STRATEGIC

MARKETING
“Strategic Planning and
Demand Measurement”

MBA (FM/HR/IT) 2009-11

III Trimester

By-
Balram Chaudhary
OUTLINE OF THE PRESENTATION

 Definition of Strategic Planning

 Steps of Strategic Planning
 Levels of Strategic Planning
 Vision Statement
 Mission Statement
 Examples of Mission and Vision Statements
STRATEGIC PLANNING
Strategic planning is the managerial process of
developing and maintaining a strategic fit
between the organization's objectives and
resources and its changing market
opportunities.

Org Objectives Strategic Fit Resources

Changing Environment
STEPS IN STRATEGIC PLANNING
1. Environmental Analysis: External & Internal
2. Developing a Mission and Vision
3. Setting Primary Strategic Directions &
Goals
4. Crafting Strategy and Action Plans for Each
Goal
5. Implementing and Executing the Strategy
6. Evaluating Performance
7. Initiating Corrective Adjustments
STRATEGIC PLANNING PROCESS:
ANSWERING THREE BIG QUESTIONS

1. Where are we now?

2. Where do we want to go?

3. How do we get there?

THREE LEVELS OF STRATEGIC
PLANNING
 Corporate Level:
 Long term plans are made
 Attitude at the corporate level reflect the concern
of the stakeholders and society at large
 It deals with the area of business in which the
company is going to operate
 It works on the objective, mission and vision of
the organization
CONTN’D
 Business Level
 It involves making decisions about the
competitive position of a single business unit.
 Managers at this level deals with the competitive
advantage of the company on a specific product
area
 Strategy at this level focus on the generic
strategies such as cost leadership, differentiation
and focus to create competitive advantage.
CONTN’D

 Functional Level
 This level consists of managers from
geographic, product ad functional areas.
 These managers design short term strategies
and fix annual objectives in different areas such
as research and development, finance and
accounting, marketing, production, operation
and human relations
 The functional level objectives are quantifiable
VISION AND MISSION
 Vision and mission acts as guidelines for
strategy formulation
 The process of strategy formulation involves
articulating a vision for the organization
 Translating the vision into a mission that
defines the organization’s purpose
 Converting the mission into performance
objectives
 Detailing each objectives into specific goals

 Formulating tactics and strategies for

accomplishing the goals.
ORGANIZATIONAL DIRECTION

Founder
Top Management
Unit together with top management

Unit manager with approval of superiors

Each level, in conformity with other unit
policies

Individual managers, in
conformity with unit policies

Source: P. Subba Rao, Business Policy and Strategic Management, (HPH), 91

VISION STATEMENT

A statement that clearly defines the firm’s

“reason” for being in business
 Should significantly stretch the resources and
capabilities of the firm
 Should inspire people in the organization to
achieve things they never thought possible
 Should unite people in the organization toward
the pursuit of one common goal
VISION STATEMENT
 Indicates what the organization wants to
become; what it sees itself as being in the
future.
 Gives directions rather than destination. It
comes from the heart.
 Is inspirational and provides the energy and
passion to achieve goals.
 Lets people know that some greater good will
be accomplished for mankind.
COMPONENTS OF A VISION
STATEMENT
A good vision statement comprises two main
components:

 Core Ideology
 What we stands for
 Why we exists

 Envisioned Future
 What we aspire to become, to achieve and create
MISSION STATEMENT

 The Mission Statement should define:

 Products and services provided
 Customers that will be served
 How the products and services will be
provided
 The results that are expected
 ELEMENTS OF A MISSION
FIGURE 2.3
STATEMENT
 “What We Do, Who We Do It For, How We Do It and
Why We Do It”.

15
 
What is defined? Example

We sell real estate

We manufacture and sell professional quality
What defines the primary
cameras
we do product or service
We harvest, process, and distribute wood
products

Who defines the customers To customers from world-wide sources who

and the market, who the wish to locate in Vancouver
we do it customers are and To customers in every city of the world
for where they are located To wholesale distributors in western Canada
ELEMENTS OF A MISSION STATEMENT

By employing the highest ethical principles

defines the principle
By treating every customer with respect
technologies used, the

16
How we By utilizing e-commerce to its fullest potential
ethics and business
do it principles and the
By valuing employees, their diversity and their
contribution to the organization
organizational
By remaining committed to continuous growth
philosophies
in new markets

Which will maximize the financial value of the

organization for stockholders
Which will minimize the impact of operations on
Why we Defines the results
the natural environment
do it expected from a variety
Which will ensure a solid foundation of satisfied
of dimensions
customers for years to come
Which will maintain our position as leading
edge service providers
EXAMPLES:
TATA MOTORS
Vision Statement:
“best in the manner in which we operate, best in the
products we deliver, and best in our value system and
ethics.”

Mission Statement:
“To become a world class automotive engineering and
product development centre, and enable Tata Motors
to become a world class automotive company.”
INFOSYS
 Vision
“To help our clients meet their goals through our people, services and
solutions”
 Mission
Infosys International Inc. is dedicated to providing the people, services and
solutions our clients
 need to meet their information technology challenges and business goals.
 ·Work to understand the needs and requirements of our clients before proposing a solution
 ·Develop responsive proposals that provide cost-effective solutions to our clients needs
 ·Deploy the right mix of people and products to deliver value-added services and solutions
to our clients
 ·Follow-up on the quality of our services and solutions to our clients
 Appreciate the trust that our clients put in us as we work with them to improve their
business and information technology.
RELIANCE INSURANCE
 Vision
Empowering everyone live their dreams.

 Mission
Create unmatched value for everyone through
dependable, effective, transparent and profitable life
insurance and pension plans.
JAYOTI VIDYAPEETH WOMEN’S
UNIVERSITY
Mission Statement:
 The University is committed to the cause of women
empowerment through access to education by creating learning
and work environment for greater productivity, excellence in
quality and innovation along with awareness about social &
ethical responsibilities.

 The University aims to bridge the gaps in education prevailing in

Indian Society by providing educational opportunities of global
standard relevant to the corporate world to women, especially
from rural background and lower socio- economic strata of
society.
CONTN’D
Vision Statement:

 The University aspires to become a leading centre of

excellence for Education, Research, Clinical Care and
Training in Technical and Medicinal Fields to educate women
in technically advanced disciplines to inculcate in them the
spirit of enterprise and the desire to excel.

 The University provides a transformational experience where

highest integrity, professional commitment and ethics are
inbuilt in the training mechanism itself, so that young girls
may be transformed in to leaders and cultural ambassadors
of tomorrow having an effective personality and ability to
address social, economic and technological challenges of
the global world
DIFFERENCE BETWEEN VISION AND
MISSION
 The mission of the organization communicates the
purpose for which it is in business, whereas a vision
sets the direction in which the organization intends to
proceed.

 A vision cannot be judged as correct or wrong. It is

measured in relative terms with the other alternative
directions for an organization. It can only be
appropriate or inappropriate, better or worse, when
measured against the other alternatives.

 A vision is not static. It should be seen as a dynamics

process and an ongoing activity of the leadership.
CONTN’D
 A vision should not be used to monitor or to constrain
actions. It should be used as a binding force of the
organizational resources.
 A vision is not reality. It may not be realized as it was
envisioned. It is not about reality but the alternative
directions available.