Saturday, August 11, 2012

strategic planning

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Strategic planning plays a big role in today’s market. What this mean is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies.

The first step on strategic planning is to define the company’s business and mission. Having a mission enables all members of the organization to share the same view of the company’s goals, philosophy, and future directions. By building a business plans around a well conceived mission statement, the company can more effectively use its limited assets.

Second, the company’s sets objectives and there goals. Setting objectives and goals gives the company increase revenues from new customers, expand sales to existing customers, acquire related businesses, open new branches, Market new products or services and achieve levels of investments.

Next the company analyzes there current business portfolio. This strategic planning helps the company define the overall portfolio scope, the work categories, the work balance the company is trying to achieve, the financial models that projects in the portfolio will use, and the roles of responsibilities of the portfolio. Analyzing each portfolio carefully will allow more targeted focus in foundation process.

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Last the company develops the growth strategies in the age of connectedness. There are four strategies in this area. The first being market penetration which is growth by increasing sales of current products to current market segments without changing the product. Second is market development which is growth by identifying and developing new market segments for current company products. Third is product development which a company growth by offering modified or new products to current market segments. Last is diversification which is a growth through starting up or acquiring businesses outside the company’s current products and markets.

These four examples of strategic planning will help out businesses when followed properly. The company will value many loyal customers as well as maintaining their product while at the same time making money. Therefore, planning ahead, giving missions, setting goals and using strategies will give the company a major overall outcome in the end.

Glossary. (00) retrieved from November 1, 00 from


Armstrong, Gary, Kotler, Philip. Marketing an introduction. Retrieved November 1, 00 from page 56.

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