IBMgmt Transcript for Week 7 - HGU

STRATEGIC PLANNING: CHAPTER 6

Strategic planning is a management tool used to help an organization do a better job and to ensure that member of the organization are working toward the same goals, to assess and adjust the organization's direction in response to a changing environment. The selected strategy is implemented by means of programs, budgets, and procedures.

Implementation involves organization of the firm's resources and motivation of the staff to achieve objectives. The way in which the strategy is implemented can have a significant impact on whether it will be successful. In a large company, those who implement the strategy likely will be different people from those who formulated it. Care must be taken to communicate the strategy and the reasoning behind it. Otherwise, the implementation might not succeed if the strategy is misunderstood or if lower-level managers resist its implementation because they do not understand why the particular strategy was selected.

 

GLOBAL MARKETING EVOLUTION:

The scope of marketing is broadened when the organization decides to sell across international boundaries, this being primarily due to the numerous other dimensions which the organization has to account for.

When organizations develop into global marketing organizations, they usually evolve into this from a relatively small export base. Some firms never get any further than the exporting stage. Marketing overseas can, therefore, be anywhere on a continuum of "foreign" to "global". It is well to note at this stage that the words "international", "multinational" or "global" are now rather outdated descriptions. In fact "global" has replaced the other terms to all intents and purposes. "Foreign" marketing means marketing in an environment different from the home base, it's basic form being "exporting".

 

GLOBALIZATION DRIVERS:

 

1.     Market Factors: New consumer groups, developed infrastructures, globalization of distribution channels.

2.     Cost Factors: Avoiding cost inefficiencies and duplicated efforts.

3.     Environmental Factors: Reduced governmental barriers, rapid technological evolution.

4.     Competitive Factors: Rapid product innovation, introduction, distribution.

  

 

THE STRATEGIC PLANNING PROCESS:

The Strategic Planning should clearly define objectives and assessment of both internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make necessary adjustments to stay on track.

 

MARKET AND COMPETITIVE ANALYSIS:

 

1.     Need to understand the structure of the global market industry; the common features of customer requirements and choice factors.

2.     Internal Analysis: To examine the readiness.

 

FORMULATING GLOBAL MARKETING STRATEGY:

  

1.     Formulation begins with a series of strategic decisions.

2.     Choice of competitive strategy: Cost leadership, Differentiation, Focus.

3.     Country Market Choice:

a.     Concentration or diversification.

b.    Factors in country markets selection:

·         The stand-alone attractiveness of the market.

·         Global strategic importance of the market.

·         Possible synergies offered by the market.