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Corporate Corporate StrategiesStrategies
Organizations (Types)Organizations (Types)
Business FirmBusiness Firm Privately owned organization that Privately owned organization that
serves its customers in order to serves its customers in order to earn a profit. Must earn a profit.earn a profit. Must earn a profit.
Profit is the reward to a business Profit is the reward to a business firm for the risk it undertakes in firm for the risk it undertakes in offering a product for sale. It’s the offering a product for sale. It’s the money left over after a firm’s total money left over after a firm’s total expenses are subtracted from it’s expenses are subtracted from it’s total revenuestotal revenues
Nonprofit OrganizationNonprofit Organization Nongovernmental organization that Nongovernmental organization that
serves its customers but does not serves its customers but does not have profit as an organizational have profit as an organizational goalgoal
Organizations (Types)Organizations (Types)
Organizations (Levels)Organizations (Levels)
Corporate LevelCorporate Level Top management directs overall Top management directs overall
strategy for the entire organizationstrategy for the entire organization
Organizations (Levels)Organizations (Levels)
Business UnitBusiness Unit Organization that makes a set of related Organization that makes a set of related
products to a clearly defined group of products to a clearly defined group of customerscustomers
Business unit level is the level at which Business unit level is the level at which business unit managers set direction for business unit managers set direction for their products and markets to exploit their products and markets to exploit value, creating opportunitiesvalue, creating opportunities
Direction is more specific hereDirection is more specific here Each unit has specialized activitiesEach unit has specialized activities
Organizations (Levels)Organizations (Levels)
Functional LevelFunctional Level Groups of specialists actually create Groups of specialists actually create
value for the organizationvalue for the organization DepartmentsDepartments Direction is more specific and Direction is more specific and
focusedfocused Ex: Accounting, Marketing, Ex: Accounting, Marketing,
CommunicationsCommunications Most of the work gets done at this Most of the work gets done at this
levellevel
Organizations (Teams)Organizations (Teams)
Cross-Functional TeamsCross-Functional Teams Small number of people from Small number of people from
different departments in an different departments in an organization who are mutually organization who are mutually accountable to a common set of accountable to a common set of performance goalsperformance goals
Organizations (The Mission)Organizations (The Mission)
MissionMission A statement of the organizations A statement of the organizations
scope, often identifying its scope, often identifying its customers, markets, products, customers, markets, products, technology, and valuestechnology, and values
Mission StatementMission Statement Usually inspirationalUsually inspirational
Organizations Organizations (Mission Statement)(Mission Statement)
The Mission of Southwest AirlinesThe Mission of Southwest Airlines The mission of Southwest Airlines is dedication to the The mission of Southwest Airlines is dedication to the
highest quality of Customer Service delivered with a highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and sense of warmth, friendliness, individual pride, and Company Spirit. Company Spirit.
To Our EmployeesTo Our Employees We are committed to provide our Employees a stable We are committed to provide our Employees a stable
work environment with equal opportunity for learning work environment with equal opportunity for learning and personal growth. Creativity and innovation are and personal growth. Creativity and innovation are encouraged for improving the effectiveness of encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring provided the same concern, respect, and caring attitude within the organization that they are expected attitude within the organization that they are expected to share externally with every Southwest Customer.to share externally with every Southwest Customer.
Organizations Organizations (Mission Statement)(Mission Statement)
Above all else, we are committed to the care andAbove all else, we are committed to the care andimprovement of human life. In recognition of this improvement of human life. In recognition of this commitment, we strive to deliver high quality, cost commitment, we strive to deliver high quality, cost effective healthcare in the communities we serve.effective healthcare in the communities we serve.
In pursuit of our mission, we believe the following In pursuit of our mission, we believe the following value statements are essential and timeless.value statements are essential and timeless. We recognize and affirm the unique and intrinsic We recognize and affirm the unique and intrinsic
worth of each individual.worth of each individual. We treat all those we serve with compassionWe treat all those we serve with compassion
and kindness.and kindness. We act with absolute honesty, integrity and We act with absolute honesty, integrity and
fairness in the way we conduct our business and fairness in the way we conduct our business and the way we live our lives.the way we live our lives.
