Strategic Planning and Organizational Framework

Oct 3, 2024

Mindmap

Developing Successful Organizational and Marketing Strategies

Types of Organizations

  • For-profit Businesses: Sell products or services with the goal of making money.
  • Nonprofit Organizations: Includes NGOs, hospitals, churches; not profit-driven.
  • Government: Public sector organizations.

Strategic Business Units (SBUs)

  • Characteristics:
    • Single business or related businesses.
    • Own set of competitors.
    • Leader responsible for strategic planning and profitability.
  • Examples:
    • Ford: Different SBUs for vans, trucks, cars, SUVs; each has its own plan.
    • Procter & Gamble: Multiple products/brands under one strategy.

Organizational Structure

  • Functional Level Groups: Create organizational value.
  • Departments: Specific functions like marketing, accounting, HR.
  • Cross-functional Teams: Members from various departments working on shared goals (e.g., launching a new product).

Visionary Organizations

  • Focus on the future with a strong foundation.
  • Importance of having a clear direction to avoid a scattergun approach.

Mission Statement and Organizational Culture

  • Mission Statement:
    • Backbone of the company, limited, memorable.
    • Includes company goals and often stakeholders.
  • Corporate Culture:
    • Shared stories, beliefs, norms.
    • Example: Google’s creative culture vs. Military’s hierarchical structure.

Organizational Direction

  • Key Questions: What is our business? Purpose? Business model?
  • Goals:
    • Profit vs. sales vs. market share.
    • Focus on quality vs. quantity.
    • Customer satisfaction, employee welfare, social responsibility, efficiency.

Setting Goals

  • SMART Method:
    • Specific, Measurable, Attainable, Relevant, Time-based.

Strategic Direction

  • Delivering Benefits: Better than competitors?
  • Profitability vs. Expenses: Ensure that benefits are communicated effectively to customers.

Examples of Strategic Positions

  • Amazon: Relies on high volume sales for profitability.
  • Gucci: Higher profit margins on fewer sales.

This guide provides an overview of strategic planning and organizational structuring, highlighting the importance of clear goals and a communicated value proposition.