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    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 1

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    Nguyễn Phương Trâm
    This document discusses corporate strategy decisions and their implications for marketing. It covers several key topics: setting objectives and mission statements, developing a competitive advantage, analyzing strategic options using tools like the BCG matrix, assessing economic value using metrics like EVA, and leveraging synergies between business units. The overall focus is on how strategic decisions impact and align with a company's marketing approach.

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    © All Rights Reserved
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    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 1

    Uploaded by

    Nguyễn Phương Trâm
    36 views30 pages
    This document discusses corporate strategy decisions and their implications for marketing. It covers several key topics: setting objectives and mission statements, developing a competitive advantage, analyzing strategic options using tools like the BCG matrix, assessing economic value using metrics like EVA, and leveraging synergies between business units. The overall focus is on how strategic decisions impact and align with a company's marketing approach.

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    This document discusses corporate strategy decisions and their implications for marketing. It covers several key topics: setting objectives and mission statements, developing a competitive advantage, analyzing strategic options using tools like the BCG matrix, assessing economic value using metrics like EVA, and leveraging synergies between business units. The overall focus is on how strategic decisions impact and align with a company's marketing approach.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    36 views30 pages

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 1

    Uploaded by

    Nguyễn Phương Trâm
    This document discusses corporate strategy decisions and their implications for marketing. It covers several key topics: setting objectives and mission statements, developing a competitive advantage, analyzing strategic options using tools like the BCG matrix, assessing economic value using metrics like EVA, and leveraging synergies between business units. The overall focus is on how strategic decisions impact and align with a company's marketing approach.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 30

    Chapter 2

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 1


    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-2
    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-3
    • Guides managers to identify market
    opportunities:
    • To be pursued
    • Out side the firm’s strategic domain
    • Helps instill:
    • A sense of direction, relevance, and achievement
    amongst employees
    • Defines the organization’s strategic scope

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-4


    Source: Adapted from Strategy Formulation: Analytical Concepts, 1st edition, by C. W. Hofer and D. Schendel, Thomson Learning, 1978.

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-5


    • Important to craft mission statements
    specifying explicit social values, goals and
    programs
    • Ethics: Development of moral standards by
    which actions and situations can be judged
    • Proactive than the law

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-6


    • Unethical practices can:
    • Damage the trust between a firm and its suppliers
    or customers
    • Disrupt the development of long-term exchange
    relationships
    • Result in the likely loss of sales and profits over
    time

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-7


    • Components of an objective
    • Performance dimension
    • Measure or index
    • Target or hurdle
    • Time frame

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-8


    • Must be SMART
    • Specific
    • Measureable
    • Attainable
    • Relevant
    • Time bound

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-9


    • Requires balancing the interests of:
    • Corporate constituencies
    • Employees
    • Customers
    • Suppliers
    • Debt holders
    • Stockholders

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-10


    • Management’s primary objective
    • Capital investments
    • Acquisitions
    • Business strategies

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-11


    • Requires firm to set explicit objectives
    • Can be expressed in terms of one of the following
    • Economic value added
    • Market value added
    • Objectives are sometimes expressed in terms
    of market value added (MVA)

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-12


    • Standard accounting measures are not
    always reliably linked to the true value of a
    company’s stock
    • Narrow focus on objectives lead managers to:
    • Pay little attention to actions necessary to provide
    value to the firm’s customers and sustain a
    competitive advantage

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-13


    • Managers can reconcile conflicting goals by:
    • Prioritizing them
    • Stating one of them as a constraint
    • Customer-focused objectives
    • Satisfaction
    • Retention
    • Loyalty

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-14


    • Is based on company resources that:
    • Other firms do not have
    • Take a long time to develop
    • Are hard to acquire
    • Requires developing a:
    • Competitive strategy for each division
    • Strategic marketing program for each product

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-15


    • Should provide one or more superior benefits
    • Should be effectively communicated to potential
    customers

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-16


    • Directions that firms can go for future growth
    • Expansion of its current businesses and activities
    • Diversification into new businesses

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-17


    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-18
    • Sets of analytical tools are used in making
    decisions
    • Portfolio models
    • Value-based planning
    • Models that measure customer equity

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-19


    • The Boston Consulting Group’s (BCG) growth-
    share matrix
    • Market growth rate: Proxy measure for the maturity
    and attractiveness of an industry
    • Relative market share: Proxy for its competitive
    strength within its industry

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-20


    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-21
    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-22
    • Resource allocation tool that:
    • Addresses questions pertaining to worthiness of
    businesses by assessing the shareholder value a
    given strategy is likely to create
    • Provides a basis for comparing the economic
    returns

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-23


    • Assess the economic value of a strategy by
    examining the cash flows it will generate
    • Estimate the shareholder value produced by:
    • Discounting forecasted cash flows by the business’s
    risk-adjusted cost of capital

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-24


    • Evaluates strategies based on the likelihood
    that:
    • Investments required by a strategy will deliver
    returns greater than the cost of capital

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-25


    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-26
    • Calculates the economic return for a
    prospective marketing initiative based on:
    • Its likely impact on the firm’s customer equity

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-27


    • Knowledge-based synergies
    • Function of the corporation’s scope and mission
    • Corporate identity and the corporate brand
    • Flows from the communications, impressions, and
    personality projected by an organization

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-28


    • Company’s own name and logo serves as the
    brand name of all or most of the firm’s products
    • Dual branding strategy - Each offering carries a
    corporate identifier and an individual product
    brand
    • Each product offering might be given a unique
    brand and identity

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-29


    • Inherent in sharing operational resources,
    facilities, and functions across business units
    • Helps increase economies of scale or
    experience-curve effects

    9/2/2021 Corporate Strategy Decisions and Their Marketing Implications 2-30

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