The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities .
Defining a Market-Oriented Mission
An organization exists to accomplish something, and this purpose should be clearly stated. Forging a sound mission begins with the following questions: What is our business? Who is the customer? What do consumers value? What should our business be? These simple-sounding questions are among the most difficult the company will ever have to answer. Successful companies continuously raise these questions . and answer them carefully and completely
Setting Company Objectives and Goals
The company needs to turn its mission into detailed supporting objectives for each level of management. Each manager should have objectives and be responsible for reaching them
Designing the Business Portfolio
Guided by the company’s mission statement and objectives, management now must plan its business portfolio—the collection of businesses and products that make up the company. The best business portfolio is the one that best fits the company’s strengths and weaknesses to opportunities in the environment. Business portfolio planning involves two steps. First, the company must analyze its current business portfolio and decide which businesses should receive more, less, or no investment. Second, it must shape thefuture portfolio by developing strategies for growth and downsizing.
The collection of businesses and products that make up the company.