Transcript 11.1 Developing Strategic Plans

11.1
Developing Strategic Plans
INTERNATIONAL MARKETING
Types of Strategic Planning


Strategic Planning: Process of determining how to move to a desired future state.

Used by businesses to ensure all parts of the organization are heading in same direction

Evaluates the environment, identifies long term objectives, & develops the plans to reach those objectives.

Take a wide view of business
Tactical Planning: More narrowly focused


Takes a short-term view
The Difference Between Strategic & Tactical Planning:

https://www.youtube.com/watch?v=TCei7oChf9I
Approaches to Planning

International marketers will either take a proactive or reactive strategic
approach

Proactive: Recognize your product potential & pursue it before being forced

Reactive: Implement a change based on the environment

What is a proactive approach to getting into your dream college?

What is a reactive approach to not getting into your dream college?
Strategic Planning Process

Strategic Planning helps lower risks.


Look at what you can do well & minimizes things from happening that could prevent you from doing
well.
Strategic Planning Follows a Six Step Process:
1.
Develop a mission statement
2.
Conduct a situational analysis or SWOT
3.
Develop alternative goals & strategies
4.
Develop the strategic plan
5.
Specify action plans
6.
Evaluate & Control the plans
Mission Statements
 A mission statement accomplishes the following:





Defines a market oriented purpose of an organization
Provides direction
Commits resources
Inspires individuals
Establishes a focus for activities
Step #2: Conduct a SWOT Analysis

A SWOT Analysis is an environmental assessment of the strengths,
weaknesses, opportunities, & threats that a business faces.

Provides the information necessary for developing global strategic plans.

Strengths and weaknesses have a internal focus on factors a business can
control.

Opportunities and threats evaluate external factors that the environment
brings.

Strengths and opportunities are the positives

Weaknesses and threats are negative
Step #3: Develop Alternative Goals & Strategies

After developing a mission statement and conducting a SWOT analysis, a business must
develop a set of alternative goals and strategies.

Evaluate advantages and disadvantages

Focusing on just one alternative can increase risks

Alternatives may involve:

Pursuing a variety of products

Evaluating alternative markets

Possible abandonment of certain markets or products
Step #4: Develop a Strategic Plan
Step #5: Specify Action Plans
Step #6: Evaluate & Control

#4 & #5: The business must set specific action plans
Assign responsibilities
 Establish measurable goals
 Establish deadlines and due dates
 This helps insure the plan is actionable and will be followed


Step #6: Evaluate & Control

The plan needs on-going evaluation to monitor its progress.
Strategic Business Units (SBU’s)

SBUs(Strategic business unit) are established by parent companies to implement
strategic plans.

SBU: The smallest unit around which a business develops a strategy


Example Phillips has an European division, North American division and an Asian division.

Each of these are examples of SBUs and Phillips will develop country specific strategies for each of these
SBUs.
SBUs do the tactical planning but are ultimately controlled and strategically planned
by their parent units.
Ticket Out the Door
Individually, write 2 to 3 facts/ characteristics on each of the following:

strategic planning

tactical planning

strategic business unit

mission statement

SWOT analysis