Marketing Management, Millenium Edition - epiheirimatikotita.gr

40 CHAPTER 3 WINNING MARKETS THROUGH STRATEGIC PLANNING, IMPLEMENTATION, AND CONTROLCORPORATE AND DIVISION STRATEGIC PLANNINGMarketing plays a critical role in corporate strategic planning within successful companies.Market-oriented strategic planning is the managerial process of developingand maintaining a viable fit among the organization’s objectives, skills, and resourcesand its changing market opportunities. The aim of strategic planning is to shape thecompany’s businesses and products so that they yield target profits and growth andkeep the company healthy despite any unexpected threats that may arise.Strategic planning calls for action in three key areas. The first area is managing acompany’s businesses as an investment portfolio. The second area involves assessingeach business’s strength by considering the market’s growth rate and the company’sposition and fit in that market. And the third area is the development of strategy, agame plan for achieving long-term objectives. The complete strategic planning, implementation,and control cycle is shown in Figure 1-4.Corporate headquarters starts the strategic planning process by preparing statementsof mission, policy, strategy, and goals, establishing the framework within which thedivisions and business units will prepare their plans. Some corporations allow their businessunits a great deal of freedom in setting sales and profit goals and strategies. Othersset goals for their business units but let them develop their own strategies. Still others setthe goals and get involved heavily in the individual business unit strategies. 1 Regardlessof the degree of involvement, all strategic plans are based on the corporate mission.Defining the Corporate MissionAn organization exists to accomplish something: to make cars, lend money, provide anight’s lodging, and so on. Its specific mission or purpose is usually clear when the businessstarts. Over time, however, the mission may lose its relevance because of changed marketconditions or may become unclear as the corporation adds new products and markets.When management senses that the organization is drifting from its mission, itmust renew its search for purpose. According to Peter Drucker, it is time to ask somefundamental questions. 2 What is our business? Who is the customer? What is of value to thecustomer? What will our business be? What should our business be? Successful companiescontinuously raise these questions and answer them thoughtfully and thoroughly.Figure 1-4The Strategic Planning, Implementation, and Control ProcessPlanning Implementing ControllingCorporate planningOrganizingMeasuring resultsDivision planningBusiness planningProduct planningImplementingDiagnosing resultsTaking correctiveaction