We trust our colleagues as valuable members of We trust our colleagues as valuable members of our healthcare team and pledge to treat one our healthcare team and pledge to treat one another with loyalty, respect and dignity.another with loyalty, respect and dignity.
Organizations Organizations (Mission Statement)(Mission Statement)
The mission of the Tennessee Performing The mission of the Tennessee Performing Arts Center is "to provide facilities, services Arts Center is "to provide facilities, services and programs of the highest quality for the and programs of the highest quality for the greatest benefit of the people, institutions greatest benefit of the people, institutions and communities of the state, and to take a and communities of the state, and to take a leadership role in fostering the performing leadership role in fostering the performing arts, arts education, resident arts groups arts, arts education, resident arts groups
and other arts organizations."and other arts organizations."
Organizations (The Culture)Organizations (The Culture)
Organizational CultureOrganizational Culture A set of values, ideas, and A set of values, ideas, and
attitudes that is learned and attitudes that is learned and shared among the members of an shared among the members of an organizationorganization
Mergers with other companiesMergers with other companies
Organizations (The Culture)Organizations (The Culture)
StakeholdersStakeholders The people who are affected by The people who are affected by
what the company does and how what the company does and how well it performswell it performs Employees, owners, board members, Employees, owners, board members,
suppliers, distributors, unions, suppliers, distributors, unions, customers, local communitiescustomers, local communities
Organizations (Goals)Organizations (Goals)
Goals (or objectives)Goals (or objectives) Statements that are usually in the Statements that are usually in the
marketing plan, tell what should marketing plan, tell what should be accomplished by a certain timebe accomplished by a certain time
Can be at corporate level, Can be at corporate level, business unit level, or functional business unit level, or functional level – work togetherlevel – work together
Needs to be measurableNeeds to be measurable
Organizations (Goals)Organizations (Goals)
Types of GoalsTypes of Goals ProfitProfit SalesSales Market Share (ratio of sales revenue of the Market Share (ratio of sales revenue of the
firm to the total sales revenue of all firms in firm to the total sales revenue of all firms in the industry, including the firm itself)the industry, including the firm itself)
QualityQuality Customer SatisfactionCustomer Satisfaction Employee WelfareEmployee Welfare Social ResponsibilitySocial Responsibility
Growth StrategiesGrowth Strategies
CompetenciesCompetencies An organization’s special An organization’s special
capabilities including skills, capabilities including skills, technologies, and resources that technologies, and resources that distinguish it from other distinguish it from other organizationsorganizations
Growth StrategiesGrowth Strategies
Competitive AdvantageCompetitive Advantage Something an organization does better than Something an organization does better than
competitors. Usually in regards to quality, competitors. Usually in regards to quality, great customer service, lowest prices, etc.great customer service, lowest prices, etc.
Growth StrategiesGrowth Strategies
BenchmarkingBenchmarking Discovering how others do Discovering how others do
something better than you so you something better than you so you can imitate or leapfrog competitioncan imitate or leapfrog competition
Growth StrategiesGrowth Strategies
Business Portfolio AnalysisBusiness Portfolio Analysis Market-Product AnalysisMarket-Product Analysis
Growth Strategies:Growth Strategies:Business Portfolio AnalysisBusiness Portfolio Analysis
Analyses an organization’s Analyses an organization’s business units as though they business units as though they are separate investmentsare separate investments
Growth Strategies:Growth Strategies:Business Portfolio AnalysisBusiness Portfolio Analysis
Vertical AxisVertical Axis Represents the market growth Represents the market growth
rate (meaning how much per year rate (meaning how much per year that industry is growing)that industry is growing)
Horizontal AxisHorizontal Axis Represents the relative market Represents the relative market
share (divide SBU sales by sales share (divide SBU sales by sales of largest firm in the industry)of largest firm in the industry)
Growth Strategies:Growth Strategies:Business Portfolio AnalysisBusiness Portfolio Analysis
Cash CowsCash Cows Question MarksQuestion Marks DogsDogs StarsStars
