How is strategic planning carried out at different levels of the organization?
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Strategic planning is carried out at different levels of an organization. At the corporate level, headquarters define the mission, establish business units, assign resources, and assess growth opportunities. Each business unit then develops its own strategic plan through defining its mission, analyzing strengths/weaknesses/opportunities/threats (SWOT), setting goals and objectives, developing strategies, and implementing programs with feedback and control. The strategic planning process aims to align business units with the overall corporate mission while allowing for independent growth strategies.
How is strategic planning carried out at different levels of the organization?
- 1. How is Strategic Planning carried out at different Levels of the Organization? These slides are based on Chapter 2 of ‘Marketing Management’ by Kotler Keller
- 2. All corporate headquarters undertake 4 Planning Activities 1. Defining the corporate mission 2. Establishing strategic business units 3. Assigning resources to each strategic business unit 4. Assessing growth opportunities
- 3. 1. Defining the Corporate Mission Mission statements - Reflects a vision, an almost “impossible dream” that provides direction for the next 10 to 20 years
- 4. Characteristics of Good Mission Statements Focus on a limited number of goals Stress the company’s major policies and values Define major competitive spheres within which the company will operate Take a long-term view As short, memorable, and meaningful as possible
- 5. 2. Establishing Strategic Business Units Single business, or collection of related businesses, that can be planned separately from the rest of the company Has its own set of competitors Has manager responsible for strategic planning & profit performance, who controls most of the factors affecting profit
- 6. 3. Assigning Resources to Each SBU Decide how to allocate resources to each business unit
- 7. 4. Assessing Growth Opportunities # Intensive Growth # Integrative Growth # Diversification Growth # Downsizing And Divesting Older Business
- 8. # Intensive Growth Review of opportunities for improving existing business
- 9. # Integrative Growth Company can increase sales and profits through backward, forward, or horizontal integration within its industry
- 10. # Diversification Growth When good opportunities exists outside the present business , then company may look forward to starting a new business
- 11. # Downsizing And Divesting Older Business Companies carefully prune, harvest, or divest tired old businesses to release needed resources for other uses and reduce costs
- 12. Business Unit Strategic Planning Fig. :-The Business Unit Strategic-Planning Process
- 13. Business Unit Strategic Planning # The Business Mission # SWOT Analysis # Goal Formulation # Strategic Formulation # Program Formulation &Implementation # Feedback and Control
- 14. # The Business Mission Each business unit needs to define its specific mission within the broader company mission
- 15. # SWOT Analysis
- 16. # Goal Formulation Arranged hierarchically, from most to least important Objectives should be quantitative whenever possible Goals should be realistic Objectives must be consistent
- 17. # Strategic Formulation Overall Cost Leadership – Lowest Production & Distribution Cost Differentiation – Superior Performance Focus – Concentrate on Narrow Market Segments
- 18. # Program Formulation and Implementation Strengthen R&D Department Gather Technological Intelligence Develop Leading-Edge Products Train Technical Sales Force Communicate to Technological Leadership
- 19. # Feedback and Control Organisation should examine the changing environment and adopt new goals and behaviours Organization fails to respond to a changed environment, it becomes increasingly hard to recapture its lost position Thus, Once,
- 20. R E F E R E N C E S http://blogs-images.forbes.com/work-in-progress/files/2011/05/Bullseye-Red-Red.jpg http://www.activategroupinc.com/wp-content/uploads/2011/11/business-management1.jpg http://stratdevint.com/images/globe.jpg http://www.vindhyavasinigroup.com/images/vision-mission-big.jpg http://www.catdi.com/wp-content/uploads/2013/08/banner-mission.jpg http://www.thecbg.it/images/sustainable-future2.jpg http://worldpayment-solutions.com/images/images/iStock_000009804777Large.jpg http://www.smsgconsulting.com/_img/qualifications.jpg