How strategic planning is carried out at every level of the organization?

LARGE COMPANIES HAVE 4 ORGANISATIONAL LEVELS

Corporate

Division

Business unit

Product

Allocates resources to each division and which businesses to start or eliminate.

Allocates funds to each business unit.

Develops strategic plan to convert the unit into a profitable business opportunity.

Develops a marketing plan for achieving its objectives in the product market.

CORPORATE & STRATEGIC PLANNING

1. Defining the corporate mission

Focus on a limited number of goals.

Stress the company’s major policies & values.

Define the major competitive spheres within which the company will operate.

Take on a long term view.

Create a short, memorable & meaningful mission statement.

ESTABLISHING STRATEGIC BUSINESS UNITS: 1. It is a single business or a collection of

businesses that can be planned separately from the rest of the company.

2.It has its own set of competitors

3.It has a manager responsible for strategic

planning and profit performance, who controls most of the factors affecting profit.

ALLOCATING RESOURCES TO EACH SBU

To assess the potential of a business:

1. Shareholder value analysis(SVA)

2. Analysing the market value of a company

ASSESSING GROWTH OPPORTUNITIES

1.Intensive growth: Identify opportunities to achieve further growth within current businesses.

2.Integrative growth: Build or acquire businesses that are related to current businesses.

3. Diversification :Add attractive businesses unrelated to current businesses.

BUSINESS UNIT STRATEGIC PLANNING

Created by Santa Nibedita, CET Bhubaneswar, during an internship by Prof. Sameer Mathur, IIM Lucknow.

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