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Questions and Answers
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?
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What does Starbucks sell, according to their market-oriented definition?
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What is the focus of company-wide strategic planning?
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What is a major activity in strategic planning?
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What is the marketing objective of increasing market share?
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What is the primary goal of strategic planning?
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What is the process of continuously matching a company's objectives and capacities against evolving opportunities and threats in the external environment?
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What is the primary purpose of a mission statement?
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What is the benefit of having a motivating mission statement?
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What is the level of planning that involves a concern or company as a whole?
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What is an example of an SBU in the company Nike?
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What is the term for defining a mission statement based on the basic needs of the market?
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What should a mission statement avoid being?
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Study Notes
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
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Description
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.