Growth Strategies:Growth Strategies:Business Portfolio AnalysisBusiness Portfolio Analysis
Cash CowsCash Cows Lower left quadrantLower left quadrant Generate a lot of cash, more than Generate a lot of cash, more than
they need, gives money to help they need, gives money to help with company overhead and with company overhead and invest into other SBUsinvest into other SBUs
Have dominate market shareHave dominate market share Slow-growth marketSlow-growth market Ex: Kodak FilmEx: Kodak Film
Growth Strategies:Growth Strategies:Business Portfolio AnalysisBusiness Portfolio Analysis
StarsStars Upper left quadrantUpper left quadrant High market shareHigh market share High growth marketHigh growth market May not have enough money to May not have enough money to
continue growthcontinue growth Likely to become Cash CowsLikely to become Cash Cows Ex: Kodak digital cameraEx: Kodak digital camera
Growth Strategies:Growth Strategies:Business Portfolio AnalysisBusiness Portfolio Analysis
Question Marks (or Problem Question Marks (or Problem Children)Children) Upper right quadrantUpper right quadrant Low market shareLow market share High growth marketHigh growth market Have to have lots of cash to Have to have lots of cash to
maintain market sharemaintain market share Ex: Kodak at-home printersEx: Kodak at-home printers
Growth Strategies:Growth Strategies:Business Portfolio AnalysisBusiness Portfolio Analysis
DogsDogs Lower right quadrantLower right quadrant Low market shareLow market share Low growth marketLow growth market May have enough money to keep May have enough money to keep
them afloat, but may not ever be them afloat, but may not ever be “big” for firm“big” for firm
Ex: Kodak self-service kiosksEx: Kodak self-service kiosks
Growth Strategies:Growth Strategies:Business Portfolio AnalysisBusiness Portfolio Analysis
Normally SBUs begin as Normally SBUs begin as Question Marks, then become Question Marks, then become Stars, Cash Cows, then DogsStars, Cash Cows, then Dogs
Can’t really control market Can’t really control market growth rategrowth rate
Want to increase market shareWant to increase market share
Growth Strategies:Growth Strategies:Business Portfolio AnalysisBusiness Portfolio Analysis
Growth Strategies:Growth Strategies:Market-Product AnalysisMarket-Product Analysis
A way to look at growth using A way to look at growth using markets and productsmarkets and products
ProductsProducts Current marketCurrent market Potential new marketPotential new market
MarketsMarkets Current productCurrent product Potential new productPotential new product
Growth Strategies:Growth Strategies:Market-Product AnalysisMarket-Product Analysis
Market PenetrationMarket Penetration Try to increase sales of current Try to increase sales of current
products in current marketsproducts in current markets Basic products do not change, Basic products do not change,
market served does not changemarket served does not change How can sales be increased?How can sales be increased?
Growth Strategies:Growth Strategies:Market-Product AnalysisMarket-Product Analysis
Market DevelopmentMarket Development Try to sell current products to new Try to sell current products to new
marketsmarkets Basic products do not change, Basic products do not change,
market served do changemarket served do change
Growth Strategies:Growth Strategies:Market-Product AnalysisMarket-Product Analysis
Product DevelopmentProduct Development Try to sell new products to current Try to sell new products to current
marketsmarkets New products are introduced to New products are introduced to
current market servedcurrent market served
Growth Strategies:Growth Strategies:Market-Product AnalysisMarket-Product Analysis
DiversificationDiversification Try to sell new products to new Try to sell new products to new
marketsmarkets New products are introduced to New products are introduced to
new markets servednew markets served
Strategic Marketing ProcessStrategic Marketing ProcessPhase I: PlanningPhase I: Planning
The process an organization The process an organization uses when they allocate uses when they allocate marketing mix resources to marketing mix resources to reach their target marketreach their target market
Create a marketing planCreate a marketing plan A road map for the marketing A road map for the marketing
activities of an organization for a activities of an organization for a specified future period of timespecified future period of time
Strategic Marketing ProcessStrategic Marketing ProcessPhase I: PlanningPhase I: Planning
Want to figure out where you Want to figure out where you are, where you’d like to be, and are, where you’d like to be, and how you’re going to get therehow you’re going to get there
