Strategic Planning

Strategic planning is defined as:
“The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.”

Planning activities occur at the business unit, product, and market levels, and include:
Defining the purpose and mission
Setting objectives and goals
Designing the business portfolio
Developing detailed marketing and departmental plans

Mission statements should . . .
serve as a guide for what the organization wants to accomplish.
be “market-oriented” rather than “product-oriented”.
be neither too narrow, nor too broad.
fit with the market environment.
be motivating.

Mission statements guide the development of objectives and goals.
Objectives are developed at each level in the organization hierarchy.
Strategies are developed to accomplish these objectives.

Business portfolio:
“The collection of businesses and products that make up the company.”
Designing the business portfolio is a key element of the strategic planning process.

•Step 1: Analyze the current business portfolio
•Step 2: Shape the future business portfolio

Step 1: Analyze the current business portfolio

•Identify strategic business units (SBUs)
•Assess each SBU:
The BCG growth-share matrix classifies SBUs into one of four categories using the:
Market growth rate
SBU’s relative market share within the market.

Step 2: Shape the future business portfolio

•Determine the future role of each SBU and choose the appropriate resource allocation strategy:
Build
Hold
Harvest
Divest
•SBUs change positions over time