developing successful organizational and marketing strategies chapter two kinds of organizations organizations something that offers a product or something that offers a service for profit businesses meaning it they're selling products or services and their goal is to make money nonprofit organization an NGO Hospital Church and the final one is the government characteristics of strategic business units or often known as SB use it is a single business or collection of related businesses it has shown its own set of competitors it has a leader responsible for strategic planning and profitability an example would be Ford Ford has vans Ford as trucks for as cars for as SUVs each one of those product types or sVU's has their own marketing plan of their own competitors often their own suppliers everything about them is unique even though there are all underneath the for brand name another example could be Procter & Gamble where they have multiple products and brands underneath the same strategy and organizational structure functional level groups create value for the organization so they're the people that are out there doing the work and then you have the departments groups with a specific function maybe marketing or accounting or finance Human Resources and cross-functional teams which is becoming an example would be where the executives will make a cross-functional team with someone from marketing someone from accounting someone from finance someone from maybe the IT are at my ass department and put them all together with the goal of with the same goal so that they can complete a task or maybe get a new SBU off the ground or a new product off the ground together so that they are not working individually with their departments focus they're working as a team within multiple backgrounds visionary organizations nowadays are so much over the last four or five years has become very common for organizations to really become visionary and focus on the future we have a great understanding of what's happening or the core of this of course is understanding and establishing a strong foundation that will support you through the good and the bad that comes with running a business and it also sets a direction for you to go so that you are not sort of taking a shotgun approach and are trying to appeal to everyone or chasing the bright lights which will ultimately end up hurting your company in the long run you need to have a direction that you can stay focused through the good and the bad and this will allow you to create strategies to successfully develop and make market their offerings once you have a good foundation and a good direction that you can stay to and stay true to then you can start to create strategies that will lead you to success and you can reach those customers that will purchase your products and be happy for them mr. statement and organizational cultures a mission statement is considered the backbone of the company it's limited long-term view and it's memorable it's always very short it's one or two sentences long it includes the goals of the company and it also includes all of these stakeholders oftentimes in the company not always but often it does it's something that everyone inside of the company can sort of live by so it cannot be long it cannot be a novel it must be very short and strong and oftentimes powerful so that people can grasp it and understand the goal of the company whether they are employees or customers or suppliers or people just looking in everyone knows what the goal of that company is the mission statement then is what leads into the corporate culture as the shared experience of stories beliefs and norms if you think about a company like Google which is very famous for their creative company culture and they often say that the reason they're so successful is because they have such a great cult there is no such thing as a good culture or a bad culture for a cup for or there is a bad culture of course but depending on the types of products that you were the you are selling or the goal of your company the cultures can be different one extreme is Google where it's very creative and they succeed because they're very creative the other extreme is like the military the military is not creative it's a very hierarchical based culture that's very rigid but the reason is is because when you're in battle you are it is not a time for creativity it is a time to be quick think quick and to act quick so that you can save lives organizational direction you have to think about what is our business what do we do what's our purpose what is the business model what is the goal of this company what are we actually setting out to do rushon of what the goals are objectives targets for performance we want to achieve is our goal to make profit is our goal to make sales what kind of sales are we looking more at numbers meaning quantity or I'll be looking more at money are we looking for market share meaning do we want to be the largest market leader like someone like coke or do we want to be more of a niche brand like Red Bull do you want to focus on quality so if you can think about oftentimes high quality products cost more money so you're going to have much less sales or do you want a lower quality which are cheaper and you're gonna make much more sit you can have more sales customer satisfaction employee welfare social responsibility efficiency so you can think about you have to understand what is the goal of your product or what is the goal of your company your organization so that when you mailed that the products and you sell them you can understand so that everything matches and it makes sense if things don't make sense on the inside they're not going to make sense on the outside and people will not buy our products and you'll go out of business how do we set goals one of the methods is using the smart method which is specific it's measurable it's attainable that's relevant its time-based setting a strategic direction can we deliver the benefits better than our competitors will the profits be more than the expensive so the first one can we deliver the benefits better than our competitors what is the value that we are offering is the value that we are offering our customers better than anybody else's and it's important to remember you have to have better value but you also have to be better at communicating that value to your customers it's easy to make a product that is better than everybody else's but it is very difficult to communicate that to your customers that they understand you are offering something better so it's more than just having a better product you have to have both of them combined to become successful and then you can start to become profitable if you can't get sales and your prices don't match it's very difficult to become successful so if you think about when you go to somewhere like Amazon and you see all these products for three four five ten fifteen dollars you have to understand the only way for them to be profitable is to sell thousands and thousands and thousands of those units because if you start to think about the math of like how much does Amazon take how much does shipping how much is insurance how much do i employees cost what are the just the cost of making that product it all adds up to a lot and now you have a very very tiny margin to make money left compared to a product you know maybe like a Gucci purse where it costs two or three thousand dollars they don't sell as many but the profit they make per sale is very large so you have to think about what is your goals