses and products that make up a company?

What is the purpose of portfolio analysis?

What does Starbucks sell, according to their market-oriented definition?

What is the focus of company-wide strategic planning?

What is a major activity in strategic planning?

What is the marketing objective of increasing market share?

What is the primary goal of strategic planning?

What is the process of continuously matching a company's objectives and capacities against evolving opportunities and threats in the external environment?

What is the primary purpose of a mission statement?

What is the benefit of having a motivating mission statement?

What is the level of planning that involves a concern or company as a whole?

What is an example of an SBU in the company Nike?

What is the term for defining a mission statement based on the basic needs of the market?

What should a mission statement avoid being?

Strategic Planning Process

The strategic planning process involves outlining the direction of a firm, making decisions about goals and objectives, and formulating strategies to achieve them.

Levels of Planning

Concern/company level: Nestlé
SBU (strategic business unit) level: Coffee, baby food, pet food, waters (Nestlé)
Product/market-combinations (delineated product groups that operate on a clearly definable market): Gourmet (premium pet food)

Examples of SBUs and Product/Market-Combinations

Philips: Healthcare, lightning, consumer lifestyle
Nike: Athletic, Yoga, Basketball, Boxing,... Basketball footwear, Basketball apparel, Basketball accessories
Apple: iPhones, Airpods, Macbooks,... MacBook Pro line

Mission Statement

A mission statement is a statement of the organization’s purpose; what it wants to accomplish in the larger environment.

Defining a Mission Statement

Based on a vision: how management sees the branch/market in its whole
Start from basic needs of the market: not in terms of products or technology, but in terms of customer needs
Not delineated too narrow, but neither too broad: actionable guidelines
Realistic: based on company’s unique assets and competencies
Motivating: giving employees a sense they can provide a positive contribution to others’ lives

Examples of Mission Statements

Starbucks: from "We sell coffee and snacks" to "We sell 'The Starbucks Experience,' one that enriches people’s lives in one moment, one human being, one extraordinary cup of coffee at a time."
Sephora: from "We are a beauty products retailer" to "We sell lifestyle and self-expression by helping customers to unlock their beauty potential."

Objectives and Goals

Setting company objectives and goals
Business objectives: build profitable customer relationships, invest in research, improve profits
Marketing objectives: increase market share, create local partnerships, increase promotion

This quiz covers the strategic planning process in a business organization, including setting goals and objectives, and matching company capabilities with external opportunities and threats.