Strategic planning is the starting point for the rest of the planning of the firm. There are four stages
of strategic planning, the first three of which are at the corporate level, the final one at the business
unit, product and market level.
Defining Setting designing
Planning
the the firm's the
marketing
firm's objectives business
strategies
mission and goals portfolio
Defining a market-orientated mission
A firm exists to accomplish something. The formulation of a mission statement gives the firm
direction. Mission statements should be market-orientated and defined in the terms of customers
needs. Example: Amazon.com – we make the internet buying experience fast, easy and enjoyable –
we’re the place where you can find and discover anything you want to buy online. Basic market
needs last forever, though products become outdated. Furthermore, mission statements must be
motivating, should fit the market environment and be based on the firm’s distinctive competencies.
Setting business objectives and goals
These will be all your objectives the firm wishes to achieve when implementing the market
strategies.
Designing the business portfolio.
Guided by the mission statement and objectives the firm must now plans its business portfolio. This
is done by first analysing the current business portfolio (where to invest) and then shaping the future
business portfolio by developing strategies for growth and downsizing.
The first step in the portfolio analysis is to indentify the key businesses making up the firm known as
the strategic business unit (SBU). These can be a firm divisions, product lines or single product. We
can now decide the attractiveness of the SBU’s market and the strength of the SBU’s position in that
market, with the more attractive SBU’s gaining more support from the entire organisation. The best
portfolio planning method was developed by the Boston Consulting Group (BCG), known as the
Growth-share matrix. Problems with the matrix approach are that is costly and provides little advice
for future planning. (Stars, Question Marks, Cash Cows, Dogs)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kelG. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.91. You're not tied to anything after your purchase.
