Mission statements should be meaningful and specific yet motivating They should

Mission statements should be meaningful and specific

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Mission statements should be meaningful and specific yet motivating. They should emphasize the company’s strengths in the marketplace. Finally, a company’s mission should not be stated as making more sales or profits; profits are only a reward for creating value for customers. Instead, the mission should focus on customers and the customer experience the company seeks to create Setting Company Objectives and Goals The company needs to turn its mission into detailed supporting objectives for each level of management. This broad mission leads to a hierarchy of objectives, including business objectives and marketing objectives. Marketing strategies and programs must be developed to support these marketing objectives. Each broad marketing strategy must then be defined in greater detail. 2 DESIGNING THE BUSINESS PORTFOLIO Guided by the company’s mission statement and objectives, management now must plan its business portfolio —the collection of businesses and products that make up the company. The best business portfolio is the one that best fits the company’s strengths and weaknesses to opportunities in the environment. Business portfolio planning involves two steps. First, the company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment. Second, it must shape the future portfolio by developing strategies for growth and downsizing.
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Analyzing the Current Business Portfolio The major activity in strategic planning is business portfolio analysis , whereby management evaluates the products and businesses that make up the company. The company will want to put strong resources into its more profitable businesses and phase down or drop its weaker ones. Management’s first step is to identify the key businesses that make up the company, called strategic business units (SBUs). An SBU can be a company division, a product line within a division, or sometimes a single product or brand. The company next assesses the attractiveness of its various SBUs and decides how much support each deserves. The purpose of strategic planning is to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment. So most standard portfolio analysis methods evaluate SBUs on two important dimensions: the attractiveness of the SBU’s market or industry and the strength of the SBU’s position in that market or industry. The best-known portfolio planning method was developed by the Boston Consulting Group The Boston Consulting Group Approach Using the now-classic Boston Consulting Group (BCG) approach, a company classifies all of its SBUs according to the growth-share matrix , as shown in Figure 2.2.
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