Corporate Headquarters Planning Define the corporate mission Establish

Corporate Headquarters Planning ä Define the corporate mission ä Establish strategic business units (SBUs) ä Assign resources to SBUs ä Plan new business, downsize older businesses © 2000 Prentice Hall

Strategic-Planning, Implementation, and Control Process Planning Corporate planning Implementation Organizing Division planning Business planning Product planning © 2000 Prentice Hall Control Measuring results Diagnosing results Implementing Taking corrective action

Good Mission Statements: Limited number of goals Stress major policies & values Define competitive scopes © 2000 Prentice Hall

20%18%16%14%12%10%8%6%4%2%0 © 2000 Prentice Hall Stars Question marks 4 5 ? 3 ? Market Growth Rate The Boston Consulting Group’s Growth-Share Matrix ? 2 ? 1 Dogs Cash cow 8 6 10 x 7 4 x 2 x 1. 5 x 1 x . 5 x. 4 x. 3 x. 2 x. 1 x Relative Market Share

MARKET ATTRACTIVENESS Low Medium High Market Attractiveness: Competitive. Position Portfolio Classification Strong 5. 00 3. 67 BUSINESS STRENGTH Medium 3. 67 2. 33 Weak 1. 00 Joints Aerospace fittings Hydraulic pumps Clutches 2. 33 Flexible diaphragms Fuel pumps Relief valve 1. 00 Invest/grow © 2000 Prentice Hall Selectivity/earnings Harvest/divest

Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid Existing products Existing markets 1. Market penetration New markets 2. Market development © 2000 Prentice Hall New products 3. Product development 4. Diversification

Opportunity Matrix Attractiveness Success Probability High Low High 1 2 Low 3 4 © 2000 Prentice Hall Opportunities 1. Company develops a more powerful lighting system 2. Company develops a device for measuring the energy efficiency of any lighting system 3. Company develops a device for measuring illumination level 4. Company develops a software program to teach lighting fundamentals to TV studio personnel

Seriousness Threat Matrix Probability of Occurrence Threats Low High 1. Competitor develops a superior lighting system 2. Major prolonged High economic depression 1 2 3. Higher costs 4. Legislation to reduce number of TV studio licenses Low © 2000 Prentice Hall 3 4

The Value-Delivery Process (a) Traditional physical process sequence Make the product Design Procure Make product Sell the product Price Sell Advertise/ promote Distribute Service (b) Value creation & delivery sequence Choose the Value Provide the Value Communicate the Value Strategic marketing © 2000 Prentice Hall Tactical marketing

The Marketing Plan Executive Summary & Table of Contents Current Marketing Situation Opportunity & Issue Analysis Objectives Marketing Strategy Action Programs Projected Profit-and-loss Controls © 2000 Prentice Hall

Factors Influencing Company Marketing Strategy intermediaries in Ma fo rk sy rm eti st at ng em io n Demographic/ economic environment © 2000 Prentice Hall g n tio ke za ar ni em M ga yst or s Political/ legal environment Place Target Price customers o imrga Mar pl niz ke em at ti en ionng ta a tio nd n Suppliers Product M pl ark sy ann etin st in g em g Technical/ physical environment Publics Promotion Competitors Social/ cultural environment