Business planning: plan well and prosper
Business planning: An ongoing process of making decisions that guide the firm both in the short
term and for the long term.
Business plan: A plan that includes the decisions that guide the entire organization.
Marketing plan: A document that describes the marketing environment, outlines the marketing
objectives and strategy, and identifies who will be responsible for carrying out each part of the
Level of planning
**** business planning usually occurs on an annual basis at three levels—strategic
planning,marketing palnning, and operational planning.****
Strategic planning: A managerial decision process that matches an organization’s resources
and capabilities to its market opportunities for long-term growth and survival. (ppt)
Strategy: What a firm is going to do to achieve an objective.
Tactics: How a strategy is going to be enacted.
SBU(strategic business unit): A semi-autonomous entity that operates as an independent
business with its own mission and objectives-and its own marketing strategy.
Functional planning (Marketing planning): A decision process that concentrates on
developing detailed plans for strategies and tactics for the short term, supporting an
organization’s long-term strategic plan.
Operational planning: Planning that focuses on the day-to-day execution of the functional
plans and includes detailed annual, semiannual, or quarterly plans.
Strategic planning: guiding the business
Step1: define the mission
Mission statement: A formal statement in an organization’s strategic plan that describes the
overall purpose of the organization and what it intends to achieve in terms of its customers,
products, and resources.
****the ideal mission statement is not too broad, too narrow, or too shortsighted.****
Step2: evaluate the internal & external environment
External environment: The uncontrollable elements outside of an organization that may
affect its performance either positively or negatively. These include macro environment
factors like regulatory or technology factors, consumer behavior trends, industry factors
such as industry concentration, and competitive factors such as the number and
sophistication of competitors.
PESTO: Political (including legal or regulatory), economic, social or cultural, technological, or
other trends or issues that might impact a particular industry and business.
Internal environment: The controllable elements inside an organization-including its people,
its facilities, and how it does things-that influence the operations of the organization.
Step3: Set organizational or SBU objectives
**** objectives need to be specific, measurable, and attainable****
Step4: establish the business portfolio
Business portfolio: The group of different products or brands owned by an organization and
characterized by different income-generating and growth capabilities.
Portfolio analysis: A tool management uses to assess the potential of a firm’s business
BCG growth-market share matrix: A portfolio analysis model developed by the Boston
Consulting Group that assesses the potential of successful products to generate cash that a
firm can then use to invest in new products.
Step5: Develop growth strategies
****although the BCG matrix can help managers decide which SBUs they should invest in for
growth, it doesn’t tell them much about how to make the growth happen. Should the growth
of an SBU come from finding new customers, from developing new variation of the product, or from some other