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Chapter 2

Management and Organizational Studies 2320A/B Chapter Notes - Chapter 2: Marketing Mix, Swot Analysis, Boston Consulting Group


Department
Management and Organizational Studies
Course Code
MOS 2320A/B
Professor
Kevin Thompson
Chapter
2

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Chapter 2
Strategic planning: the process of developing and maintaining a strategic fit
between the organizations goals and capabilities and its changing marketing
opportunities
o Sets the stage for the rest of the planning in the firm
At the corporate level, the company stats the strategic planning process by
defining its overall purpose and mission
Marketing planning occurs at the business-unit, profit, and market levels
Mission statement: statement of the organization’s purpose – what it wants
to accomplish in the larger environment
o Acts as an invisible hand
o Firms with well crafted mission statements have better organizational
and financial performance
o Should be market oriented and defined in terms of satisfying basic
customer needs
Corporate level
o Defining the company mission
o Setting company objectives and goals
o Designing the business portfolio
Business unit, product, and market level
o Planning marketing and other functional strategies
Product oriented vs. market oriented mission statements
Companies need to turn its mission into detailed supporting objectives for
each level of management
Business portfolio: the collection of businesses and products that make up
the company
o Best is the one that best fits the company’s strengths and weaknesses
to opportunities in the environment
o Planning takes two steps:
The company must analyze its current business portfolio and
decide which businesses should receive more, less, or no
investment
It must shape the future portfolio by developing strategies for
growth and downsizing
Portfolio analysis: management evaluates the products and businesses that
make up the company
o First step is the identify the key businesses that make up the company
strategic business units (SBUs): company division, product line
within a division, single product or brand
o Next assess the attractiveness of the various SBUs and decide how
much support each deserves
o The purpose of strategic planning is to find ways in which the
company can best use its strengths to take advantage of attractive
opportunities in the environment
o Evaluate SBUs on two dimensions
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