Strategic Marketing ProcessStrategic Marketing ProcessPhase I: PlanningPhase I: Planning
Begin with a Situation Analysis Begin with a Situation Analysis (SWOT Analysis)(SWOT Analysis) S – Strengths (Internal)S – Strengths (Internal) W – Weaknesses (Internal)W – Weaknesses (Internal) O – Opportunities (External)O – Opportunities (External) T – Threats (External)T – Threats (External)
Can focus on product, product Can focus on product, product line, business unit, or whole line, business unit, or whole organizationorganization
Strategic Marketing ProcessStrategic Marketing ProcessPhase I: PlanningPhase I: Planning
Obtain a clear understanding of Obtain a clear understanding of the following areas:the following areas: Trends in the firm’s industryTrends in the firm’s industry Know as much as possible of Know as much as possible of
competitioncompetition Assess your organizationAssess your organization Know as much as possible about Know as much as possible about
your customers and prospective your customers and prospective customerscustomers
Strategic Marketing ProcessStrategic Marketing ProcessPhase I: PlanningPhase I: Planning
Once the SWOT is created, take Once the SWOT is created, take the information you’ve learned the information you’ve learned and act on itand act on it Build strengthsBuild strengths Correct weaknessesCorrect weaknesses Exploit opportunitiesExploit opportunities Avoid threatsAvoid threats
Strategic Marketing ProcessStrategic Marketing ProcessPhase I: PlanningPhase I: Planning
Market-Product Focus and Goal Market-Product Focus and Goal SettingSetting After analyzing SWOT, the After analyzing SWOT, the
organization must decide which organization must decide which products they’ll offer to which products they’ll offer to which customerscustomers
Strategic Marketing ProcessStrategic Marketing ProcessPhase I: PlanningPhase I: Planning
Market SegmentationMarket Segmentation Aggregating prospective buyers Aggregating prospective buyers
into groups, or segments, that into groups, or segments, that have common needs and will have common needs and will respond similarly to a marketing respond similarly to a marketing actionaction
May have different marketing May have different marketing programs for different segmentsprograms for different segments
Strategic Marketing ProcessStrategic Marketing ProcessPhase I: PlanningPhase I: Planning
Market SegmentationMarket Segmentation Different market segments may Different market segments may
have different goalshave different goals Points of differencePoints of difference
Characteristics of a product that Characteristics of a product that make it superior to competitive make it superior to competitive substitutessubstitutes
Strategic Marketing ProcessStrategic Marketing ProcessPhase I: PlanningPhase I: Planning
The Marketing ProgramThe Marketing Program In this step of the planning phase, In this step of the planning phase,
the budget and marketing mix is the budget and marketing mix is createdcreated
Strategic Marketing ProcessStrategic Marketing ProcessPhase II: ImplementationPhase II: Implementation
Carries out market program that was Carries out market program that was developed in planning phasedeveloped in planning phase
Obtain resourcesObtain resources Find a way to get money to finance Find a way to get money to finance
marketing programmarketing program Design marketing organizationsDesign marketing organizations
Helps put marketing program into effect Helps put marketing program into effect (marketing department)(marketing department)
Develops schedulesDevelops schedules Basically a timelineBasically a timeline
Strategic Marketing ProcessStrategic Marketing ProcessPhase II: ImplementationPhase II: Implementation
Execute marketing programExecute marketing program Marketing strategy is the means Marketing strategy is the means
by which a marketing goal is to be by which a marketing goal is to be achieved, usually characterized by achieved, usually characterized by a specified target market and a specified target market and marketing program to reach itmarketing program to reach it
Marketing tactics are detailed day Marketing tactics are detailed day to day, operational decisions to day, operational decisions essential to the overall success of essential to the overall success of marketing strategiesmarketing strategies
Strategic Marketing ProcessStrategic Marketing ProcessPhase II: ControlPhase II: Control
Make sure the marketing Make sure the marketing program is doing what it’s program is doing what it’s supposed to be doingsupposed to be doing
Compare what’s happening to Compare what’s happening to what was plannedwhat was planned
Make changes if neededMake changes if needed