1. 1-1 McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved C H A P T E R TWELVE Organizing and Planning for Effective Implementation 12

2. 1-2 12-2 Aspects of a Strategic Fit  Firm's competitive and marketing strategies must fit:  Needs and desires of its target customers  Competitive and technological realities of the marketplace  If a firm’s competitive strategy is appropriate for current circumstances:  It must be capable of implementing that strategy effectively

3. 1-3 12-3 Exhibit 12.1 Administrative Factors Related to the Successful Implementation of Business Strategies Types of Business Strategy Administrative Factor ProspectorDifferentiated Defender Low-Cost Defender SBU autonomyRelatively high level Moderate levelRelatively low level Shared programs and synergy Relatively little synergy—few shared programs Little synergy in areas central to differentiation— shared programs elsewhere High level of synergy and shared programs Evaluation and reward systems High incentives based on sales and share growth High incentives based on profits or ROI Incentives based on profits or ROI

4. 1-4 12-4 Factors Related to the Successful Implementation of Business Strategies  Functional competencies of the SBU  Resource allocation across functions  Decision-making influence and participation  SBU’s organizational structure  Functional coordination and conflict resolution

5. 1-5 12-5 Variables in Organizational Structures  Formalization  Degree to which formal rules and standard policies and procedures govern decisions and working relationships  Centralization  Refers to location of decision authority and control within an organization’s hierarchy  Specialization  Refers to division of tasks and activities across positions within organizational unit

6. 1-6 12-6 Organizational designs  Functional  Simplest and most bureaucratic  Relies heavily on standard rules and operating procedures  Conflicts are resolved in a hierarchical manner  Product management  Decentralizes decision making  Increased attention to smaller product- market entries that might be neglected in a functional organization

7. 1-7 12-7 Organizational designs (continued)  Market management  Gives managers more authority and independent budgets  Popular with consumer goods companies  Matrix  Least bureaucratic or centralized  Brings together different types of specialists in a participative coordination structure  Inefficient participative decision making

8. 1-8 12-8 Trends in Organizational Design  Increased emphasis on managing business processes  Increased use of self-managing teams  Using teams as the basis for collaborative networks

9. 1-9 12-9 International organizational structures  Points to remember:  Innovation is the key to success  Technology is making the world smaller

10. 1-10 12-10 Organizational Designs for Selling in Global Markets  Little or no formal organization  An international division  Global structures  Decision making and organizational structure

11. 1-11 12-11 Contents of an Annual Marketing Plan  Executive summary  Current situation and trends  Performance review  Key issues  Objectives  Marketing strategy  Action plans  Projected profit-and-loss statement  Controls  Contingency plans

12. 1-12 12-12 Summary of Annual Marketing Plan  Situation analysis  Market situation  Competitive situation  Macroenvironmental situation  Past product performance  Sales forecast and other key assumptions  Key issues  Threats  Opportunities  Strengths  Weaknesses

13. 1-13 12-13 Summary of Annual Marketing Plan (continued)  Objectives  Financial objectives  Marketing objectives  Marketing strategy  Summarizes overall strategic approach used to meet the objectives  Initiates development and test marketing

14. 1-14 12-14 Summary of Annual Marketing Plan (continued)  Action plans  Improve the perceived price  Projected profit-and-loss statement  Supporting budget  Contingency plans  Maintaining marketing strategy and action plans