Corporate and division strategic planning

Establishing strategic business units

Detailed financial data are usually not included at this step because such information is not necessary to evaluate the strategy and because the effort of preparing it may go to waste if the recommendations are modified. What will our business be? Second, the involvement of functional managers in the long-range planning process should deepen and sharpen the strategic focus of the business and thus provide a better basis for the even more detailed budgeting task to follow. The company is redefining itself as a leading service provider in the much larger mail and document management industry. These questions include: What are the objectives and goals of our company? Still others set the goals and get involved heavily in the individual business unit strategies. Company develops a device for measuring the energy efficiency of any lighting system 3. Three Levels of Strategy Every corporate executive uses the words strategy and planning when he talks about the most important parts of his job. In the first cycle, corporate executives and division managers are primarily involved. Each of these units can be classified as SBU. Product development 4. Major prolonged economic depression 3. The sum of the recommended division goals is likely to be inadequate to achieve the goals envisioned by headquarters for the entire organization. Good mission statements have three major characteristics.

The sum of the recommended division goals is likely to be inadequate to achieve the goals envisioned by headquarters for the entire organization. Initially, only a small group of corporate executives is involved in the process; later, more and more managers at lower levels become involved.

Corporate and division strategic planning

A useful way to look at the specification of programs is in terms of the chronology for involvement of the functional departments. Should we make entry through an acquisition or through our research? Our focus in this article is on formal planning processes in such complex organizations. Or, if more effective programs have been devised, the existing ones must be modified or discontinued. The recommendations may also include a general statement of the action programs that would be developed to implement the strategy developed in more detail in the second cycle and a crude estimate of the resources that would be required. To begin implementing the selected strategy or continue a revalidated one , management fleshes it out in terms of the actions to be taken in the near future. Still others set the goals and get involved heavily in the individual business unit strategies. Strategic decisions—like this divestment—are not made in accordance with some precise timetable.

YU Hongyan JLU For more than 50 years, Our Credo has helped us in fulfilling our responsibilities to customers, employees, communities and stockholders. Admittedly, although we think our definitions of strategy and planning are useful, others give different but reasonable meanings to these words.

business unit strategic planning

Lever Brothers has introduced mini soap and mini pack shampoo. Good strategic planning can take place only when qualified managers engage in creative thinking—and creativity, by definition, cannot be produced on a schedule.

corporate strategic planning in marketing management

Managing the Marketing Process 4. General Electric classified its businesses into 49 strategic business units SBU. Major prolonged economic depression 3.

business unit strategic planning pdf

The degree of involvement at these levels is different in each planning cycle. Second, the involvement of functional managers in the long-range planning process should deepen and sharpen the strategic focus of the business and thus provide a better basis for the even more detailed budgeting task to follow.

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Corporate and Division level Strategic Planning