Chapter 2 Strategic Planning for Competitive Advantage 1 Learning Outcomes: LO 1 : Define the term “ Strategic planning ” and “ Marketing Planning ” LO 2 : Explain the elements of a marketing plan LO 3 : Develop an appropriate business mission statement LO 4 : Describe component of a situation analysis LO 5 : Explain criteria of stating good objectives LO 6 : Define “ competitive advantage ” and identify its sources LO 7 : Identify strategic alternatives. LO 8 : Discuss target market strategies LO 9 : Explain the element of the marketing mix LO 10 : Explain the importance of implementation, evaluation, and control. Chapter 2 Strategic Planning for Competitive Advantage 2 What does “ Planning ” mean to you? Chapter 2 Strategic Planning for Competitive Advantage 3 Planning – defined Forecasting the future , to achieve goals , by determining resources. Chapter 2 Strategic Planning for Competitive Advantage 4 Planning Strategic Planning Marketing Planning Chapter 2 Strategic Planning for Competitive Advantage 5 Strategic Planning – defined The managerial process of creating and maintaining a fit between the organization ’ s objectives and resources and the evolving market opportunities. Firm ’ s Goals and Resources Market Demand Chapter 2 Strategic Planning for Competitive Advantage 6 Marketing Planning – defined Designing activities relating to marketing objectives and the changing environment. Marketing Plan – defined A written document that acts as a guidebook of marketing activities for the marketing manager. Chapter 2 Elements of a Marketing Plan 7 Business Mission Statement SWOT Analysis Objectives Marketing Strategy Target Market Strategy Marketing Mix: 4 P ’ s Implementation Evaluation Control Chapter 2 Strategic Planning for Competitive Advantage 8 STEP 1 : Business Mission Statement: ➢ The foundation of any marketing plan ➢ What business are we in? ➢ Criteria: ✓ Short ✓ Not too narrow ✓ Not too broad ✓ Memorable ✓ Inspiring ➢ How to write a great mission statement http://www.youtube.com/watch?v=vRd 4 OhGFO - E&feature=related Chapter 2 Strategic Planning for Competitive Advantage 9 Examples of Business Mission Statements: Guess Who? 1 - ... is committed to providing a distinctive education that emphasizes on academic excellence, a liberal education base, academic programs designed to ensure student success, and use of continual advances in information technology. 2 - ... is to inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time. 3 - ... is to organize the world's information and make it universally accessible and useful. 4 - ... is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile. Chapter 2 Strategic Planning for Competitive Advantage 10 STEP 2 : Conducting a Situation Analysis (SWOT) ➢ SWOT analysis - a strategic planning method used to evaluate the S trengths, W eaknesses, O pportunities, and T hreats involved in a project or in a business venture. ➢ How to conduct a SWOT analysis? S W O T Chapter 2 Strategic Planning for Competitive Advantage 11 Strengths Weaknesses Opportunities Threats Chapter 2 Strategic Planning for Competitive Advantage 12 Strengths “ Capitalize ” Weaknesses “ Minimize ” Opportunities “ Invest ” Threats “ Avoid ” Chapter 2 Strategic Planning for Competitive Advantage 13 Strengths “ Capitalize ” Weaknesses “ Minimize ” Opportunities “ Invest ” Threats “ Avoid ” Internal External Chapter 2 Strategic Planning for Competitive Advantage 14 Sources Internal External Chapter 2 Strategic Planning for Competitive Advantage 15 Sources Internal External Customers Customers Employees Employees Annual reports Competition Shareholders Economy etc. Politics Government policies/rules Wars/Fires/Natural disasters Weather etc. Chapter 2 Strategic Planning for Competitive Advantage 16 SWOT for Starbucks Chapter 2 Strategic Planning for Competitive Advantage 17 • Strong brand name • High revenue • Variety of products • Unique/limited flavors • etc. • Crowded • High prices • Slow service • etc. • Introduce new meals/snacks/drinks such as • Provide home delivery service • Open more branches • etc. • Competition (examples) • Disasters such as COVID 19 • etc. SWOT for Starbucks Chapter 2 Strategic Planning for Competitive Advantage 18 Strengths Weaknesses Opportunities Threats Ideas Chapter 2 Strategic Planning for Competitive Advantage 19 Strengths Weaknesses Opportunities Threats Ideas Chapter 2 Strategic Planning for Competitive Advantage 20 • Strong brand name • High revenue • Variety of products • Unique/limited flavors • etc. • Crowded • High prices • Slow service • etc. • Introduce new meals/snacks/drinks such as • Provide home delivery service • Open more branches • etc. • Competition (examples) • Disasters such as COVID 19 • etc. SWOT for Starbucks 1