By preparing statements of mission, policy, strategy, and goals, headquarters establishes the framework within which the divisions and business units prepare their plans. All corporate headquarters undertake four planning activities: 1. Defining the corporate mission
2. Establishing strategic business units
3. Assigning resources to each SBU
4. Assessing growth opportunities
Defining the Corporate Mission:
A mission statement is a statement of the purpose of a company, organization or person, its reason for existing.
Good corporate mission statements focus on three characteristics’) 1. It should focus on a limited number of goals only.
2. Mission statements stress the company’s major policies and values. 3. They define the major competitive spheres within which the company will operate: a) Industry: the range of industries the company will operate. b) Products and applicants: the range of products and applications c) Competence: the range of technological and other competencies that a company will master and leverage d) Market segments: what type of market or customers a company will serve. e) Vertical: the number of channel levels from raw materials to final product and distribution in which a company will participate. f) Geographical: the range of regions, countries, or country groups in which a company will operate.
Defining the Business:
Companies often define their businesses in terms of products. But market definitions of business are superior to product definitions. A business must be viewed as a customer-satisfying process, not a goods producing process.
Target market definition:
* Tends to focus on selling a product or service.
Strategic market definition:
Assessing Growth Opportunities:
Assessing growth opportunities involves planning new businesses, downsizing, or terminating older businesses.
Intensive growth -- corporate...