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Corporate and Division Level Strategic Planning
Corporate and Division Level Strategic Planning
Class 02- Corporate & Division level Strategic Planning, Business unit
strategic planning
Defining corporate mission helps to create a sense of direction and opportunity for
the organization.
Example:
iii) Define major competitive scopes in its selected market( e.g. industry ,
product & application, competence, market segment, vertical,
geographical scopes)
B) Establishing SBU
Example:
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Beximco is now managing 22 business units at a time such as Beximco
Pharmaceuticals, Textiles, Denim etc. Each of these units can be classified as SBU.
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Product and market definition of business:
Examples:
When a company has a number of products in the market, not all of them are
contributing equally, not all of them have equal opportunity for growth. Each of
them has to be treated differently and budget allocation make separately.
ii) Stars- a star is a market leader in high growth market-may not give
sufficient revenue or profit
iii) Cash cows-when growth rate falls than 10% the stars becomes a cash
cow provided it still has a very high market share and contributed
significantly to the profitability of the company. Growth rate has slowed
because the sector growth has slowed.
Every company has plans for growth. When desired sales targets are not met,
strategic planning needs to be re-examined. Growth is possible in three ways:-
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i) Market Penetration Strategy, (for current market, current product)
Lever Brothers has introduced mini soap and mini pack shampoo.
Ansoff’s grid
Current product new product
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ii) Forward integration-Acquiring one or more whole sellers if
they are more profitable
SWOT
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2) Goal formulation:
The four criteria objectives must meet for an effective MBO system:
Differentiation
Focus
End
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