Good morning ¡¡¡¡
today I want to speak about something useful to survive and that many companies operate without it , without that plan because the managers are so busy that they haven t got time for planning and they think the planning is only for a large company . IT S A MISTAKE TO THINK IT ¡¡¡
Some companies prepare annual plans but the annual plan deal with the firm ‘s current businesses and how to keep them going BUT it s different to the strategic plan why? because this plan involves adapting the firm to take advantage of opportunities in its constantly changing environment .
For this reason it s important (something key) a strategic planning ¡¡¡¡¡
In detail the steps in a strategic planning are :
- defining the company mission – it s time to ask about what is our business ? who is the customer ? what do consumers value ? what should our business be ? FOR ANSWERING THESE QUESTIONS , we must develop ” a mission statement” – it should be “market oriented ” and why? because a market oriented mission statement defines the business in terms of satisfying the basic customer needs . (marketing process always in mind ) . For ex. we have a company ORIFLAME where the product oriented definition would be “we make cosmetics” and the market oriented definition would be we sell lifestyle success and status with experiences and dreams . There are few companies which are visionaries companies and what is a visionary company? a company that set a purpose beyond making money and that purpose is for instance “making people happy” .
- Setting company objectives and goals – for each level of management . they should be as specific as possible because it s not the same “increase our market share ” than “increase our market share to 15% by the end of the second year ” .
- Designing the business portfolio – what is the best business portfolio ? the one that fits the firm ‘s strengths and weaknesses to opportunities in the environment . Then , we must analyze A) “our current business portfolio and decide which should receive more , less investment ” and for this analisis there is a wonderful tool “BCG ” where we see on the vertical axis the market growth rate (a measure of market attractiveness) and on the horizontal axis the relative market share (a measure of company strength in the market) (STARS , CASH COW , QUESTION MARKS AND DOGS) B) develop growth strategies for adding new products or businesses to the portfolio – where we put on the vertical axis existing markets and new markets and on the horizontal axis existing products and new products . The first strategy would be “market penetration” for ex making more sales to current customers without changing products . how? cutting prices or getting to more stores . The second strategy ” Market development” for ex identifying new markets for its current products how? making a market research , a review of new demographic markets or new geographical markets. The third strategy ” product development” modifying the products to current markets for ex new styles , colours …. and lastly , ” diversification”
- Planning , marketing and other functional strategies where all of departments must be interrelated ¡¡¡¡¡ The role of marketing is very important in the strategic planning of a firm as I said in the previous post SELLING PROCESS Vs MARKETING PROCESS always TO DELIVER CUSTOMER VALUE AND SATISFACTION .
I hope that this post is to be liked . in practice please ¡¡¡¡¡¡
thank you very much to everybody 😉