Corporate Strategies

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Corporate Strategies
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Organizations (Types)

• Business Firm
• Privately owned organization that serves its
  customers in order to earn a profit. Must earn a
  profit.
• Profit is the reward to a business firm for the
  risk it undertakes in offering a product for
  sale. Its the money left over after a firms
  total expenses are subtracted from its total
  revenues

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Organizations (Types)

• Nonprofit Organization
• Nongovernmental organization that serves its
  customers but does not have profit as an
  organizational goal

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Organizations (Levels)

• Corporate Level
• Top management directs overall strategy for the
  entire organization

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Organizations (Levels)

• Business Unit
• Organization that makes a set of related products
  to a clearly defined group of customers
• Business unit level is the level at which
  business unit managers set direction for their
  products and markets to exploit value, creating
  opportunities
• Direction is more specific here
• Each unit has specialized activities

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Organizations (Levels)

• Functional Level
• Groups of specialists actually create value for
  the organization
• Departments
• Direction is more specific and focused
• Ex Accounting, Marketing, Communications
• Most of the work gets done at this level

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Organizations (Teams)

• Cross-Functional Teams
• Small number of people from different departments
  in an organization who are mutually accountable
  to a common set of performance goals

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Organizations (The Mission)

• Mission
• A statement of the organizations scope, often
  identifying its customers, markets, products,
  technology, and values
• Mission Statement
• Usually inspirational

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Organizations (Mission Statement)

• The Mission of Southwest Airlines
• The mission of Southwest Airlines is dedication
  to the highest quality of Customer Service
  delivered with a sense of warmth, friendliness,
  individual pride, and Company Spirit.
• To Our Employees
• We are committed to provide our Employees a
  stable work environment with equal opportunity
  for learning and personal growth. Creativity and
  innovation are encouraged for improving the
  effectiveness of Southwest Airlines. Above all,
  Employees will be provided the same concern,
  respect, and caring attitude within the
  organization that they are expected to share
  externally with every Southwest Customer.

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Organizations (Mission Statement)

• Above all else, we are committed to the care
  andimprovement of human life. In recognition of
  this commitment, we strive to deliver high
  quality, cost effective healthcare in the
  communities we serve.
• In pursuit of our mission, we believe the
  following value statements are essential and
  timeless.
• We recognize and affirm the unique and intrinsic
  worth of each individual.
• We treat all those we serve with compassionand
  kindness.
• We act with absolute honesty, integrity and
  fairness in the way we conduct our business and
  the way we live our lives.
• We trust our colleagues as valuable members of
  our healthcare team and pledge to treat one
  another with loyalty, respect and dignity.

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Organizations (Mission Statement)

• The mission of the Tennessee Performing Arts
  Center is "to provide facilities, services and
  programs of the highest quality for the greatest
  benefit of the people, institutions and
  communities of the state, and to take a
  leadership role in fostering the performing arts,
  arts education, resident arts groups and other
  arts organizations."

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Organizations (The Culture)

• Organizational Culture
• A set of values, ideas, and attitudes that is
  learned and shared among the members of an
  organization
• Mergers with other companies

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Organizations (The Culture)

• Stakeholders
• The people who are affected by what the company
  does and how well it performs
• Employees, owners, board members, suppliers,
  distributors, unions, customers, local
  communities

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Organizations (Goals)

• Goals (or objectives)
• Statements that are usually in the marketing
  plan, tell what should be accomplished by a
  certain time
• Can be at corporate level, business unit level,
  or functional level work together
• Needs to be measurable

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Organizations (Goals)

• Types of Goals
• Profit
• Sales
• Market Share (ratio of sales revenue of the firm
  to the total sales revenue of all firms in the
  industry, including the firm itself)
• Quality
• Customer Satisfaction
• Employee Welfare
• Social Responsibility

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Growth Strategies

• Competencies
• An organizations special capabilities including
  skills, technologies, and resources that
  distinguish it from other organizations

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Growth Strategies

• Competitive Advantage
• Something an organization does better than
  competitors. Usually in regards to quality,
  great customer service, lowest prices, etc.

