The mission leads to a hierarchy of objectives including business objectives and marketing objectives. Marketing strategies must be developed to support the objectives. Objectives need to be specific. Marketing’s role in strategic planning and value creation Marketing plays a key role in the company’s strategic planning: Marketing provides a guiding philosophy which suggests that company strategy revolves around serving the needs of important customer groups. e. g. Westpac (following slide) Marketing provides input to strategic planners by helping to identify attractive market opportunities and by assessing the company’s potential to take advantage of them.
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Westpac’s Strategic Agenda a) drive a strong, active customer-centric culture to delight our customers by: Our strategic priorities are particularly centred on improving our distribution and ustomer offerings, specifically to: putting the customer at the centre of everything we do; establishing and driving high performing and locally empowered businesses very close to the communities they serve; developing and implementing compelling customer segment strategies, bringing banking and wealth strategies management together for the customer; and strengthening the skills and depth of our people; by having processes and solutions designed from the customers’ perspective; through a focus on convenience, simplicity and flexibility; and by achieving integration across all channels. ving a clear, shared vision of success across the Group; offering an even greater choice to customers; and continuing to invest in and support the processes end to end from a customer perspective; strengthen technology capabilities to increase the reliability and consistency of service; b) become easier to do business with: c) realise our multi-brand advantage by: d) invest in operations improvements to: 4 Business portfolio Guided by its mission, objectives and strategy, management must now plan its business portfolio. A business portfolio is the collection of businesses and products hat make up the company. The most effective business portfolio is one that best fits the companys strengths and weaknesses to opportunities in the environment. A company needs to analyse its current business portfolio to decide which businesses should receive more, less or the same investment and to develop and identify growth strategies and products for the future.
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business units – Woolworths 14 Analysing the current business portfolio Portfolio analysis is a tool that helps management identify and evaluate the various businesses that make up the company. Most evaluate the SBUs of a firm on two important p dimensions: the attractiveness of the SBU’s market and the strength of the SBU’s position in the market to decide how much support the SBIJ should receive. The best known portfolio-planning analysis methods and tools were developed by the Boston Consulting Group and by General Electric. 5 Business Portfolios – BCG Matrix Classifies the SBU’s in terms of their market growth rate and relative market share High Question Marks Stars 77777 Dogs Cash Cows Low Relative Market Share Question Marks.
High growth, low share businesses. Many businesses start off here! Strategy must decide between further investment to move question marks to star status or phasing the d t t product out. Stars Market Gro owth Rate High Low Question Marks X-BOX Dogs Stars. High growth, high share businesses. Stars often require heavy investment to build/maintain share in rapidly expanding markets. Cash Cows Dogs. Low growth, low share. Dogs are often targets for divestment, but may still be profitable and/or contribute to other organisational goals.. Cash Cows. Low growth, high share businesses. Cows generate profits for investment n other businesses. They are established and successful.
The GE Planning Grid Business Strength Strategic business planning grid Weak Industry Attra activeness Strong High Average CA Medium The most appealing situation is A where the industry is attractive and the company has the ability to serve that market 6 Industry Attractiveness Index Market size Industry Attract tiveness Market growth rate Industry profit margin Amount of competition Seasonality/ cyclicality demand Industry cost structure Business Strength Index Companies arket share Price competitivenessSee More on Management