STRATEGIC PLANNING

- is an organization's process of defining its strategy, or direction, and making decisions on allocating its
resources to pursue this strategy. It may also extend to control mechanisms for guiding the
implementation of the strategy.

- before any marketing planning can be implemented by individual divisions or departments, a plan has
to be developed for the entire organization.

- strategic planning includes all activities that lead to the development of a clear organizational mission,
organizational objectives and appropriate strategies to achieve the objectives of the entire organization.

THE STRATEGIC PLANNING PROCESS

1. ORGANIZATIONAL MISSION

- it is the purpose and the description of an organization for its existence.

- it is the direction in which an organization is heading and how it will succeed in reaching its desired
goals.

- it is the guide for critical decisions.

Basic Questions that should be answered in making mission statement:

* What is our business?

* Who are the customers?

* What do customers value?

* What will our business be?

3 Key Elements in Developing Mission Statement

* The organization's history

- history of objectives, accomplishments, mistakes and policies.

- critical characteristics and events from the past must be considered.

* The organization's distinctive competencies

- things that an organization does well or best to gain advantage over competitors.
* The organization's environment

- it dictates the opportunity, constraints or threats that must be identified before a mission statement is
developed.

A. Focus on Markets rather than Products

- business is not defined by the company's name, statutes or articles incorporation it is defined by the
want the customers satisfies when he buys a product or service.

- to satisfy the customer is the mission and purpose of every organization.

B. Achievable

- it should be realistic and should vision new opportunities but should not lead to unrealistic ventures
beyond its competencies.

C. Motivational

- it should provide a sense of purpose that can boost the whole organization.

D. Specific

- must provide direction and guidelines to management when choosing between alternative courses of
action.

2. ORGANIZATIONAL OBJECTIVES

- end points of an organization's mission and it seeks through the ongoing, long-run operations of the
organization.

- it is necessary in all areas that may influence the performance and long-run survival of the
organization.

Things that can be achieve by having a good organizational objectives:

* they can be converted into specific action

* they will provide direction

* they can established long-run priorities for the organization

* they can facilitate management controls

3. ORGANIZATIONAL STRATEGIES
- also known as 'grand design' that constitutes the organizational strategy.

- it involves the choice of major directions to be taken by an organization in pursuing its objectives.

Three Strategic Approach

1. Organizational Strategy based on Product and Markets - it indicates that an organization can grow by
better managing what is presently doing or by finding new things to do.

a. Market Penetration Strategies - focus primarily on increasing the sale of present products to present
customers.

b. Market Development Strategies - seeking new customers for its present product.

c. Product Development Strategies - offering different version of the product or offering a new
improvement on the product.

d. Diversification - this can lead into an entirely new and unrelated business, it involves seeking new
product for new customers.

2. Organizational Strategies based on competitive advantage - an ability to outperform competitors in

providing something that the market values.

3. Organizational Strategies based on Value - giving value to the customers by providing best price, best
product, and best service while still achieving organization's objectives.

Choosing an appropriate strategy

Management should select strategies that are consistent with its mission and capitalize on the
organization's distinctive competencies that will lead to sustainable competitive advantage such as
technical superiority, low cost production, product and customer support, location, financial resources,
product innovation, and overall marketing skills.

4. ORGANIZATIONAL PORTFOLIO PLAN

- this is the final phase of strategic planning process, the first step in creating organizational portfolio
plan is to identify the various divisions, product line so that it can be considered 'business'.

- after identifying these various division it will be called as strategic business unit having the same
mission, own competitors, collection of related business, and interdependently connected to each
other.