Chapter 3 Study Guide.docx - Chapter 3 Study Guide Define the strategy levels for multibusiness multiproduct firms 1 Strategic decisions at the topmost

Chapter 3 Study Guide.docx - Chapter 3 Study Guide Define...

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Chapter 3: Study Guide Define the strategy levels for multibusiness, multiproduct firms. 1. Strategic decisions at the topmost levels of multibusiness corporations provide guidance for strategy development at all lower organizational levels 1. Corporate à business à marketing à sales levels 2. Corporate strategy- consists of decisions that determine the mission, business portfolio, and future growth directions for the entire corporate entity 3. Strategic business units (SBU)- how the corporation is broken into sections to plan strategically and analytically 1. Many firms use these for their business unit portfolios that each one has different roles and competitive situations 4. Corporate mission statement- provides direction for strategy development and execution throughout the organization. 1. Even though important only about 20% of companies have a clear mission statement. Q2) Corporate and Business strategy’s affect on the sales function: Corporate: 1. Corporate Strategy Steps are as follows, each affects the sales function: A) Analyzing the corporate situation to identify potential opportunities and threats B) Determining corporate mission and objectives C) Defining strategic business units D) Setting objectives and resource allocations for each strategic business unit 2. Sales managers and salespeople must operate within the guidelines presented in the corporate mission statement. Furthermore, they can use these corporate guidelines as a basis for establishing specific policies for the entire sales organization. 3. Strategic Business Units: Changes in SBU definition may increase or decrease the number of SBUs, and these changes typically affect the sales function in many ways. Salesforces may have to be merged, new salesforces may have to be established, or existing salesforces may have to be reorganized to perform different activities. These changes may affect all sales management activities from the type of salespeople to be hired to how they should be trained, motivated, compensated, and supervised. Business: 1. The role of the sales function depends on how an SBU plans to compete in the marketplace, with the activities of sales managers and salespeople being important in executing a business strategy successfully.
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2. Generic Strategy Chosen: Low Cost: Servicing large current customers, pursuing large prospects, minimizing costs, selling on the basis of price, and usually assuming significant order-taking responsibilities. Differentiation: Selling nonprice benefits, generating orders, providing high quality of customer service and responsiveness, possibly significant amount of prospecting if high-growth industry, selecting customers based on low price sensitivity, usually requires a high- quality salesforce.
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