Designing The Business Portfolio: Strategic Planning
Designing The Business Portfolio: Strategic Planning
Designing The Business Portfolio: Strategic Planning
The process of developing and maintaining a strategic fit between the organization’s
goals and its changing marketing opportunities. (figure 2.1 p 318)
Mission statement
A statement of the organization’s purpose – what it wants to accomplish in the larger
environment.
Mission statements should be market oriented and defined in terms of satisfying basic
customer needs. Products and technologies eventually become outdated, but basic
market needs may last forever. Mission statements should be meaningful and specific
yet motivating.
Portfolio analysis
The process by which management evaluates the products and businesses that make
up the company.
steps:
1:managers should identify their strategic business units-SBU. (key businesses that
make up the company) can be a company division, single product or brand etc.
-purpose of strategic planning: to find ways in which the company can best use its
strengths to take advantage of attractive opportunities in the environment.
Growth-share matrix
A portfolio-planning method that evaluates a company’s SBUs in terms of market
growth rate and relative market share.