Corporate Strategic
Planning
Outline
Introduction
Meaning & Role of Strategic
Planning
Corporate Mission
Strategic Business Units (SBU)
Marketing Audit
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
The Role of Strategy
Corporate Strategy:
Mission & •Corporate Operating
Objectives •Business Plans
•Functional
Sun Tze on Strategy
“Know your enemy, know yourself, and your
victory will not be threatened. Know the
terrain, know the weather, and your victory
will be complete.”
Strategic Marketing
“Marketing Strategy is a series of
integrated actions leading to a
sustainable competitive advantage.”
John Scully
Corporate Mission
Broad purposes of the organization
General criteria for assessing the long-
term organizational effectiveness
Driven by heritage & environment
Mission statements are increasingly
being developed at the SBU level as well
Examples of Corporate Mission
SINGAPORE AIRLINES is engaged in air
transportation and related businesses. It
operates world-wide as the flag carrier of
the Republic of Singapore, aiming to provide
services of the highest quality at reasonable
prices for customers and a profit for the
company
Examples of Corporate Mission
(cont’d)
MARRIOTT’S Mission Statement:
We are committed to being the best
lodging and food service company in the
world, by treating employees in ways that
create extraordinary customer service and
shareholder value
Corporate Culture
The most abstract level of managerial
thinking
How do you define culture?
What is the significance of culture to an
organization?
How does marketing affect culture in the
organization?
Corporate Objectives & Goals
An objective is a long-range purpose
Not quantified and not limited to a time period
E.g. increasing the return on shareholders’ equity
A goal is a measurable objective of the
business
Attainable at some specific future date through
planned actions
E.g. 10% growth in the next two years
What is a Strategic
Business Unit? (SBU)
A set of products or product lines
With clear independence from other
products or product lines
for which a business or marketing strategy
should be designed
Characteristics of a viable SBU
Unique business mission
Definable set of competitors
Integrative planning done independently
Responsible for resource management in all
areas
Large enough but not so large as to
become bureaucratic
(Source: Subhash Jain, Marketing Planning & Strategy, 6th Ed.)
Organizational Marketing Levels
Hofer and Schendel suggested that
organizations develop strategies at three
structural levels:
Corporate level—(corporate marketing)
SBU level—(Strategic Marketing)
Product/Market level—(Functional
Marketing)
Marketing at the SBU Level—
Strategic Marketing
Strategic Marketing requires
Detailed understanding of market needs, and
Proactive use of competitive intelligence at the corporate as
well as SBU’s levels
Strategic Marketing
Focuses on what the firm do best at the SBU level
To secure and maintain a sustainable competitive advantage
What is Competitive Advantage?
“Competitive advantage is a company’s
ability to perform in one or more ways
that competitors cannot or will not
match.” Philip Kotler
“If you don’t have a competitive
advantage, don’t compete.”
Jack Welch, GE
Other Characteristics of Competitive
Advantage
Substantiality
Is it substantial enough to make a difference?
Sustainability
Can it be neutralized by competitors quickly?
Ability to be leveraged into visible business
attributes that will influence customers
(Source: Strategic Marketing Management, Aakers)
Seeking Competitive Advantages
Positions of advantage
Superior customer value
Lower relative total cost
Performance advantages
Customer satisfaction, Loyalty, Market Share,
Profit
Sources of advantages
Superior skills & knowledge, Superior resources,
Superior business process
Key Elements of Marketing Strategy
Formulation
The strategic 3 Cs
Customers, Competitors & the Corporation
Environment analysis -- PEST
Strategic Marketing Decisions
Where to compete
How to compete
When to compete
A Viable Marketing Strategy
Must have a clearly defined market
Must have a good match between
corporate strengths and market needs
Must have significant positive
differentiation in the key success factors
of the business
Situation Analysis
Internal Analysis—company; capability etc.
External Analysis—customers, market definition, industry structure
SWOT Analysis
Strengths, Weaknesses, Opportunities & Threats
Identify & prioritize major problems and opportunities: selection of key
issues
Based on the firm’s core competencies, decide on future options
