Chapter 2 Notes

Chapter 2 Notes - Chapter 2 Notes Developing Successful...

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Chapter 2 Notes Developing Successful Marketing and Corporate Strategies Organizations and Their Levels of Strategy A business firm is a privately owned organization that serves its customers in order to earn a profit. o Profit : the reward to a business firm for the risk it undertakes in offering a product for sale. A non-profit organization is a nongovernmental organization that serves its customers but does not have profit as an organizational goal. Levels in Organizations and How Marketing Links to Them The corporate level is where top management directs overall strategy for the entire organization. o Creates value for shareholders of the firm. The business unit level is where business unit managers set the direction for individual products and markets. Each business unit has marketing and other specialized activities (finance, R&D, human resources) at the functional level. o Where groups of specialists actually create value for the organization. o The name of a department generally refers to its specialized function (marketing or information systems). Strategy Issues in Organizations The Business At birth, most organizations have clear ideas about what “something” and “someone” mean. But as the organization grows over time, often its purpose gets fuzzy, unclear. o Who is our business? Who are our customers? o Example: Disney is not in the movie or theme-park business; it is in the business for creating fun and fantasy for customers. Yet the business and mission can overlap. The Mission Mission: statement of the organization’s scope. o Statement frequently has an inspirational theme, igniting loyalty with employees and others whom the organization comes into contact with. Organizational Culture Organizations must connect not just with their customers but with all their stakeholders (employees, owners, board members, suppliers). Organizational Culture: set of values, ideas, and attitudes that is learned and shared among the members of an organization. Goals Goals (objectives): targets of performance to be achieved, often by a specific time. Several different types of goals: o Profit (high financial return) o Sales o Market share (industry status, prestige) Market share: ration of a firm’s sales to the total sales of all firms in the industry. o
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Chapter 2 Notes - Chapter 2 Notes Developing Successful...

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