CORPORATE AND DIVISION STRATEGIC PLANNING

Mission Statement or Defining the Corporate mission

Mission statement includes the mission of an organization which it needs to achieve through careful marketing research by carefully analyzing the needs and wants of what customer wants and providing him with the same. They have some characteristics such as a good mission statement should be: -

Firstly, should be limited to few goals.

 Secondly, it should be such that there should enough individual discretion to be acted upon the company’s major rules and policies. Thirdly, it should be defining the competitive spheres(Industry like one industry or, Products and applications, Competence like the kind of use of technology being used or if it is having the capacity to use it, market segment, Vertical like distribution channels and geographical) in which the company would be operating. Fourthly, it should be take a long term view and lastly, it should short, memorable and meaningful.

Establishing SBU’s

It talks about how market oriented definitions are stronger than product oriented definitions due to various factors. It tells us that if as a company u are giving the definition which is making u a company operating in a particular product line in a particular segment basically a product oriented definition but if we use a market oriented definition it helps us in diversification in the same segment and in product lines. E.g. IBM redefined itself  from a hardware and software manufacturer to a builder of networks , another example for target market definition is of Pepsi which defined that the target market for coca cola is the same i.e. only  drinks is its but did not realize when it is giving the market definition other drinks. Juices and water also comes under its product line. Each SBU has several characteristics: -

1 If it is a single business or a collection of businesses it can be planned separately from the business.

2 It has own set of competitors

3 One manger is responsible for the strategic planning and profit performance, which controls most of the factors affecting profit.

Assigning resources to SBU’s

It basically focuses on the investing decisions or to allocate corporate resources. It basically focuses on the working of BCG Matrix Model.

Assessing Growth opportunities

It means adding, downsizing or terminating the older businesses. It focuses on filing the gap between future desired sales and projected sales by adding new businesses. It tells us that lowest curve of the gap is expected sales over the period and highest curve depicts the sales over the same period and how fast company will grow.