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RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

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Mission – Basic reason for existence Mission: How do we intend to win in this business? Factors influencing Mission Stakeholders Internal resources and Power Values of top management Past development of firm Business definition Products Markets Function (Technology and Processes) - 3 -

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Page 1: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

RAHUL JAIN(Striving for excellence)BCOM (H), PGPM, FCS

Page 2: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

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Strategy formulation ...An organization must select any of

innumerableways of seeking to attain its objectives.

Strategies define how organizations shoulduse their resources to meet their objectives.

Hence, … strategies put constraints on employees to focus activities on what the organization does best or areas where it has an advantage over competitors.

Page 3: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

Mission – Basic reason for existenceMission: How do we intend to win in this business?Factors influencing MissionStakeholdersInternal resources and PowerValues of top managementPast development of firmBusiness definitionProductsMarketsFunction (Technology and Processes)

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Page 4: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

Vision- Yin YangCore Ideology (Core values and Purposes)Envisioned Future (BHAG and vivid

description)

A vision, is more encompassing. It answers the question, "What will success look like?" It is the pursuit of this image of success that really motivates people to work together.

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Page 5: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

Starbucks’ Mission and VisionStarbucks’ MissionStarbucks’ mission is to “establish Starbucks as the premier purveyor of the

finest coffee in the world while maintaining our uncompromising principles as we grow” (Starbucks Website, 2006, p.1).

Starbucks strategic plan to make its mission a reality is evidence by the company’s rapid expansion worldwide. Starbucks has locations in all 50 States in the US, plus the District of Columbia and Puerto Rico (Starbucks Company Fact Sheet, 2006). Starbucks can also be found in 36 countries outside the US (Starbucks Company fact Sheet, 2006). Starbucks is committed to buying only certified coffee in pursuit of selling the finest coffee.

Starbucks’ VisionAccording to the company’s profile, (2006) its vision is to make Starbucks coffee

the most recognized and respected brand in the world by using high quality roast beans to make coffee beverages along with other products. The company wants to develop enthusiastically satisfied customers at all times. They want to make positive contributions to their communities and their environment.

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Page 6: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

Need for Solid Market Research

Size of marketCompetitor AnalysisMarket Conditions and trendsProfit MarginsRevenue Opportunities

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Page 7: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

Economic AnalysisNational Income DataIndustry Growth Impact of changes in Interest rate, inflation,

taxes on GrowthOther Key economic data

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Page 8: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

Market demandMarket demand for a product is the total

volume that would be bought by a defined consumer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.

It is not a fixed number but rather a function of stated conditions. Therefore it is called market demand function.

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Page 9: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

Customer AnalysisWhat type of customer will buy the product or

service?Where are these customers located?How many potential customers (N) are there?How often do they consume or use it?What is the Competition?What are people paying?What is the Potential for the Market to

Develop?What is my share of the Market?

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Page 10: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

Market PotentialTotal Market Potential = Number of buyers

in the specific market under the given assumptions * quantity purchased by an average buyer * price of an average unit.

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Page 11: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

Key Steps in Estimating Market Potential:

1. Define your target market and market segments.

2. Define the geographic boundaries of your market.

3. Derive an average selling price.4. Determine the average annual

consumption.

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Page 12: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

Company Sales Forecast: The various ways of estimating demand are:1. Historical Sales figures2. Forecasting current Demand by regression

analysis, trend analysis3. Estimating Industry growth4. Estimating Economy's growth 

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Page 13: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

Target MarketA target market can be thought of as the customers

who are most likely to buy from you and generally are described using demographic variables (gender, age, education) as well as psychographic variables (lifestyle and belief system variables).

In many cases, a business may have more than one target market. Think about the automobile industry,

Automobile manufactures have a number of target markets, i.e., truck buyers, luxury car buyers, economy buyers. Your business should be able to develop specific profiles for each of your target markets using demographic and psychographic variables.

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Page 14: RAHUL JAIN (Striving for excellence) BCOM (H), PGPM, FCS

Revenue AnalysisRevenues= No. of expected buyer*quantity purchased

by an average buyer*price of an average unit

Sales Budget

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