Strategic Planning Process:
“Strategic Planning is the process of developing and maintaining a strategic fit between organization’s goals and capabilities and
its changing marketing environment.
Following are steps of strategic planning:
1. Defining mission
2. Analysis of Business Portfolio
3. Setting strategic objectives and goals
4. Developing Competitive strategies
i. Porter’s 5 forces
ii. Cost-Differentiation-Focus Triangle
iii. Growth Strategies (product/market expansion grid)
5. Developing detailed marketing and departmental plans and strategies
This is a statement of organization’s purposes- What it wants to accomplish in the larger environment.
It should be market oriented, specific, realistic, motivating and consistent with market environment.
e.g. “To provide best satisfaction to customers and fair return on investment, keeping environment healthy and clean and
promising secure future to employees”
Designing the business portfolio:
Business portfolio is the collection of businesses and products that make up the company.
Business portfolio planning involves 2 steps:
1. Analysis of current business portfolio.
2. Developing strategies
1. Portfolio Analysis:
A tool by which management identifies and evaluates SBUs to determine which business should receive more, less or no
BCG growth-share matrix is used to evaluate a company’s SBUs in terms of market growth rate and relative market share.
SBU is a unit of company that has a separate mission and objectives and that can be planned independently from other company
2.Developing strategies for growth and downsizing:
The product/market expansion grid is a portfolio-planning tool for identifying company growth opportunities through:
Existing Product New Product
Existing Market Market Penetration Product Development
New Market Market Development Diversification
When a firm reduces business portfolio by eliminating products or business that is not profitable or no longer fit its overall
Setting strategic objectives and goals:
Firm’s mission is translated into set of objectives for the current period for each SBU.
Developing plans and strategies