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Growth Strategies

• Benchmarking
• Discovering how others do something better than
  you so you can imitate or leapfrog competition

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Growth Strategies

• Business Portfolio Analysis
• Market-Product Analysis

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Growth StrategiesBusiness Portfolio Analysis

• Analyses an organizations business units as
  though they are separate investments

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Growth StrategiesBusiness Portfolio Analysis

• Vertical Axis
• Represents the market growth rate (meaning how
  much per year that industry is growing)
• Horizontal Axis
• Represents the relative market share (divide SBU
  sales by sales of largest firm in the industry)

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Growth StrategiesBusiness Portfolio Analysis

• Cash Cows
• Question Marks
• Dogs
• Stars

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Growth StrategiesBusiness Portfolio Analysis

• Cash Cows
• Lower left quadrant
• Generate a lot of cash, more than they need,
  gives money to help with company overhead and
  invest into other SBUs
• Have dominate market share
• Slow-growth market
• Ex Kodak Film

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Growth StrategiesBusiness Portfolio Analysis

• Stars
• Upper left quadrant
• High market share
• High growth market
• May not have enough money to continue growth
• Likely to become Cash Cows
• Ex Kodak digital camera

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Growth StrategiesBusiness Portfolio Analysis

• Question Marks (or Problem Children)
• Upper right quadrant
• Low market share
• High growth market
• Have to have lots of cash to maintain market
  share
• Ex Kodak at-home printers

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Growth StrategiesBusiness Portfolio Analysis

• Dogs
• Lower right quadrant
• Low market share
• Low growth market
• May have enough money to keep them afloat, but
  may not ever be big for firm
• Ex Kodak self-service kiosks

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Growth StrategiesBusiness Portfolio Analysis

• Normally SBUs begin as Question Marks, then
  become Stars, Cash Cows, then Dogs
• Cant really control market growth rate
• Want to increase market share

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Growth StrategiesBusiness Portfolio Analysis
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Growth StrategiesMarket-Product Analysis

• A way to look at growth using markets and
  products
• Products
• Current market
• Potential new market
• Markets
• Current product
• Potential new product

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Growth StrategiesMarket-Product Analysis

• Market Penetration
• Try to increase sales of current products in
  current markets
• Basic products do not change, market served does
  not change
• How can sales be increased?

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Growth StrategiesMarket-Product Analysis

• Market Development
• Try to sell current products to new markets
• Basic products do not change, market served do
  change

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Growth StrategiesMarket-Product Analysis

• Product Development
• Try to sell new products to current markets
• New products are introduced to current market
  served

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Growth StrategiesMarket-Product Analysis

• Diversification
• Try to sell new products to new markets
• New products are introduced to new markets served

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Strategic Marketing ProcessPhase I Planning

• The process an organization uses when they
  allocate marketing mix resources to reach their
  target market
• Create a marketing plan
• A road map for the marketing activities of an
  organization for a specified future period of time

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Strategic Marketing ProcessPhase I Planning

• Want to figure out where you are, where youd
  like to be, and how youre going to get there

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Strategic Marketing ProcessPhase I Planning

• Begin with a Situation Analysis (SWOT Analysis)
• S Strengths (Internal)
• W Weaknesses (Internal)
• O Opportunities (External)
• T Threats (External)
• Can focus on product, product line, business
  unit, or whole organization

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Strategic Marketing ProcessPhase I Planning

• Obtain a clear understanding of the following
  areas
• Trends in the firms industry
• Know as much as possible of competition
• Assess your organization
• Know as much as possible about your customers and
  prospective customers

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Strategic Marketing ProcessPhase I Planning

• Once the SWOT is created, take the information
  youve learned and act on it
• Build strengths
• Correct weaknesses
• Exploit opportunities
• Avoid threats

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Strategic Marketing ProcessPhase I Planning

• Market-Product Focus and Goal Setting
• After analyzing SWOT, the organization must
  decide which products theyll offer to which
  customers

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Strategic Marketing ProcessPhase I Planning

• Market Segmentation
• Aggregating prospective buyers into groups, or
  segments, that have common needs and will respond
  similarly to a marketing action
• May have different marketing programs for
  different segments

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Strategic Marketing ProcessPhase I Planning

• Market Segmentation
• Different market segments may have different
  goals
• Points of difference
• Characteristics of a product that make it
  superior to competitive substitutes

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Strategic Marketing ProcessPhase I Planning

• The Marketing Program
• In this step of the planning phase, the budget
  and marketing mix is created

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Strategic Marketing ProcessPhase II
Implementation

• Carries out market program that was developed in
  planning phase
• Obtain resources
• Find a way to get money to finance marketing
  program
• Design marketing organizations
• Helps put marketing program into effect
  (marketing department)
• Develops schedules
• Basically a timeline

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Strategic Marketing ProcessPhase II
Implementation

• Execute marketing program
• Marketing strategy is the means by which a
  marketing goal is to be achieved, usually
  characterized by a specified target market and
  marketing program to reach it
• Marketing tactics are detailed day to day,
  operational decisions essential to the overall
  success of marketing strategies

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Strategic Marketing ProcessPhase II Control

• Make sure the marketing program is doing what
  its supposed to be doing
• Compare whats happening to what was planned
• Make changes if needed