1. Why is strategic planning important? How does it provide direction for the 2.
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1. Why is strategic planning important? How does it provide direction for the 2. What is a SBU (strategic business unit), and what are its characteristics? 3. Look at Ansoff's Strategic Opportunity Matrix. Provide a marketing marketing function? Ilustrate an SBU witi a business example. example for each of the 4 options (market penetration, market development, product development and diversification) 4. Summarize the Product Portfolio Matrix (Boston Consulting Group) and provide an example for each of the strategic business units. I've used this model several times in my consulting activities, and it is very useful. 5. How is the GE Model of portfolio analysis different than the Boston Consulting Group Matrix? 6. The Marketing Plan: a. Definition b. What should it do? 7. The Business Mission: a. Definition b. What does it do for the organization? 8. SWOT Analysis: How does using SWOT analysis help the firm? In other words, what does it show the firm? 9. Define Environmental Scanning. What kinds of broad external environments are usually studied in the environmental scanning process?Explanation / Answer
1) Stratergic planning plays an important role in any organisation. Following are some points which can describe its role and value for an organisation:
How does it provide direction to the marketing function: Stratergic planning assist the company in maeketing functions in various ways. This enable the firm to pridect the market behaviour and future changes and makes it ready to face challenges. Stratergic planning involves the top management of the company which insure the proper and timely innovations the products as needed.It enable the firm to understand the market movements, prepare a proper plan of action, effective promotion, formulating marketing stratergy,product development, and many more functions.
2)SBU: A SBU is an independent managed division of a large company, having its own vision, mission and objective, whose planning is done seperately fromm the other business activity.These vision,mission and obectives are different from what of the parents organisation is having.
Charecterstics:
Illustration: suppose a bank is having a seperate division whose work is just to handling the high network clients like we see in many investments banks now a days.
3)Ansoffe matrix examples:
Market penetration:It is used when the organisation is having a product and knows the market, and has to develope stratergy for that market.
The best example of market penetration is telecom industry. Telecome industy faces an intence competitions since there are many players in the market. Hence to ensure the growh, companies must have come up with the new ideas and offers for its audience.
Market developement: This stratergy is used when the firm targets a new audience in the new market with the same product. Example- many brands go international like NIKE has launched its product to all over the world .
Product developement: In this the company is having a good market share and therefore might need to introduce the new product for expansion. Like, APPLE is a leading car selling company but still they intrduce a new model in every period of time for their regular expansion.
Diversification: This is used where the product is compleately new and introduced in a new market. Example of this is SAMSUNG which has started as a trading company but later on diversified in the insurance,retail , securities and electronic business.
4)The product portfolio matrix, also called growth–share and BCG matrix which establishes products in order to maximise the overall value a portfolio creates.The matrix categorises products as question marks, stars, cash cows, and dogs.Question marks are products with high growth that don’t yet deliver significant business benefits—be it generating revenue, selling other products or services, enhancing the brand equity, or saving money. Stars show high growth and deliver the desired benefits. Cash cows are products characterised by low growth, but they offer plenty of business benefits. Pets, finally, exhibit low growth and offer few benefits.Examples- Question mark- google translater. Star-Microsoft. Cash cow- The company P&G which manufacture pamper etc. Dog- IPOD
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