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Defining the corporate mission Establish SBUs Assigning resources to each SBUs Assessing growth opportunities
Mission Statement
The reason for companys existence and its responsibilities to stakeholders The customer needs that are satisfied by the firms products or services( areas of product and market involvement) The extent of specialization within each product-market area Amount of product-market diversification desired by the management. Management's performance expectation from the company Other general guidelines for overall business strategy ( such as technologies to be used & role of R&D)
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DHL DHL will become the acknowledged global leader in the express delivery of documents and packages. Leadership will be achieved by establishing the industry standards of excellence for quality of service and by maintaining the lowest cost position relative to our service commitment in all markets of the world. McDonalds UK mission Statement To be the United Kingdoms number one favourite quick service restaurant. The company will be led by the needs of our customers and commitment to the welfare and development of our staff. Mcdonalds will provide great tasting food, backed by excellent operators and friendly service in a relaxed, safe and consistent restaurant environment. Our customers will be serviced in a caring, welcoming and professional manner. These goals will be implemented in a way which optimises the highest operational standards with efficiency and profitability.
Xerox We make copying equipment- We help improve office productivity Columbia Pictures We make movies- We market entertainment Encyclopaedia Britannica We sell encyclopaedias-We distribute information
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SBU Characteristics
Serves a homogeneous set of markets with a limited number of related technologies Serves a unique set of product- markets Has control over the factors necessary for successful performance, such as R&D, production, marketing, and distribution Has responsibility for its own profitability
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Opportunity Matrix
Low
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Threat Matrix
Probability of Occurrence High
High
Low
Low
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Performance Low
High
High
Low
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Skills
Structure
Style
Shared Values
Strategy
Staff
Systems
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3. Marketing Strategy Mission Marketing Objectives Financial Objectives Target Market Positioning Strategies Marketing Mix Marketing Research
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4.Financials Break Even Analysis Sales Forecasts Expense Forecast 5. Controls Implementation Marketing Organisation Contingency Planning
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The Forces New entrants, potential entrants and the threat of entry; Substitute products/services; Buyers and Buyer power; Suppliers and supplier power; Competitors and the nature of inter-firm rivalry.
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What is the threat of entry into the industry and from where does it arise? Where are present and potential substitute products/services located and what is their impact or likely impact on the organization and the industry? Who are the buyers and what is the extent of their power with regard to the organization? Who are our suppliers and what is their power with regard to the organization? Who are our present and potential competitors and how intense is (or will be) present and potential competitive rivalry?
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Potential entrants. Threat of entry depends on the extent of barriers to entry Is the potential customer base sufficient to support new operations? How heavy is the capital investment requirement in the industry? Is finance available? Is there a strong brand image to overcome? How costly will be access to distribution channels? What operating cost advantages might existing competitors hold (e.g. experienced staff, patent protection, etc.) ? Is there governmental/legislative protection afforded to existing organizations? How vigorously will existing operators react against new entry attempts?
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Customers perceive other offers to perform the same function as ours; Substitute products offer higher value for money Substitute products earn higher profits.
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