What is Strategic Planning?

It is the managerial process that helps to develop a

strategic and viable fit between the firm’s
objectives, skills, resources with the market
opportunities available. It helps the firm deliver its
targeted profits and growth through its businesses
and products.
How to go about it?
Defining the corporate mission
Establishing SBUs
Allocating resources for SBUs
Planning for new business
Corporate Mission
This seeks to embody the entire goals of the
organization and the objective of its existence.
It seeks to provide a sense of purpose, direction and
opportunity
5 questions that the firm must ask
itself
What is our business?
Who is our customer?
What does our customer need?
What will our business be?
What should our business be?
Marketing Myopia
Industry is a customer satisfying process not a goods
producing process.
It is important therefore how you redefine your
business.
Good mission statements have
three characteristics
They focus on a limited number of goals
It stresses the major values and policies the firm
desires
It defines the major competitive scope of operation
SBU
It is a company within a company
The business is differentiated from the rest of the
company
It has its own set of competitors
It is a separate profit centre
 The BCG Matrix
Mkt growth

??? Stars

Dogs Cash Cows

Mkt Share
SBU strategies
Build
Hold
Harvest
Divest
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
 The GE Model
Mkt Attractiveness

Weak Medium Strong

Strong

Medium

Weak

Business Strength
 Ansoff’s Product-Market Grid
Current products New products

Current Mkts Mkt penetration Product development

strategy strategy

Mkt development Diversification

New Mkts strategy strategy
The Planning Process
Analysing Market opportunities
Developing Marketing strategies
Planning Marketing Programs
Managing the Marketing Effort
 Porter’s Generic Strategies
Overall cost leadership
Product Differentiator
Focus
Marketing Control
Annual Plan control
Profitability control
Strategic Control
Selected stakeholders Interests for an NHS organization

STAKEHOLDER INTERESTS

Staff Provision of quality health care

Self development and promotion prospects
Job Satisfaction
Work in a safe and good quality environment
Current Patients Receive excellent care and attention
Enhance health prospects and life expectancy
Advice on how best to recover from treatment and avoid future health problems
Access to information
Support from medical staff
 

Unions Responsibility to members to ensure fair working practices, safe environment

Support and advise members in all areas of employment rights, i.e. Equal Opportunities, Discrimination, Racial Incidents
Recruitment of new members

Government Quality Standards

Legal requirements/Health and Safety/Equal Opps/Pay and Conditions
Financial Management, ensure resources being used and managed effectively
Press Praise and publicity for high achievement
Adverse publicity – making the facts known
Challenging use of finances
Prospective Excellent treatment in a caring and pleasant environment
Patients Access to information
Choices
Achievement of a full recovery after treatment
 Stakeholders for a pharmaceutical company
Stakeholders Interests

General public Safe, reliable, tested drugs

Legal/ courts Tested drugs which do not result in serious side effects
for the users.
Government Reasonably priced drugs which have been shown to be
effective in use.
Media Stories showing either the benefits of drugs or very
harmful side-effects of drugs which have not been
properly tested.
Scientific Community Details of development and testing of new drugs.

Shareholders Return on investment and shareholder value created.

Suppliers Steady and secure demand for the products and services
it supplies.
Financial institutions A sound developing and following sound marketing and
corporate strategies which will produce guaranteed
returns from lending and investment.
Rank and file employees Secure and interesting employment with good future
prospects.
Competitors New developments that lead to competitive advantage.

Consumers Safe and effective treatments.

Management Control and influence over what happens in the firm.

FORD MODEL ‘T’—THE MINDSET OF HENRY FORD
Henry Ford’s model ‘T’ remained unchanged for years while General Motors
(Chevrolet) was making changes often using new technology.

Henry Ford said: ‘We’ll give the customer any colour he wants as long as it is
black.’ It was an arrogant statement by an arrogant man who had been on top
so long he thought nothing could dislodge him from the number one position.

In the late 1920s Ford nearly went out of business as a result of this myopic
approach. General Motors (Chevrolet) took over as number one in the US and
Ford did not catch up until the late 1980s.
 Blocks to Individual Creativity
Strategic blocks:
One right answer approaches
Inflexibility in thinking
Focusing on a narrow range of options
Adapting an overly serious approach
Value blocks:
Over-generalized rigidity
Perceptual blocks:
Over-narrow focus of attention and interest
Self-image blocks:
Fear of failure
Timidity in expressing ideas
BLOCKS TO CREATIVITY IN ORGANIZATIONS

People and organizations tend to fall into a variety of

traps when trying to become more innovative.
1 Identifying the wrong problem
2 Judging ideas too quickly
3 Stopping with the first good idea
4 Failing to get the support of key personnel in the
organization
5 Failing to challenge assumptions
New Markets

New Products

New Applications
Revitalizing
Revitalizing Market Markets

Government Assisted
Growth

Exploitation of Growth
Sub Markets
International Market Entry Methods
Indirect export

Direct export:
A domestic-based export department or division
An overseas sales branch or subsidiary
Travelling export sales representatives
Foreign-based distributors or agents

Licensing
Joint ventures
Direct Investment
WHAT IS A NEW PRODUCT?
New to the world products:

Inventions
New category entries
Additions to product lines
Product improvements
Repositioning
 Reasons for product failure
 products lack useful/meaningful uniqueness
 planning is poor during the introduction phase
 the introduction is badly timed, e.g. before the market is ready for the product
 key important points are sometimes overlooked in the enthusiasm to go ahead
 poor marketing and failure after launch
 the top management in the organization does not provide adequate support for
the product
 company politics, e.g. between various brand managers
 unforeseen high product costs.