SBU Planning

8/11/2019 SBU Planning

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Dimensions That Define a Business

Customergroups

TechnologyCustomer

needs


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Product Orientation vs. Market Orientation

Company Product Market

Missouri-PacificRailroad

We run a railroad We are a people-and-goods mover

Xerox We make copyingequipment

We improve officeproductivity

Standard Oil We sell gasoline We supply energy

Columbia Pictures We make movies We entertain people


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The Business Unit Strategic Planning Process


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The Business Mission

Each business unit needs to define its specificmission within the broader company mission.

Good mission statements have five major characteristics

They focus on a limited number of goals They stress the companys major policies and values They take a long-term view.

They are as short, memorable, and meaningful aspossible.

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SWOT Analysis

Marketers need to be good at spotting opportunities.Consider the following

A company may benefit from converging industry trends and

introduce hybrid products or services that are new to the market.A company may make a buying process more convenient orefficient.A company can customize a product or service.A company can introduce a new capability.

A company may be able to offer a product at a much lower price.


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STRENGTHS AND WEAKNESSES ANALYSIS

Manufacturing13. Facilities14. Economies of scale15. Capacity16. Able, dedicated workforce17. Ability to produce on time

18. Technical manufacturing skill

Organization

19. Visionary, capable leadership20. Dedicated employees21. Entrepreneurial orientation22. Flexible or responsive

Finance11. Cost or availability of capital12. Cash flow13. Financial stability

Marketing1. Company reputation2. Market share3. Customer satisfaction4. Customer retention5. Product quality

6. Service quality7. Pricing effectiveness8. Distribution effectiveness9. Promotion effectiveness10. Sales force effectiveness


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Goal Formulation

Most business units pursue a mix of objectives,including profitability, sales growth, market shareimprovement, risk containment, innovation, andreputation.

Criteria of Objective:


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Strategic Formulation

Porters Generic Strategies


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STRATEGIC ALLIANCES

Many strategic alliances take the form of marketingalliances. These fall into four major categories

Product or Service Alliances

Promotional Alliances

Logistics Alliances

Pricing Collaborations


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Program Formulation and Implementation

Mckinsey 7s


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Feedback and Control

Once an organization fails to respond to a changedenvironment, it becomes increasingly hard torecapture its lost position.

Acompany might remain efficient yet loseeffectiveness. Peter Drucker pointed out that it ismore important to do the right thingto beeffectivethan todo things rightto be efficient.The most successful companies, however, excel at

both.

Documents

SBU Planning